Anil’s Commerce +3 6th Sem BRM Unit - 1

Unit 1 INTRODUCTION
No Topic Page Nos
01 LQ Research& its Features 2
02 LQ Research & its Scope 3
03 LQ Research & its Importance 4
04 LQ Research & its Purpose 4
05 LQ Research & its Types 5
06 Short Notes 6
Bit questions 8

in association with our Professional Partner

Institute for Professional

Education in Commerce
CMA Foundation, Inter & Final

Harish Sir – 8908283654 Page 1

 Anil’s Commerce +3 6th Sem BRM Unit - 1
Q.No 1: DEFINE RESEARCH ? EXPLAIN ITS CHARACTERISTICS ?
Introduction
• The unique characteristic of human mind is the curiosity to know.
In fact, man is born curious. When we observe any factor
phenomenon, we seek explanation about what, why, when and how.
Seeking answers to questions and finding solutions to the
problems has been the basis of human progress.
• Systematic search for an answer to a question or a solution to a problem is called
research.

Meaning
• In common parlance, research refers to acquiring new knowledge. But in scientific terms,
research is defined as the systematic search for pertinent information on specific topic.
• The term research is derived from the French word 'Recherche' which means to go
about seeking. In English research is made up of two words, Re + Search. Re means
afresh or again and search means to look for or to find out something concealed.
• Hence, research means producing new knowledge or adding something new to the
existing stock of knowledge.

Definition
• "Research is a process of steps used to collect and analyse information
to increase our understanding about a topic or issue. It consists of
three steps—pose a question, collect data, to answer the question and
present an answer to the question."J.W Creswell
• "Research as a systematized effort to gain new knowledge."—I.V.Redman

Characteristics
1. Original: Research is original. It produces new knowledge or adds something new to the
existing stock of knowledge.
2. Systematic Activity: Research is an organised study. There is a definite procedure in
which research is conducted. It involves a series of steps with logical arrangements such
as:
(i) defining the research problem, (ii) determining the sources of information,
(iii) collection of data,(iv) Tabulation of data, (v) analysis and interpretation of data and
(vi) preparing the research report.
Each step is inter-related and inter-dependent Thus, research is highly organised and
systematic activity.
3. Analytical and Critical: Research is to go deeper and deeper into the idea. In research,
there is critical analysis of all the data used so that there is no error in their
interpretation.
4. Empirical: Research is based on empirical evidences and observations. Each step in the
research has been tested with accuracy and is based on real life experiences.
5. Logical: Research is based on valid procedures and principles. It is guided by the rules
of logical reasoning.
Harish Sir – 8908283654 Page 2
 Anil’s Commerce +3 6th Sem BRM Unit - 1
6. Cyclical: Research is a cyclical process. It starts with a problem and ends also with a
problem to be studied further.
7. Goal Directed: Research is always purposeful. It is arriving at a purpose by following
procedures.
8. Replicable: In research if design and procedures are repeated, the researcher arrives
at same duplicate results.
9. Needs Patience: Research is a time consuming activity as it is an organised, planned and
critical enquiry. Thus, it needs patience.
10. Requires Courage: A researcher may bring out conclusions that may be against popular
beliefs and bring social disapproval.

Q.No 2: DEFINE RESEARCH ? EXPLAIN ITS SCOPE ?

