module 1 business research

7/31/2019 Module 1 Business Research

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Padma S Rao Asst Professor Global Academyof Technology 1

Business Research &

Methods

Module 1


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Introduction to Business research

Research Methodology

Scientific methods

Research Process


Meaning of research

Types, Objectives, Criteria of good research

Scientific method in physical science & in marketing

Distinction between scientific & Non scientific methods

Difficulties in applying scientific methods in marketing


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Business Research

A systematic Inquiry whose objective is toprovide information to solve managerialproblems.

Search for knowledge

Systematised effort to gain new knowledge-redman & Mory

Research comprises of Defining problems,formulating hypothesis, collecting, organising,

and evaluating data, reaching solutions and atlast testing the solutions to determine whetherthey fit the formulated hypothesis .


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Defn contd..

Business research is defined as thesystematic and objective process ofgathering, recording and analysing data

for aid in decision making.



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Why Managers need Better

Information

Global and domestic competition is more vigorous

Organizations are increasingly practicing data mining

and data warehousing

Increase in the complexity & riskMore knowledge exists in every field

Stake holders are better informed.

The power & ease of todays computersto analyse the data


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Why Study Research?

1. Changes in business environment2. Managers increased need for information3. Explosive technology growth

4. Problems with mergers, trade policies,Savings& investment issues5. Continuous innovations

Research provides you with the knowledge and skillsneeded for the fast-paced decision-makingenvironment


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The Manager-Researcher Relationship

Managers obligations Specify problems

Provide adequate backgroundinformation

Access to company

information gatekeepers

Researchers obligations Develop a creative research

design

Provide answers to important

business questions


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Manager-Researcher Conflicts

Managements limited

exposure to research

Manager sees researcheras threat to personalstatus

Researcher has toconsider corporateculture and political

situations

Researchers isolation

from managers


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When Research Should be Avoided

When information cannot be applied to acritical managerial decision

When managerial decision involves littlerisk

When management has insufficientresources to conduct a study

When the cost of the study outweighs thelevel of risk of the decision


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Theory

.



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Search is done through two methods

1. Arbitrary methodSeeking answers to questions based onimagination, opinion, belief, orimpression. Ex. Earlier belief that Shape

of the earth was flatDisadvantages

It is subjective

Finding varies form person to person.It is vague & inaccurate


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Scientific Method

Systematic rational approach to seeking facts

The scientific method is a systematic step by stepprocedure following the logical process of reasoning.

Scientific method encourages doubts & criticism so thatwhat emerges is the real evidence. Scientist does notbelieve anything with out testing, adheres to the rightpath & arrive at the truth.

Advantages

1. Objective

2. Precise & arrives at conclusions on the basis of

verifiable evidences.3. Method is free from personal beliefs, attitudes &

values.


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Continued

Three distinct characteristics of scientific

methodCareful & accurate classification of facts

Discovery of laws

Self criticism- Scientist should criticallyexamine his own research in a detachedmanner.


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Basis of scientific method Relies on empirical evidence

Use of relevant concepts Commitment to objectivity- Forming judgements based upon facts

unbiased by personal impressions

Ethical neutrality True & accurate statements. Does not passnormative judgements( Good or bad)

Generalisation Verifiability- Conclusions can be verified Ex Atom

originally was considered to be indivisible Logical reasoning process -Based on reasoning

process. Reasoning process is used for drawing inferences from

the findings of a study Ex. Expenditure pattern ofdifferent income group families on basic necessities


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Padma S Rao Asst Professor Global Academyof Technology

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Difference between scientific method &non scientific methods

More objective

Ex. Hypothesis can beverified with the help

of statistical principlesMore precise,

measurement &numerical analysiscan be done.

More subjective

Opinion differs fromperson to person.

Measurement &numerical analysis

can not be done


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Difference between scientific method &non scientific methods

Takes cognizance of theexisting knowledge in aparticular field, carries outfurther investigations &

compare the results soobtained earlier.

This leads to the expansionof knowledge. The

process which iscontinuous & unendingsystematises knowledge.

