Research Methodology

– PRIYANKA GUPTA
Course- Structure
– 2 Class test (Without Prior Information): 10 Marks each

– 3 Class test (With Prior Information) ): 20 Marks each

– Internal Assessment: 25 Marks (Attendance+ Class performance)

– Project (Innovative Work)

What is Research?
Research= Re-search (Searching again)
 What is Research?
– It always starts with a question or a problem.
– Its purpose is to find answers to questions through the application of scientific methods
– It is a systematic and intensive study directed towards a more complete knowledge of the subject
studied.

– Research tackles the problem which seems to have immediate commercial potential.

– An organized, systematic, data-based, critical, objective, scientific study about a specific problem with an
objective to find the answers to the questions.
– Research is a logical & systematic search for new & useful information on a particular topic.
– Must have a purpose
– Undertaken to understand various phenomenon
– To solve specific problem
 The growth of RESEARCH
– Research is a tool that is a building block and a sustaining pillar of every discipline— scientific or otherwise—
that one knows of.

– Decision makers can be found in every type of organization: businesses, not-for-profit organizations, and public
agencies. Regardless of where these decision-makers are found or whether their resources are abundant or
limited, they all rely on information to make more efficient and effective use of their budgets.

– Over the past several decades, there has been a gradual development in the field of marketing re- search. The
first evidence of formal research techniques employed could be traced as far back as 1824. However, for
almost one century thereafter, research developed rather slowly and sporadically.
 The growth of RESEARCH
Several factors have contributed to the growth of marketing research.
• As a result of large scale production, producers do not have direct contact with the consumers. This leads to
problems in marketing of goods. It is necessary for a manufacturer to know the potential areas where his goods
could be marketed, the probable demand for the same and the extent of profitability and competition. This is
possible only when a systematic investigation is undertaken.
• There has been a shift from a seller’s to a buyer’s market. This necessitates a better understanding of buyer
behavior. This aspect is studied in marketing research.
• The emergence of specialists such as statisticians, psychologists and behavioral scientists in a fairly large number
has also enhanced the importance of marketing research in no small measure. These specialists have helped in
the development of marketing research as a separate discipline and strengthened its techniques.
• Changes in the composition of population, particularly the shift from the rural to the urban areas, has widened
the scope for marketing of various types of goods and services in the urban areas.
• There is now increasing realization on the part of both marketing researchers and management to have
meaningful dialogue whenever a project is to be undertaken. This results in improving the quality of marketing
research. Finally, the changing marketing environment has given enormous boost to marketing research in recent
years.
Why one should study research methods and
tactics?
1. Information overload: Although the Internet and its search engines present extensive amounts of information, the information’s quality
and credibility must be continuously evaluated. The ubiquitous access to information has brought about the development of knowledge
communities and the need for organizations to leverage this knowledge universe for innovation—or risk merely drowning in data.

2. Technological connectivity: Individuals, public-sector organizations, and businesses are adapting to changes in work patterns (real-time
and global), changes in the formation of relationships and communities, and the realization that geography is no longer a primary
constraint. With the increased acceptance and use of mobile technology, information snacking, short online visits to get specific answers,
has become the norm for information gatherers. This could have a profound influence on information collection designed to serve the
needs of managers who want quick, smaller chunks of information, each of which is more decision relevant. While this influence is
expected in quantitative techniques such as surveys, qualitative research is also increasingly embracing smaller iterative engagements with
research subjects to drive research.

3. Shifting global centers of economic activity and competition: The rising economic power of Asia and demographic shifts within regions
highlight the need for organizations to expand their knowledge of consumers, suppliers, talent pools, business models, and infrastructures
with which they are less familiar. This shift increases the value of research designs that can accommodate different norms, values,
technologies, and languages. Some in the research industry believe innovation in research methodology will come from the developing
world, not the developed economies, as countries in the developing world are already embracing mobile/social research methodologies to
a greater degree.
Is Research always Problem- Solving Based?

Researchers often are asked to respond to “problems” that managers needed to solve.

