UNIT-1, Business Research Methods

Business Research Methods

UNIT I Introduction to Business Research:

Concept, Types of Research, Characteristics of Good Research; Research
Process; Problem Identification, Formulation of Business Research Objectives.
Case study on problem identification and objective formulation.

Introduction
From a novice's point of view, research can be defined as the search of knowledge. Oxford
dictionary defines research as ‘the systematic investigation and study of materials and sources
in order to establish facts and reach new conclusions’. Research is pursued in almost all the
professions. More than a set of skills, it is a critical way of observing, examining, thinking,
questioning and formulating principles that hold true at least for the given space. Almost all
professions affirm the need of research either for the advancement of business or for the
enlightenment of knowledge. Whatever profession we are in, we ask ourselves a lot of
questions for finding new knowledge and ideas. For example, consider that you are running a
retail store; there are a lot of questions that may help you in increasing your business:
 How many customers do I can handle daily?
 Which are the most purchased groceries?
 Which groceries combination is more popular?
 What time does the customers hit to maximum at store?
 How the customers rate our store?
 What is the average money a customer spends on a purchase?
Just by finding answers of these, one can always say that, a very valid investigation has been
done for the domain and the results. This is a very raw example of research that we practice
in everyday life. Essentially speaking research involves a well-developed plan, a systematic
approach to developing new theories of finding solutions to various problems.

Redman and Mory defined research as ‘a systematized effort to gain new knowledge’. Some
professionals consider research as a movement, a movement from the known to the unknown.
It is actually a voyage of discovery with pleasure and satisfaction. While considering research
as an academic activity, it involves a lot of steps such as problem definition, to solve the
problem, literature review, data collections, analysis, drawing inference, making hypothesis
and arriving at a solution. Research is not just gathering of information from books and other
sources. The transportation of knowledge from one form to another will neither constitute a
good research. In short and simple, we can define research as ‘the systematic process of
collecting and analysing information (data)in order to increase our understanding of the
phenomenon about which we are concerned or interested’.

Zina O' Leary defined research as a 'creative and strategic thinking process that involves
constantly assessing, reassessing and making decisions about the best possible means for
obtaining trustworthy information, carrying out appropriate analysis and tracing credible
solutions.' Thus, research is actually a journey of discovery. Humans since aeons have been
trying to discover better methods of doing routine things, a better explanation for why things
happen in a particular manner and better answers to recurring problems. The technique which
is employed in the search of this knowledge is termed as ‘research’. Research provides us
with right kind of information that helps us in successfully dealing with problems. Clifford

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Woody has very comprehensively defined research as 'a method for the discovery of truth
which is really a method of critical thinking. It comprises of defining and redefining
problems, formulating hypothesis or suggested solutions; collecting and organizing and
evaluating data; making deductions and reaching conclusions; and at last, carefully testing the
conclusions to determine whether they fit the formulating hypothesis.' It can be concluded
that research involves: (i) A clear definition of the problem (ii) Formulation of hypothesis (iii)
Collection and analysis of data and (iv) Relating the findings to existing theories and earlier
formulated hypothesis. Thus, research is re-search, i.e. a revisit on the earlier findings with
the intention of correlating them with newly discovered facts. The Encyclopedia of Social
Sciences has described research as a ‘critical and exhaustive investigation or experimentation
having as its aim the revision of accepted conclusions in the light of newly discovered facts."

OBJECTIVES OF RESEARCH

The objective of research is to discover answers to questions through the application of

