Introduction to Business Research

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Business Research Defined

Business research is defined as the

systematic and objective process of
generating information for aid in making
business decisions.
-Including financial research, operational research,
Marketing research.
-The Task of business research is to provide the

management with relevant, accurate and valid information

for decision making.
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Business Research
 Research information is neither intuitive nor haphazardly
gathered.
 Literally, research (re-search) -“search again”
 Business research must be objective
 Detached and impersonal rather than biased
 It facilitates the managerial decision process for all aspects of
a business.
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Parties involved in Business Research

Decision Maker or Manager Researcher

(needs information). (Provides Inf.)

a)Short term or routine (Daily)

b)Tactical Decisions (Advertising
Expenditure )
c)Strategic Decisions ( New
Product Line )
 I don’t know
if we
should
Information
offer on-site
Reduces child care?

Uncertainty
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Business Research Types

Basic research

Applied research
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Basic Research
 Attempts to expand the limits of
knowledge.
 Not directly involved in the solution
to a realistic problem.
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Basic Research Example

 Is executive success correlated
with high need for achievement?
 Are members of highly cohesive
work groups more satisfied than
members of less cohesive work
groups?
 Do consumers experience cognitive
dissonance in low-involvement
situations?
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"The secret of success is to know

something nobody else knows. "
Aristotle Onassis
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Applied Research
 Conducted when a decision must
be made about a specific real-life
problem
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Applied Research Examples

 Should McDonalds add Italian pasta
dinners to its menu?
 Business research told McDonald’s it
should not?
 Should Procter & Gamble add a high-
priced home teeth bleaching kit to its
product line?
 Research showed Crest Whitestrips
would sell well at a retail price of $44
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Value versus Costs

 Potential Value of a Business
Research Effort Should Exceed Its
Estimated Costs
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Major Topics for Research in Business

 Financial and Accounting Research
 Management and Organizational
Behavior Research
 Sales and Marketing Research
 Information Systems Research
 Corporate Responsibility Research
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Business Research Process

1) Establish the need for information.
2) Specify Research Purpose:
a) Identify Decision Alternatives
b) Determine Decisional Criteria
c) Time
3) Specify Research Objectives/ Questions/ Hypothesis’s and Info. Needs.
4) Develop the Data Collection Forms.
5) Designing the Sample.
6) Collect the Data.
7) Process the Data.
8) Analyze the Data.
9) Present Research Results
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Establish the Need for Info.

 When the request from Manager comes, researcher
must understand why info. Is needed
 Managers often reacts on intuition.
 Manager is responsible for explaining the situation
surrounding requests.
 Importance of this step should not be overlooked.
 Managers have statements of symptoms (declining
Sales). May be in need of information as to why
sales are declining.
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Research Project Tip

A problem exists when there is a difference between the ideal

state and the actual state. An opportunity exists when the market
favorably values something the organization can do. Ask the
client to describe “the bottom line” of what he or she sees as the
problem or opportunity that requires research in order to make
decisions. This is a starting point, but more work is needed to
determine the focus of the research.

Ideal State – Actual State = Difference= opportunity is there.

Ideal State – Actual State = 0= no opportunity for research
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The “why” question

 Manager: We need you to help us find a new advertising agency.
 Researcher: Why do you believe you need a new ad agency?
 Manager: Because our market share is slipping.
 Researcher: Why do you believe that is the fault of your ad
agency?
 Manager: Because we think they have not created a high enough
level of awareness and interest in our product among target
market members.
 Researcher: OK, but why do you believe that? What evidence do
you have that ties your declining market share to a problem with
advertising?
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Facts vs Hypothesis
 Asking “why” questions allows all parties involved to
separate facts from hypotheses and give direction to
research that can help solve real problems in their proper
scope.
• Sometimes the client believes a hypothesis so strongly that
it has become a “fact” in the client’s mind. Asking “why”
questions helps focus researchers and decision makers on
the “real” problem (i.e., the problem in its proper scope).
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Specify Research Purpose:

1) Identify Decision Alternatives: “What-if”

Researcher: What if the research revealed that
potential customers believed our products failed to
offer features comparable to our competitors, and so
bought competitor’s products?

Manager: Well, I do not think that is happening, but if

it were then we would change our product to offer
those features.
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Specify Research Purpose: Identify Decision Alternatives:
“What-if”

• Review of such “what if ” questions will identify those

areas in which decisions might be made to solve the
management problem.
• “what if ” questions aids the researcher in determining the
purpose of the research.

