Business Research Methods

Meaning of Research

• It is a common phenomenon which is referred to a search for knowledge.

• One can define research as a scientific and systematic investigation.

• Another meaning of research is “a careful investigation or inquiry especially through

search for a new fact in any branch of knowledge”.

• It is an academic activity and it comprises defining and redefining problem.

Definition
Simply research is defined as an organised, systematic, data-based, critical, objective,
scientific inquiry or investigation into a specific problem, undertaken with the purpose of
finding answers or solutions to it.
According to Clifford Woody, research comprises defining and redefining problem,
formulating hypothesis or suggested solutions, collecting, organising and evaluating data,
making deductions and reaching conclusions; and at last carefully testing the conclusions to
determine whether they fit the formulating hypothesis.”
Objectives

• 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
(Descriptive research)

• To determine the frequency with which something occurs or with which it is

associated with something else (Diagnostic research).

• To test hypothesis of a casual relationship between variables (Hypothesis- testing

studies).

Motivation in Research
Types of Research
1). Descriptive Vs Analytical
Descriptive Research: It includes surveys and facts, finding enquiries of different kinds.
The main purpose is description of the state of affairs as it exists at present.
Eg.: In social science and business research we quite often use the term “Ex post facto
research” for descriptive research studies.
 • The main character of this method is that researcher has no control over the variables.
He can only report what has happened or what is happening.

• Most Ex post facto research projects are used for descriptive studies in which the
researcher seeks to measure such items like frequency of shopping, preferences of
people, etc. Researcher also tries to discover causes even when they cannot control
the variables.
Analytical Research: The researcher has to use facts or information already available and
analyse these to make critical evaluations of material.

2). Applied Vs Fundamental

Applied – action; Fundamental – basic or pure.
Applied Research – Finding a solution for an immediate problem facing a society or an
industry / business organization. Eg.- research aimed at certain conclusions. Facing a
concrete social or business problem is an example of applied research.
Identifying social, economical or political trends that may particular institution are copy
research or marketing or evaluation research
Fundamental Research – It is mainly concerned with generalisation and with the
formulation of theory. Eg- Gathering knowledge for knowledge’s sake. It is a research
concerning some natural phenomenon or relating to pure mathematics. Also it is concerning
human behaviour carried on with a view to make generalisation of human behaviour. Thus
the central aim of applied research is to discover a solution for some practical problem, where
as fundamental research is finding information that has a broad base of applications and thus,
adds to the already existing body of scientific knowledge.

3). Quantitative Vs Qualitative

Quantitative research – Based on measurement of quantity or amount, that can be expressed
in terms of quantity.
Qualitative research – Relating to qualitative phenomena involving quality or kind. Eg.-
why people think or do certain things.
When we talk of “motivation research”, this research aims at discovering the underlying
motives and desires, using in depth interviews for that purpose. Other techniques of such
research are word association, sentence completion test, story completion, attitude or opinion
research.

4). Conceptual Vs Empirical

Conceptual – related ideas or theories used by philosophers and thinkers to develop new
concepts or to reinterpret existing ones.
Empirical – Experience or observation alone, without due regard for systems and theory. It is
data based research coming up with conclusions which are capable of verification by
observations and experiment.

5). Some other type of research:-

 • One time research – one time period.

• Longitudinal research – Several time periods

• Field setting research or laboratory research or simulation research

• Clinical or Diagnostic research – case study and in depth approaches

• Exploratory research – development of hypothesis rather their testing

• Formalised research – substantial structure and specific objectives

• Historical research – based on records and past data

• Conclusion oriented – as researcher wish

• Decision oriented –e.g.- operations research.

Research Approaches
Quantitative Approach
a. Inferential approach – Form a database and infer characteristics or relationships of
population from it (usually survey researches).
b. Experimental approach – Greater control over the research environment. Some variables
are manipulated to observe their effect on other variables.
c. Simulation approach – Construction of an artificial environment within which relevant
information and data can be generated.

Qualitative approach
Subjective assessment of attitudes, opinions and behaviour.