Pure research or basic research is also problem-solving based, but in a different sense. It aims to solve perplexing questions or
obtain new knowledge of an experimental or theoretical nature that has little direct or immediate impact on action, performance, or
policy decisions. Basic research is defined as the work of scientists and others who pursue their investigations without conscious
goals, other than the desire to unravel the secrets of nature.
Applied research has a practical problem-solving emphasis. Whether the problem is negative, like rectifying an inventory system that
is resulting in lost sales, or an opportunity to increase stockholder wealth through acquiring another firm, problem solving is
prevalent. The problem-solving nature of applied research means it is conducted to reveal answers to specific questions related to
action, performance, or policy needs. Applied research carries the findings of basic research to a point where they can be exploited
to meet a specific need, while the development stage of research and development includes the steps necessary to bring a new or
modified product or process into production.

Thus, both applied and pure research are problem-solving based, but applied research is directed much more to making immediate
managerial decisions. In answer to the question posed at the beginning of this section, Is research always problem-solving based?
the answer is yes. Whether the typology is applied or pure, simple or complex, all research should provide an answer to some
question. If managers always knew what was causing problems or offering opportunities in their realm of responsibility, there would
be little need for applied research or basic research; intuition would be all that was necessary to make quality decisions.
What will you get from research?

 Research generates solutions to many problems which were assumed to be non-solvable.

 It helps to understand the actual needs of the customers and how much the company’s product deviate from the actual
demands.

 It generates the wider view of the concerned problem and helps the management to make decisions based on the obtained
results.

 The information derived from research helps the decision makers to make decisions relating to organizational mission, goals,
strategies, and tactics.

 On the basis of which Strategy is defined which is nothing but a the general approach an organization will follow to achieve its
goals.

 Management will have access to information generated by business research. Understanding the relationship between
business research and these other information sources—decision support systems and business intelligence—is very important.
 Research & Development
– The concept of research is as old as science; the concept of the intimate relationship between research and subsequent
development, however, was not generally recognized until the 1950s.

– Research and development is the beginning of most systems of industrial production. The innovations that result in new
products and new processes usually have their roots in research and have followed a path from laboratory idea, through
pilot or prototype production and manufacturing start-up, to full-scale production and market introduction. 

– The foundation of any innovation is an invention. Inventions come from research—careful, focused, sustained inquiry,
frequently trial and error. 

– In the areas in which technology advances fastest, new products and new materials are required in a constant flow, but
there are many industries in which the rate of change is gentle. Although ships, automobiles, and telephones, have
changed over the last quarter of a century, the changes have not been spectacular. Nevertheless, a manufacturer who
used methods even 10 years old could not survive in these businesses. The task of R and D laboratories working in these
areas is to keep every facet of the production process under review and to maintain a steady stream of improvements.
Although each in itself may be trivial, the total effect is many times as large as the margin between success and failure in a
competitive situation.
Research & Development
 When Research is unnecessary
 Many firms, whether in production or services, would like to know as to what consumers feel about their products and services. As such
information is available with consumers, many marketing research studies are done to collect it. In addition, consumers willingly provide
the information insights. However, there are certain situations where getting the required information becomes extremely difficult so
much so that one has to relinquish the idea of collecting it. In such situations, it is not advisable to undertake research.

 Given below are some situations where research is unnecessary.

• When a firm finds that the cost of undertaking research is going to be more than the benefit it can derive by implementing the
research findings.
• When the research project attempts to collect information relating to distant past. Here, the respondents would not remember the
desired information. Even if they are approached, they are likely to arbitrarily give some information, which obviously will not be
correct.
• When information is very personal, the respondents would be quite reluctant to give it. This is understandable as they consider it as an
intrusion into their personal lives.
• At times, respondents may find it difficult to communicate their emotions and sensations to the researcher. For example, respondents
may be asked to taste two types of tea and then let the researcher know which is better. While they may tell this but they may be
unable to reveal as to how they have come to this conclusion.
• The nature of some products is such that there is hardly any time to conduct research. This is especially true in case of those products
which have a very short life cycle. As research requires some time, the extremely short life cycle of the products does not permit it.
Examples where Research is necessary

– Cadbury Perk was introduced in the market in 1996. It created a new demand in the market
for wafer chocolates in India. However, with the introduction of Nestle’s Munch, it had to
face tough competition. As a result of continued competition between Cadbury and Nestle,
the chocolate wafers’ market saw stagnation in the demand, despite an array of competitive
advertisements.