Non scientific methodmay not contribute to theaccumulation ofsystematic knowledge.


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Scientific method is continuous &unending process leading to theaccumulation of systematic knowledge.Marketing research is problem solving &problem oriented research. Focus ofinvestigation is narrow. It is an exhaustive

study.


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Logical reasoning process consists of induction &deduction.

Induction- A process of reasoning where by wearrive at universal generalisations from particularfacts

Studying individual cases & drawinggeneralisations

Logical reasoning process Involves two processes

1.Observation 2.Generalisation

Ex. If it is observed that educated girls haveexpensive habits one may conclude that alleducated girls have expensive habits.


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Methods of logical reasoning process

Induction- Particular to general Deduction- General to particular

Deductionis a form of inference that purports to beconclusive

Inductiondraws conclusions from one or moreparticular facts.

Induction occurs when we observe a fact and askWhy is this? To answer the question hypothesis is

formulated.


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Deduction

Deductive reasoning uses a top-down approach to logic.Deductive reasoning usually starts with a theory. Ahypothesis, or a definition of a theory suitable for testing,follows. Observations from the tests of the hypothesiseither confirm or disprove the hypothesis and theory.

Deduction can give conclusive evidence.

Ex. Dr. Shekar is an adult.

All adults are eligible to vote.

Dr Shekar is eligible to vote.


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Examples for Deduction

All managers take decisions- Premise 1 True

Ram is a manager- Premise 2 True

Argument is valid

Deduction is Ram takes decisions- true

1. All organisations manufacture manufacturing goods.

2. ABC Ltd is an organisation

3. Argument The set of sentences deriving conclusions from other

sentences are called arguments.


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When induction is followed?

Inductive reasoning is a bottom-up method of logic. Bybeginning with an observation or several observations, apattern can be recognized. Once the pattern is defined, itbecomes a tentative hypothesis. Once the hypothesis is

defined and tested, the hypothesis and theory can beproven or disproven.

Observation must be correctly performed, data collectedshould be accurate

Observations must cover representative cases drawnfrom a specific universe.

Observations must cover adequate number of cases

Conclusions must be confined to inferences drawn from

the findings


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When deduction is used?

The general rule or assumption must becorrect

The general rule must be applied only tothe cases which properly fall under it


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Refer Methodology of research in socialsciences by O R Krishna swamy 1 chapter

Business research methods By Donald RCooper


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Difference between Research in Socialscience & physical science Scientific method is a body of

techniques for investigatingphenomena and acquiring new

knowledge, as well as forcorrecting and integratingprevious knowledge. It isbased on gatheringobservable, empirical,measurable evidence, subjectto the principles ofreasoning.Hypothesis is alsoproposed.

Social research is researchconducted by social scientistsin sociology social psychology

human geography, politicalscience, social anthropologyand education. Sociologists.and other social scientists.They study diversethings.Ex.They conduct in-depth analysis of the life of asingle important person . Theymay monitor what ishappening on a street today -or what was happening a fewhundred years ago.
http://en.wikipedia.org/wiki/Phenomenonhttp://en.wikipedia.org/wiki/Knowledgehttp://en.wikipedia.org/wiki/Observablehttp://en.wikipedia.org/wiki/Empiricalhttp://en.wikipedia.org/wiki/Measurablehttp://en.wikipedia.org/wiki/Reasoninghttp://en.wikipedia.org/wiki/Reasoninghttp://en.wikipedia.org/wiki/Social_scientisthttp://en.wikipedia.org/wiki/Sociologyhttp://en.wikipedia.org/wiki/Social_psychologyhttp://en.wikipedia.org/wiki/Human_geographyhttp://en.wikipedia.org/wiki/Political_sciencehttp://en.wikipedia.org/wiki/Political_sciencehttp://en.wikipedia.org/wiki/Social_anthropologyhttp://en.wikipedia.org/wiki/Educationhttp://en.wikipedia.org/wiki/Sociologistshttp://en.wikipedia.org/wiki/Sociologistshttp://en.wikipedia.org/wiki/Educationhttp://en.wikipedia.org/wiki/Social_anthropologyhttp://en.wikipedia.org/wiki/Political_sciencehttp://en.wikipedia.org/wiki/Political_sciencehttp://en.wikipedia.org/wiki/Human_geographyhttp://en.wikipedia.org/wiki/Social_psychologyhttp://en.wikipedia.org/wiki/Sociologyhttp://en.wikipedia.org/wiki/Social_scientisthttp://en.wikipedia.org/wiki/Reasoninghttp://en.wikipedia.org/wiki/Reasoninghttp://en.wikipedia.org/wiki/Measurablehttp://en.wikipedia.org/wiki/Empiricalhttp://en.wikipedia.org/wiki/Observablehttp://en.wikipedia.org/wiki/Knowledgehttp://en.wikipedia.org/wiki/Phenomenon