Significance of Research
• The role of research in several fields of applied economics, whether related to
business or to the economy as a whole, has greatly increased in modern times.

• It provides the basis for nearly all governmental policies in our economic system.

• It facilitates the decision of the policy maker.

• It helps in solving various operational and planning problems of business and

industry.
• It is important for social scientist in studying social relationships and in seeking
answers to various social problems.

In addition
a. For students of masters or Ph.D - it is a careerism to attain a high position in the social
structure.
b. For professionals – it is a source of livelihood.
c. For philosophers and thinkers – it is an outlet for new ideas and insights.
d. For literary men and women – it helps in development of new styles and creative work.
e. For analysts and intellectuals – helps in generalisation of new theories.

Research Methods Vs Methodology

Types
1. Library Research:-
Methods Techniques
i. Analysis of historical records Recording of notes, content analysis,
tape and film listening and analysis.
ii. Analysis of documents References, statistics, content
analysis, abstract.

2. Field Research:-
Methods Techniques
i. Non participation direct observation. Observation behavioural scales, use
of score cards.
ii. Participant observation Tape recorders, photographic tech.
iii. Mail questionnaire Identification of social and economic
background of respondents.
iv. Mass Observation Recording mass behaviour, interview.
v. Opinionnaire Attitude scale, projective tech.
vi. Personal interview Open and closed questions.
vii. Focus interview Focus on given experience
viii. Group interview Small groups of respondents are
Interviewed simultaneously.
ix. Telephone survey Survey technique for information
x. Case study and Life history Cross sectional collection of data for
 Intensive analysis

3. Laboratory Research
Methods Techniques
Small group study of random behaviour, Use of audio visual recording
Play and role analysis devices, use of observers, etc.

Research and Scientific Method

Both the methods are based on certain basic postulates which can be stated as under:
1. It relies on empirical evidence
2. It utilizes relevant concepts
3. It is committed to only objective considerations
4. It presupposes ethical neutrality i.e., it aims at nothing but making only
adequate and correct statements about population objectives.
5. It results into probabilistic predictions.
6. Its methodology is made known to all concerned for critical scrutiny for use
in testing the conclusions through replication
7. It aims at formulating most general axioms or what can be termed as
scientific theories.

Importance of knowing how research is done

i. It provides good training.
ii. It will inculcate the ability to evaluate and use research results with reasonable
confidence.
iii. It enables us to make intelligent decisions concerning problems facing us in
practical life at different points of time.
iv. It helps consumers to evaluate and enables to take rational decisions

Research Process
It consists of series of actions or steps necessary to effectively carryout research and the
desired sequencing of these steps:
 Research Process in flow chart

F
F
Design Analysis of
Define Review
Formulate research data (test
concepts and F
Research hypothesi (including hypothesis if
Problem theories
Review s sample any)
previous design)
research
findings F
Collect
Data
(executio
Interpret
n)
and report

F - Feedback ( controlling sub - system)

F
- Feed Forward (criteria evaluation)
F

Step1: Formulating the research problem

There are two ways
a) Which relate to states of nature?
b) Which relate to relationship between variables?

• Researcher must decide the general area of interest and subject matter that he
would like to inquire into

• State the problem initially in broad general way

• Feasibility of particular solution be resolved

• General topic to research problem is the first step of scientific enquiry

• Two steps in research problem

 • understanding the problem thoroughly and
• rephrasing the same into meaningful terms

• Best way of understanding is discussing with colleagues and some experts. Guide
is also one of the source

• Get all literature regarding problem – 2 types of literature

a) Conceptual – concepts and theory
b) Empirical - similar studies made earlier

• After re-phrasing in an analytical and operational way put the problem in

scientific terms as possible

• Defining, formulating a research problem is a step of greatest importance in the

entire research process

• According to Professor W.A.Neiswanger – statement of the objective is important

because it determines the data which are to be collected, characteristics of data
which are relevant, choice of technique etc.

