Module- 1

1. Introduction of Business Research

2. Steps of Business Research
3. Research Design
4. Exploratory Research
5. Descriptive Research
6. Causal Research

Business Research
Business 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 business.

Steps of Business Research Process

Step 1

: Problem Definition

Step 2

: Development of an Approach to the Problem

Step 3

: Research Design Formulation

Step 4

: Fieldwork or Data Collection

Step 5

: Data Preparation and Analysis

Step 6

: Report Preparation and Presentation

Step 1: Problem Definition

The purpose of the study
The relevant background information

How it will be used in decision making

Problem definition involves discussion with

The decision makers

Interviews with industry experts

Analysis of secondary data, and

Some qualitative research, such as focus groups

Step 2: Development of an approach to the problem

Formulating an objective or theoretical framework
Analytical models
Research questions and
Identifying the information needed

This process is guided by discussions with

Management and industry experts
Analysis of secondary data and
Qualitative research

Step 3 : Research Design Formulation

Definition of the information needed

Secondary data analysis

Qualitative research

Methods of collecting quantitative data(survey, observation, and

experimentation)

Measurement and scaling procedures

Questionnaire design

Sampling process and sample size

Plan of data analysis

Step 4: Fieldwork or Data Collection

Personal interviewing (in-home, mall intercept, or computerassisted personal interviewing)
Telephone (telephone or computer- assisted personal interviewing)
Mail (traditional mail)
Electronically (e-mail or Internet)

Step 5: Data Preparation and Analysis

The editing

Coding
Transcription and
Verification of data.

Step 6 : Report Preparation and Presentation

Address the specific research questions identified
Describes the approach
The research design,

Data collection

Data analysis procedures adopted

Presents the results and

Major findings

Research Design
A research design is a framework or blueprint for
conducting the business research project. It details
the

procedures

necessary

for

obtaining

the

information needed to structure or solve business

research problems.

A Classification of Business Research Designs

Research Design
Exploratory
Research Design

Conclusive
Research Design

Descriptive
Research

Cross-Sectional
Design

Single CrossSectional Design

Causal

Longitudinal
Design

Multiple CrossSectional Design

Research

Exploratory Research Design

Uses of Exploratory Research

Formulate a problem or define a problem more precisely

Identify alternative courses of action

Develop hypotheses

Isolate key variables and relationships for further examination

Gain insights for developing an approach to the problem

Establish priorities for further research

Methods of Exploratory Research

Secondary data analyzed in a qualitative way

Qualitative research

Secondary data
Secondary data are data that have already been
collected for purposes other than the problem
at hand. These data can be located quickly and
inexpensively.

Uses of Secondary Data

Identify the problem

Better define the problem

Develop an approach to the problem
Formulate an appropriate research design (for example, by
identifying the key variables)
Answer certain research questions and test some hypotheses
Interpret primary data more insightfully

A Classification of Secondary Data

Secondary Data

Internal

Ready to
Use

Requires
Further
Processing

External

Published
Materials

Computerized
Databases

Syndicated
Services

Internal Secondary Data

Department Store Project Sales were analyzed to obtain:
Sales by product line

Sales by major department (e.g., men's wear, house wares)

Sales by specific stores
Sales by geographical region
Sales by cash versus credit purchases
Sales in specific time periods

Sales by size of purchase

Sales trends in many of these classifications were also examined

A Classification of Published Secondary Sources

Published
Secondary Data

Government
Sources

General Business
Sources

Guides

Directories

Indexes

Statistical
Data

Census
Data

Other
Government
Publications

A Classification of Computerized Databases

Computerized
Databases

Online

Bibliographic
Databases

Numeric
Databases

Internet

Full-Text
Databases

Off-Line

Directory
Databases

SpecialPurpose
Databases

Syndicated Services
Syndicated services are companies that collect and sell common pools of
data of known commercial value designed to serve a number of clients
Syndicated sources can be classified based on the unit of measurement
(households/consumers or institutions)
Household/consumer data may be obtained from surveys, diary panels,
or electronic scanner services
Institutional data may be obtained from retailers, wholesalers, or