– Videocon entered the telecom sector in March 2010 with ambitious plans. Videocon
Mobile Services (VMS) was poised to rapidly build its subscriber base. It had planned to
invest Rs.14,000 crore in VMS over the next three years. However, the report of the
Telecom Regulatory Authority of India (TRAI), January 30, 2010 showed that Videocon’s
share in the wireless component was merely 0.78 percent, which was less than small
players, not to talk of bigger players such as Airtel, Vodafone, Reliance and BSNL among
others.
 Examples where Research is necessary
– Nano was the most awaited car in India, and surged pride for being indigenous—from
the Tata house. It was the dream of the millions. Yet, after 23 months of its launch, it
has not been able to sell even a lakh units. The monthly sales of Nano started falling
from July 2010 and reached a record low of just 509 units in November 2010. An
important reason for this performance was lack of strong communication to its core
target group (TG)— the two-wheeler owners in small towns aspiring to buy a car.

– Almost a decade ago, UK’s leading retailer Marks & Spencer (M & S) entered Indian market.
But, unfortunately, the brand has been struggling to gain a foothold in the country. As against
this, many global brands that entered the country around the same time or after M & S have
raced ahead of it. M & S faces stiff competition from global brands like Benetton, Zara, Tommy
Hilfiger, as well as Indian retailers. Notwithstanding such challenges, M & S is determined to
operate in India, considering the potential of the Indian retail space.
Examples where Research is necessary
Scope of Business Research
 It helps decision makers to shift from intuitive information gathering to systematic and objective
investigation.
 While researchers in different functional areas may investigate different phenomenon, they are
comparable to one another because they use similar research methods.
 The scope of business research is limited by one’s definition of ‘business’.
 The term ‘Business Research’ is utilized because all of its techniques are applicable to business
settings.

 Divisions of Marketing Research

• Product Research
• Sales Research
• Customer Research
• Pricing Research
• Advertising Research
Limitations of Research
The discussion should not lead any one to assume that research can solve all the problems. While it
can be extremely rewarding to a firm, it is wise to know that it is subject to certain limitations.
One must be aware of these limitations in advance so that one is clear about what marketing
research can and cannot do.

 First, very many times, research tends to be fragmentary in its approach as a result of which it
becomes difficult to have an overall perspective in which a marketing problem is to be viewed
and studied.
 Second, research is criticized on the ground that it becomes too superficial and faulty in industry.
While the principles of research are good based on scientific lines, in industry, marketing research
is very often used by those who have had no formal training in the subject. Such persons avoid
using detailed investigations and sophisticated techniques which require both time and patience
on the part of researchers.
 Third, there is an absence of a meaningful dialogue between the management and the research
team. As a result, researchers get divorced from the main stream of marketing. This denies them
any opportunity to test their findings in the practical marketing situation.
Limitations of Research (Contd.)
 Fourth, research is not an exact science. There are several imponderables which come in the way of getting
accurate results. For example, consumer behavior is an area which is rather elusive and the theory does not
go very far in disclosing it very precisely. Analytical tools of marketing research are still deficient and cannot
give us a precise idea, especially on the behavioral aspects.

