BUSINESS RESEARCH

UNIT 1

Learning Objectives

The course aims at equipping students with an

understanding of the research process, tools and
techniques in order to facilitate managerial decision
making.

Course Content - Unit I

Definition and Applications of Business Research;
Types
of Research Descriptive, Exploratory,
Quantitative, Qualitative;
Steps in the Research Process;
Reviewing of Literature;
Formulating A Research Problem
- Identifying Objectives,
Establishing Operational Definitions;
Identifying Variables
Defining concepts, Indicators, Variables;

Course Content - Unit I

Types of Measurement Scales Nominal, Ordinal,
Interval, Ratio;

Constructing Hypotheses Functions, Characteristics,

Types of Hypotheses.

Course Content - Unit II

Research Design Definition, Functions;

Study Designs
Based on Number of Contacts,
Based On Reference Period,
Experimental,
Non-Experimental
And
Experimental Study Designs,
Cross-Over Comparative Experimental Design,
Replicated Cross-Sectional Design,
Action Research.

Quasi-

Course Content - Unit II

Methods of Data Collection Primary and Secondary

Sources; Primary Data Collection Instruments;

Attitudinal Scales Likert, Thurstone, Guttman Scales;

Validity of Research Instruments Face And Content,

Concurrent And Predictive, Construct Validity; Reliability
of Research Instruments

External And Internal Consistency Procedures.

(14 Hours)

Course Content - Unit III

Sampling Concepts, Principles;

Types of Sampling Probability, Non-Probability, Mixed
Sampling
Designs;
Sampling Frame;
Sample Size Determination;
Writing A Research Proposal;
Ethical Issues In Data Collection;
Data Editing,
Coding And Tabulating.
(14 Hours)

Course Content - Unit IV

Introduction to Hypothesis Testing;

Advanced Data Analysis Techniques
Basic Concepts of Discriminant Analysis,
Factor Analysis,
Cluster Analysis,
Multi-Dimensional Scaling And Conjoint Analysis;
Displaying Data;
Writing A Research Report.

(16 Hours)

Course Content - Unit IV

Working Knowledge of Statistical Package such as

SPSS/Systat/ SAS etc may be provided to the
Students.

BOOKS
1. Ranjit Kumar (2009) Research Methodology, 2nd
edition, Pearson Education.
2. Naresh Malhotra and S Dash (2009) Marketing
Research, 5th edition, Pearson Prentice Hall.
3. Donald Cooper and PS Schindler (2009) Business
Research Methods, 9th edition, Tata McGraw Hill.

What is Research?

Some people will say that they routinely research

different online websites to find the best place to buy
goods or services they want.

Television news channels supposedly conduct research

in the form of viewer polls on topics of public interest
such as forthcoming elections or government-funded
projects.

Undergraduate students research the Internet to find

the information they need to complete assigned
projects or term papers.

What is Research?

Graduate students working on research projects for a

professor may see research as collecting or analyzing
data related to their project.
Businesses and consultants research different potential
solutions to remedy organizational problems such as a
supply chain bottleneck or to identify customer
purchase patterns.

However, none of the above can be considered scientific

research unless:
(1) it contributes to a body of science, and
(2) it follows the scientific method.

What is Science ?

The word science is derived from the Latin word

scientia meaning knowledge.
Science refers to a systematic and organized body of
knowledge in any area of inquiry that is acquired using
the scientific method (the scientific method is
described further below).
Science can be grouped into two broad categories:
natural science and social science.
Natural science is the science of naturally occurring
objects or phenomena, such as light, objects, matter,
earth, celestial bodies, or the human body.

What is Science ?

Natural sciences can be further classified into physical

sciences, earth sciences, life sciences, and others.
Physical sciences consist of disciplines such as physics
(the science of physical objects), chemistry (the science
of matter), and astronomy (the science of celestial
objects).
In contrast, social science is the science of people or
collections of people, such as groups, firms, societies,
or economies, and their individual or collective
behaviors.
Social sciences can be classified into disciplines such
as psychology (the science of human behaviors),
sociology (the science of social groups), and economics
(the science of firms, markets, and economies).

What is Science ?

