CHAPTER – 1

INTRODUCTION TO RESEARCH

1.1 What is Business Research/define research

 Business research is a systematic Inquiry whose objective is to provide information to solve
managerial problems.
 Business research is defined as the systematic and objective process of gathering, recording and
analyzing data for aid in making business decisions.

Why Business Research?

 Research provides you with the knowledge and skills needed for the fast-paced decision-making
environment
 More vigorous competition
 Government intervention
 Stakeholders demanding greater influence
 More complex decisions
 Maturing of management as a group of discipline

1.2 Various classification of business research

1. Basic research v. Applied Research

Basic research is intended to expand the boundaries of knowledge or to verify the acceptability of a given
theory. It does not directly involve the solution to a particular problem. Findings of this research cannot be
immediately implemented.
Applied research is a research undertaken to answer questions about specific problems or to make
decisions about a particular course of action or policy decision.

Basic research Applied research

Pure research is conducted without any specific
goal.
The main aim is to advance knowledge.
Pure research is exploratory in nature.
Pure research identifies new ideas, theories,
principals and new ways of thinking.
Findings of pure research usually have a future
use, not a current use.
Applied research is conducted with a specific goal in mind.
The main aim is to solve a specific and practical problem.
Applied research is descriptive in nature.
Applied research is based on the theories, principals discovered
through pure research.
Findings of applied research always have a current use.

2. Qualitative v. Quantitative Research

Qualitative research aims to achieve an in-depth understanding of a situation. Qualitative research is Ideal if
you want to extract feelings, emotions, motivations, perceptions or self-describe behavior.
Quantitative research attempts precise measurement of something. Quantitative research is often used for
theory testing, requiring that the researcher maintain a distance from the research so as not to bias the
result.

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 Qualitative research Qualitative Methods
Methods include focus groups, in-depth interviews,
and reviews of documents for types of themes
Primarily inductive process used to formulate theory
or hypotheses
More subjective: describes a problem or condition
from the point of view of those experiencing it
Text-based
More in-depth information on a few cases
Unstructured or semi-structured response options
No statistical tests
Can be valid and reliable: largely depends on skill and
rigor of the researcher
Time expenditure lighter on the planning end and
heavier during the analysis phase
Less generalizable
Quantitative research Quantitative Methods
Surveys, structured interviews & observations, and
reviews of records or documents for numeric information
Primarily deductive process used to test pre-specified
concepts, constructs, and hypotheses that make up a
theory
More objective: provides observed effects (interpreted by
researchers) of a program on a problem or condition
Number-based
Less in-depth but more breadth of information across a
large number of cases
Fixed response options
Statistical tests are used for analysis
Can be valid and reliable: largely depends on the
measurement device or instrument used
Time expenditure heavier on the planning phase and
lighter on the analysis phase
More generalizable

3. Problem identification research v. Problem-solving research

Problem identification research is undertaken to help identify problems that are not necessarily apparent on
the surface and yet exist or are likely to arise in the future. Examples: market potential, market share, image,
market characteristics, sales analysis, forecasting and trends research.
Problem-solving research is undertaken to help solve specific marketing problems. Examples: segmentation,
pricing, promotion and distribution research.

4. Longitudinal v. cross-sectional research

In cross sectional research, the researcher record information about his subject without manipulating the
study environment. This study can compare different population groups at a single point in time. This is a
snapshot study, do not consider what happens before or after the snapshot is taken.
Longitudinal research does not allow researchers to interfere with their subjects. The researchers conduct
several observations of the same subjects over a period of time. This study helps to detect developments or
changes in the characteristics of the target population.
5. Internal v. external research
When research activities are undertaken within the firm it is internal research. Many firms, ranging from
automobile companies to consumer products firms to banks, maintain in-house research departments.
When outside firms are hired to supply research data or service it is external research. Such firms are involved
in research planning for their clients.
6. Comparative v. absolute research
Comparative research is a research that aims to make comparisons across different countries or cultures.
Comparative research is the act of comparing two or more things with a view to discovering something about
one or all of the things being compared.

1.3 Methods of knowing

The term ‘research’ means a search for facts. The search for facts may be made through either (1) non
scientific method or (2) scientific method.