Step 2 Extensive literature survey

• Writing down brief summary, writing synopsis, undertake extensive literature
survey connected with problem

• Academic journals, conference proceedings, Govt. Reports, Books must be tapped

• A good library will be a great help to the researcher at this stage

Step 3 Development of working hypothesis

 It should clearly state the terms of working hypothesis
 Working hypothesis is tentative assumption made in order to draw out and test its
logical or empirical consequences. It guides the researcher to go in a right track.
It also indicates types of data required and types of methods of data analysis to be
used

 Hypothesis provide the focal point of view and also talks about how test should
be conducted and quality of data

Ways to develop hypothesis:

• Discussion of problem, origin and objectives with colleagues and experts

• Examination of data, records, possible trends

• Review of similar studies

• Exploratory personal investigation with interested parties and great insight in practical
aspects.
Step 4 preparing the research design
Good design – maximum information and relevant evidence
4 categories
a) Exploratory
b) Description
c) Diagnosis
d) Experimentation

Considerations for preparing research design:

• Means to obtain information

• Availability and skills of researcher

• Time availability

• Cost factor and finance available

Step 5 determining the sample design

Population or universe – complete items available
Census inquiry – whole population
Sample – items selected for test
Census in inquiry is not possible under many circumstances eg. Blood testing done through
only sampling
Sample design- decide the way of testing a sample
Two types
a) Probability – each element can be included in sample
b) Non- probability – elements do not have equal chance
A brief mention to the sampling
i) Deliberate sampling
ii) Simple random sampling
iii) Systematic sampling
iv) Stratified sampling
v) Quota sampling
vi) Cluster or area sampling
vii) Multi stage sampling
viii) Sequential sampling

Step 6 Collecting data

Primary data – through experiment or survey
In case of survey there are following ways
i) By observation
ii) Through personal interview – pre-conceived questions
iii) Telephone interviews
iv) By mailing of questionnaires
v) Through schedules – relevant questions

Step 7 Execution of the project

• Should be in a systematic manner and time

• If structured questionnaire – data machine processed

• Careful watch on unanticipated to keep survey as much as realistic and

possible. Non-securing problem may also occur. One way of dealing that
is making list of them and make a small sub sample and with the help of
respondents secure response

Step 8 Analysis of data

• Raw data through coding, tabulation, drawing statistical inferences

• Coding, editing, tabulation are important

• Hypothesis, test of significance

Step 9 Hypothesis testing

Using various test like chisquare, t-test, f-test. It results in whether accepting or rejecting
hypothesis

Step 10 Generalisation and interpretation

To build a theory, explaining findings based on theory is known as interpretation. This leads
to further researches.

Step 11 Preparation of the report or the thesis

Points to be kept in mind
i) The layout of the report should be
a) The preliminary pages – title, acknowledgement, table of contents
b) Main text – introduction, summary of findings, main report and conclusion
c) The end matter – Appendices, bibliography (list of books, journals, reports etc.), index
ii) Should be concise and objective style, in simple language. Avoid vague expressions such
as “it seems”, “there may be” & the like
iii) Chart should be used only if they have clear information
iv) Confidence limits and constraints should be stated

Criteria for a good research

• Purpose of research should be clearly defined.

• Procedure should be in detail description

• Procedural design should be carefully planned

• Researcher frankness

• Conclusion should be to those justified by data

• Greater confidence

• Should be systematic and logical

Problems encountered by research in India

i) Lack of scientific training in the methodology of research
ii) There is insufficient interaction between the university research departments
iii) Most of business units do not rely on research
iv) Research studies overlapping one another are undertaken quite often for want of adequate
information
v) There does not exist a code of conduct for research
vi) Difficulty of adequate and timely secretarial assistance
vii) Library Management and functioning is not satisfactory
viii) Difficulty in assessing copies of old and new Act/Rules, reports and other govt.
Publications in time
ix) Problem of conceptualisation

Defining a research Problem

Synopsis
 • What is research problem

• Problem definition

• Examples of well – defined problem

• Selecting the problem

• Necessity of defining

• Techniques involved in defining a problem

What is Research Problem?

