Business Research Methods

Unit - 1
Research refers to

“Search for Knowledge”

Research is an “art of scientific investigation”.

 The Advanced Learner‟s Dictionary of
Current English lays down the meaning of
research as,

“a careful investigation or inquiry specially

through search for new facts in any branch
of knowledge”.
Research is the process of gathering the
information needed to answer certain questions
and thereby helping in solving problems faced by
an individual, firm, organization or society.
 Definition of Research

Redman and Mory define research as a,

“Systematized effort to gain new knowledge”.

According to Clifford Woody research comprises

 Defining and redefining problems,

 Formulating hypothesis or suggested solution;
 Collecting, organizing and evaluating data;
 Making deductions and reaching conclusion; and at last
 Carefully testing the conclusions
 To determine whether they fit the formulating hypothesis.
Research is required because of the following reasons

1. To Identify and finding solutions to the problem

(why demand for product decline, fluctuations)

2. Helps in Making decisions (should we maintain same

advertising budget)

3. To develop new concepts (CSR, CRM)

4. To find alternate strategies (should we follow pull

strategy or push strategy)
 Objectives of Research

Promotes better decision making

Research is the basis for Innovation
Research identifies the problem area
Research helps in forecasting, which is very useful for managers
Research helps in formulation of policies and strategies
Research helps in the development of new products or in
modifying existing products
Helps to understand the competitive environment
It helps in the optimal utilization of resources
It helps in identifying marketing opportunities and constraints
It helps in evaluating marketing plans
 Significance of Research
a. To those students who are to write a master’s or Ph.D. thesis, research
may mean a careerism or a way to attain a high position in the social
structure;

b. To help the mankind in solving the problems faced from time to time, and
make life more comfortable and entertaining. (eg. Mobile Communications
& e-ticketing)

c. To philosophers and thinkers, research may mean the outlet for new ideas
and insights;

d. To literary men and women, research may mean the development of new
styles and creative work.

e. To analysts and intellectuals, research may mean the generalizations of

new theories.
 Motivation of Research

To get a Service to Employment

degree society conditions

Curiosity
Face the Desire to get
about new
challenge respectability
things

Intellectual
joy of doing Directions by Social
some creative government thinking
work
 Types of Research
Descriptive
Time Ex post
Series facto

Longitudinal Analytical

Cross- Applied or
sectional Action
Types of
research

Fundamental
Historical (Basic or
Pure)

Empirical Quantitative

Conceptual Qualitative
 Research Process

The research process

Review the Literature

Review concepts and Design

Define theories Formulat Collect Analyze
research data data (Test
research e
(includin (Executio hypothes
problem Review previous hypothes
g sample n) es if any)
research findings es
design

Interpret
and report

UNIT-1 BUSINESS
RESEARCH METHODS
BA9227 32
 Criteria of Good Research

1. Purpose of research – should be clearly defined

2. Common concepts be used.

3. The research procedure used – described in

sufficient detail to permit another researcher to
repeat the research for further advancement,
keeping the continuity of what has been
attained.

4. The procedural design of the research should be

clearly planned to yield results.
 Criteria of Good Research

5. The researcher should report with complete frankness,

flaws (error or defect) in procedural design and estimate
their effects upon the findings.
6. The analysis of data should be sufficiently adequate to
reveal its significance and the methods of analysis used
should be appropriate.
7. The validity and reliability of the data should be checked
carefully.
8. Conclusions should be confined to those justified by the
data of the research .
9. Greater confidence in research is warranted .
 Qualities of Good Research

1. Good research is SYSTEMATIC – Structured with

specified steps.

2. Good research is LOGICAL – guided by rules logical

process of induction (reasoning from a Part to whole)
and deduction (Premise i.e. basis to conclusion)

3. Good research is EMPIRICAL – research related

basically to one or more aspects of a real situation.

4. Good research is REPLICABLE (Imitate or

reproduce) – research results to be verified by
replicating the study & building a sound basis for
decisions
 Hypothesis

A hypothesis is a tentative statement or an

assumption or prediction of a relationship between one
or more factors and the problem under study that can be
tested.

Hypotheses can take various forms, depending on the

question being asked and the type of study being
conducted.

A key feature of all hypotheses is that each must make

a prediction.
 Characteristics of good hypothesis

Hypothesis should be simple

Hypothesis should be specific

Hypothesis should be stated in

advance
1. The first step in hypothesis testing is to specify the null
hypothesis (H0) and the alternative hypothesis (H1).

2. The next step is to select a significance level. Typically

the 0.05 or the 0.01 level is used.