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 Methods of knowing

Non scientific Scientific method

method

Method of Method of appeal Method of self-

tenacity to authority evident truth

1) Non scientific method

This method of seeking answers to questions is based on imagination, opinion, blind belief or impression. For
example, it was believed that the shape of the earth was flat. The non-scientific method suffers from serious
weaknesses or drawbacks. It is subjective. The finding will vary from person to person depending on his
impression or imagination. It is vague and inaccurate.
2) Scientific method
This is a systematic rational approach to seeking facts. It eliminated the drawbacks of the non-scientific
method (arbitrary method). It is objective, precise and arrives at conclusions on the basis of verifiable
evidences.
Clover, Veron and Balsely define the scientific method as, “a systematic step-by-step procedure following the
logical processes of reasoning.”
The scientific method is based on reliance on empirical evidence, use of relevant concept, commitment to
objectivity, ethical neutrality, generalization, verifiability, and logical reasoning process.

Difference between scientific and non scientific method

1) Non scientific method is based on imagination, opinion, blind belief or impression. On the other hand the
scientific method is based on reliance on empirical evidence, use of relevant concept, commitment to
objectivity, ethical neutrality, generalization, verifiability, and logical reasoning process.
2) Non scientific method is subjective and the finding will vary from person to person depending on his
impression or imagination. While scientific method is more objective as hypotheses can be verified with the
help of statistical principles, ensuring complete objectivity.
3) Non scientific method is vague and inaccurate. While the scientific method is more precise as qualitative
concepts are precisely defined in this method.
4) Non scientific method is concerned with individuals as findings may vary from person to person. While
scientific method is not interested in individuals but is concerned with generalization.
5) The findings of non scientific method may not be verifiable. The scientific method contributes to the
accumulation of systematic knowledge as the findings are verifiable. Such verification through replication may
either confirm conclusions or modify them or invalidate them.

1.4 Various non-scientific methods

Cohen and Nagel have discussed non scientific methods as under:

1) Method of tenacity
Habit may induce us to believe a proposition to be true because we have always believed it to be so. As a
result, we may close our minds to any evidence against that proposition. This method however fails to secure
the stability of one’s belief at times. When individuals come across views different to their own they react in

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various ways. Some may not hold their own views in the wake of conflicting ones. In such cases, another more
stable method is required.
2) Method of appeal to authority
Instead of holding on to one’s beliefs, an appeal is made to some authority. If our holy scriptures say so, it is
true. If a noted authority on the subject says it is true, then it must be true in many spheres such as religious,
social, economic or political, this method of authority is used to fix beliefs. Though superior to the first
method, this method fails to lead to unanimity and stability of belief if there is more than one authority with
differing view.
3) Method of self-evident truth/priori method
This method has been called the method of intuition by Cohen and Nagel. This method holds that people
believe propositions if they are obvious or self-evident. Propositions which have not been questioned so far
are not necessarily true. They may turn out to be false at a later date when somebody questions them and
proves that they are false.

1.5 Characteristics of scientific methods of knowing/ good scientific research

(1) The purpose of the research should be clearly defined and common concepts be used.
(2) The research procedure used should be described in sufficient detail to permit another researcher to
repeat the research for further advancement, keeping the continuity of what has already been attained.
(3) The procedural design of the research should be carefully planned to yield results that are as objectives as
possible.
(4) The researcher should report with complete frankness, flaws in procedural design and estimate their
effects upon the findings.
(5) The analysis of data should be sufficiently adequate to reveal its significance and the methods of analysis
used should be appropriate. The validity and reliability of the data should be checked carefully.
(6) Conclusions should be confined to those justified by the data of the research and limited to those for
which the data provides an adequate basis.
(7) Greater confidence in research is warranted if the researcher is experienced, has a good reputation in
research and is a person of integrity.

In other words, we can state the qualities of a good research as under:

1. Good Research is Systematic: It means that research is structured with specified steps to be taken in a
specified sequence in accordance with the well defined set of rules. Systematic characteristic of the research
does not rule out creative thinking but it certainly does reject the use of guessing and intuition arriving at
conclusions.
2. Good Research is Logical: This implies that research is guided by the rules of logical reasoning and the
logical process of induction and deduction are of great value in carrying out research. Induction is the process
of reasoning from a part to the whole whereas deduction is the process of reasoning from the premise. In fact,
logical reasoning makes research more meaningful in the context of decision making.
3. Good Research is Empirical: It implies that research is related basically to one or more aspects of a real
situation and deals with concrete data that provides a basis for external validity to research results.
4. Good Research is Replicable: This characteristic allows research to be verified by replicating the study and
thereby building a sound basis for decisions.

