Business Research

• Introduction, definition, nature and

scope of business research
• Importance of business research
• Process of business research
Definition
A process of determining, acquiring,
analyzing , synthesizing and
disseminating relevant business data,
information, and insights to decision
makers in ways that mobilize the
organization to take appropriate
business actions that in turn maximize
business performance.
OBJECTIVES OF RESEARCH
To gain familiarity with a phenomenon or to
achieve new insights into it (exploratory or
formulative research studies)
To portray accurately the characteristics of a
particular individual, situation or a group
(descriptive research studies)
To determine the frequency with which something
occurs or with which it is associated with something
else (diagnostic research studies)
To test a hypothesis of a casual relationship
between variables (hypothesis-testing research
studies)
Types of research
Descriptive vs Analytical
Applied vs Fundamental
Quantitative vs Qualitative
Conceptual vs Emprical
Other types – one time research/longitudinal
research (based on purpose/time/environment)
Field setting research/laboratory research/simulation
research
Clinical/diagnostic research
Historic research
Conclusion oriented and decision oriented research
Research Approaches
Quantitative approach-inferential,
experimental and simulation
approaches
Qualitative approach – assessment of
attitudes, opinions and behaviours.
Importance of Research
Inculcates scientific and inductive thinking
Promotes the development of logical habits
of thinking of organization
Basis for nearly all government policies in
our economic system
Helps in solving various operational and
planning problems
Helps in studying social relationships and
in seeking answers to various social
problems
Different Perspectives..
For a ph.d scholar, research may mean a
careerism
To professionals in RM, its source of livelihood
To philosophers and thinkers, it mean the outlet
for new ideas and insights
To literary men and women, it mean the
development of new styles and creative work
To analysts and intellectuals, it mean the
generalization of new theories
Exhibit 1-2 Hierarchy of Business Decision
Makers

Visionaries
Visionaries

Standardized
Decision Makers

Intuitive Decision Makers

Research Process
1. Define research problem
2. Review of literature ( Review concepts and
theories/review previous research finding)
3. Formulate hypotheses
4. Design research (including sample design)
5. Collect data (execution)
6. Analyse data (test hypotheses if any)
7. Interpret and report
Qualities of good research
A good research is
SYSTEMATIC
LOGICAL
EMPRICAL
REPLICABLE
Exhibit 1-8 Characteristics of Good Research
Clearly
Clearly defined
defined purpose
purpose
Detailed
Detailed research
research process
process
Thoroughly
Thoroughly planned
planned design
design
High
High ethical
ethical standards
standards
Limitations
Limitations addressed
addressed
Adequate
Adequate analysis
analysis
Unambiguous
Unambiguous presentation
presentation
Conclusions
Conclusions justified
justified

1-12
Credentials
Credentials
Exhibit 1-4 Who Conducts Business
Research?

Internal External

1-13
Eastman Kodak has a world-class research
department

1-14
 1-15

Exhibit 1-4
Business Research Suppliers

External Research Suppliers

Business Research Firms

Communication Agencies

Consultants

Trade Associations
Proprietary Research
Decision Analyst, Inc.
uses Internet-based
concept testing
called Conceptor
to examine new
product concepts

1-16
Syndicated Services
Nielsen Media Research
provides audience data for
television programs like
Court TV

1-17
Exhibit 1-6 Some Syndicated Data Providers
AC Nielsen DoubleClick
Scarborough Nielsen/NetRatings
Millward Brown Taylor Nelson Sofres
Nielsen Media Research Intersearch
Roper ASW J.D. Power Associates
CSA TMO MediaMark
Yahoo! Simmon (SMRB)
ORC International BRMB
Information Resources Inc.

1-18
Specialty Business Research Firms
Methodology

Process

Industry

Participant group

Geographic Region

1-19
Communication Agencies
Sales Advertising
Promotion

Public
Relations
Direct
Business

1-20
Consultants and
Trade Associations
Consultants Trade Associations
Business General business
General Business Business
specialties
Research
specialties