Scope of Business Research Includes the following areas:
1. Production:- The research performs an important function in product development,
diversification, introducing a new product, product improvement, process technologies,
choosing a site, new investment etc.
2. Accounting:- Accounting research includes accounting information, management
accounting, international accounting, accounting theory, auditing, accounting ethics, and
the behavioural implications of accounting.
3. Finance:- Financial research studies about sources and uses of finance. It includes
corporate finance, investment, valuation methods, the functioning of capital markets,
controlling risk with options and futures contracts, hedge funds, etc.
4. Business Economics:- Research in the field of business economics focuses on the use of
economic analysis and statistical methods for dealing effectively with management
problems in applied business fields such as capital markets, financial institutions,
experimental and behavioural economics, business strategy and industrial organisation.
5. General Management:- Management professionals focus on research creating
management theory and knowledge that is relevant to business practice. It includes
innovation, entrepreneurship, organisational learning, and networks.
6. Personnel Management:-Business research in the field of personnel management
focuses on job redesign, organisation restructuring, development of motivational
strategies and organisational development.
7. Marketing Management:- To meet changing needs of consumers, Businesses do
marketing research. Marketing research is used in determining price policy, selection of
channel of distribution and development of sales strategies, product mix, promotional
strategies, etc.
8. Organisational Behaviour (OB):- Research in the field of OB combines training in the
theory and methods of psychology or sociology with the study of business administration
and empirical research on organisational phenomena.
9. International Business (IB):- In today's global environment all business is international
business. Research in this area focuses on understanding how managers and firms can
thrive in an increasingly complex and dynamic global business environment.
10. Entrepreneurship and Innovation:- Research within the Entrepreneurship and
Innovation group focuses on innovative, growth-orientated entrepreneurship and the
study of innovation surrounding new information and communication technologies.
Harish Sir – 8908283654 Page 3
 Anil’s Commerce +3 6th Sem BRM Unit - 1
Q.No 3: DEFINE RESEARCH ? EXPLAIN ITS IMPORTANCE ?
1. Acquiring New Knowledge:- The fascination and desire for new knowledge and new
facts are the primary reasons of research. Thus, research is important for Building
Knowledge and Efficient Learning.
2. Facilitating Decision Making:- Research facilitates decision making. For example, a
restaurant owner wants to decide the location to open a new restaurant. For this he can
survey the market, location of other restaurants, etc. and then decide about the
location of restaurant.
3. Larger Frame of Understanding:- Because different research sources offer different
kinds of information, we can find different ways to understand the topic.
4. Improving Standard of Living:- Research facilitates new inventions and discoveries. All
the luxuries and the amenities that are now available to us are the result of research
done by someone. The light we use, the computers, mobile phones, cars, etc. are all
results of continuous research.
5. Dealing with Specific Problems:- Knowledge of mankind is limited. There are a number
of problems in science, mathematics, social science and law which are yet to be solved.
Research provides a direction and methods for obtaining answers to the problems.
6. Generating New Theories:- Research is always work-in-progress. They are supported
by evidences. But in future, researchers may find new evidences and the present
theories may get improved or replaced.
7. Knowing About Facts:- Research is significant in knowing about facts. For centuries, we
believed that sun revolves around the earth until the research investigated the fact
that it is the earth that revolves around the sun.
8. An Aid to Business Success:- Successful businesses are those businesses which are
continuously engaged in Research and Development (R&D). Different business industries
like agriculture, food and beverage, manufacturing, healthcare and pharmaceuticals,
computer software, semiconductor, information and communication technology,
construction, robotics, aerospace, aviation, energy, etc. have high R&D expenditure
because it is critical to product innovation and to improving services.
9. To Make Changes:- Research is needed to make change. People keep on believing and
following the same thing. To bring change research is needed. Child Marriage in India
could be stopped only when findings or research proved that it has dexterous effects on
growth and health of a girl child.
10. Formulating Government Policies: All government policies are based on research. How
allocation of funds should be made to different sectors? How income should be
distributed? What should be done to remove poverty, unemployment and inequality? For
all these problems, government makes policies and to design those policies, research is
needed.

Q. No 4: DEFINE RESEARCH ? EXPLAIN ITS PURPOSE ?

1. Exploration: Exploration refers to gaining some familiarity with a topic, discovering
some of its main dimensions, and possibly planning further, more structured research. It
is the initial research into a hypothetical or theoretical idea. This is where a researcher
has an idea or has observed something and seeks to understand more about it.

Harish Sir – 8908283654 Page 4

 Anil’s Commerce +3 6th Sem BRM Unit - 1
2. Explanation: Explanatory research provides support for the current understanding of a
body of knowledge. It is not used to give some conclusive evidence but helps us in
understanding the problem more efficiently.
3. Description: Descriptive research describes what exists and may help to uncover new
facts and meaning. It is used to describe characteristics of a population or phenomenon
being studied. Anthropologists, psychologists and social scientists often use descriptive
research to observe natural behaviours. Market researchers also use it to judge the
habits of customers, or by companies wishing to judge the morale of staff.