 Sometimes it is miss-used or misinterpreted

• A major misuse of research is found when one uses it to support or substantiate his viewpoint or
position. In such a case, objectivity, which is the soul of research, is non-existent. To collect data and to
interpret them deliberately to prove or disprove a certain point does not qualify as legitimate research.
• Another misuse of research is found in deliberately delaying decision-making. In the hands of vested
interests, it may be used to avoid taking a certain decision or delaying it until the findings of research
are available.
• Finally, it is used to grab power and authority in an organization. Executives who are over-ambitious
may use marketing research to consolidate and strengthen their position in the organization as also to
extend their authority over their colleagues.
Status of Research in INDIA
 A major constraint is on account of the heterogeneity of the country with the vast geographical area. Added to
this is the language problem. So many languages are spoken in the country that a nation-wide survey using the
questionnaire method becomes extremely difficult. In addition, this method becomes quite expensive.

 Another problem in the use of research is the non-availability of relevant secondary data. On account of this,
sampling frames, on the basis of which samples are to be drawn, are usually incomplete and inadequate.

 Many business firms believe that research is too expensive. They are, therefore, quite indifferent to the use of
research. Although, some problems can be taken up for research within a limited budget.

 At times, the relationship between the researchers and management may also act as a constraint. This may
happen in those business firms where management and researchers do not understand and appreciate each
other’s viewpoint. This problem may be found more frequently in those firms which do not have professional
management.

 Many business firms in India think that research is not necessary. They believe that experience of running the
business, coupled with intuition on the part of the top management, can be helpful in solving the problem.
Issues with Research
 The quality of any information collected through research surveys will be considerably affected on account of
lack of transparency in business. This problem can be overcome by having more and more professionalization
and institutionalization of marketing research.

 Research is frequently seen as a separate activity undertaken by professionals and is not linked with short or
long term strategies. It is advisable to involve operational staff in a company with research activity. This will be
advantageous to both professionals and operational staff and will make research more useful to the business.

 A major issue at the institutional level is the allocation of budget to research activity.

 Marketing research has so far remained confined to the urban market. The marketing problems in the rural
India are vast and complicated and have hardly been addressed. However, with the improved standard of living
in rural areas, there will be a larger consumption of packaged goods and consumer durables. In view of this,
marketing researchers have to think seriously as to how far their techniques can be applied to a rural setting. It
is, no doubt, a challenge to profession- als but it offers them a great opportunity as well.
 Characteristics of Good Research
 The characteristics of good research are briefly described below.

• Clarity of purpose
The researcher should be clear about the purpose of the proposed research. The research problem
should be formulated carefully, indicating its scope and limitations. Both the manager and the re-
searcher should have the same understanding of the research problem and how they should proceed in
different stages of the research.
• Research process
The research process should be properly planned. The researcher should ensure that significant
procedural steps are taken care of. In their absence, it would not be possible to estimate the validity and
reliability of data, which, in turn, will weaken the confidence of the reader in the research itself.
• Selection of proper research design
There are several research designs, out of which one is chosen. In some cases, a combination of two
research designs may be used. However, the choice of a research design has to be based on the nature
of the research problem. If a research design involves primary data collection, a proper method of
sampling should be chosen. The main questions to be answered are: Whether probability sampling or
non-probability sampling? Within the probability sampling, which specific design is to be used?
 Characteristics of Good Research (Contd.)
• Data collection
After having selected a research design, the researcher should take the necessary steps to collect data. He should
exhaust all the sources of information already available on the research problem. In the case of primary data, a
suitable questionnaire should be developed.

• Proper analysis and Interpretation of Data

The method used should be appropriate keeping in mind the nature of the problem and the purpose of the
research study. A detailed analysis should be undertaken so that a deeper insight into the research problem can
be obtained.

• Reporting the results

The research report should be written in a simple and unambiguous language. It should be objective in the
presentation of results. In case there are any limitations, then these should be specified. After reading the report,
the reader should be convinced about the sincerity, objectivity and competence of the researcher.
• Compliance with ethical standards
It is necessary to ensure that ethical standards or norms are followed through all the stages of the research
process. The compliance with ethical norms will improve the image of the research project as well as the entire
research team.
Question

– Can you give an example of a product/ services where tremendous change in its
sales has been observed before and after carrying the Research?