Business Research Methods

Business Research Methods
Module 1
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Topics to be covered
Research Meaning Types Criteria of good research Marketing research Scientific approach to research in physical and management science Limitations of applying scientific methods in business research problems Ethical issues in business research.
Meaning
Research is an art of scientific investigation. It is also a systematic design, collection, analysis and reporting the findings and solutions for the marketing problems of a company.
A scientific undertaking which by means of logical and systematic techniques, aims to: 1. Discover new facts or verify and test old facts. 2. Analyze their sequences, interrelationships and causal explanations. 3. Develop new scientific tools, concepts and theories, which would facilitate valid and facebook.com/mr.fortyseven reliable study of human behavior.
Requirement of Research
To identify and find solutions to the problems
To find alternate strategies
To help making decisions
To develop new concepts
Research is required for the following reasons : 1. To identify and find solutions to the problems. 2. To help making decisions. 3. To find alternate strategies. 4. To develop new concepts
Types of Research
Exploratory Research Descriptive Research
Applied Research
Pure/ Fundamental or Basic Research Conceptual Research
Types of Researc h
Action Research Historical Research
Causal Research
Types of Research
Exploratory Research Provides insights into and comprehension of an issue or situation. Often relies on secondary research such as reviewing available literature and/or data, or qualitative approaches such as informal discussions with consumers, employees, management or competitors and more formal approaches through in-depth interviews, focus groups, case studies or pilot studies. Carried out at the very beginning when the problem is not clear or is vague.
Example : Exploring the reasons for sales decline of a product in a company.

Descriptive Research Describes data and characteristics about the population or phenomenon being studied. Answers the questions who, what, where, when and how. Describes the characteristics of the respondent in relation to a particular product. Deals with demographic characteristics of the consumer.
Example : Degree of viewing TV Channels, its variation with age, income level, profession of respondent as well
Applied Research
Undertaken to find solutions for real-life problem requiring an action or policy decision. It may incidentally contribute to the development of theoretical knowledge. Contributions:
Can contribute new facts about existing theories. Puts theories to test. May aid in conceptual clarification. Integrate previously existing theories.
Example : To develop a new market for the product.

Pure/Fundamental or Basic Research

Undertaken for the sake of knowledge without any intention to apply or practice. Not directly involved with practical problems. Does not have any commercial potential. Contributions:
By developing principle, pure research offers solutions to many practical problems. Helps to find critical factors in a practical problem. Develops many alternative solutions.
Example : Theory of Relativity (by Einstein)

Conceptual Research Generally used by philosophers. Related to some abstract idea or theory. Researcher should collect the data to prove or disapprove his hypothesis.
Example : Various ideologies
Causal Research Conducted to determine the cause and effect relationship between the two variables. Way of seeing how actions now will affect a business in the future.
Example: A clothing company selling blue denim jeans, causal research can measure the impact of the company changing the product design to the color white. The company bosses will be able to decide whether changing the color would be profitable.
Historical Research Historical study is a study of past records and data in order to understand the future trends and development of the organization or market. There is no direct observation. Research has to depend on the conclusions or inferences drawn in the past. Main objective is to derive explanation and generalization from the past trends in order to understand the present and anticipate the future.
Example : Investors in the share market study the past records or prices of shares which he/she intends to buy. Studying the share prices of a particular company enables the investor to take decision whether to invest in the shares of a company.
Shortcomings of Historical Research Reliability and adequacy information is subjective and open to question. Accuracy of measurement of events is doubtful. Verification of records are difficult.
Action Research Research is undertaken by direct action. Action Research is conducted to solve a problem. Example : Test Marketing a product is an example of action research. Initially, the geographical location is identified. A target sample is selected from among the population. Samples are distributed to selected samples and feedback is obtained from the respondent.
Criteria of Good Research
Purpose clearly defined The purpose of the business research-the problem involved or the decision to be madeshould be clearly defined and sharply delineated in terms as unambiguous as possible. The statement of the decision problem should include its scope, its limitations, and the precise meanings of all words and terms significant to the research. Research process detailed The research procedures used should be described in sufficient detail to permit another researcher to repeat the research. Except when secrecy is imposed, research reports should reveal the sources of data and the means by which they were obtained. Research design thoroughly planned The procedural design of the research should be carefully planned to yield results that are as objective as possible. A survey of opinions or recollections ought not to be used when more reliable evidence is available from documentary sources or by direct observation.
High ethical standards applied Ethical issues in research reflect important moral concerns about the practice of responsible behavior in society. A research design that includes safeguards against causing mental or physical harm to participants and makes data integrity a first priority should be highly valued. Limitations frankly revealed The researcher should report, with complete frankness, flaws in procedural design and estimate their effect on the findings. Analysis adequate for decision makers needs- Analysis of the data should be extensive enough to reveal its significance, what managers call insights. The methods of analysis used should be appropriate.
Findings presented unambiguously Language that is restrained, clear, and precise; assertions that are carefully drawn and hedged with appropriate reservations; and an apparent effort to achieve maximum objectivity tend to leave a favorable impression of the researcher with the decision maker. Conclusions justified Conclusions should be limited to those for which the data provide an adequate basis. Good researchers always specify the conditions under which their conclusions seem to be valid.
Marketing Research Definition