A scientific experiment in physics, such as measuring

the speed of sound through a certain media or the
refractive index of water, should always yield the exact
same results, irrespective of the time or place of the
experiment, or the person conducting the experiment.

If two students conducting the same physics

experiment obtain two different values of these physical
properties, then it generally means that one or both of
those students must be in error.

What is Science ?

However, the same cannot be said for the social

sciences, which tend to be less accurate, deterministic,
or unambiguous.

For instance, if you measure a persons happiness

using a hypothetical instrument, you may find that the
same person is more happy or less happy (or sad) on
different days and sometimes, at different times on the
same day.

What is Science knowledge ?

The purpose
knowledge.

of

science

is

to

create

scientific

Scientific knowledge refers to a generalized body of

laws and theories to explain a phenomenon or behavior
of interest that are acquired using the scientific method.

Laws are observed patterns of phenomena or

behaviors, while theories are systematic explanations of
the underlying phenomenon or behavior.

Meaning of Research

Research in common parlance refers to a search for

knowledge
One can also define research as a scientific
investigation
Dictionary definition of research is a careful
investigation or inquiry specially through search for new
facts in any branch of knowledge
Some people consider research as a movement from
the known to the unknown

Meaning of Research

Research is thus an original contribution to the existing

stock of knowledge making for its advancement
In short, the search for knowledge through objective
and systematic method of finding solution to the
problem is research

Meaning of Research

Research refers to the systematic method consisting of:

Enunciating the problem
Formulating a hypothesis
Collecting the facts or data
Analysing the facts and
Reaching certain conclusions either in the form of
solutions towards the concerned problem or in certain
generalisations for some theoretical formulation

Meaning of Research

Research is the process of finding solutions to a

problem after a thorough study and analysis of the
situational factors.

Research is a process through which we attempt to

achieve systematically and with the support of data the
answer to a question, the resolution of a problem, or a
greater
understanding
of
a
phenomenon.

Characteristics of Research

Research originates with a question or problem.

Research requires a clear articulation of a goal.
Research follows a specific plan of procedure.
Research usually divides the principal problem into
more manageable subproblems.
Research is guided by the specific research problem,
question, or hypothesis.
Research accepts certain critical assumptions.
Research requires the collection and interpretation of
data in attempting to resolve the problem that initiated
the research.
Research is, by its nature, cyclical.

Objectives of Research

To gain familiarity with a phenomenon or to achieve

new insights into it(studies with this object in view are
termed as exploratory or formulative research studies);
To portray accurately the characteristics of a particular
individual; situation or a group (studies with this object
in view are known as descriptive research studies);
To determine the frequency with which something
occurs or with which it is associated with something
else (diagnostic research studies)
To test a hypothesis of a causal relationship between
variables (such studies are known as hypothesis testing
research studies)

Decision-Making
Decision-Making is the process of resolving a problem or
choosing amongst alternative opportunities

What is the problem or opportunity?

How much Information is available?
What Information is needed?

Complete
Certainty

Decision-Making
Situation
Value of Research

Absolute
Ambiguity

Certainty, Uncertainty,
Ambiguity
Certainty Decision-maker has all the

requisite
information concerning the business problem (or
opportunity). Research may be unnecessary. Complete
certainty about the future is rare in practice

Uncertainty General nature of the business problem is

clear but information about alternative courses of action
is incomplete as are the events which may occur.
Research may be a potentially valuable tool here

Ambiguity Nature of the problem to be solved is

unclear. Objectives are vague and alternatives difficult to
define. Research may be a useful excercise

Criteria of Good Research

a.

b.

c.

d.

The purpose of research should be clearly defined and

common concepts be used
Research procedure used should be described in
sufficient detail to permit another researcher to repeat
research for further advancement, keeping the
continuity of what has been attained
Procedural design of research should be carefully
planned to yield results that are objective as possible
Researcher should report with complete frankness,
flaws in procedural design and estimate their effects
upon the findings

Criteria of Good Research

e.

f.

g.

h.