1.6 Research design

Research design is a plan, structure and strategy of investigation conceived so as to obtain answers to
research questions and to control variance.
Bernard Phillips has defined the research design as the blueprint for the collection, measurement and analysis
of data.
According to Green and Tull, “a research design is the specification of methods and procedures for acquiring
the information needed. It is the overall operational pattern or framework of the project that stipulates what
information is to be collected from which sources and by what procedures.

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 Classification of research design
Research design may be broadly classified as under:

Research Design

Exploratory Research Conclusive Research

Design Design

Descriptive
Research Causal
Research

Cross-sectional Longitudinal
Design Design

Single cross Multiple cross

sectional sectional

1) Exploratory Research
Exploratory design is particularly useful when researcher lack a clear idea of the problems they will meet
during the study. The objective of exploratory research is to explore or search through a problem or situation
to provide insights and understanding. Exploratory research could be used for any of the following purposes:
 Formulate a problem or define a problem more precisely
 Identify alternative courses of action
 Develop hypotheses
 Isolate key variables
 Gain insights for developing an approach to the problem
 Establish priorities for further research
Despite of its value, researchers and managers give less attention to exploration. Following four exploratory
techniques emerge with wide applicability for the researchers:
Review/Survey of concerned Literature: When the investigator proceeds on the path of research he has to
take advantage of his predecessors. This technique will save time, cash, and effort. This kind of data can be

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obtained from professional research organizations, websites, newspapers, magazines, journals of the
government, etc. Review and perusal of pertinent literature is very helpful for researcher. Apart from
literature directly related to the problem in hand, the literature that is related to similar problems is also very
useful. It helps in the formulation of the problem.
Experience Survey: Some people are great source of information. It is better to interview those individuals
who know about the subject. The objectives of such survey is to obtain insight into the relationship between
variables and new ideas relating to the research problem. Thus an experience survey may enable the
researcher to define the problem more consciously and help in the formulation of hypothesis. This survey may
as well also offer information about the practical possibilities for doing different types of research. A number
of interviews can be very costly. Well-trained interviewers demand high salaries; data are gathered from one
respondent at a time; and, if recorded, audio/video recordings should be transcribed, coded, and examined.
This method, however, can deliver important insights and more often than not is well worth the effort.
Analysis of Insight Stimulating Cases: This includes the study of one or a few situations. It is focused on
complex situations and problems; this kind of situations occur when the interrelations of several individuals
are important. In this method of Exploratory Research, some units are analyzed; each unit is called Case. Study
of relationships between different factors of each case is more important and not the number. Attitude of the
investigator, the intensity of the investigator and the ability of the researcher to draw together diverse
information into a unified interpretation are the main features which make this method a suitable procedure
for evoking insights.
Focus Groups: In a focus group, only a few individuals (e.g., 8-12) are brought together to speak about some
topic of interest. The dialogue is coordinated by a moderator. Group interaction is the key factor that
differentiates focus group interviews from experience survey that are conducted with one respondent at a
time. Furthermore it is the key advantage of the focus group over the majority of exploratory techniques. Due
to their interactive nature, ideas sometimes drop “out of the blue” in a focus group discussion
Limitations of exploratory research
1) Exploratory research generally utilizes small sample sizes and, thus, findings are typically not generalizable
to the population at large.
2) The exploratory nature of the research inhibits an ability to make definitive conclusions about the findings.
3) The research process underpinning exploratory studies is flexible but often unstructured, leading to only
tentative results that have limited value in decision-making.
4) Design lacks rigorous standards applied to methods of data gathering and analysis because one of the areas
for exploration could be to determine what method or methodologies could best fit the research problem.
2) Conclusive Research
The insights gained from exploratory research might be verified or quantified by conclusive research. The
objective of conclusive research is to test specific hypotheses and examine specific relationships. Conclusive
research is more formal and structured than exploratory research. The findings from this research are
considered to be conclusive in nature and used as input into managerial decision making. Conclusive research
design may be either descriptive or causal.
a) Descriptive research
The major objective of descriptive research is to describe something. Descriptive research is conducted for the
following reasons:
 To describe the characteristics of relevant groups, such as consumer, salespeople, organizations etc.
 To estimate the percentage of units in a specified population exhibiting a certain behavior
 To determine the perceptions of product characteristics
 To determine the degree to which marketing variables are associated
 To make specific predictions
Descriptive research assumes that the researcher has much prior knowledge about the problem situation.
Thus, the information needed is clearly defined. It is preplanned and structured. It is based on large samples. A
descriptive research design requires a clear specification of who (who should be considered for the study),
what (what information should be obtained from respondents), when (when should the information be
obtained), where (where should the respondents be contacted), why (why are we obtaining information), way

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(in what way (observation/survey) are we going to obtain information). Surveys, panels and observation are
the methods of descriptive research.
Descriptive research can be further classified into cross-sectional and longitudinal.