Q. No 5: DEFINE RESEARCH ? EXPLAIN ITS TYPES ?

1. Pure (Basic) Research:- Basic research is also called pure research or fundamental
research. It is a systematic study which aims at understanding or getting wider
knowledge of the problem or phenomena. Basic research is focused to collect knowledge
without any intention to apply it. It is purely intellectual in character. It may lead to
either discovery of a new theory or refinement of an existing theory. Pure research
probes for answers to questions such as: how did the universe begin, or what are
protons, neutrons and electrons composed of ?
2. Applied Research:- Applied research is designed to solve practical problems of the
world. In other words, applied research is not carried out for its own sake but to solve
specific practical questions or problems. The goal of applied research is to improve the
human condition. It focuses on analysis and solving social and real-life problems.
3. Exploratory Research:- Exploratory research involves preliminary investigation of a
subject that is not well understood or sufficiently researched. It is an examination into
a subject to gain further insight. It intends merely to explore the research questions
and does not intend to offer final and conclusive solutions to existing problems.
Exploratory research is conducted about a problem when there are few or no earlier
studies to refer to. This research serves as a tool for initial research that provides a
hypothetical or theoretical idea of the research problem.
4. Descriptive Research:- Descriptive research describes what exists. It may help to
uncover new facts and meaning. The purpose of this research is to observe and describe.
It tells us what is happening and does not try to determine cause and effect. It does
not answer questions about how/when/why the characteristics occurred. Rather it
addresses the 'what' question. Suppose a researcher wants to know what are the
factors that led to choose Economics as a subject in B.A.? It will be a descriptive study.
5. Explanatory Research:- Explanatory research is also known as analytical research. We
begin exploring something new with exploratory research. Then, we conduct descriptive
research to increase our knowledge of it. After that we need to explain it. It seeks to
determine cause and effect relationships between variables. The main aim of this type
of research is to identify any causal links between the factors or variables that pertain
to the research problem. It is very structured in nature.
6. Empirical Research:- The word empirical means information gained by experience,
observation, or experiment. Thus, empirical research is the collection and analysis of
primary data based on direct observation or experiences in the field. In other words,
you get your results from actual experience rather than from a theory or belief.

Harish Sir – 8908283654 Page 5

 Anil’s Commerce +3 6th Sem BRM Unit - 1
Empirical evidence can be analysed quantitatively or qualitatively. Empirical research
based on direct observation, focus group discussions and in-depth interviews is defined
as qualitative studies. That empirical research which aims to highlight statistical
associations between variables or to establish the prevalence of a phenomenon is
defined as quantitative research.
7. Qualitative Research:- It difficult to measure human behaviour in quantitative
methods, therefore qualitative research methods were developed. Qualitative research
is used to gain an understanding of underlying reasons, opinions, and motivations. It
involves looking in-depth at non-numerical data. It uses different methods of
collecting information, mainly individual in-depth interviews and focus groups. For
example, a researcher wants to know the effectiveness of teaching of a teacher. He can
attend his/her class, become friendly with the students and teacher; and through
observation and questioning, can estimate the effectiveness.
8. Quantitative Research:- Quantitative research usually involves collecting and
converting data into numerical form so that statistical calculations can be made and
conclusions can be drawn. The objective of quantitative research is to develop and
employ mathematical models, theories or hypothesis pertaining to phenomena. For
example: how often students use Facebook? What is average calorie intake of an Indian?
9. Action Research:- Action research refers to examining actions, assessing their
effectiveness in bringing about the desired outcome and choosing a course of actions.
Action research is often used in the field of education but can be used anywhere in
professional practice like management, administration, medicine or social science. It
is an interactive method of collecting information that is used to explore topics of
teaching, curriculum development and student behaviour.
10. Historical Research:- Historical research involves interpreting past events to predict
future ones. It involves collecting, verifying, and synthesising evidence from the past to
establish facts that defend or refute the hypothesis. It uses secondary sources such
as, textbooks, encyclopaedias, newspapers, periodicals, review of research and other
references, etc., as well as primary sources such as, original documents, relics, remains,
artefacts, etc. The historical research applies to all fields of study because it
encompasses their origins, growth, theories, personalities, crisis, etc.

Q. No 6: Short Notes

A. Unit of Research Analysis ?

• The first step in analysing data is to define a unit of analysis. It is the major entity that
a researcher analyses in his/her study.
• The individuals or objects whose characteristics are to be studied are classified as the
units of analysis. It is the ‘what' or 'who' that is being studied.
• Unit of analysis may include such entities as
➢ Individuals (Students, employees, registered voters, managers, teachers, customers,
sales representatives, etc )
➢ groups of people (e.g., a classroom, work teams, departments, families , etc), or
➢ organisations (e.g., school, Companies, colleges, mental hospitals, etc).

Harish Sir – 8908283654 Page 6

 Anil’s Commerce +3 6th Sem BRM Unit - 1
• For example, if the researcher is comparing students in two classrooms on test score,
the unit is the individual student. On the other hand, the researcher may decide to
compare average classroom performance. In this case, the unit of analysis is the group.
• In business research, units of analysis are employees, supervisors, top managers,
customers, work teams, departments, business corporations. In educational research,
the most common units of analysis are students, parents, teachers, classes, schools, etc.
or school districts.