Note: Write down all the topics where the answers to “what
if ” questions reveal decisions that are to be made based on
such findings. Research will attempt to provide
information that makes a difference in decision making.
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Specify Research Purpose:

2. Determine Decisional Criteria
Researcher: So, one area we might want to consider making a decision
in would be redesigning the product with the latest features. What
information would you need to have in order to make those types of
decisions?
Manager: I would want to know the features desired by our target
market customers, and how those features are expected to deliver
specific benefits to those customers. I would also like to see how our
customers compare our products to our competitors’ products.
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Specify Research Purpose:

Research Project Tip
You may have to ask a series of probing questions intended to get the
client to reveal what information in what form he or she will need in
order to make the decisions faced. Sometimes these criteria have not
been explicitly identified before such questioning. By “thinking like a
marketing decision maker” you can determine if the client might be
interested in the same information you might use if you were in the
client’s position.
Sample Research Purpose
“To determine the cause(s) of the decline in market share and
identify possible actions that could be taken to recover the lost share.”
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Specify Research Objectives and Info. Needs

 The information provider’s task is to convert the
manager’s statement of symptoms to likely problems and
decision issues and then finally to information needs
 Once the need for info. is established clearly the
researcher must specify the objectives of research.
 Research objectives answers the question “ Why is this
project being undertaken?”
 Research objectives are put in writing before research
project is commenced.
 Info. Need answers the question “What specific
information is needed to obtain objectives?”
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Specify Research Objectives and Info. Needs

 Research objectives consist of questions and hypotheses.
 Research Problem is broken into series of statements

Sample Research Questions/Objectives:

1) Where has market share declined (e.g., products, geographic areas,
channel type, etc. or any specific gender)?
2) What is the level of awareness and interest in our products among
target market members?
3) What competitive actions have attracted our customers?
4) What are the perceptions of our dealers and distributors for our
policies and practices (i.e., what is the status of our relationships
with dealers)?
5) How do customers rate the quality, features, price, etc., of our
products versus competitors?
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Determining the sources of Data

 The researcher determines whether the data is
available from other sources: internal or external to
the org.
 If data is found then researcher much check its
reliability, validity, recency etc.
 If data not available from internal or external
sources then collect data from Primary sources
( qualitative vs Quantitative data)
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Develop the Data Collection Forms

 There should be effective link between info. Need
and the question to be asked .
 This is very important step and utmost care should
be taken as the entire research success is
dependent on this step.
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Designing the sample

 Who is to be included in the sample (Inclusion and
exclusion criteria).
 Clear definition of population is required.
 Sampling method .
 Size of Sample
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Data Collection
 Budget constraints
 Error in collection of Data
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Processing of Data
 Editing and coding
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Data Analysis and Interpretation

 Statistical Techniques
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Report Preparation and Presentation

 Research is communicated through written report.
 Findings should be in simple format
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The purpose of Research Proposal

It is an individuals or co. offer to render a service to a
potential sponsor.
1)To present the management question to be
researched and its importance.
2)To discuss the earlier researches on related
management questions.
3)To suggest the data necessary for solving the
management question
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Proposal Development
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Complexity of Research Proposals

Complexity
Least Most
Type of Management
Proposals
Internal Exploratory Small Scale Large Scale Study
Study Study

External Exploratory Small Scale Large Scale Govt. Sponsored

contract contract contract Study
Study Study

Student Proposal Term Paper Masters Doctoral Thesis

Thesis
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Structuring the Research Proposal

1) Executive summary
2) Problem Statement
3) Research Objectives
4) Literature Review
5) Benefits of the Study
6) Research Design
7) Data Analysis
8) Statistical conclusions and findings
9) Recommendations
10) Bibliography
11) Appendices
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Executive Summary

• It allows busy Manager or sponsor to understand quickly the

proposal.
It Includes :
• Brief statements of management dilemma and question.
• Research objectives and questions.
• Benefits
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Problem Statement

• It should be clear without use of IDIOMS.

• After reading this section the manager should know the
Management Dilemma and Research Questions and its Sig.
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Research Objectives

• Purpose of Investigation
• Elements of Objective flows from Problem Statement.
• It should give sponsor Specific, concrete, and achievable goals.
• It should be listed in order of importance.
• It is the basis for judging the remainder of research Proposal.
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Literature Review

It Examines:
1)Recent research Studies

2)Company data

3)Industry Reports

•Emphasize important result and conclusions of other studies.

•How literature is helpful for present study.

•It may also explain the need for the proposed work .

•In the end of literature review summarizing important aspects of the

literature and interpreting them in terms of problems would be a good

idea.
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Importance/Benefits of Study

• Benefits of “doing Study Now” should be highlighted.

• Only few paragraphs are required.
• If you find it difficult to write then you might not have understood
the problem adequately.
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Research Design

• What you are going to do in technical Terms

• All the phases and break ups of the projects should be shown.
• Sample selection its Size, Data collection Method, Instrumentation,
procedures and ethical requirements.
• Discuss why the proposed research design is more suitable than
other existing ones.
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Data Analysis

• Methods used for analysis.

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Bibliography

• For projects that require literature review, a bibliography is

necessary. Normally APA style is followed.
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Appendices

1) Glossary: Should be added when many unique terms have been

used in research. It consist of definitions.
2) Measurement Instrument:
3) Other: Researcher vitae, Budget Details, Special facilities or
resources.
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Major Business Research Suppliers

• Internal: Within firm

• External: Not a part of Firm
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Services offered by Full –Service Business Research Supplier

a) Syndicated Services: Provide info. from common Databases to

different firms
b) Standardized Services: Research Studies conducted in the same
way for different clients .
c) Customized Services: Tailor Made
d) Internet Services: Offered by firms specialized in conducting
research on the internet
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Services Offered by Limited Suppliers

a) Coding and Data entry Services

b) Analytical Services: questionnaire design
c) Data Analysis Services:
d) Branded Product and Services: Consist of specialized data
collection and analysis procedures to address specific types of
business research problems.