industrial firms

A Classification of Syndicated Services

Unit of
Measurement

Households/
Consumers

Institutions

Syndicated Services: Consumers

Households /
Consumers

Panels

Purchase

Electronic
scanner services

Media

Surveys

Volume
Tracking Data

Psychographic
& Lifestyles

Advertising
Evaluation

Scanner
Panels

Scanner
Panels with
Cable TV

Syndicated Services: Institutions

Institutions

Retailers

Wholesalers

Industrial firms

Audits

Direct
Inquiries

Clipping
Services

Corporate
Reports

A Classification of Business Research Data

Business Research Data

Secondary Data

Primary Data

Qualitative Data

Descriptive
Survey
Data

Observational
and Other Data

Quantitative Data

Causal
Experimental
Data

A Classification of Qualitative Research Procedures

Direct (Non- disguised): Focus Groups

Group Size

8-12

Group Composition

Homogeneous, respondents,
prescreened

Physical Setting

Relaxed, informal atmosphere

Time Duration

1-3 hours

Recording

Use of audiocassettes and

videotapes

Moderator

Observational, interpersonal, and

communication skills of the
moderator

Depth Interview Techniques: Laddering

In laddering, the line of questioning proceeds from product

characteristics to user characteristics. This technique allows the
researcher to tap into the consumer's network of meanings.

Projective Techniques
An unstructured, indirect form of questioning that encourages

respondents to project their underlying motivations, beliefs, attitudes or

feelings regarding the issues of concern.
In projective techniques, respondents are asked to interpret the
behavior of others.
In interpreting the behavior of others, respondents indirectly project

their own motivations, beliefs, attitudes, or feelings into the situation.

Word Association
In word association, respondents are presented with a list of words, one at
a time, and asked to respond to each with the first word that comes to
mind.

The words of interest, called test words, are interspersed

throughout the list which also contains some neutral, or filler words to
disguise the purpose of the study.
Example:

Mrs. X

Mrs.Y

Bubbles

Bath

Soap &Water

Towels

Dirty

Wash

Completion Techniques
In sentence completion, respondents are given incomplete sentences and
asked to complete them. Generally, they are asked to use the first word
or phrase that comes to mind.

A person who shops at Shopping mall is ______________________

When I think of shopping in a department store, I ________

A Cartoon Test

Should we go to
the shopping
mall?

Expressive Techniques
Role playing

Third-person technique

Descriptive Research Design

Use of Descriptive Research

To describe the characteristics of relevant groups, such as consumers,

salespeople, organizations, or market areas

To estimate the percentage of units in a specified population exhibiting

a certain behavior

To determine the perceptions of product characteristics

To determine the degree to which marketing variables are associated

To make specific predictions

Types of Descriptive research Design

Cross-Sectional Research Designs
Longitudinal Research Designs

Cross-Sectional Research Designs

Single cross-sectional designs

Multiple cross-sectional designs

Cohort analysis

Longitudinal Designs
A fixed sample (or samples) of population elements is measured
repeatedly on the same variables

A longitudinal design differs from a cross-sectional design in that the

sample or samples remain the same over time

Methods of Descriptive Research Design

Survey
Observation

A Classification of Survey Methods

Survey
Methods

Telephone

Personal

In-Home

Traditional
Telephone

Mall
Intercept

Computer-Assisted
Telephone
Interviewing

Mail

Computer-Assisted
Personal
Interviewing
Mail
Interview

Electronic

E-mail

Mail
Panel

Internet

A Classification of Observation Methods

Observation Methods

Personal
Observation

Mechanical
Observation

Audit

Content
Analysis

Trace
Analysis

Personal Observation
A researcher observes actual behavior as it occurs.

The observer does not attempt to manipulate the phenomenon being

observed but merely records what takes place.

Mechanical Observation
Do not require respondents' direct participation

The AC Nielsen audimeter

Turnstiles that record the number of people entering or leaving a building.

On-site cameras (still, motion picture, or video)

Optical scanners in supermarkets

Do require respondent involvement

Eye-tracking monitors

Pupilometers

Psychogalvanometers

Voice pitch analyzers

Devices measuring response latency

Audit
The researcher collects data by examining physical records or
performing inventory analysis.
Data are collected personally by the researcher.

The data are based upon counts, usually of physical objects.