Cross-Sectional Designs
Cross-sectional designs involve the collection of information from any given sample of population elements
only once. In single cross-sectional designs, only one sample of respondents is drawn from the target
population, and information is obtained from this sample only once. In multiple cross-sectional designs, there
are two or more samples of respondents, and information from each sample is obtained only once. This allow
comparison at aggregate level. Cohort analysis is a multiple cross-sectional design consisting of a series of
surveys conducted at appropriate time intervals. The cohort refers to the group of respondents who
experience the same event within the same time interval.

Longitudinal Design
A type of research design involving a fixed sample of population elements that is measured repeatedly. The
sample remains the same over time, thus providing a series of pictures that, when viewed together, explain
the changes that are taking place over time. A panel is a sample of respondents who have agreed to provide
information at specified intervals over an extended period.

Difference between exploratory and conclusive research

Exploratory research Conclusive research
Objective To provide insights and understanding To test specific hypotheses and examine
relationships
Characteristics  Information needed is defined  Information needed is clearly
loosely. defined.
 Research process is flexible and  Research process is formal and
unstructured. structured.
 Sample is small and  Sample is large and
nonrepresentative. representative.
 Analysis is qualitative. Analysis is quantitative.
Findings Tentative Conclusive
Outcome Generally followed by further exploratory or Findings used as input into decision
conclusive research. making.

b) Causal research
A causal design investigates the cause and effect relationship between two or more variables. Causal research
is appropriate for the following purposes:
 To understand which variables are the cause and which variables are the effect of a phenomenon
 To determine the nature of the relationship between the causal variables and the effect to be
predicted

1.7 Meaning of terms “Concept”’ “Construct” and “Definition” in relation to business research

1. Concept
A concept is a bundle of meanings or characteristics associated with certain events, objects, conditions,
situations, and behaviors. The concept of an object includes only some of the elements or features of that
object. Concepts have been developed over time through shared usage.
 For customer loyalty use questions that tap faithfully the Attitude of participants
 Attitudes are abstract, try to measure them using carefully selected concepts

2. Construct

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A construct is an image or idea specifically invented for a given research and/or theory-building purpose.
Construct can be build by combining simpler concept, especially when the idea or image to be intended to
convey is not directly subject to observation.
 Constructs are required for more abstract concepts – “Personality”, “Satisfied Customer”

3. Definition
An important ingredient of good research is proper precision and specificity of terms. A definition may take at
least three forms:
An ostensive definition means a process by which a person is taught to understand a word by pointing out an
object that illustrates the word or concept.
A verbal definition uses other words to define a word. Dictionaries give verbal definition.
An operational definition is one that is so clearly specify criteria for testing or measurement. This implies
empirical meaning.

1.8 Different types of Variables in business research

A variable is a symbol of an event, act, characteristic or attribute that can be measured and to which we assign
categorical values. Different types of variables are as under:
 Independent variable
 Dependent variable
 Moderating variable
 Extraneous variable
 Intervening variable

Independent (Predictor) and Dependent (Criterion) Variables

The independent variables are the conditions/characteristics that the experimenter manipulates or controls in
his or her attempt to ascertain their relationship to observed phenomena. The dependent variables are the
conditions that appear, disappear or change as the researcher introduce, remove or change independent
variable.
e.g. Four day work week (IV) will lead to higher productivity (DV).

Moderating Variables
In each relationship there is one Independent Variable (IV) & one Dependent Variable (DV). Moderating
variable is a second independent variable that has significant effect on the originally stated IV–DV relationship.
e.g. Four day work week (IV) will lead to higher productivity (DV), especially among young workers (MV).
The introduction of promotional schemes (IV) will increase sales (DV), especially among women (MV).

Extraneous Variables
Infinite number of extraneous variables (EV) exist that might effect the relationship. Most of such variables
have little or no effect on the given situation and these may be ignored. Others may have highly random
occurrence as to have little impact
For productivity example: election of a new mayor, rainy days, bird flu, strike etc.