Analysis of data should be sufficiently adequate to

reveal its significance and the methods of analysis
should be appropriate
The validity and reliability of data should be checked
carefully
Conclusions should be confined to those justified by the
data of the research and limited to those for which the
data provide an adequate basis
Greater confidence in research is warranted if the
researcher is experienced, has good reputation in
research and is a person of integrity

Qualities of a Good
Research
Systematic
1.

Research is structured with specified steps to be taken in

specified sequence in accordance with well defined set
of rules
Does not rule out creative thinking but it does certainly
reject the use of guessing and intuition in arriving at
conclusions

Qualities of a Good
Research
2. Logical

Guided by rules of logical reasoning and logical process

of induction and deduction
Logical reasoning makes research more meaningful in
context of decision making

Qualities of a Good
Research
4. Replicable

Allows the research results to be verified by replicating

the study and thereby building a sound basis for
decisions

TYPES OF RESEARCH

Exploratory research is often conducted in new areas

of inquiry, where the goals of the research are:

(1)

to scope out the magnitude or extent of a particular

phenomenon, problem, or behavior,

(2)

to generate some initial ideas (or hunches) about that

phenomenon, or

(3)

to test the feasibility of undertaking a more extensive

study regarding that phenomenon.

TYPES OF RESEARCH
Exploratory research or Formulative Research
Exploratory
research is research conducted for a
problem that has not been clearly defined
Exploratory research 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,
projective
methods,
case studies

TYPES OF RESEARCH
Exploratory research

For instance, if the citizens of a country are generally

dissatisfied with governmental policies regarding during
an economic recession, exploratory research may be
directed at measuring the extent of citizens
dissatisfaction,
understanding how such dissatisfaction is manifested,
such as the frequency of public protests,
and the presumed causes of such dissatisfaction, such
as ineffective government policies in dealing with
inflation, interest rates, unemployment, or higher taxes.

TYPES OF RESEARCH
Exploratory research
Such research may include examination of
publicly reported figures,
such as estimates of economic indicators,
unemployment, and consumer price index, as archived
by third-party sources,
obtained through interviews of experts,
eminent economists, or key government officials,
and/or derived from studying historical examples of
dealing with similar problems.

TYPES OF RESEARCH
Exploratory research
Qualitative research methods such as case study or
field research are often used in exploratory research

TYPES OF RESEARCH
Exploratory research
Such research may include examination of
publicly reported figures,
such as estimates of economic indicators,
unemployment, and consumer price index, as archived
by third-party sources,
obtained through interviews of experts,
eminent economists, or key government officials,
and/or derived from studying historical examples of
dealing with similar problems.

TYPES OF RESEARCH

Descriptive research is directed at making careful

observations and detailed documentation of a
phenomenon of interest.
Descriptive Research includes surveys and fact finding
enquiries of different kinds.
Major purpose of descriptive research is description of
the state of affairs as it exists at present
In social science and business research, we quite often
use the term Ex post facto research for descriptive
research
Also called Statistical Research

TYPES OF RESEARCH

It does not answer questions about how/when/why the

characteristics occurred.
Rather it addresses the "what" question (What are the
characteristics of the population or situation being
studied?)
Descriptive research cannot be used to as the basis of a
causal relationship, where one variable affects another.

TYPES OF RESEARCH

Descriptive research is directed at making careful

observations and detailed documentation of a
phenomenon of interest.
Descriptive Research includes surveys and fact finding
enquiries of different kinds.
Major purpose of descriptive research is description of
the state of affairs as it exists at present
In social science and business research, we quite often
use the term Ex post facto research for descriptive
research

TYPES OF RESEARCH

Descriptive research
Main characteristic: Researcher has no control over the
variables; he can only report what has happened or what
is happening
Frequency of shopping, preferences of people, or similar
data
In social science, Ex post facto research projects are
used for descriptive studies
Descriptive studies also include attempts by researchers
to discover even causes when they cannot control the
variables

TYPES OF RESEARCH

Descriptive research
The method of research utilized in descriptive research
are survey methods of all kinds, include comparative and
correlational methods.

TYPES OF RESEARCH

Descriptive research
Examples of descriptive research are tabulation of
demographic statistics by the Census Board who use the
same or similar instruments for estimating employment
by sector or population growth by ethnicity over multiple
employment surveys or censuses.
If any changes are made to the measuring instruments,
estimates are provided with and without the changed
instrumentation to allow the readers to make a fair
before-and-after comparison regarding population or
employment trends.