Retail and wholesale audits conducted by marketing research suppliers
were discussed in the context of syndicated data.

Content Analysis
The objective, systematic, and quantitative description of the manifest
content of a communication.

The unit of analysis may be words, characters (individuals or objects),

themes (propositions), space and time measures (length or duration of

the message), or topics (subject of the message).

Analytical categories for classifying the units are developed and the
communication is broken down according to prescribed rules.

Trace Analysis
The number of different fingerprints on a page was used to gauge
the readership of various advertisements in a magazine.
The position of the radio dials in cars brought in for service was
used to estimate share of listening audience of various radio stations.
Internet visitors leave traces which can be analyzed to examine

browsing and usage behavior by using cookies.

Causal Research Design

Uses of Causal Research

To understand which variables are the cause (independent variables)

and which variables are the effect (dependent variables) of a

phenomenon

To determine the nature of the relationship between the causal variables

and the effect to be predicted

METHOD: Experiments

Concept of Causality
Ordinary Meaning

Scientific Meaning

X is only one of a number of possible of

X is the only cause of Y.

causes of Y.

The
X must always lead to Y(X is
deterministic cause of Y)

occurrence

of

makes

the

occurrence of Y more probable(X is a

probabilistic cause of Y)

We can never prove that X is a cause of Y.

It is possible to prove that X is
a cause of Y

At best, we can infer that X is cause of Y.

Concepts of Causal Research

Independent variables

Test units
Dependent variables

Extraneous variables

Experimental Design
The test units and how these units are to be divided into
homogeneous subsamples,
What independent variables or treatments are to be manipulated,
What dependent variables are to be measured; and
How the extraneous variables are to be controlled.

Validity in Experimentation
Internal validity refers to whether the manipulation of the independent
variables or treatments actually caused the observed effects on the

dependent variables. Control of extraneous variables is a necessary

condition for establishing internal validity.
External validity refers to whether the cause-and-effect relationships
found in the experiment can be generalized.

To what populations,

settings, times, independent variables, and dependent variables can the

results be projected?

Extraneous Variables.
History refers to specific events that are external to the experiment but occur at
the same time as the experiment.

Maturation (MA) refers to changes in the test units themselves that occur with
the passage of time.
Testing effects are caused by the process of experimentation. Typically, these
are the effects on the experiment of taking a measure on the dependent variable
before and after the presentation of the treatment.
The main testing effect (MT) occurs when a prior observation affects a latter
observation.

Extraneous Variables
In the interactive testing effect (IT), a prior measurement affects the test unit's
response to the independent variable.

Instrumentation (I) refers to changes in the measuring instrument, in the

observers, or in the scores themselves.
Statistical regression effects (SR) occur when test units with extreme scores

move closer to the average score during the course of the experiment.
Selection bias (SB) refers to the improper assignment of test units to treatment
conditions.

Mortality (MO) refers to the loss of test units while the experiment is in
progress.

Controlling Extraneous Variables

Randomization refers to the random assignment of test units to experimental
groups by using random numbers. Treatment conditions are also randomly

assigned to experimental groups.

Matching involves comparing test units on a set of key background variables
before assigning them to the treatment conditions.
Statistical control involves measuring the extraneous variables and adjusting
for their effects through statistical analysis.
Design control involves the use of experiments designed to control specific
extraneous variables.

A Classification of Experimental Designs .

Pre-experimental designs do not employ randomization procedures
to control for extraneous factors: the one-shot case study, the onegroup pretest-posttest design, and the static-group.
In true experimental designs, the researcher can randomly assign
test units to experimental groups and treatments to experimental
groups: the pretest-posttest control group design, the posttest-only

control group design, and the Solomon four-group design.

A Classification of Experimental Designs

Quasi-experimental designs result when the researcher is unable
to achieve full manipulation of scheduling or allocation of
treatments to test units but can still apply part of the apparatus of
true experimentation: time series and multiple time series designs.
A statistical design is a series of basic experiments that allows for
statistical control and analysis of external variables: randomized

block design, Latin square design, and factorial designs.