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the process is objectiveso that the scientist doesnot bias the interpretationof the results or changethe results outright.

Another basic expectationis that of makingcomplete documentationof data and methodologyavailable for carefulscrutiny by otherscientists andresearchers.

Social scientists use differentmethods in order to describe,explore and understand sociallife. Social methods cangenerally be subdivided intotwo broad categories.

Quantitative methods areconcerned with attempts toquantify social phenomenaand collect and analysenumerical data, Qualitativemethods, on the other hand,

emphasise personalexperiences & are moreconcerned with understandingthe meaning of socialphenomena
http://en.wikipedia.org/wiki/Objectivity_(philosophy)http://en.wikipedia.org/wiki/Scientisthttp://en.wikipedia.org/wiki/Biashttp://en.wikipedia.org/wiki/Social_lifehttp://en.wikipedia.org/wiki/Social_lifehttp://en.wikipedia.org/wiki/Quantitative_methodhttp://en.wikipedia.org/wiki/Social_phenomenahttp://en.wikipedia.org/wiki/Qualitative_methodhttp://en.wikipedia.org/wiki/Qualitative_methodhttp://en.wikipedia.org/wiki/Qualitative_methodhttp://en.wikipedia.org/wiki/Qualitative_methodhttp://en.wikipedia.org/wiki/Social_phenomenahttp://en.wikipedia.org/wiki/Quantitative_methodhttp://en.wikipedia.org/wiki/Social_lifehttp://en.wikipedia.org/wiki/Social_lifehttp://en.wikipedia.org/wiki/Biashttp://en.wikipedia.org/wiki/Scientisthttp://en.wikipedia.org/wiki/Objectivity_(philosophy)


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Experiments areconducted to quantify theresults

Common tools ofquantitative researchersinclude surveys,questionnaires,).

Commonly usedqualitative methodsinclude focus groups,participant observation,and other techniques.
http://en.wikipedia.org/wiki/Statistical_surveyhttp://en.wikipedia.org/wiki/Questionnairehttp://en.wikipedia.org/wiki/Focus_grouphttp://en.wikipedia.org/wiki/Participant_observationhttp://en.wikipedia.org/wiki/Participant_observationhttp://en.wikipedia.org/wiki/Focus_grouphttp://en.wikipedia.org/wiki/Questionnairehttp://en.wikipedia.org/wiki/Statistical_survey


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Theory

Theories provide explanation of thereasons for the behaviour of variables.

Explanation of observed regulatities.

Theory is a coherent set of generalpropositions used as principles ofexplanation of the apparent relationships

of certain observed phenomenon rentrelationships of certain observedphenomenon.


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Concept

It is a generalised idea about a class ofobjects, attributes, occurances, orprocesses that has been given a

name.GNP, Inflation.


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Characteristics of research

Research is systematic & critical investigation into a phenomenon. It is not a mere compilation but a purposive investigation

It aims at describing interpreting & explaining a phenomenon. It adopts a scientific method. It is objective, logical, applies possible tests & arrives at conclusions It is based on observable experience or empirical evidence. Research is directed towards finding answers to pertinent questions It emphasises the development of generalisation,principles or

theories.


