Module- 1

1. Introduction of Business Research

2. Steps of Business Research
3. Research Design
4. Exploratory Research
5. Descriptive Research
6. Causal Research
Business Research

“Business research is the systematic and objective

identification, collection, analysis, dissemination, and
use of information for the purpose of improving
decision making related to the identification and
solution of problems and opportunities in business.”
Steps of Business Research Process
Step 1 : Problem Definition

Step 2 : Development of an Approach to the Problem

Step 3 : Research Design Formulation

Step 4 : Fieldwork or Data Collection

Step 5 : Data Preparation and Analysis

Step 6 : Report Preparation and Presentation

 Step 1: Problem Definition
• The purpose of the study
• The relevant background information

• How it will be used in decision making

Problem definition involves discussion with

• The decision makers

• Interviews with industry experts

• Analysis of secondary data, and

• Some qualitative research, such as focus groups

Step 2: Development of an approach to the problem

• Formulating an objective or theoretical framework

• Analytical models

• Research questions and

• Identifying the information needed

This process is guided by discussions with

• Management and industry experts

• Analysis of secondary data and

• Qualitative research
Step 3 : Research Design Formulation
• Definition of the information needed

• Secondary data analysis

• Qualitative research

• Methods of collecting quantitative data(survey, observation, and

experimentation)

• Measurement and scaling procedures

• Questionnaire design

• Sampling process and sample size

• Plan of data analysis

Step 4: Fieldwork or Data Collection

• Personal interviewing (in-home, mall intercept, or computer-

assisted personal interviewing)

• Telephone (telephone or computer- assisted personal interviewing)

• Mail (traditional mail)

• Electronically (e-mail or Internet)

 Step 5: Data Preparation and Analysis

• The editing

• Coding

• Transcription and

• Verification of data.
 Step 6 : Report Preparation and Presentation

• Address the specific research questions identified

• Describes the approach

• The research design,

• Data collection

• Data analysis procedures adopted

• Presents the results and

• Major findings
Research Design

“A research design is a framework or blueprint for

conducting the business research project. It details
the procedures necessary for obtaining the
information needed to structure or solve business
research problems.”
A Classification of Business Research Designs

Research Design

Exploratory Conclusive
Research Design Research Design

Descriptive Causal Research

Research

Cross-Sectional Longitudinal
Design Design

Single Cross- Multiple Cross-

Sectional Design Sectional Design
Exploratory Research Design
 Uses of Exploratory Research
• Formulate a problem or define a problem more precisely

• Identify alternative courses of action

• Develop hypotheses

• Isolate key variables and relationships for further examination

• Gain insights for developing an approach to the problem

• Establish priorities for further research

 Methods of Exploratory Research

• Secondary data analyzed in a qualitative way

• Qualitative research
Secondary data

Secondary data are data that have already been

collected for purposes other than the problem
at hand. These data can be located quickly and
inexpensively.
Uses of Secondary Data

• Identify the problem

• Better define the problem

• Develop an approach to the problem

• Formulate an appropriate research design (for example, by

identifying the key variables)

• Answer certain research questions and test some hypotheses

• Interpret primary data more insightfully

 A Classification of Secondary Data

Secondary Data

Internal External

Ready to Requires Published Computerized Syndicated

Use Further Materials Databases Services
Processing
Internal Secondary Data
Department Store Project Sales were analyzed to obtain:

• Sales by product line

• Sales by major department (e.g., men's wear, house wares)

• Sales by specific stores

• Sales by geographical region

• Sales by cash versus credit purchases

• Sales in specific time periods

• Sales by size of purchase

• Sales trends in many of these classifications were also examined

A Classification of Published Secondary Sources

Published
Secondary Data

General Business Government

Sources Sources

Guides Directories Indexes Statistical Census Other

Data Data Government
Publications
A Classification of Computerized Databases

Computerized
Databases

Online Internet Off-Line

Bibliographic Numeric Full-Text Directory Special-

Databases Databases Databases Databases Purpose
Databases
 Syndicated Services

• Syndicated services are companies that collect and sell common pools of
data of known commercial value designed to serve a number of clients

• Syndicated sources can be classified based on the unit of measurement

(households/consumers or institutions)

• Household/consumer data may be obtained from surveys, diary panels,

or electronic scanner services

• Institutional data may be obtained from retailers, wholesalers, or

industrial firms
A Classification of Syndicated Services

Unit of
Measurement

Households/
Institutions
Consumers
Syndicated Services: Consumers
Households /
Consumers

Panels

Electronic
Purchase Media scanner services

Surveys Volume Scanner Scanner

Tracking Data Panels Panels with
Cable TV
Psychographic Advertising
& Lifestyles Evaluation
Syndicated Services: Institutions