B. Concept
• Concepts are formally and logically developed ideas that a researcher seeks to study.
• The first step in the measurement process is to define the concepts we are studying.
• Concepts are based on our experiences. Concepts can be based on real phenomena and
are a generalized idea of something of meaning. Examples of concepts include common
demographic measures: Income, Age, Education Level, Number of Siblings.

C. Constructs
• A construct serves the same function as a concept.
• In research, construct refers to the characteristic or trait that is being evaluated.
• Constructs are measured with multiple variables. Constructs exist at a higher level of
abstraction than concepts. Intelligence levels, Satisfaction, Justice, Beauty, Happiness,
and Health are all constructs.
• Constructs are considered latent variable because they cannot be directly observable or
measured. Typical constructs in marketing research include Brand Loyalty, Purchase
Intent, and Customer Satisfaction.

D. Hypothesis
• Hypothesis is usually considered as the principal instrument in research.
• A hypothesis is a specific, testable prediction. It describes in concrete terms what we
expect will happen in a certain circumstance. It is used in an experiment to define the
relationship between two variables. The purpose is to find the answer to a question.
• It is formulated to know the possible explanation of a phenomenon or problem. When the
problem is not explainable with the existing knowledge, a hypothesis is formulated.
• Daily you go to bus stand to catch a bus to reach the college. Suppose one day when you
arrive at the bus stand to board the bus, you find the heavy crowd which normally should
not have been there at that particular time. It compels you to think. You try to know the
reason. A possible explanation comes to your mind that perhaps the earlier bus did not
come or it is festival time or there is some election rally somewhere for which there is
crowd. These are different explanations of the situation and are called hypothesis which
can be verified to know the actual reason for crowd.

E. Attributes
• In research, attribute is a characteristic of an object, for example person, thing, etc.
• Attributes are closely related to variables. A variable is a logical set of attributes.
Variables can vary, for example, be high or low.
• Gender is a variable having two attributes - male and female.
• Religion is a variable and its attributes are Hindu, Muslim, Christians, etc
Harish Sir – 8908283654 Page 7
 Anil’s Commerce +3 6th Sem BRM Unit - 1
F. Variables in Research
• All the research problems are based around variables.
• Variables are measurable characteristics or properties of people or things that can take
on different values.
• For example, age is a variable because age takes different values. Similarly, Income can
be considered a variable because income also takes different values f
Types of Variables
1. Independent Variable: Independent variable is the variable that is controlled and
manipulated by the researcher. Independent variable acts as the cause as it influences,
and predicts the dependent variable. For example, in the study of impact of rainfall on
wheat production, rainfall would be independent variable.
2. Dependent Variable: Dependent variable is the variable that is measured by the
researcher. Dependent variables act as the effect as it changes as a result of being
influenced by an independent variable. Dependent variable is also called outcome
variables. For example, in the study of impact of rainfall on wheat production, wheat
production would be dependent variable.

Fill in the blanks with appropriate words :

1. The origin of the term ‘Research’ Recherche.
2. Historical research is done to understand an event from the past.
3. Collection and converting data into numerical form to draw conclusions is Quantitative
Research.
4. Descriptive research is based on document analysis.
5. Cross Sectional Research deals with collection and analysis of data at a point of time.
6. Research is an endeavor to discover fact by Scientific methods.
7. Scientific research operates at both theoretical level and empirical level.
8. Scientific research is a process of acquiring Scientific knowledge.
9. Concepts are meaning attached to Observation .
10. Construct are theoretical creation based on observation .
11. A definition that is stated in terms of measurement criteria is termed as Operational
12. A construct is used to communicate the combination of meanings presented by
Concepts.
13. A definition that occurs is theory or available is dictionary usage is termed as
Conceptual .
14. The variable which is attached with an unchanged value is termed as Constant .
15. A measurable concept or construct or object which varies is termed as Variable .
16. If a variable take only specified values , it is termed as discrete variable.
17. If a variable takes value in a certain interval finite or infinite, it is termed as Continuous
variable .
18. Independent variable is also termed as Explanatory variable .
19. Dependent variable is sometimes termed as Response variable .
20. Control variable affects the dependent variable and hence needs to be controlled.

Harish Sir – 8908283654 Page 8