scientific procedure. The main aim of research is to find out the truth which is hidden and
which has not been discovered as yet. It is primarily concerned with production of
knowledge. Though each research study has its own specific purpose, some general
objectives of research below:
1. To Explore: Research can be carried out with the purpose of gaining familiarity with a
particular topic or to gain insight into unexplored areas. Such a research is termed as
exploratory or formative research. It is often carried out before formulating a hypothesis e.g.
a domestic company may think of setting up its manufacturing operations abroad. This kind
of investment is new to the company and the initial research conducted to explore the
possibility of this new idea can be termed as exploratory research.
2. To Describe: Quite often a research can be carried out with the objective of describing a
particular situation, event or an individual e.g. a study can be carried out to study the voting
pattern in a particular state on the basis of gender, economic status, religion etc. as observed
in the previous election. Such researches are termed as descriptive studies. Since these studies
are about events that have already taken place, these studies are also called as ex-post facto
studies.
3. To Diagnose: When a study is carried out with the objective of finding out how frequently
a particular event is associated with another event, it is termed as diagnostic study e.g. a fast
food chain has conducted a research to find out the feasibility of setting up an outlet in a
multiplex. The chief objective of this study is to find out that how often people eat their meal
outside when planning to watch a movie. Doctors frequently employ diagnostic methods to
discover what it is that ails the patient. Numerous questions are asked from the patient and
through symptomatic and clinical investigation, the doctors can then declare a diagnosis.
Such studies are called as diagnostic studies.
4. To Establish Causal Relationship: A research can be done with the objective of finding out
the causal relationship between the dependent variables with independent variables. Such
research are called as hypothesis testing research e.g. a research carried out so establish the
relationship between polio vaccine (independent variable) and its effectiveness in controlling
the occurrence of polio (dependent variable) is a hypothesis testing research.
In simple words, the objectives of research may be:
 To identify and find solutions to the problems (e.g. "Why is that demand for a product is
falling"? "Why is there a business fluctuation once in three years"?)
 To help making decisions (e.g. should we maintain the advertising budget same as last
year?)

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 To develop new concepts (e.g. Customer Relationship Management, Horizontal Marketing,

Multi-Level Marketing, e-tailing etc.)
 To find alternate strategies (e.g. should we follow pull strategy or push strategy to promote
the product.)

CHARACTERISTICS OF RESEARCH

An understanding of the meaning of research puts us in a position to list the characteristics of

research. From the above explanations, the following characteristics of research can be
summarized: 1. Research is directed toward the solution of a problem.
2. Research is purposive i.e. it deals with a well-defined significant problem.
3. Research is based upon observable experience or empirical evidences.
4. A research gathers new knowledge and brings to the forefront hitherto unexplored and
unexplained phenomenon.
5. Research involves collection of primary data from first hand sources or involves use of
existing data for a new purpose.
6. Research activities are carefully detailed and clearly outlined through a research design.
These activities are defined by carefully designed procedures and analysis tools.
7. Research emphasizes the development of generalizations, principles, or theories that will
be helpful in predicting future occurrences.
8. Research requires a degree of expertise and skill. A research worker is expected to be
knowledgeable about the intricacies involved in carrying out a research.
9. Research strives to be objective and logical, applying every possible test to validate the
procedures employed the data collected and the conclusions reached. The findings should be
free from bias and the results should be carefully verified.
10. Every process, term and tool used in the research should be carefully documented and
reported.
11. The research should target towards the discovery of general principles or theories which
can find application to a wide range of problems in the present and future context.

SCOPE OF RESEARCH IN BUSINESS

Business research refers to any type of research done when starting and inaugurating any type
of business organisation. Simply speaking, the application of research, its tools and
techniques in business decision making constitutes business research. According to Zikmund,
“Business research is a management tool that companies use to reduce uncertainty. It is a
manager’s source of information about organisational and environmental conditions, and
covers topics ranging from long-range planning to the most ephemeral tactical decision”.
Looking upon this, the scope of business research includes the following areas. However, the
list given below is not exclusive rather indicative.

1. Business Environment: The marketing activities are influenced by several internal and
external environments. Internal environments include price, promotion, product and place
(distribution), whereas the external environments include economic, sociological, political,
legal and government motives.

2. Consumption Pattern: The pattern of consumption is to be assessed by the management.

The study of buyers' behaviour, attitudes and capacity to purchase is very important in
research. The purchasing power of a consumer depends upon his disposable personal income.
Thus, the total purchasing power of a country or geographical area can be assessed by the

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disposable income of the place. The research reveals all the factors which influence the
pattern of consumption.

3. Controlling: Research is used as a control technique of management to find out the

weaknesses and shortcoming of the management decisions to re-orient the planning and
performance techniques.

4. Decision-Making: Research is useful for taking management decisions. It provides

necessary information and data in analysed and processed forms for making decisions in
various business areas. With advanced technology, higher production functions and
increasing complexities in market, the research has become an indispensable tool for taking
appropriate decisions.

5. Finance: Research in finance helps financial experts and those other individuals involved
to study how the financial industry is affected by market changes and trending. The research
on finance and financial management mainly revolved around estimating financial
requirement, financial management, deciding capital structure, selecting a source of finance,
selecting a pattern of investment, proper cash management, implementing financial controls,
proper use of surplus etc.