TYPES OF RESEARCH

Descriptive research
Other descriptive research may include
the persistence or evolution of religious, cultural, or
ethnic practices in select communities,
and the role of technologies such as Twitter and instant
messaging in the spread of democracy movements in
Middle Eastern countries.

TYPES OF RESEARCH

Analytical research

Researcher has to use the facts or information already

available, and analyze these to make a critical evaluation
of the material

TYPES OF RESEARCH

Applied research vs. Fundamental Research

Applied research aims at finding a solution for an

immediate problem society or an international business
organization is facing
Research aimed at certain conclusions facing a concrete
social or business problem is an example of applied
research
To identify social, economic or political trend that may
affect a particular institution,
Marketing Research, Evaluation Research are examples
of applies research

TYPES OF RESEARCH

Applied research vs. Fundamental Research

Fundamental research is mainly concerned with

generalisations and with the formulation of a theory
Gathering knowledge for knowledges sake is
fundamental research
Research concerning some natural phenomenon or
relating to pure mathematics are examples of
fundamental research
Research studies concerning human behavior carried on
with view to make generalizations about human
behaviour

TYPES OF RESEARCH

Applied research vs. Fundamental Research

Central aim of applied research is to discover a

solution for some pressing practical problems, whereas
basic/fundamental research is directed towards finding
information that has a broad base of applications that
adds to the already existing body of knowledge

TYPES OF RESEARCH

Quantitative research vs. Qualitative Research

Quantitative research is based on the quantitative

measurements of some characteristics
Applicable to the phenomenon which can be expressed
in terms of quantities

TYPES OF RESEARCH

Quantitative research vs. Qualitative Research

Quantitative research is about asking people for their

opinions in a structured way so that you can produce
hard facts and statistics to guide you.
To get reliable statistical results, it's important to survey
people in fairly large numbers and to make sure they are
a representative sample of your target market.

TYPES OF RESEARCH

Quantitative research vs. Qualitative Research

Qualitative research is based on the qualitative

phenomenon. i.e, relating to quality or kind.
Eg- When we are interested in investigating the reasons
for human behaviour (i.e. why do people think or do
certain things), we quite often talk of Motivation
Research (an imp type of qualitative research)
Aims at discovering the underlying motives and desires,
using in depth interviews for the purpose
Word association tests, sentence completion tests, story
completion tests and similar other projective techniques

TYPES OF RESEARCH

Quantitative research vs. Qualitative Research

Qualitative research
- attitude or opinion research - How people feel or
what they think about a particular subject
Important in behavioural sciences where the aim is to
determine the underlying motives of human research
Through such research, we can analyse the various
factors which motivate people to behave in a particular
manner or likes and dislikes of people
Relatively a difficult job to apply in practice
Experimental psychologists

TYPES OF RESEARCH

Quantitative research vs. Qualitative Research

Qualitative research
Qualitative research is a method of inquiry employed in
many different academic disciplines, traditionally in the
social sciences, but also in market research and further
contexts.
Qualitative researchers aim to gather an in-depth
understanding of human behavior and the reasons that
govern such behavior.

TYPES OF RESEARCH

Quantitative research vs. Qualitative Research

Qualitative research
Qualitative research is a method of inquiry employed in
many different academic disciplines, traditionally in the
social sciences, but also in market research and further
contexts.
Qualitative researchers aim to gather an in-depth
understanding of human behavior and the reasons that
govern such behavior.

TYPES OF RESEARCH
Conceptual Research vs. Empirical Research
Conceptual research

Conceptual research is that related to some abstract

idea(s) or theory.
Generally used by philosophers and thinkers to develop
new concepts or to reinterpret the existing ones
Conceptual analysis is the preferred method of analysis
in social sciences and philosophy.

TYPES OF RESEARCH

Conceptual Research vs. Empirical Research

Empirical research
Empirical research is a way of gaining knowledge by
means of direct and indirect observation or experience.
(often without due regard to system and theory)
Empirical evidence
(the record of one's direct
observations or experiences) can be analyzed
quantitatively or qualitatively.
In empirical research, data collection and verification is
done through observation and experimentation.