A Classification of Experimental Designs

Experimental Designs

Pre-experimental

True
Experimental

One-Shot Case
Study

Pretest-Posttest
Control Group

One Group
Pretest-Posttest

Posttest: Only
Control Group

Static Group

Solomon FourGroup

Quasi
Experimental
Time Series

Multiple Time
Series

Statistical

Randomized
Blocks
Latin Square

Factorial
Design

Pre-experimental designs

One-Shot Case Study

X

01

A single group of test units is exposed to a treatment X.

A single measurement on the dependent variable is taken (01).
There is no random assignment of test units.
The one-shot case study is more appropriate for exploratory than for
conclusive research.

One-Group Pretest-Posttest Design

01

02

A group of test units is measured twice.

There is no control group.
The treatment effect is computed as 02 01.
The validity of this conclusion is questionable since extraneous
variables are largely uncontrolled.

Static Group Design

EG:

CG:

02

01

A two-group experimental design.

The experimental group (EG) is exposed to the treatment, and the control
group (CG) is not.
Measurements on both groups are made only after the treatment.
Test units are not assigned at random.
The treatment effect would be measured as 01 - 02.

True Experimental Designs

Pretest-Posttest Control Group Design

EG:
CG:

R
R

01
03

02
04

Test units are randomly assigned to either the experimental or the control
group.
A pretreatment measure is taken on each group.
The treatment effect (TE) is measured as: (02 - 01) - (04 - 03).
Selection bias is eliminated by randomization.
The other extraneous effects are controlled as follows:
02 01= TE + H + MA + MT + IT + I + SR + MO
04 03= H + MA + MT + I + SR + MO
= EV (Extraneous Variables)
The experimental result is obtained by:
(02 - 01) - (04 - 03) = TE + IT
Interactive testing effect is not controlled.

Posttest-Only Control Group Design

EG : R X 01

CG : R

02

The treatment effect is obtained by:

TE = 01 02

Except for pre-measurement, the implementation of this design is very

similar to that of the pretest-posttest control group design.

Quasi-Experimental Designs

Time Series Design

01 02 03 04 05

X 06 07 08 09 010

There is no randomization of test units to treatments.

The timing of treatment presentation, as well as which test units
are exposed to the treatment, may not be within the researcher's
control.

Multiple Time Series Design

EG : 01 02 03 04 05

X 06 07 08 09 010

CG : 01 02 03 04 05

06 07 08 09 010

If the control group is carefully selected, this design can be an

improvement over the simple time series experiment.

Can test the treatment effect twice: against the pretreatment

measurements in the experimental group and against the control

group.

Statistical Designs

Statistical Designs
Statistical designs consist of a series of basic experiments that allow

for statistical control and analysis of external variables and offer the
following advantages:
The effects of more than one independent variable can be measured.
Specific extraneous variables can be statistically controlled.
Economical designs can be formulated when each test unit is

measured more than once.

Randomized Block Design

Randomized Block Design is useful when there is only one major

external variable, such as store size, that might influence the dependent
variable.
The test units are blocked, or grouped, on the basis of the external
variable.
By blocking, the researcher ensures that the various experimental and

control groups are matched closely on the external variable.

Randomized Block Design

Block
Number
1
2
3
4

Store
Patronage
Heavy
Medium
Low
None

Treatment Groups
Commercial Commercial
Commercial
A
B
C
A
A
A
A

B
B
B
B

C
C
C
C

Latin Square Design

Allows the researcher to statistically control two noninteracting external
variables as well as to manipulate the independent variable.

Each external or blocking variable is divided into an equal number of blocks,

or levels.
The independent variable is also divided into the same number of levels.
A Latin square is conceptualized as a table ,with the rows and columns
representing the blocks in the two external variables.
The levels of the independent variable are assigned to the cells in the table.
The assignment rule is that each level of the independent variable should
appear only once in each row and each column.

Latin Square Design

Interest in the Store
Store Patronage

High

Heavy
Medium
Low and none

B
C
A

Medium
A
B
C

Low
C
A
B

Factorial Design

Factorial Design Is used to measure the effects of two or more

independent variables at various levels.

A factorial design may also be conceptualized as a table.

In a two-factor design, each level of one variable represents a row

and each level of another variable represents a column.

Factorial Design

Amount of Humor
Amount of Store
Information
Low

No
Humor
A

Medium
Humor
B

High
Humor
C

Medium

High