1-21
Key Terms
Business intelligence Intranet
system Management dilemma
Business research Proprietary Methodology
Control Return on Investment
Custom Researcher (ROI)
Data mining Scientific method
Data warehouse Strategy
Decision support Syndicated data provider
system Tactics
Extranet
Full-service
researcher
1-22
RESEARCH PROBLEM
Problem – Definition
A specific managerial decision area to
be clarified or problem to be solved.
Eg: Coca Cola s change in decision to
change its formula to introduce “new”
coke in 1980s
Problem Definition – The
Process
Ascertain the decision maker’s objectives
(ice berg principle- cause to cause analysis)
Understand the background of the problem
(situation analysis- a preliminary
investigation)
Isolate and identify the problem rather than
its symptoms (To the Point – ad
effectiveness)
Determine the unit of analysis (Choice of
respondents – org/symptoms/pblm defn
based on sym/true pblm)
Determine the relevant variables
(categorical , continuous & superfluous
Dependent and Independent variables)
State the research questions (hypotheses)
and research objectives
Contd...
Problem definition results in statements
of research questions and research
objectives
At the end of the problem definition stage
of the research process, researchers
should prepare a written statement that
clarifies any ambiguity about what they
hope the research will accomplish
Hypothesis ?
An unproven proposition or possible
solution to a problem
Problem statements(questions) and
hypothesis (declarative) both state
relationships.
Eg: a manager many hypothesize that
sales persons who show the highest job
satisfaction will be the most productive
Hypotheses- examples
There is a positive relationship b/w internet
shopping and the presence of younger
children in the home
Managers with liberal arts educations will
process less accounting data than will those
with masters degree in business
administration
Opinion leaders are more affected by mass
media commn. Sources than are non leaders
Example
Eg : A statement made by a company: “
the problem is to determine the best
ways our company can train existing and
potential users of networked personal
computers”
Research questions
How familiar are employees with the various
software applications for personal computers
What attitudes do employees have toward
these software packages?
How important are the various factors for
evaluating the use of a personal computer?
How effective are training efforts in
increasing knowledge and use of the new
applications?
Components of a research
problem
There must be an individual or a group
which has some difficulty or the problem
There must be some objectives to be
attained at. If one wants nothing, one
cannot have a problem
There must be alternative means for
obtaining the objectives one wishes to
attain.
Contd..
There must remain some doubt in the
mind of the researcher with regard to
the selection of alternatives
There must be some environment(s) to
which the difficulty pertains
Selection of research problem
Subject which is overdone should not
be normally chosen
Controversial subject should not
become the choice of an average
researcher
Too narrow or too vague problems
should be avoided
Contd..
The subject selected for research
should be familiar and feasible so that
the related research material or sources
of research are within one’s reach
The importance of the subject,
qualifications and the training of a
researcher, the cost involved, the time
factor etc should be considered
Contd…
The selection of a problem must be
preceded by a preliminary study(not in
case of a replicable research).
Necessity of defining the problem
Research problem clearly started is a
problem half solved
What data are 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?
Technique involved in defining a
problem
1. statement of the problem in a general
way
2. Understanding the nature of the problem
3. Surveying the available literature
4. Developing the ideas through
discussions-Experience survey
5. Rephrasing the research problem
Research objective
The purpose of the research , expressed
In measurable terms; the definition of
what the research should accomplish
Is the researcher's version of the
business problem
The statement of the business problem
influences the research objectives and
design
Contd..
The number of research objectives
should be limited to manageable
quantity.
Fewer the number of objectives , easier
it will be to ensure that each objective
will be addressed fully
PROBLEM/QUESTION RESEARCH RESEARCH OBJECTIVES
S QUESTIONS

Should the organization 1. Are managers

offer outplacement aware of To determine manager’s awareness
services? outplacement? using aided recall
2. How concerned
are managers To measure managers satisfaction with
about existing personnel policies
outplacement
services?

Which of the services How do managers To obtain ratings and rankings of the
should be offered? evaluate the need various outplacement services
New employment for …
assistance? New employment
Personal counseling? assistance ?
Job contacts? Personal
counseling?
RESEARCH DESIGN
Meaning of research design
A research design is the arrangement of
conditions for collection and analysis of data
in a manner that aims to combine relevance to
the research purpose with economy in
procedure
Conceptual structure within which research is
conducted.
Blueprint for the collection, measurement and
analysis of data
Research can be divided into…
Sampling design-method of selecting items
Observational design – conditions under
which the observations are to be made
Statistical design – question of how many
items are to be observed and how the data
gathered are to be analyzed
Operational design – techniques by which
the procedures specified in the sampling ,
statistical and obs designs can be carried
out.
Research design must contain….
A clear statement of the research
problem
Procedures and techniques to be used
for gathering information
Population to be studied
Methods to be used in processing and
analyzing data
Important concepts relating to
research design…
Dependent and independent variables
Extraneous variables-independent
variable that are not related to the
purpose of the study but may affect the
dependent variable .(experimental error-
effect of extraneous var. on dep. var.)
Contd..
Control- minimize the effect of
extraneous variables
Confounded relationship
Research hypothesis
Experimental and non-experimental
hypothesis testing research(indep.
variable is manipulated or not)
Contd…
Experimental and control groups
Treatments
Experiment (absolute or comparitive)
Experimental units
Questions???
Different steps involved in a research
process
Significance of research
Types of research and difference bet
them
Objectives of research
Criteria of good research
Techniques of defining a research
problem
Components for research problem
Necessity of defining a research
problem
Experience survey and pilot survey
Rephrasing the research problem
Meaning and significance of a research
design
Components of research design