1. What do you mean by Basic research and Applied Research?

Explain with the help of

appropriate example in terms of Business Research.

Answer: Basic research is a research approach that is entirely theoretical and aimed at improving or
expanding the limits of knowledge and that are not directly involved in the solution to a pragmatic
problem.
Features:

 driven by a scientist's curiosity or interest in a scientific question.

 main motivation - expand man's knowledge , not to solve any problem being encountered in real
world.
 No obvious usefulness in practical life.
Exampples:

 A critical analysis of product placement as an effective marketing strategy.

 An investigation into the main elements of brands and branding.
 A study of factors impacting each stage of product life cycle.
It focuses on "knowledge for its own sake" and it is primarily driven by curiosity and the need to
explore the unknown

Applied Research: It is Conducted with the main purpose of providing information necessary to solve a
specific real-life problem.
Features:

 Solves a real-life marketing problem

 Makes decisions about particular courses of marketing action
 Usually yields obvious benefit and/or use

Examples:

 A study into the ways of improving the levels of customer retention for Wall-Mart in China.
 An investigation into the ways of improving employee motivation in Marriot Hotel, Hyde Park.
 Development of strategies to introduce change in Starbucks global supply-chain management
with the view on cost reduction
 2. Discuss the differences between inductive approach and deductive approach of research.

The main difference between inductive and deductive approach is that inductive reasoning aims at
developing a theory while deductive reasoning aims at testing an existing theory. Inductive reasoning
moves from specific observations to broad generalizations, and deductive reasoning the other way around.

Definition: Inductive approach, also known in inductive reasoning, starts with the observations and
theories are proposed towards the end of the research process as a result of observations.

Definition: In studies with deductive approach, the researcher formulates a set of hypotheses at the start of
the research. Then, relevant research methods are chosen and applied to test the hypotheses to prove them
right or wrong.

From Slide
Inductive approach is
• Understanding the way human build their world • Permitting alternative explanations of what’s going on
• Being concerned with the context of events • Using more qualitative data • Using a variety of data
collection methods.
Deductive approach is
• Explaining causal relationships between variables • Establishing controls for testing hypotheses •
Independence of the researcher • Concepts operationalised for quantitative measurement • Generalisation