6. Growing Complex Markets: The advancement of science and technology and the standard
of living of consumers necessitate closer touch with the growing markets. The size and
specialisation within the business unit and the intervention of numerous middlemen between
the manufacturer and customers created a wide communication gap. The widening gap
requires marketing research to fill up the communication gap between the consumer and the
producer.

7. Human Resources Management: Research on HRM activities provides an understanding of

what does work, what does not work, what needs change, the nature and the extent of change.
The human resource research seeks to discover the basic relationships which may lead to
improved personnel decision-making in such areas as turnover, absenteeism, compensation
levels and structure, job satisfaction, employee morale, assessment of managerial potential,
training effectiveness, grievance handling, labour relations and collective bargaining.

8. Management Planning: Research is used for management planning. It deals with business
opportunities, i.e. those opportunities which are viable to be exploited by management. Thus,
management can assess the resources that will be useful for the business.

9. Marketing Strategy: Marketing management has to lay down appropriate marketing

strategies to meet competition, to pursue growth in the market and to attain organisational
objectives. The policies and programmes related to pricing, distribution, sales promotion,
product etc. can be made with proper research.

10. Problem-Solving: Starting from problem identification to formulation of alternative

solutions, and evaluating the alternatives in every area of management, is the problem-
solving action of research. Problem-solving research focuses on the short-range and long-
range decisions that must be taken with respect to the elements of the business viz.
marketing, HRM, production, finance etc. It can help managements bring about prompt
adjustment and innovations in the above areas of business.

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11. Production Management: Research helps large-scale production by providing suitable

decisions to be undertaken by the producers to exploit the existing production resources to
meet the growing markets. The resources of production and market potentials are properly
assessed by research. The research performs an important function in product development,
diversification, introducing a new product, product improvement, process technologies,
choosing a site, new investment etc.

TYPES OF RESEARCH
This part specifically focuses on the types of research. Research can be classified from
various perspectives. A detailed description of the same can be had from the figure below and
the description that follows:

1. On the Basis of Application

On the basis of application, research is of two types:
i) Pure/ Basic/ Fundamental Research: Developing scientific theories or basic principles
are called 'pure' or 'basic' or 'fundamental' research. This research is concerned with quest for
knowing more about the phenomenon without concern for its practical use and also with
developing and testing hypotheses and theories. Pure research takes place to explore a
particular concept, or issue, without regards for a specific problem, and may be carry out to
simply gain a better understanding of the overall concept. It is said, there is nothing as
practical as a good theory. It is conducted to satisfy any curiosity such as:
What makes things happen? Why society changes, and Why social relations are in a certain
way. In fact, it is the source of most new theories, principles, and ideas. To sum-up, basic
research is purely theoretical to increase our understanding of certain phenomena or
behaviour but does not seek to solve any existing problem. It is essentially positive and not

normative. This may take the form of the discovery of totally new idea, invention and
reflection where an existing theory is re-examined possibly in a different social context.

ii) Applied Research: It is also termed as practical, need based or action research. The
objective of this research is to find the solutions to problems that are faced by government,
society or the business. Applied Research, thus, is more concerned with actual life. It also
suggests remedial measures to alleviate various types of problems. This research is concern
with search for ways of using scientific knowledge to solve practical problems. The findings
become basis of framing programme and policies, based on principles of pure research.
According to Horton and Hunt, this research is an investigation for ways of using scientific

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knowledge to solve practical problems. This type of research is conducted on

interdisciplinary basis also.
Examples include like evaluating the impact of a training programme on employee
performance, examining consumer response to direct marketing programmes. Although the
purpose of these two research forms varies, there is not much difference in the research
methods and tools used for their conduct. In the present world situation, more emphasis is
being given to applied research to solve problems arising out of various environmental
changes.

2. On the Basis of Objectives

On the basis of fundamental objective, research is designed in following ways:
(i) Exploratory Research: This type of research is carried out at the very beginning when
the problem is not clear or is vague. In exploratory research, all possible reasons which are
very obvious are eliminated, thereby directing the research to proceed further with limited
options. The main aim of exploratory studies (also known as formulative research) is to
gather initial information which helps to define problems and recommend hypothesis. It often
relies on secondary research such as reviewing available literature, or qualitative approaches
such as informal discussions with consumers, employees, management or competitors, and
more formal approaches through in-depth interviews, focus groups, projective methods, case
studies or pilot studies. It is important to bear in mind that it can mainly be conducted when
researchers lack clear idea of the problem. The outcomes of this research are not generally
useful for decision-making, but they can provide major insight into a given situation.