It refers to some difficulty which a researcher experiences in the context of either theoretical
or practical situation and want to obtain solution for the same.
Conditions to be satisfied:

• Problem should be attributed from individual, organisation or environment

• Must be atleast 2 courses of action. C1 and C2 should be defined from 1 or 2
controlled variables.
• At least 2 possible outcomes O1 and O2

Problem Definition:
It is aclear, precise and succinct statement of the question or issue that is to be invested with
the goal of finding an answer or solution.
Examples of well defined problems:

 How has the new packaging affected the sales of the product?

 Has the new advertising message resulted in enhanced re-calls?

 How do price and quality rate on consumer’s evaluation of products?

 Does better automation lead to greater asset investment per dollar of output?

 What are the components of “quality of life”?

Selecting the Problem

Subject for research:
• Subject which is overdone shall not be normally chosen, for it will be a difficult
task to throw any new light in such a case.

• Controversial subject should not become the choice of an average researcher.

• Avoid too vague problem

• Familiar and feasible

 • Qualification and training is necessary.

• Cost involved should be calculated

• Must be selected based on preliminary study.

Necessity of defining the problem:-
• Well defined problem will solve hurdles

• What data, characteristics of data, relations to be explored, what techniques,etc

would be answered by problem.

Techniques involved in defining a problem:

Defining a problem involves the task of laying down boundaries within which a researcher
shall study the problem with a
i). Statement of the problem in a general way.
ii). Understanding the nature of the problem.
iii). Surveying the available literature
iv). Developing the ideas through discussing.
v). Rephrasing the research problem.

RESEARCH DESIGN

Meaning: Preparation of the design of the research project.

“It is the arrangement of conditions for collection and analysis of data in a manner that aims to
combine relevance to the research purpose with economy in procedure”.

• What is study about?

• Why, where, what type of data?
• Period of time
• Techniques & how to analyze the data
• Style of report

2 part

a) The sample design: methods of selecting items to be observed for the given study.
 b) Observation design: conditions of observations.
c) Statistical design: how items observed, information & data gathered are to be gathered.
d) Operational design: techniques by which the procedure…

Important features of research design:

• Sources & types of information relevant to the research problem.

• Approach for gathering & analyzing the data.
• Time & cost budget.

It should contain:

• A clear statement of the research problem.

• Procedures & techniques for gathering information.
• Population.
• Methods – processing & analyzing the data.

Need for research design:

• It facilitates the smooth sailing of the various research operations.

Features of a good research:

• Flexible, appropriate, efficient, economical.

• Which minimizes the bias & maximizes the reliability of the data collected & analyzed is
considered as a good design.

Following factors should be considered:

• Means of obtaining information

• Availability & skills of researchers
• Objectives of the problem
• Problem nature
• Money & time availability

Important concepts:

1. Dependent & independent variable:

variable – a concept which can take a different quantitative values. Ex: weight, height, income.
Continuous variable – age

Non continuous variable – children

Dependent variable – height depends on age.

Independent variable – age

2. Extraneous variable:
Variables that are not related to the purpose of the study, but may affect dependent variable. Ex :
intelligence affect social studies,

3. Control: Minimize the influence or effect of extraneous variable(s).

4. Confounded relationship:
Inseparable relationship between dependent & extraneous variable.

5. Research hypothesis:
It is a predictive statement that relates an independent and dependent variable.

6. Experiment & non – experiment hypothesis:

Hypothesis testing research.

Research in which independent variable is not manipulated – non – experimental.

Experimental – manipulating independent variable.

7. Experimental & control group:

Control group - group is exposed to usal . ex : without treatment conditions.

Experimental group – group is exposed to some special conditions.

8. Treatments:
Experimental & control groups used in different conditions. Ex – offers, coupons, discounts

9. Experiment:
Purpose of examining the truth.
 10. Experimental units:
The pre - determined blocks where different treatments are used.

Ex – north super markets.