Institutions

Retailers Wholesalers Industrial firms

Audits

Direct Clipping Corporate

Inquiries Services Reports
A Classification of Qualitative Research Procedures
Direct (Non- disguised): Focus Groups

Group Size 8-12

Group Composition Homogeneous, respondents,

prescreened

Physical Setting Relaxed, informal atmosphere

Time Duration 1-3 hours

Recording Use of audiocassettes and

videotapes

Moderator Observational, interpersonal, and

communication skills of the
moderator
Depth Interview Techniques: Laddering

In laddering, the line of questioning proceeds from product

characteristics to user characteristics. This technique allows the
researcher to tap into the consumer's network of meanings.
 Projective Techniques

• An unstructured, indirect form of questioning that encourages

respondents to project their underlying motivations, beliefs, attitudes or
feelings regarding the issues of concern.

• In projective techniques, respondents are asked to interpret the

behavior of others.

• In interpreting the behavior of others, respondents indirectly project

their own motivations, beliefs, attitudes, or feelings into the situation.
 Word Association

In word association, respondents are presented with a list of words, one at

a time, and asked to respond to each with the first word that comes to
mind. The words of interest, called test words, are interspersed
throughout the list which also contains some neutral, or filler words to
disguise the purpose of the study.

Example: Mrs. X Mrs.Y

Bubbles Bath Soap &Water

Towels Dirty Wash
Completion Techniques

In sentence completion, respondents are given incomplete sentences and

asked to complete them. Generally, they are asked to use the first word
or phrase that comes to mind.

A person who shops at Shopping mall is ______________________

When I think of shopping in a department store, I ________

A Cartoon Test

Should we go to
the shopping
mall?
Expressive Techniques
• Role playing

• Third-person technique
Descriptive Research Design
 Use of Descriptive Research
• To describe the characteristics of relevant groups, such as consumers,
salespeople, organizations, or market areas

• 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

Types of Descriptive research Design

• Cross-Sectional Research Designs

• Longitudinal Research Designs

Cross-Sectional Research Designs

• Single cross-sectional designs

• Multiple cross-sectional designs

• Cohort analysis
 Longitudinal Designs

• A fixed sample (or samples) of population elements is measured

repeatedly on the same variables

• A longitudinal design differs from a cross-sectional design in that the

sample or samples remain the same over time
Methods of Descriptive Research Design

• Survey

• Observation
 A Classification of Survey Methods
Survey
Methods

Telephone Personal Mail Electronic

In-Home Mall Computer-Assisted E-mail Internet

Intercept Personal
Interviewing

Traditional Computer-
Mail Mail
Telephone Assisted Telephone
Interview Panel
Interviewing
A Classification of Observation Methods

Observation Methods

Personal Mechanical Audit Content Trace

Observation Observation Analysis Analysis
Personal Observation
• A researcher observes actual behavior as it occurs.

• The observer does not attempt to manipulate the phenomenon being

observed but merely records what takes place.
 Mechanical Observation

Do not require respondents' direct participation

• The AC Nielsen audimeter
• Turnstiles that record the number of people entering or leaving a building.
• On-site cameras (still, motion picture, or video)
• Optical scanners in supermarkets

Do require respondent involvement

• Eye-tracking monitors
• Pupilometers
• Psychogalvanometers
• Voice pitch analyzers
• Devices measuring response latency
 Audit

• The researcher collects data by examining physical records or

performing inventory analysis.

• Data are collected personally by the researcher.

• The data are based upon counts, usually of physical objects.

• Retail and wholesale audits conducted by marketing research suppliers

were discussed in the context of syndicated data.
 Content Analysis
• The objective, systematic, and quantitative description of the manifest
content of a communication.

• The unit of analysis may be words, characters (individuals or objects),

themes (propositions), space and time measures (length or duration of
the message), or topics (subject of the message).

• Analytical categories for classifying the units are developed and the
communication is broken down according to prescribed rules.
Trace Analysis

• The number of different fingerprints on a page was used to gauge

the readership of various advertisements in a magazine.

• The position of the radio dials in cars brought in for service was
used to estimate share of listening audience of various radio stations.

• Internet visitors leave traces which can be analyzed to examine

browsing and usage behavior by using cookies.
Causal Research Design
 Uses of Causal Research

• To understand which variables are the cause (independent variables)

and which variables are the effect (dependent variables) of a

phenomenon

• To determine the nature of the relationship between the causal variables

and the effect to be predicted

• METHOD: Experiments
 Concepts of Causal Research

• Independent variables

• Test units

• Dependent variables

• Extraneous variables
Experimental Design

• The test units and how these units are to be divided into
homogeneous subsamples,

• What independent variables or treatments are to be manipulated,

• What dependent variables are to be measured; and

• How the extraneous variables are to be controlled.