American Marketing Association Marketing Research is the function which links the consumer, customer, and public to the marketer through information information used to identify and define marketing opportunities and problems; generate, refine and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing process.
Marketing Research is the systematic and objective identification, collection, analysis, dissemination and use of information for the purpose of improving decision making related to the identification and solution of problems and opportunities in marketing.
Scientific Approach to Research in Physical & Management Science
Marketing Research involves : a) Systematic problem analysis b) Model building, and c) Fact finding method, used for the purpose of important decisionmaking and to regulate the marketing of goods and services.
Scientific Method
Scientific research is one which yields the same results when repeated by different individuals. Scientific method consists of the following steps: 1. Observation The researcher wants to observe a set of important factors that is related to his problem. 2. Formulates Hypothesis The researcher formulates a hypothesis which will explain what he has observed. 3. Future Prediction The researcher draws a logical conclusion. 4. Testing the Hypothesis The researcher will arrive at the conclusion based on data.
Characteristics of Scientific Method

Validity
ValidityV of Characteristics Scientific Method
Reliability
Characteristics of Scientific Method

Validity Validity is the ability of a measuring instrument to measure what it is supposed to. Reliability Measurement by instruments such as thermometer or footruler can be repeated any number of times by different individuals, but the results will be the same.
Why MR cannot be considered scientific?

In MR, the instrument used is a questionnaire. There are five main problems faced by researcher regarding validity and reliability: 1. Different respondents interpret the same question in different manner. So the reply of the respondents will be different. 2. It is difficult to ascertain whether the sample is a representative of the population or not. 3. The same questionnaire administered by different interviewers will yield different results.
The measuring instrument, namely the questionnaire may not state clearly what is being measured. Lab experiments are held under controlled conditions, such as temperature, humidity, etc. In marketing research, it is not possible to control external factors surrounding the study.
Example
The respondent is interviewed on a specific subject. After 60 days, the respondent is interviewed again reply could be very different from what he said earlier. This may happen because he gathered additional information, or had discussed the subject with others during this period. How do you rank yourself about the financial literacy? Very good Good Average Poor
Distinction between Scientific and Unscientific Methods
Rationality and objectivity Researchers generally approach the respondents, who are easy to reach and with whom they are comfortable even though they may not represent the true sample.
Accuracy of measurement Accuracy is possible through the use of scientific instruments as the measuring instrument is valid and reliable. Maintaining continuity in Investigation Science is marked by continuity. This is because, every time there is an invention, the same is carried forward for further improving the same.
Limitations of applying scientific methods in business research problems
Role of investigators Inaccuracy of measuring instruments Influence of measurement Pressures of time-frame Testing of hypothesis Complexity of the subject
Role of investigators Organisations are the clients of researchers. Sometimes, the investigator tries to fit in results which are readily acceptable to clients. This is possible when the investigator manipulates the data or does not conduct an exhaustive study.
Inaccuracy of measuring instruments Accuracy of measurement separates scientific and unscientific methods. Since human beings are the participants, subjectivity invariably creeps in. Most of the information obtained from the respondent is qualitative in nature.
Influence of Measurement In physical sciences, the researcher can repeat an experiment any time to get the same results. This is not the case with marketing research. As human reaction changes quickly, reliability and validity of research will suffer a great deal.
Pressures of Time-frame Marketing research must be conducted and completed within a given time-span. If more time is consumed in conducting the research, competitors might enter and capture the market.
Testing of Hypothesis Any hypothesis formed in MR must be tested. Thus, experimentation has to be restored to. In Marketing Research, it is almost impractical to carry out experiment due to many factors which come in the way.
Complexity of the Subject The subject becomes very complex, due to the fact that it is human beings, who interact with the researcher. Human reaction varies from time to time. Different individuals react differently for a given stimuli. Added to this are the environmental factors and peer influence adding to the complexity.
Ethical Issues in Business Research