Different research design:

1. Research design in case of exploratory research studies:

o formulative research studies.
o Purpose – formulating problem for investigating from an operational point of view.
(hypothesis)
o Major emphasis – discovery of ideas & insights.

3 methods are

 The survey of concerning literature: survey of people who have had practical experience.
 The experience survey: own experience.
 Analysis of insight – intensive study & selected instances of the phenomenon in which one
interested.

2. Research design in case of descriptive & diagnostic research studies:

o Descriptive – social research - for both researcher must be able to define clearly,
what he wants & finds adequate it along with clear definition of
“population”. Focus is like mba project . Discuss the points.

3. Research design incase of hypothesis testing research studies –

• It is an experimental study.
• Testing hypothesis of casual relationships.
• It requires procedure that will not reliability, but will permit drawing inferences about
casualty.

Basic principles of experimental designs:

According to prof. Fisher - there are 3 principles.

i. The principle of replication: experiments should be treated & conducted more than one time
and applied in many experimental units - it provides statistical accuracy increases. Ex – rice
in 2 parts – test separately, take two yields & draw conclusion on that basis.

ii. The principle of randomization:

• It provides protection.
 • Variations caused by extraneous factors can all be combined under the general
headings of “chance”. Ex – we can grow rice two different yields to check fertility.

iii. The principle of local control: the variability it causes can be

& hence eliminated from the experimental error.

Important experimental designs

Informal design formal design

Informal experimental designs:

i. Before and after without control designs – treatment introduced measuring the dependent
variable is measured before and after the treatment. Ex – sales
ii. After only with control designs – two groups or areas (test area and control area) are selected
& treatment is introduced the dependent variable is measured on both the areas with & with
treatment is measured.
iii. Before and after with control designs - select two areas & dependent variable is measured for
a time period. Then introduce treatment. Dependent variable is measured in both tested &
control area.

Formal experimental designs:

i. Completely randomized design – 2 principles are a) Replication b)

Randomization. One way anova(one way analysis of variance). Two – group
simple random design – randomly assigned to the experimental & control groups. Random
replication design – random replication.
ii. Randomized block design(R.B. design) – principle of local control(two way anova).
iii. Latin square design - five fertilizers & five treatments.
iv. Factorial design – effects of varying more than one factor are to be determined.
 SAMPLING DESIGN

Census & sample survey:

Population – all items in any field(universe)

A complete enumeration of all items in the population is “census inquiry”

Implication of a sample design:

Def:

It is a definite plan for obtaining a sample from a given population. It refers technique or the
procedure the researcher would adopt in selecting items for the sample. It also lay down the number
of items to be included in the sample(sample sizes)

Steps:

i. Types of universe: clearly defines the objective universe to studies. Universe can be finite or
infinite.
ii. Sampling unit: selecting geographical are such as state, district, village, flat, social unit –
family, club, school, etc.
iii. Source list: from which sample is to be drawn. It contains name of all items of a universe. It
should be correct, reliable & appropriate.
iv. Size of sample: no of items to be selected. Large or small & should be optimum. Confidence
level should be kept in mind.
v. Parameters of interest: interest of sub – groups, characteristics of population.
vi. Budgeting constraints
vii. Sampling procedure: technique should be used in selecting items.
Criteria of selecting a sample procedure:

• Inappropriate sampling frame.

• Defective measuring device.
• Non – respondents.
• Indeterminacy principle.
• Natural bias in the reporting of data.
Sample errors – variation in the sample estimates around the true population parameters. The
measurement of sampling error is called as “precious of the sampling plan”. If we increase its
precision can be increased.

Characteristics of a good sample design:

• Must be result & truly representative error.

• Must result on small sampling error.
• Must result viable in the context of funds available for the research studies
• Should avoid systematic bias.

Different types of sampling

a) Probability sampling:
The elements in a populations have same known chances or probability of bricks
selected a sample item. It can be either unrestricted or restricted in nature.

Unrestricted or simple random sampling:

Equal change of bricks selected as a subject.