3. The third step is to calculate a statistic analogous to

the parameters specified by the null hypothesis. If the
null hypothesis were defined by the parameter μ1- μ2,
then the statistic M1 - M2 would be computed.
4. The fourth step is to calculate the probability vale
(often called the p value). The p value is the probability
of obtaining a statistic as different or more different from
the parameter specified in the null hypothesis as the
statistic computed from the data.

5. The probability value computed in Step 4 is compared

with the significance level chosen in Step 2. If the
probability is less than or equal to the significance level,
then the null hypothesis is rejected; if the probability is
greater than the significance level then the null
hypothesis is not rejected.
 
6. If the outcome is statistically significant, then the null
hypothesis is rejected in favor of the alternative
hypothesis. If the rejected null hypothesis were that μ1- μ2
= 0, then the alternative hypothesis would be that μ1≠ μ2. If
M1 were greater than M2 then the researcher would
naturally conclude that μ1 ≥ μ2.  

7. The final step is to describe the result and the

statistical conclusion in an understandable way. Be sure to
present the descriptive statistics as well as whether the effect
was significant or not.
 Problems in research

In research process the first and foremost step is

selection and defining a research problem.

A researcher must find the problem and

formulate it so that it becomes susceptible to a
research.
 Components of a research problem

There must be an individual or a group which has

some difficulty or a problem.

There must be some objective to be attained at.

There must be alternative means for obtaining the

objective one wish to attain.

There must remain some doubt in the mind of a

researcher with regard to the selection of alternatives.

There must be some environments to which the

difficulty pertains.
 Selecting the problem

1. Controversial subject should be chosen.

2. Narrow and vague problems must be avoided
3. The subject selected for research must be familiar and feasible
4. The importance of the subject, qualifications, training of the
researcher and cost involved are the other criteria's which must be
considered.
5. The selection of a problem must be preceded by a preliminary
study
 Necessity of defining a problem

A proper definition of research problem will enable the

researcher to be on the track.

Questions like:

 What are data to be collected?

 What characteristics of data are relevant and need to be studied?

 What relations are to be explored. What techniques are to be

used for the purpose?
 RESEARCH OBJECTIVES

The research objectives define the type and extent of

information needed to achieve the research objectives.

General objective: states what researchers expect to

achieve by the study in general terms.

Specific objectives: smaller, logically connected parts of

general objective. They are the specific aspects of the topic
that we want to study within the framework of our study
 ROLE OF THEORY IN RESEARCH

Role of Theory in
Research

Prediction of Understanding Other Roles

Behaviour Relationships
 Prediction of Behaviour

A theory enables to predict the behaviour or

characteristics of one phenomenon from the knowledge of
another phenomenon.

Accomplishing the first goal allows the theorist to

predict the behaviour or characteristics of one phenomenon
from the knowledge of another phenomenon’s
characteristics.
Understanding the relationship

It refers to gain an understanding of the

relationship among various phenomenons.

A theory is a coherent set of general

prepositions, used as principles of explanation of
the apparent relationships of certain observed
phenomena.
Other roles

Suggests a problem of a study

Gives a hypothesis to be tested
Provides simple explanation about the observed
relations regarding their relation to phenomenon.
Helps in being consistent with already founded
body of knowledge and the observed relations
Provides a conceptual model for delimiting the
scope of the study.
Helps in the selection of variables for delimiting
the scope of the study.
Makes research findings intelligence.
 Components of theory

Concepts
Constructs

Definition
Variables

Preposition and Hypothesis

Concepts:

To understand and communicate information

about objects and events, there must be a common
ground on which to do it. Concepts serve this
purpose.
A concept is generally accepted collection of
meanings or characteristics associated with
certain events, objects, conditions, situations
and behaviours.
Classifying and categorising objects or events
that have common characteristics beyond any
single observation creates concepts.
Constructs:

A construct is a theoretical dimension that has been

or potentially could be operationalized by one or more
variables. The term ‘concept’ and ‘construct’ are often
used in place of one another. Concept is usually
regarded as the more general of the terms. Concepts
refers to Broad concepts or topics of study.

Examples: Aggression, Love, Intelligence & Life

satisfaction
Researchers define constructs both “conceptually”
and “operationally”.
Definition:

Conceptual definition
Provides meaning to one construct in abstract or
theoretical terms (what does it mean). But we have to
make our abstract concepts concrete so we can study
them.

Operational Definition
Defines a construct by specifying the procedures
used to measure a construct (How to measure it). i.e
the assignment of numerals to object s, events”.
Variables:

A variable is a symbol of an event, act,

characteristics, triat or attribute that can be measured,
and to which we assign a categorical values. For
purpose of data entry and analysis, we assign
numerical value to a variable based on their variable’s
properities.
Any characteristics that varies is called as variable.
(it must have atleast two values).
 