A Classification of Experimental Designs

Experimental Designs

Pre-experimental True Quasi

Statistical
Experimental Experimental

One-Shot Case Pretest-Posttest Randomized

Time Series
Study Control Group Blocks

One Group Posttest: Only Latin Square

Multiple Time
Pretest-Posttest Control Group
Series
Static Group Solomon Four- Factorial
Group Design
Pre-experimental designs
 One-Shot Case Study

X 01

• A single group of test units is exposed to a treatment X.

• A single measurement on the dependent variable is taken (01).

• There is no random assignment of test units.

• The one-shot case study is more appropriate for exploratory than for
conclusive research.
 One-Group Pretest-Posttest Design

01 X 02

• A group of test units is measured twice.

• There is no control group.

• The treatment effect is computed as 02 – 01.

• The validity of this conclusion is questionable since extraneous

variables are largely uncontrolled.
 Static Group Design

EG: X 01

CG: 02

• A two-group experimental design.

• The experimental group (EG) is exposed to the treatment, and the control
group (CG) is not.

• Measurements on both groups are made only after the treatment.

• Test units are not assigned at random.

• The treatment effect would be measured as 01 - 02.

True Experimental Designs
Pretest-Posttest Control Group Design
EG: R 01 X 02
CG: R 03 04

• Test units are randomly assigned to either the experimental or the control
group.
• A pretreatment measure is taken on each group.
• The treatment effect (TE) is measured as: (02 - 01) - (04 - 03).
• Selection bias is eliminated by randomization.
• The other extraneous effects are controlled as follows:
02 – 01= TE + H + MA + MT + IT + I + SR + MO
04 – 03= H + MA + MT + I + SR + MO
= EV (Extraneous Variables)
• The experimental result is obtained by:
(02 - 01) - (04 - 03) = TE + IT
• Interactive testing effect is not controlled.
Posttest-Only Control Group Design

EG : R X 01
CG : R 02

• The treatment effect is obtained by:

TE = 01 – 02

• Except for pre-measurement, the implementation of this design is very

similar to that of the pretest-posttest control group design.
Quasi-Experimental Designs
Time Series Design

01 02 03 04 05 X 06 07 08 09 010

• There is no randomization of test units to treatments.

• The timing of treatment presentation, as well as which test units

are exposed to the treatment, may not be within the researcher's
control.
Multiple Time Series Design

EG : 01 02 03 04 05 X 06 07 08 09 010

CG : 01 02 03 04 05 06 07 08 09 010

• If the control group is carefully selected, this design can be an

improvement over the simple time series experiment.

• Can test the treatment effect twice: against the pretreatment

measurements in the experimental group and against the control
group.
Statistical Designs
Statistical Designs

Statistical designs consist of a series of basic experiments that allow

for statistical control and analysis of external variables and offer the
following advantages:

• The effects of more than one independent variable can be measured.

• Specific extraneous variables can be statistically controlled.

• Economical designs can be formulated when each test unit is

measured more than once.
Randomized Block Design

• Randomized Block Design is useful when there is only one major

external variable, such as store size, that might influence the dependent
variable.

• The test units are blocked, or grouped, on the basis of the external
variable.

• By blocking, the researcher ensures that the various experimental and

control groups are matched closely on the external variable.
Randomized Block Design

Treatment Groups
Block Store Commercial Commercial Commercial
Number Patronage A B C

1 Heavy A B C
2 Medium A B C
3 Low A B C
4 None A B C
Latin Square Design
• Allows the researcher to statistically control two noninteracting external
variables as well as to manipulate the independent variable.

• Each external or blocking variable is divided into an equal number of blocks,

or levels.

• The independent variable is also divided into the same number of levels.

• A Latin square is conceptualized as a table ,with the rows and columns

representing the blocks in the two external variables.

• The levels of the independent variable are assigned to the cells in the table.

• The assignment rule is that each level of the independent variable should
appear only once in each row and each column.
Latin Square Design

Interest in the Store

Store Patronage High Medium Low

Heavy B A C
Medium C B A
Low and none A C B
 Factorial Design

• Factorial Design Is used to measure the effects of two or more

independent variables at various levels.

• A factorial design may also be conceptualized as a table.

• In a two-factor design, each level of one variable represents a row

and each level of another variable represents a column.
Factorial Design

Amount of Humor
Amount of Store No Medium High
Information Humor Humor Humor
Low A B C

Medium D E F

High G H I