(ii) Descriptive Research: Descriptive research, also known as statistical research, describes
data and characteristics about the population or phenomenon being studied. Descriptive
research answers the questions who, what, where, when, and how. The description is used for
frequencies, averages, and other statistical calculations. Often the best approach, prior to
writing descriptive research, is to conduct a survey investigation. In short descriptive research
deals with everything that can be counted and studied. But there are always restrictions to
that. The research must have an impact to the lives of the people around the researcher. This
research is applicable to problem which specifies certain criteria and data is clearly available
for accurate objectives.

(iii) Causal/Experimental Research: It is commonly used in sciences such as sociology and

psychology, physics, chemistry, biology, medicine, etc. It is commonly used in sciences such
as sociology and psychology, physics, chemistry, biology, medicine, etc. However, it may
also be carried out in social sciences if such research enables us to quantify the findings, to
apply the statistical and mathematical tools and to measure the results thus quantified. It is
also classified under conclusive research. In many problems, there are many variables
involved or influential. It is not always possible or feasible to study all variables
simultaneously, so to study limited variables this type of research is conducted. Here, one
variable (under study) keep open whereas other variables are kept constant and then open
variable effect is studied. The relationship between dependent and independent variables is
observed and describe in connecting hypothesis. The variable which is influenced is known
as dependent and the variable which influence other is known as independent variable. For
example, effect of investment decision (independent) on investment returns (dependent),
effect of advertisement (independent) on sales (dependent). Causal research is used to obtain
evidence of cause and-effect (causal) relationships.

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3. On the Basis of Extent of Theory

On the basis of extent of theory, research is of two types:
(i) Theoretical Research: Theoretical research generally uses the findings from existing
theory and explanations to develop new ideas. These new ideas are not tested through
collecting evidence in the form of primary data. Theoretical research is held to be a classical
way of adding something of value to the body of knowledge. One of the primary roles of
theoretical research is to re-work already established ideas in order to improve insights into
the subject matter. Such improvements could well constitute adding something of value to the
body of knowledge. A researcher who develops a theory through visiting a library and
developing their own explanation through reading existing work will be undertaking
theoretical research.
(ii) Empirical Research: This is a data based research where we collect primary data and
then data is further analysed and used for testing hypothesis. It is a way of gaining knowledge
by means of direct observation or experience. Empirical evidence (the record of one's direct
observations or experiences) can be analysed quantitatively or qualitatively. It is based on
observation and experience more than upon theory and abstraction. Empirical means based
upon observation or measurement rather than theoretical reasoning. Pharmaceutical
companies use empirical research to try out a specific drug on controlled groups or random
groups to study the effect and cause. This way they prove certain theories they had proposed
for the specific drug. Such research is not just useful in science but in many other fields like
history, social sciences, business, etc.

4. On the Basis of Time Dimension

On the basis of time dimension, research can be of two types:

(i) Cross-Sectional Research: Cross-sectional study is popular in the field of business and
marketing research. Cross-sectional research design involves the collection of information
from a sample of a population at only one point of time. Cross-sectional research is usually
the simplest and least costly alternative. In this study, various segments of the population are
sampled so that the relationship among the variables may be investigated by cross tabulation.
Sample surveys are cross-sectional studies in which the samples happen to be a representative
of the population. It may reveal how these samples are represented in a crosssection of a
population. The cross-sectional study generally involves large samples from the population;
hence, they are sometimes referred as “sample surveys.”Cross-sectional research can be
exploratory, descriptive, or explanatory but it is most consistent with a descriptive approach
to research. “What is the effectiveness of an advertisement campaign for an air conditioner?”
is an example of cross-sectional study.

ii) Longitudinal Research: Longitudinal study involves survey of the same population over
a period of time. It is usually more complex and costly than cross-sectional research, but it is
also more powerful, especially when researchers seek answers to questions about social
change. In this study, the sample remains the same over a period of time. “How have
consumers changed their opinion about the performance of air conditioner as compared with
that last summer?” is an example of longitudinal study. Longitudinal surveys usually combine
both extensive (quantitative) and intensive (qualitative) approaches. Descriptive and
explanatory researchers use longitudinal approaches. They consider three types of
longitudinal research which can be described as follows:

(a) Time-Series Research: A time series design collects data on the same variable at regular
intervals (weeks, months, years, etc.) in the form of aggregate measures of a population.