Examples: Height (Participant or subject variable )
Age (Participant or subject variable )
Stress (Response variable)
Prepositions and Hypothesis

A Preposition is a statement about observable

phenomena (concepts) that may be judged as true
or false.

When a preposition is formulated for empirical

testing, people call it hypothesis.

A hypothesis is a tentative statement and

conjectural nature.
Prepositions and Hypothesis

A Preposition is a statement about observable

phenomena (concepts) that may be judged as true
or false.

When a preposition is formulated for empirical

testing, people call it hypothesis.

A hypothesis is a tentative statement and

conjectural nature.
 Hypothesis
Hypothesis is defined as a tentative statement or assumption of
an event.

A hypothesis is a prediction of a relationship between one or

more factors and the problem under study that can be tested.

Hypotheses can take various forms, depending on the question

being asked and the type of study being conducted.

A key feature of all hypotheses is that each must make a

prediction.

These predictions are then tested by gathering and analyzing

data, and the hypotheses can either be supported or refuted on
the basis of the data.
CHARACTERISTICS OF A GOOD HYPOTHESIS
 
Hypothesis should be simple
Hypothesis should be specific
Hypothesis should be stated in advance.
Hypothesis should be clear and precise.

Hypothesis should be capable of being tested.

Hypothesis should state relationship between variables, if it happens to be a

relational hypothesis.

Hypothesis should be consistent with most known facts i.e., it must be

consistent with a substantial body of established facts.

Hypothesis should be amenable to testing within a reasonable time.

Hypothesis must explain the facts that give rise to the need for explanation.
 STEPS IN
HYPOTHESIS TESTING
 State H0 as well as HA

Specify the level if significance (or the α value)

Decide the correct sampling distribution

Sample a random sample(s) and workout an appropriate value

from sample data

Calculate the probability that sample result would diverge as

widely as it has from expectations, if H 0 were true.

Is this probability equal or smaller than α value in case of one

– tailed test and α/2 in case of two – tailed test.

Reject H0 Accept H0

Thereby run the risk of Thereby run the risk of

committing Type I error committing Type II error
STEPS IN HYPOTHESIS TESTING
 
The basic logic of hypothesis testing is to prove or disprove
the research question.  By only allowing an error of 5% or 1%
and making correct decisions based on statistical principles, the
researcher can conclude that the result must be real if chance
alone could produce the same result only 5% of the time or less.

There are five steps in testing hypothesis.

Step -1 

The first step in hypothesis testing is to specify the null

hypothesis (H0) and the alternative hypothesis (HA). If one
hypothesis is true, the other is false. Alternatively, if one
hypothesis is false or rejected, then the other is true or accepted.

These two hypotheses are

 Null Hypothesis
 Alternate hypothesis

The null hypothesis would most likely be that there is no

difference between methods (H0: μ1 - μ2 = 0).

The alternative hypothesis would be H1: μ1 ≠ μ2. If the research

concerned the correlation between grades and SAT scores, the
null hypothesis would most likely be that there is no correlation
(H0: ρ= 0). The alternative hypothesis would be H1: ρ ≠ 0.
Step - 2 

The next step is to select a significant level. Typically

the 0.05 or the 0.01 level is used.

Step – 3

The third step is to calculate a statistic analogous to

the parameters specified by the null hypothesis.
If the null hypothesis were defined by the parameter
μ1- μ2, then the statistic M1 - M2 would be computed.
Step – 4

The fourth step is to calculate the probability

value (often called the p value). The p value is the
probability of obtaining a statistic as different or more
different from the parameter specified in the null
hypothesis as the statistic computed from the data. The
calculations are made assuming that the null
hypothesis is true.
Step - 5

The probability value computed in Step 4 is

compared with the significance level chosen in Step 2.
If the probability is less than or equal to the
significance level, then the null hypothesis is rejected;
if the probability is greater than the significance level
then the null hypothesis is not rejected. When the null
hypothesis is rejected, the outcome is said to be
“statistically significant" when the null hypothesis is
not rejected then the outcome is said be "not
statistically significant."
Step - 6

If the outcome is statistically significant, then the

null hypothesis is rejected in favour of the
alternative hypothesis. If the rejected null hypothesis
were that μ1- μ2 = 0, then the alternative hypothesis
would be that μ1≠ μ2. If M1 were greater than
M2 then the researcher would naturally conclude that
μ1 ≥ μ2.
 
Step - 7

The final step is to describe the result and the

statistical conclusion in an understandable way. Be
sure to present the descriptive statistics as well as
whether the effect was significant or not.