Confounding Variables
Confounding variables are those extraneous variables that have not been taken into studies but it significantly
affects independent variable-dependent variable relationships.

Intervening Variables
Intervening variable (IVV) defined as a factor which theoretically effects the observed phenomenon but
cannot be seen measured or manipulated. Its effect can be inferred from the effects on the observed
phenomenon.
e.g. A promotion campaign (IV) will increase saving activity (DV), especially when free gifts are offered(MV),
chiefly among small savers(EV). The results come from enhancing the motivation to save (IVV).

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Independent variable
Dependent variable
Extraneous variable
Intervening variable
Is the cause that is responsible for bringing changes in a situation
The changes occur due to introduction of an independent variable
Some factors involved in real-life situation may influence changes in
dependent variable. These factors which are not measured in the research
study could increase or decrease the magnitude of relationship between
the independent and dependent variables.
It links the independent and dependent variables. In some cases,
relationship between both variables cannot be established unless with the
intervention of another variable.

1.9 Hypothesis
A statement about concepts that may be judged as TRUE or FALSE if it refers to observable phenomenon is a
proposition. Proposition formulated for empirical testing is Hypothesis
Example
Infosys employees have higher than average achievement motivation.

The Role of the Hypothesis

 Guides the direction of the study
 Identifies facts that are relevant
 Suggests which form of research design is appropriate
 Provides a framework for organizing the conclusions that result

Characteristics of a Good Hypothesis

A good hypothesis should fulfill three conditions:
– Must be adequate for its purpose
– Must be testable
– Must be better than its rivals

Types of Hypothesis
Descriptive Hypothesis
It describes the existence, size, form or distribution of some variables. For example:
Eighty percent of shareholders of RIL favour increasing the company’s cash dividend
It can also be stated as research question
Do shareholders of RIL favour an increased cash dividend?
Either form is acceptable, but descriptive hypothesis format has advantages
– Encourages researcher to crystallize thinking
– Encourages to think about implications of either an accepted or rejected finding
– Useful for testing statistical significance
Relational Hypothesis
These are statements that describe the relationship between two variables with respect to some case.
Foreign (variable) refrigerators are perceived to be of better quality (variable) by Indian consumers (case)
Types of Relational Hypothesis
 Two types: Correlation & Causal
Correlation Hypothesis
Merely states that variables occur together without implying that one causes the other.
 People in Kerala give more importance to education than people in Punjab
 In an office old employees are more responsive than young employees
Causal (or Explanatory) Hypothesis
There is an implication that existence of (or a change in) one causes or leads to a change in the other.
 Causal variable is called Independent variable and the other Dependent variable
 Advertisement causes higher sales
 Increase in income leads to higher savings

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1.10 Inductive and deductive logic of reasoning

In logic, we often refer to the two broad methods of reasoning as the deductive and inductive approaches.
Deductive reasoning works from the
more general to the more specific.
Sometimes this is informally called a
"top-down" approach. We might begin
with thinking up a theory about our topic
of interest. We then narrow that down
into more specific hypotheses that we
can test. We narrow down even further
when we collect observations to address
the hypotheses. This ultimately leads us
to be able to test the hypotheses with
specific data -- a confirmation (or not) of our original theories.

Inductive reasoning works the

other way, moving from specific
observations to broader
generalizations and theories.
Informally, we sometimes call this a
"bottom up" approach (please note
that it's "bottom up" and not
"bottoms up" which is the kind of
thing the bartender says to
customers when he's trying to close
for the night!). In inductive
reasoning, we begin with specific
observations and measures, begin to detect patterns and regularities, formulate some tentative hypotheses
that we can explore, and finally end up developing some general conclusions or theories.
These two methods of reasoning have a very different "feel" to them when you're conducting research.
Inductive reasoning, by its very nature, is more open-ended and exploratory, especially at the beginning.
Deductive reasoning is more narrow in nature and is concerned with testing or confirming hypotheses. Even
though a particular study may look like it's purely deductive (e.g., an experiment designed to test the
hypothesized effects of some treatment on some outcome), most social research involves both inductive and
deductive reasoning processes at some time in the project. In fact, it doesn't take a rocket scientist to see that
we could assemble the two graphs above into a single circular one that continually cycles from theories down
to observations and back up again to theories. Even in the most constrained experiment, the researchers may
observe patterns in the data that lead them to develop new theories.

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RESEARCH PROCESS

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