Module 1 Business Research

(1)

Padma S Rao Asst

Padma S Rao Asst Professor Global AcademyProfessor Global Academy of Technology

of Technology

1 1

Business Research &

Methods

Module 1

(2)

Padma S Rao Asst

of Technology

2 2

Introduction to Business research Introduction to Business research Research Methodology Research Methodology Scientific methods Scientific methods Research Process Research Process Research Methodology Research Methodology Meaning of research Meaning of research

Types, Objectives, Criteria of good research Types, Objectives, Criteria of good research Scientific method in physical science & in m

Scientific method in physical science & in marketingarketing

Distinction between scientific & Non scientific methods Distinction between scientific & Non scientific methods Difficulties in applying scientific methods in marketing Difficulties in applying scientific methods in marketing

(3)

Padma S Rao Asst

of Technology

2 2

Introduction to Business research Introduction to Business research Research Methodology Research Methodology Scientific methods Scientific methods Research Process Research Process Research Methodology Research Methodology Meaning of research Meaning of research

Types, Objectives, Criteria of good research Types, Objectives, Criteria of good research Scientific method in physical science & in m

Scientific method in physical science & in marketingarketing

Distinction between scientific & Non scientific methods Distinction between scientific & Non scientific methods Difficulties in applying scientific methods in marketing Difficulties in applying scientific methods in marketing

(4)

Padma S Rao Asst

Padma S Rao Asst Professor Global AcademyProfessor Global Academy of Technology of Technology 3 3

Business Research



A systematic Inquiry whose objective is to

provide information to solve managerial

problems.



Search for knowledge



Systematised effort to gain new knowledge-

Systematised effort to gain new

knowledge-redman & Mory

redman & Mory



Research comprises of Defining problems,

formulating hypothesis, collecting, organising,

and evaluating data, reaching solutions and at

last testing the solutions to determine whether

they fit the formulated hypothesis .

(5)

Defn contd..



Business research is defined as the

systematic and objective process of

gathering, recording and analysing data

for aid in decision making.

Padma S Rao Asst Professor Global Academy of Technology

(6)

5

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 & risk

More knowledge exists in every field

Stake holders are better informed.

The power & ease of today’s computers

to analyse the data

(7)

6

Why Study Research?

1. Changes in business environment

2. Manager’s increased need for information

3. Explosive technology growth

4. Problems with mergers, trade policies,Savings

& investment issues

5. Continuous innovations

Research provides you with the knowledge and skills needed for the fast-paced decision-making

(8)

7

The Manager-Researcher Relationship

 Manager’s obligations

 Specify problems

 Provide adequate background information

 Access to company

information gatekeepers

 Researcher’s obligations

 Develop a creative research design

 Provide answers to important business questions

(9)

Padma S Rao Asst Professor Global Academy of Technology 8

Manager-Researcher Conflicts

 Management’s limited exposure to research

 Manager sees researcher

as threat to personal status

 Researcher has to

consider corporate culture and political situations

 Researcher’s isolation

(10)

9

When Research Should be Avoided



When information cannot be applied to a

critical managerial decision



When managerial decision involves little

risk



When management has insufficient

resources to conduct a study



When the cost of the study outweighs the

level of risk of the decision

(11)

Theory



.

(12)

11

Search is done through two methods

1. Arbitrary method

Seeking answers to questions based on

imagination, opinion, belief, or

impression. Ex. Earlier belief that Shape

of the earth was flat

Disadvantages

It is subjective

Finding varies form person to person.

It is vague & inaccurate

(13)

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Scientific Method

Systematic rational approach to seeking facts

The scientific method is a systematic step by step

procedure following the logical process of reasoning. Scientific method encourages doubts & criticism so that

what emerges is the real evidence. Scientist does not believe anything with out testing, adheres to the right path & 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 &

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Continued

Three distinct characteristics of scientific

method



Careful & accurate classification of facts



Discovery of laws



Self criticism- Scientist should critically

examine his own research in a detached

manner.

(15)

14

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 pass

normative 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 of different income group families on basic necessities

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Difference between scientific method &

non scientific methods



More objective

Ex. Hypothesis can be

verified with the help

of statistical principles

More precise,

measurement &

numerical analysis

can be done.



More subjective

Opinion differs from

person to person.

Measurement &

numerical analysis

can not be done

(17)

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Difference between scientific method &

non scientific methods

 Takes cognizance of the

existing knowledge in a particular field, carries out further investigations & compare the results so obtained earlier.