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Objectives of Research1.To gain familiarity with a phenomenon Or to

achieve new sights in to it

2.To determine the frequency with which something occurs

3.To test a hypothesis of a casual relationship

between the variables4.To portray accurately the characteristics of a

particular individual , situation or a group.


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To find answers to various types of questions why,where, how, what

Research unravels the mysteries of nature

Research establishes generalisations & general laws &

principles. Ex. Law of gravitation, law of demand,principles of organisation

Aims at finding solutions to problems

Aims at developing theories, concepts & principles

Research aids planning & thus contributes to nationaldevelopment


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Criteria of good research The purpose should be clearly defined.

The research procedure used should be described in

detail to permit another researcher to repeat theresearch for further development.

Procedural design of the research should be carefullyplanned to yield the results that are objective as for aspossible.

The researcher should report with complete frankness,

The analysis of the data should be sufficiently adequate

to reveal its significance.


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Researcher should be experienced & aperson of integrity.

Method of analysis should be appropriate.

The validity& reliability of data should be

checked carefully.Conclusions should be confirmed to those

justified by the data of the research. Validity refers to the degree to which a study accurately reflects or

assesses the specific concept that the researcher is attempting tomeasure

Reliability: consistency" or "repeatability


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Types of Research

Applied research ( Action Research)

aims at finding a solution for an immediateproblem facing a society or anorganisation.

Ex .1.Teacher finds that most of thestudents are weak in comprehension

A teacher innovates a method to improve

the ability of the students.2. Marketer studying the profitability of twoor more products.


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Descriptive Research

It includes surveys & fact finding enquiries.

It is concerned with describing the state of affairs as itexists at present. Ex characteristics of people, market &association between variables.

Employs any or all the methods of data collection. Ex,Questionnaire, Interview, observation

In social research, the Ex post Facto research term is used.He has no control over variables. He can only reportwhat has happened or what is happening. Ex.Preferences of people.


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Fundamental ResearchConcerned with generalisations & with the

formulation of a theory.

Ex. Research concerning natural phenomenon orrelating to pure science, Human behaviour inorder to make generalisations.

One time research & Longitudinalresearch


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Quantitative ResearchBased on the measurement of quantity or amount.

Qualitative researchConcerned with qualitative phenomenon.Ex. Motivation research

Exploratory researchTo provide insights and understanding.Historical ResearchIt is that which utilises historical sources like

documents, letters. Autobiographies,monuments, remains, paintings in order toestablish facts & draw conclusions concerningthe past.


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Comparative Research

The research aims at comparing theinstitutions, practices, concepts, trends ineconomic variables.

Ex. Customer service in different banks

Model Building researchMostly done in the field of management.

Model is constructed to show the

relationship among many variables.Ex. Advertising models, Consumer

behaviour models


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Operations Research

The method of research to solve problems usingscientific methods & quantitative techniques

Ex. Construction of fly overs,

Library Research

Conducted with the help of written materialslocated in big libraries. Concerned with theevolution of theories, study involving cause &

effect relationship & seeking out significant facts& interpretation of the past data.

Individual & Group research


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Significance of Research

All progress is born of enquiry. Doubt is better than

overconfidence. For it leads to inquiry and inquiry leads toinvention.

1. Research inculcates inductive thinking and it promotesdevelopment of logical thinking .

2. Several complex business problems can be solved throughresearch

3. It provides the basis for all govt. policies

4. Important for social scientists in studying the social

relationships and to seek answers for social problems


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5.Operational & planning problems of business & industry canbe solved with the help of research.

6. For students- A career7. Professionals- Source of livelihood

8.Literary men & women Development of new styles & creativework.

9.Philosophers Analysts & intellectuals- Generalisation of newtheories.


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Research Process

Defining formulating a research problem Extensive research survey

Development of working hypothesis

Preparing the research design

Determining the sample design

Collecting the data

Analysis of data

Hypothesis testing

Generalisations and interpretation

Preparation of the report.