TYPES OF RESEARCH

Conceptual Research vs. Empirical Research

Empirical research
Empirical research can also be called Experimental
Type of Research
In this, it necessary to get facts at first hand, and
actively go about doing something to stimulate the
production of desired information
In such a research, researcher must first provide himself
with a working hypothesis or guess as to the probable
results
Then finds facts and data to disprove the hypothesis

TYPES OF RESEARCH

Conceptual Research vs. Empirical Research

Empirical research
Such research is characterized by researchers control
over variables under study and deliberately manipulate
the variables to bring forth the desired information
Appropriate when proof is sought that certain variables
affect other variables in certain way
Evidence gathered through experiments or empirical
studies are considered to be the most powerful support
possible for testing a given hypothesis

TYPES OF RESEARCH
Other types of Research
From the point of view of TIME
1. One Time Research Confined to a single time period
2. Longitudinal Research Carried on over several time
periods
The benefit of a longitudinal study is that researchers are
able to detect developments or changes in the
characteristics of the target population at both the group
and the individual level.
The key here is that longitudinal studies extend beyond a
single moment in time.
As a result, they can establish sequences of events.

TYPES OF RESEARCH

Other types of Research

Do we want to compare cholesterol levels among

different populations of walkers and non-walkers at the
same point in time?
Or, do we want to measure cholesterol levels in a single
population of daily walkers over an extended period of
time?

TYPES OF RESEARCH
Other types of Research
Cross- Sectional Study
This means that researchers record information about
their subjects without manipulating the study
environment.
In our study, we would simply measure the cholesterol
levels of daily walkers and non-walkers along with any
other characteristics that might be of interest to us.
We would not influence non-walkers to take up that
activity, or advise daily walkers to modify their behaviour.
In short, wed try not to interfere.

TYPES OF RESEARCH
Other types of Research
Cross- Sectional Study
However, cross-sectional studies may not provide
definite information about cause-and-effect relationships.
This is because such studies offer a snapshot of a single
moment in time; they do not consider what happens
before or after the snapshot is taken.

TYPES OF RESEARCH
Other types of Research
Historical research
Research
which utilizes historical sources like
documents, remains, etc. to study events or ideas of the
past, including the philosophy of persons and groups at
any remote point of time.

RESEARCH APPROACHES
1.
2.

Qualitative Approach
Quantitative Approach
Sub classified as:
1.
2.
3.

Inferential Approach
Experimental Approach
Simulation Approach

RESEARCH APPROACHES
1.

Inferential Approach
Purpose is to form a data base to infer characteristics or
relationships of population
This usually means survey research where a sample of
population is studied (questioned or observed)to
determine its characteristics and it is then inferred that
the population has the same characteristics

RESEARCH APPROACHES
1.

Experimental Approach
Characterised by much greater control over the research
environment and in this case some variables are
manipulated to observe their effect on other variables

RESEARCH APPROACHES
3. Simulation Approach
Involves the construction of an artificial environment
within which relevant information and data can be
generated
Permits an observation of the dynamic behavior of a
system (or its sub-system) under controlled conditions
Simulation in the context of business and social
sciences applications refers to the operation of a
numerical model that represents the structure of a
dynamic process

RESEARCH APPROACHES
3. Simulation Approach
Given the values of initial conditions, parameters and
variables, a simulation is run to represent the behaviour
of process over time
Simulation can be useful in building models for
understanding future conditions

SIGNIFICANCE OF
RESEARCH
Research inculcates scientific and inductive
1.

thinking
and it promotes the development of logical habits of
thinking and organisation

2.

Role of research in several fields of applied economics,

whether related to business or to the economy as a
whole, has increased in modern times

3.

Increasingly, complex business nature and governance

focused attention of use of research in solving
operational problems

SIGNIFICANCE OF
RESEARCH
4. Research provides the basis for nearly all government
policies in our economic system
Eg Governments budget rests in part on analysis of the
needs and desires of people and on availability of revenues
to meet those needs