This leads to the expansion of knowledge. The

process which is

continuous & unending systematises knowledge.

 Non scientific method

may not contribute to the accumulation of

(18)

17



Scientific method is continuous &

unending process leading to the

accumulation of systematic knowledge.

Marketing research is problem solving &

problem oriented research. Focus of

investigation is narrow. It is an exhaustive

study.

(19)

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Logical reasoning process consists of induction &

deduction.

Induction- A process of reasoning where by we

arrive at universal generalisations from particular

facts

Studying individual cases & drawing

generalisations

Logical reasoning process Involves two processes

1.Observation 2.Generalisation

Ex. If it is observed that educated girls have

expensive habits one may conclude that all

educated girls have expensive habits.

(20)

Methods of logical reasoning process

 Induction- Particular to general

 Deduction- General to particular

 Deduction is a form of inference that purports to be

conclusive

 Induction draws conclusions from one or more

particular facts.

 Induction occurs when we observe a fact and ask

Why is this? To answer the question hypothesis is

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Deduction

Deductive reasoning uses a top-down approach to logic. Deductive reasoning usually starts with a theory. A

hypothesis, or a definition of a theory suitable for testing, follows. Observations from the tests of the hypothesis either confirm or disprove the hypothesis and theory. Deduction can give conclusive evidence.

Ex. Dr. Shekar is an adult. All adults are eligible to vote.

(22)

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.

(23)

When induction is followed?

 Inductive reasoning is a bottom-up method of logic. By

beginning with an observation or several observations, a pattern can be recognized. Once the pattern is defined, it becomes a tentative hypothesis. Once the hypothesis is defined and tested, the hypothesis and theory can be proven or disproven.

 Observation must be correctly performed, data collected

should be accurate

 Observations must cover representative cases drawn

from a specific universe.

 Observations must cover adequate number of cases

 Conclusions must be confined to inferences drawn from

(24)

When deduction is used?



The general rule or assumption must be

correct



The general rule must be applied only to

the cases which properly fall under it

(25)



Refer Methodology of research in social

sciences by O R

sciences by O R Krishna swamy 1 chapter

Krishna swamy 1 chapter



Business research methods By Donald R

Cooper

(26)

Padma S Rao Asst

of Technology

25 25

Difference between Research in Social

science & physical science



 Scientific method is a body ofScientific method is a body of techniques for investigating techniques for investigating phenomena

phenomena and acquiring newand acquiring new knowledge

knowledge, as well as for, as well as for correcting and integrating correcting and integrating previous knowledge. It is previous knowledge. It is based on gathering

based on gathering observable

observable,, empiricalempirical,, measurable

measurable evidence, subjectevidence, subject to the

to the principles ofprinciples of

reasoning

reasoning.Hypothesis is also.Hypothesis is also proposed.

proposed.



 Social research is researchSocial research is research conducted by

conducted by social scientistssocial scientists

in

in sociologysociology social psychologysocial psychology

human geography

human geography,, politicalpolitical

science

science,, social anthropologysocial anthropology

and

and educationeducation.. SociologistsSociologists.. and other social scientists. and other social scientists. They study diverse

They study diverse

things.Ex.They conduct things.Ex.They conduct in-depth analysis of the life of a depth analysis of the life of a single important person . They single important person . They may monitor what is

may monitor what is

happening on a street today happening on a street today -or what was happening a few or what was happening a few hundred years ago.

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 the process is objective

so that the scientist does not bias the interpretation of the results or change the results outright.

Another basic expectation is that of making

complete documentation of data and methodology available for careful

scrutiny by other scientists and researchers.

Social scientists use different methods in order to describe, explore and understand social life. Social methods can

generally be subdivided into two broad categories.

Quantitative methods are concerned with attempts to quantify social phenomena and collect and analyse numerical data, Qualitative methods, on the other hand, emphasise personal

experiences & are more

concerned with understanding the meaning of social

(28)

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 Experiments are

conducted to quantify the results  Common tools of quantitative researchers include surveys, questionnaires,). Commonly used qualitative methods include focus groups, participant observation, and other techniques.

(29)

Theory



Theories provide explanation of the

reasons for the behaviour of variables.



Explanation of observed regulatities.



Theory is a coherent set of general

propositions used as principles of

explanation of the apparent relationships

of certain observed phenomenon rent

relationships of certain observed

phenomenon.