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1. Formulating a problem

What is a research problem?It refers to some difficulty which anorganisation is facing and wishes to

obtain a solution for the same.


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Formulating a problem contd..

Means a question or issue to be studiedDecide about the general area of study.


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Why research problem to be defined?

Problem formulation is a key to research process.

It is converting management problem in to a researchproblem.

Problem has to be stated in order to attain clarity

Finding a solution becomes easy

Helps to collect data

M.P: Sales are declining

R.P: Which products sales are declining?Writing brief summary of the problem


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2. Extensive research survey

Academic journals,

Magzines,

Text books

Articles

Reports

D l f ki


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3. Development of workinghypothesis

Hypothesis is a tentative assumptionmade to draw inferences and test itsempirical consequenses

It should be specific

It puts the researcher right on track.


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4. Preparation of research design

A conceptual structure with in whichresearch work is conducted.

A plan for the study


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5. Determining sample design

Sample design is a way of selecting thesample or a plan

Population- All the items in any field of

inquiry constitute universe orpopulation.

Sample size

Sampling method- Probability or nonprobability sampling techniques


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6. Collection of data

Observation

Questionnaires

Interview


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Analysis of data

Establishment of categories

Application of catagories to raw datathrough coding

Tabulation

Drawing inferences

Conputation of percentages mean,standard deviation etc.


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Hypothesis testing

Do the facts support the hypothesis?

Chi sqaure test, F test, t test are used totest the hypothesis.

Hypothesis testing results in eitheraccepting or rejecting the hypothesis.

G li ti d i t t ti


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Generalisation and interpretation

Generalisations: idea of conclusionshaving general application.

Interpretations: based on findings

P ti f th t


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Preparation of the report

Lay out of the report

Preliminary pages

Main text

The end matter


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Preliminary pages

Title

Acnowledgements

Foreward

Table of contents

List of tables

List of graphs and charts


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Main text

Introduction

Theoretical concepts

Review of literature

Objectives of the research

Research methodology

Scope of the studyLimitations


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Summary of findings

Statement of findings

Discussion

Recommendations and conclusions


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Research proposal

A proposal is supposed to be a descriptionof the goals for ones research.

A proposal should describe reserachers

questions, and why they are importantquestions

It is very important for the researcher to

read a couple of the most importantpapers in the field chosen before writingyour proposal. Since it is a proposal


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In the proposal, researcher shoulddescribe an angle on a problem thathe/she thinks important, and doesn't

seem to be covered by the papers he hasread.


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What are Research Ethics?

Ethicsare norms or standards of behaviorthat guide moral choices about ourbehavior and our relationships with others

The goal is to ensure that no one isharmed or suffers adverse consequences

from research activities


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Ethical Treatment of Participants

Rights of the participants should be protected. For thatResearcher should follow 3 guidelines

Begin data collection by explaining to the participantthe benefits expected from the research

Explain to the participants that their rights and well-being will be adequately protected, and say how thiswill be done

Be certain that interviewers obtain the informed

consent of the participant


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Deception

Deception occurs when the participant is told only partof the truth or when the truth is fully compromised.There are two reasons for deception

To prevent biasing the participants before the survey

or experiment To protect the confidentiality of a third party ( sponsor)

The benefits to be gained by deception should bebalanced against the risks to the participants.

Issues Related to Protecting


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Issues Related to ProtectingParticipants

Obtain Informed consent from participants

Debriefing- Explanation of deception,Description of hypothesis, goal or purpose of

study to participants, post study sharing ofresults with the participants.

Right to Privacy/Confidentiality Guarantee ofconfidentiality must be given to the participants.


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Ethical Issues related to the Client

Sponsor non-disclosure- Some clientswish to undertake research with outrevealing themselves.

Purpose non-disclosure- Researcher hasto protect the purpose of the study.

Findings non-disclosure


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Right to quality researchThis right entails

1. Providing a research design

appropriate for the research question.2. Maximising the sponsors value for the

resources expended.