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Measurements are taken on each variable over two or more distinct time periods. This allows
the researcher to measure change in variables over time. For example, the Consumer Price
Index (CPI), unemployment rates, poverty rates, etc. Time series designs are useful for
establishing a baseline measure, describing changes over time, keeping track of trends, and
forecasting future (short-term) trends. Time series data are nearly always presented in the
form of a chart or graph: The horizontal (or x) axis is divided into time intervals, and the
vertical (y) axis shows the values of the dependent variable as they fluctuate over time.

(b) Panel Study: It is a powerful type of longitudinal research. A panel is a sample of

respondents who have agreed to provide responses over a specified time interval. In a panel
study, the researcher observes exactly the same people, group, or organisation across time
periods. Panels are also of two types: traditional panels and omnibus panels. In case of
traditional panels, same questions are asked to the respondents on each panel measurement.
For example, firms are interested in knowing the change in attitude, opinion, feeling, or
emotion of the customers about a particular product over a specific time interval. In the case
of omnibus panels, different set of questions are asked to the respondents on each panel
measurement. Hence, different set of information is obtained using omnibus panels. Use of
panels is based on the objective of the research and the nature of the problem.

(c) Cohort Study: A cohort is a group of respondents who experiences the same events within
the same time interval. The word “cohort” means a group of people. It is similar to the panel
study, but rather than observing the exact same people, a category of people who share a
similar life experience in a specified time period is studied. Cohort analysis is ‘explicitly
macro analytic’, which means researchers examine the category as a whole for important
features. In cohort study, the individuals examined over time may not be the same but they
should be representative of a particular group (or cohort) of individuals who have shared a
common experience. For example, cohort analysis used to predict changes in voter opinions
during the polls. Cohort studies can be forward-looking of backward-looking. A
forwardlooking cohort study is also known as a prospective cohort study. ‘Prospective’ means
that it relates to the future. A backward-looking cohort study is also called as retrospective
cohort study. ‘Retrospective’ means that it relates to the past. To carry out prospective cohort
studies, researchers identify a group of people to study and plan the research in advance,
collecting data over time. In retrospective cohort studies, researchers use data that are already
available for a particular group.

5. On the Basis of Enquiry Made

On the basis of enquiry to be made, research can be of two types:
(i) Quantitative Research/ Structured Approach: It usually involves the collection and
converting of numerical data into numerical form so that statistical calculations can be done
which help in drawing conclusions to answer a specific research question. Quantitative
research is applicable to phenomena that are measurable so that they can be expressed in
terms of quantity. Objectivity is very vital in quantitative research. Therefore, researchers
seek to avoid their own presence, behaviour or attitude affecting the results (e.g., by changing
the circumstances being studied or causing participants to behave differently). The aim of
quantitative research is to develop mathematical models, theories related to phenomenon.
Quantitative research is mainly used in social sciences. It may involve correlation study, ex-
post facto study, longitudinal study, meta-analysis and survey

(ii) Qualitative Research/ Unstructured Approach: Qualitative research is usually related

with the social constructivist concept which emphasizes the socially constructed nature of

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reality. This research is designed to find out how people feel or what they think about a
particular subject. The sequence to data collection and analysis is logical but allows for
greater flexibility in all aspects of the research process. Data is collected in textual form on
the basis of observation and communication with the participants, e.g., through participant
observations, in-depth interviews and focus groups. The data is not converted into numerical
form and is not statistically analysed. It is more appropriate to explore the nature of a
problem, issue or phenomenon without quantifying it. The prime objective of such researches
is to describe the variation in a phenomenon, situation or attitude. The qualitative research
attempts to answer ‘why’ and ‘how’ aspects of decision-making rather than ‘what’ and ‘when’
aspects.