(30)

Concept



It is a generalised idea about a class of

objects, attributes, occurances, or

processes that has been given a

name.GNP, Inflation.

(31)

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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.

(32)

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Objectives of Research

1. To gain familiarity with a phenomenon Or to

achieve new sights in to it

2. To determine the frequency with which some

thing occurs

3. To test a hypothesis of a casual relationship

between the variables

4. To portray accurately the characteristics of a

particular individual , situation or a group

.

(33)

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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 national

(34)

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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 the research for further development.

 Procedural design of the research should be carefully

planned to yield the results that are objective as for as possible.

 The researcher should report with complete frankness,

 The analysis of the data should be sufficiently adequate

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

Researcher should be experienced & a

person 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 to measure

(36)

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Types of Research



Applied research ( Action Research)

aims at finding a solution for an immediate

problem facing a society or an

organisation.

Ex .1.Teacher finds that most of the

students are weak in comprehension

A teacher innovates a method to improve

the ability of the students.

2. Marketer studying the profitability of two

or more products.

(37)

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Descriptive Research

 It includes surveys & fact finding enquiries.

 It is concerned with describing the state of affairs as it

exists 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 report

what has happened or what is happening. Ex. Preferences of people.

(38)

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

Fundamental Research

Concerned with generalisations & with the

formulation of a theory.

Ex. Research concerning natural phenomenon or

relating to pure science, Human behaviour in

order to make generalisations.



One time research & Longitudinal

research

(39)

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

Quantitative Research

Based on the measurement of quantity or amount.



Qualitative research

Concerned with qualitative phenomenon.

Ex. Motivation research



Exploratory research

To provide insights and understanding.



Historical Research

It is that which utilises historical sources like

documents, letters. Autobiographies,

monuments, remains, paintings in order to

establish facts & draw conclusions concerning

the past.

(40)

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

Comparative Research

The research aims at comparing the

institutions, practices, concepts, trends in

economic variables.

Ex. Customer service in different banks



Model Building research

Mostly done in the field of management.

Model is constructed to show the

relationship among many variables.

Ex. Advertising models, Consumer

(41)

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

Operations Research

The method of research to solve problems using

scientific methods & quantitative techniques

Ex. Construction of fly overs,



Library Research

Conducted with the help of written materials

located in big libraries. Concerned with the

evolution of theories, study involving cause &

effect relationship & seeking out significant facts

& interpretation of the past data.

(42)

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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 to

invention.”

1. Research inculcates inductive thinking and it promotes

development of logical thinking .

2. Several complex business problems can be solved through

research

3. It provides the basis for all govt. policies

4. Important for social scientists in studying the social

(43)

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

6. For students- A career

7. Professionals- Source of livelihood

8.Literary men & women – Development of new styles & creative

work.

9.Philosophers Analysts & intellectuals- Generalisation of new theories.

(44)

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

(45)

1. Formulating a problem



What is a research problem?

It refers to some difficulty which an

organisation is facing and wishes to

obtain a solution for the same.

(46)

Formulating a problem contd..



Means a question or issue to be studied

(47)

Why research problem to be defined?

 Problem formulation is a key to research process.

 It is converting management problem in to a research

problem.

 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 product’s sales are declining?

Writing brief summary of the problem

(48)

2. Extensive research survey



Academic journals,



Magzines,



Text books



Articles



Reports

(49)

3. Development of working

hypothesis



Hypothesis is a tentative assumption

made to draw inferences and test its

empirical consequenses



It should be specific

(50)

4. Preparation of research design



A conceptual structure with in which

research work is conducted.

(51)

5. Determining sample design



Sample design is a way of selecting the

sample or a plan



Population- All the items in any field of

inquiry constitute universe or

population.



Sample size



Sampling method- Probability or non

probability sampling techniques

(52)

6. Collection of data



Observation



Questionnaires

(53)

Analysis of data



Establishment of categories



Application of catagories to raw data

through coding



Tabulation



Drawing inferences



Conputation of percentages mean,

standard deviation etc.

(54)

Hypothesis testing



Do the facts support the hypothesis?



Chi sqaure test, F test, t test are used to

test the hypothesis.



Hypothesis testing results in either

(55)

Generalisation and interpretation



Generalisations: idea of conclusions

having general application.