3. Providing appropriate data handlingand reporting techniques for the datacollected.


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Ethics Related to Sponsor

Sometimes researchers will be asked bysponsors to participate in unethical behavior.

To avoid coercion by sponsor the researcher

should:Educate sponsor to the purpose of research

Explain researchers role

Explain how distortion of the truth leads tofuture problems

If necessary, terminate relationship withsponsor

Ethical Issues related to


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Ethical Issues related toResearchers and Team Members

Safety= it is the responsibility of the researcherto design a project so that the safety of allinterviewers , surveyors, observers orexperimenters is protected.

Ethical behavior of assistants- Researcherexpects ethical compliance or behaviour fromthe assistants.

Protection of anonymity- Researcher &assistants should protect the confidentiality ofthe sponsors information & theanomity of theparticipants.


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Rights of the Respondents

Rights of the respondents Information collected for the MR should not be

misused for any other purpose. Respondents should not be forced to answer a

questionnaire.

Information should be kept confidential. Respondents should be given the opportunity to

think & answer the questions that are of personalnature.

It is the responsibility of the market researcher toaccurately reflect the respondents replies in hisreport.

What is Thematic Appreciation Test


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What is Thematic Appreciation Test(TAT)

It is a projective technique. Participants are shown picturesand asked to tell a story based on what they see. Thistool helps to elicit important information aboutunderlying psychological fears and needs. The TAT wasdeveloped in 1935 by Morgan and Murray. Ironically, itwas initially used in a study of normal personalities doneat Harvard Psychological Clinic.

The test comprises 31 cards. One card is blank and theother thirty include blurred but emotionally powerful (or

even disturbing) photographs and drawings

Diff b t R h th d &


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Difference between Research methods &Research Methodology

Research methods refer to techniques that areused for conducting research ex.

Observation, Questionnaires, interviews,

Analysis of historical records, Case studiesResearch methodology is a way to

systematically solve the research problem.


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It is a way to systematically solve the researchproblem.

It is a science of studying how research is donescientifically ( step by step)

Researcher needs to know not only the methods &techniques but also as to how to use relevantmethod at the appropriate time

Ex researcher in designing a building

Research methodology has many dimensions &methods only constitute a part of the researchmethodology.

1 Define Business Research Explain its significance in modern times


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1. Define Business Research. Explain its significance in modern times.

2. Define Research. Explain how scientific research differs from socialresearch.

3. Differentiate between basic research & applied research withexamples.

4. What are the difficulties in applying scientific method in marketingresearch.

5. Differentiate between research methods & research methodology.

6. What is ex-post facto research.

7. Explain the objectives of research

8. Write a note on research & scientific method.

9. Explain three general categories of research with examples.

10. Explain the criteria of good research.

11. Explain the types of research with a suitable example.

12. What are the diffrences between scientific method & non-scientificmethod?

13. Explain the difference between deduction & Induction.

Example for Combining deduction


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Example for Combining deductionand induction

Q: Why didnt sales increase?We promote a

product but sales didnot increase

Why?

Induction

Hypothesis:The promotion

was poorlyexecuted

We run an effectivepromotion and sales

will increase

Deduction

Ineffective promotion

Deduction: Effectivepromotion


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In logic, a form of deductive reasoning consistingof a major premise, a minor premise, and aconclusion. Adjective: syllogistic.

Here is an example of a valid categoricalsyllogism:

Major premise: All mammals are warm-blooded.Minor premise: All black dogs are mammals.

Conclusion: Therefore, all black dogs are warm-blooded
http://grammar.about.com/od/il/g/logicterm.htmhttp://grammar.about.com/od/d/g/deductionterm.htmhttp://grammar.about.com/od/pq/g/premiseterm.htmhttp://grammar.about.com/od/c/g/Conclusion-Argument.htmhttp://grammar.about.com/od/c/g/Conclusion-Argument.htmhttp://grammar.about.com/od/pq/g/premiseterm.htmhttp://grammar.about.com/od/d/g/deductionterm.htmhttp://grammar.about.com/od/il/g/logicterm.htm

module 1 business research

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