Ethics are norms or standards of behavior that guide moral choices about our behavior and our relationships with others. The goal of ethics in research is to ensure that no one is harmed or suffers adverse consequences from research activities.
Principles of ethics in Research
Autonomy
Beneficence
Principles of Ethics in Research
Justice
Non-maleficence
Principles of ethics in research
Autonomy Obligation on the part of the investigator to respect each participant as a person capable of making an informed decision regarding participation in the research study. Beneficence Obligation on the part of the investigator to attempt to maximize benefits for the individual participant and or society, while minimizing risk of harm to the individual.
Justice Demands equitable selection of participants, i.e. avoiding participant populations that may be unfairly coerced into participating, such as prisoners. Non-maleficence It suggests that a proposed research project involving human participants should not cause them harm.
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Ethics in the treatment of the Respondent Information that should not be disclosed and made public, i.e., participants name and secrecy must be protected. Data collected from respondents must be correct and should not be manipulated. The rights of the respondents must be protected. Right to privacy The researcher should convince the customer that the survey does not involve unethical things and it is being conducted for mutual benefits. Voluntary participation Prospective research participants must be fully informed about the procedures and risks involved in research and they give their consent to participate. Right to safety The researcher must not inflict psychological harm by putting the respondents under pressure to answer. Right to be informed The researcher must inform the customer in advance about the purpose.
2. Ethics in the treatment of Buyers and Clients Ethically state the right methods - The method for conducting the research and the results obtained should be accurate. The researcher should ethically state the right methods and not list the procedures that are simply convenient to him. Confidentiality and privacy -The researcher should keep the identity of the client and information generated by a particular research project confidential. Protection from unqualified researchers Researcher should not commit his services to a client if his capabilities do not match those that the research project demands.
3. Ethics in the treatment of Researchers Selecting the bidders Sometimes firms, for the sake of formality, call for quotations from a number of market research agencies, even though they have already decided to whom the project should be given.
Limited funds Certain firms have limited funds allocated to carry out the research. For eg., the firm may have a budget to be conducted on a regional basis but the firm does not make this clear to the researcher while inviting proposals. It may so happen that such ambiguity may cause the researcher to prepare his proposal for a nationwide research, but upon bagging the project, the funds released are sufficient only to conduct research on regional basis.
Non-availability of data Some firms give projects to their researcher, but do not provide him with required sales and cost data. Since this may be the basis for carrying out the research, the researcher feels frustrated. Pseudo-Pilot studies Some clients ask the research agencies to conduct pilot studies and promise that if the researcher does a good job during the pilot study stages, there will be an additional major contract immediately. This is not an ethical practice. Political research Political organizations hire some research consultants to carry out a research. In such cases, there is all likelihood that the consulting firm or organization will be politically pressurized to produce reports and forecast in favor of the party commissioning it.
Questions

Briefly explain three general categories of research based on information required. Give examples. 10 Marks What is marketing research? Explain the areas of marketing research. 10 Marks Scientific methods are difficult to apply in business research. Briefly comment.7 Marks What are the features of a good research study? 7 Marks Why cannot market research be considered scientific? Give reasons. 7 Marks What are the difficulties in applying scientific methods in marketing research? 7 Marks What do you understand by the term ethics in business research? 3 Marks What are the two requirements of scientific method? 3 Marks
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Business Research Methods

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Business Research Methods

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Business Research Methods

To identify and find solutions to the problems

To find alternate strategies

To help making decisions

To develop new concepts

Action Research Historical Research

Example : Exploring the reasons for sales decline of a product in a company.

Example : To develop a new market for the product.

Pure/Fundamental or Basic Research

Example : Theory of Relativity (by Einstein)

Example : Various ideologies

Criteria of Good Research

Marketing Research Definition

Scientific Approach to Research in Physical & Management Science

Characteristics of Scientific Method

ValidityV of Characteristics Scientific Method

Characteristics of Scientific Method

Why MR cannot be considered scientific?

Distinction between Scientific and Unscientific Methods

Limitations of applying scientific methods in business research problems

Ethical Issues in Business Research

Principles of ethics in Research

Principles of Ethics in Research

Principles of ethics in research

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