(56)

Preparation of the report

Lay out of the report



Preliminary pages



Main text

(57)

Preliminary pages



Title



Acnowledgements



Foreward



List of tables

(58)

Main text



Introduction



Theoretical concepts



Review of literature



Objectives of the research



Research methodology



Scope of the study

(59)

Summary of findings



Statement of findings



Discussion

(60)

Research proposal



A proposal is supposed to be a description

of the goals for one’s research.



A proposal should describe reseracher’s

questions, and why they are important

questions



It is very important for the researcher to

read a couple of the most important

papers in the field chosen before writing

your proposal. Since it is a proposal

(61)



In the proposal, researcher should

describe an angle on a problem that

he/she thinks important, and doesn't

seem to be covered by the papers he has

read.

(62)

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What are Research Ethics?



Ethics are norms or standards of behavior

that guide moral choices about our

behavior and our relationships with others



The goal is to ensure that no one is

harmed or suffers adverse consequences

from research activities

(63)

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Ethical Treatment of Participants

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

 Begin data collection by explaining to the participant

the benefits expected from the research

 Explain to the participants that their rights and

well-being will be adequately protected, and say how this will be done

 Be certain that interviewers obtain the informed

(64)

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Deception

Deception occurs when the participant is told only part of 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 be balanced against the risks to the participants.

(65)

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Issues Related to Protecting

Participants



Obtain Informed consent from participants



Debriefing- Explanation of deception,

Description of hypothesis, goal or purpose of

study to participants, post study sharing of

results with the participants.



Right to Privacy/Confidentiality

–

Guarantee of

confidentiality must be given to the participants.

(66)

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Ethical Issues related to the Client



Sponsor non-disclosure- Some clients

wish to undertake research with out

revealing themselves.



Purpose non-disclosure- Researcher has

to protect the purpose of the study.

(67)

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

Right to quality research

This right entails

1. Providing a research design

appropriate for the research question.

2. Maximising the sponsor’s value for the

resources expended.

3. Providing appropriate data handling

and reporting techniques for the data

collected.

(68)

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Ethics Related to Sponsor



Sometimes researchers will be asked by

sponsors to participate in unethical behavior.



To avoid coercion by sponsor the researcher

should:



Educate sponsor to the purpose of research



Explain researcher’s role



Explain how distortion of the truth leads to

future problems



If necessary, terminate relationship with

sponsor

(69)

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Ethical Issues related to

Researchers and Team Members



Safety= it is the responsibility of the researcher

to design a project so that the safety of all

interviewers , surveyors, observers or

experimenters is protected.



Ethical behavior of assistants- Researcher

expects ethical compliance or behaviour from

the assistants.



Protection of anonymity- Researcher &

assistants should protect the confidentiality of

the sponsor’s information & theanomity of the

participants.

(70)

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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 personal nature.

 It is the responsibility of the market researcher to

accurately reflect the respondents replies in his report.

(71)

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What is Thematic Appreciation Test

(TAT)

It is a projective technique. Participants are shown pictures and asked to tell a story based on what they see. This

tool helps to elicit important information about

underlying psychological fears and needs. The TAT was developed in 1935 by Morgan and Murray. Ironically, it was initially used in a study of normal personalities done at Harvard Psychological Clinic.

 The test comprises 31 cards. One card is blank and the

other thirty include blurred but emotionally powerful (or even disturbing) photographs and drawings

(72)

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Difference between Research methods &

Research Methodology

Research methods refer to techniques that are

used for conducting research ex.

Observation, Questionnaires, interviews,

Analysis of historical records, Case studies

Research methodology is a way to

systematically solve the research problem.

(73)

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

Research Methodology

It is a way to systematically solve the research

problem.

It is a science of studying how research is done

scientifically ( step by step)

Researcher needs to know not only the methods &

techniques but also as to how to use relevant

method at the appropriate time

Ex researcher in designing a building

Research methodology has many dimensions &

methods only constitute a part of the research

methodology.

(74)

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1. Define Business Research. Explain its significance in modern times. 2. Define Research. Explain how scientific research differs from social

research.

3. Differentiate between basic research & applied research with examples.

4. What are the difficulties in applying scientific method in marketing research.

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-scientific method?

(75)

Example for Combining deduction

and induction

Q: Why didn’t sales increase?

We promote a product but sales did

not increase Why?

Induction Hypothesis: The promotion was poorly executed We run an effective promotion and sales

will increase

Deduction

Ineffective promotion

Deduction: Effective promotion