6. Other Types of Research

(i) Ex-Post Facto: In this type of research, an examination of relationship that exists between
independent and dependent variable is studied. It is similar to empirical research. In this
method, the researcher has no control over an independent variable. Ex-post facto literally
means ‘from what is done afterwards’. In this research, a variable ‘A’ is observed. Thereafter,
the researcher tries to find a causal variable ‘B’ which caused ‘A’. It is quite possible that ‘B’
might not have been caused ‘A’. In this type of analysis, there is no scope for the researcher
to manipulate the variable. The researcher can only report ‘what has happened’ and ‘what is
happening’. Ex post facto research is the process beginning with a phenomenon and going
backward in time to identify casual factors.
(ii) Historical Research: The name itself indicates the meaning of the research. Historical
study is a study of past records and data in order to understand the future trends and
development of the organisation or market. There is no direct observation. The research has
to depend on the conclusions or inferences drawn in the past. Historical research is the
systematic collection, critical evaluation, and interpretation of historical evidence (i.e., data
relating to past occurrences). In general, historical research is undertaken to answer questions
about causes, effects, or trends relating to past events that may shed light on present
behaviours or practices. For example, study of epics like Ramayana and Mahabharata for TV
serial or movie making, biographical research, histories of institutions and organizations etc.

(iii) Diagnostic Research: It may be said as another name for descriptive research. This
research is conducted to establish whether two or more variables are associated and their
degree of association. In a diagnostic research, the researcher is trying to evaluate the cause
of a specific problem or phenomenon. This research design is used to understand more in
detail the factors that are creating problems in the company. Diagnostic research design
includes three steps viz. the inception of the issue, diagnosis of the issue and solution for the
issue.
(iv) Case-Study Research: This type of research is concerned with exploring and analysing
the life or functioning of a social or economic unit, such as a person, a family, a community,
an institution, a firm or an. Industry. The objective of case study method is to examine the
factors that cause the behavioural patterns of a given unit and its relationship with the
environment. A researcher conducting a study using the case study method attempts to
understand the complexity of factors that are operative within a social or economic unit as an
integrated totality.

(iv) Evaluation Research: Evaluation research aims at evaluating programme that have been
implemented or actions that have taken in order to get an objective. Evaluation means some
sort of measurement of the end-product and impact of an effort in the light of the stated goals
for which the programmed undertaken. There are so many programmes in which economic

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gains are not visible, the evaluation of which calls for special techniques. There are three
types of evaluations made in research namely concurrent evaluation, periodic evaluation, and
terminal evaluation.

(v) Conclusive Research: As the name suggests, conclusive research is carried out to
provide information that is useful in reaching conclusions or decision-making. The purpose
of conclusive research is to provide a reliable or representative picture of the population
through the use of a valid research instrument. Conclusive research design provides a way to
verify and quantify findings of exploratory studies. Conclusive research usually involves the
application of quantitative methods of data collection and data analysis. Moreover,
conclusive studies tend to be deductive in nature and research objectives in these types of
studies are achieved via testing hypotheses. Conclusive research can be sub-divided into two
major categories i.e. descriptive or statistical research, and causal research.

THE PROCESS OF RESEARCH

According to Horton and Hunt, the scientific method of research comprises the following
basic steps:
(i) Defining the problem
(ii) Review of literature
(iii) Formulation of hypothesis
(iv) Developing a research design
(v) Collection of data
(vi) Analysis of data
(vii) Drawing conclusions
(viii) Replicate the study for generalisations

These steps give us an idea of the essential steps involved in conducting research. However,
there is no rigid sequence of research process steps. Depending on each situation, certain
steps can be skipped, can he repeated or circumvented. However, inspire of all these
variations, it is possible for us to develop a sequence of research process. Although each of
the steps discussed here are studied in greater detail in subsequent modules, a brief overview
can be provided at this stage. Figure given below shows the detailed sequence of research
process. Each of these steps is the natural outcome of the previous steps, but these steps are
not mutually exclusive.
It is possible for instance to develop our research objectives and working hypothesis
simultaneously.

The various steps are:

Step 1: Discover the Problem Area
To start a research, we first of all need to discover the problem which demands solution. The
best way to identify the problem would be to look for an unresolved query, a gap in the
existing knowledge or an unfulfilled need within the chosen subject. Although the world is
filled with unsolved problems, yet not every problem is suitable for research. Researcher
should take care that the problem should be one which can be clearly identified and
formulated. Further, while choosing the research area the researcher should look into the
availability of information relevant to the topic. Mere availability is not enough, it should also
be accessible. Sometimes, the cost of obtaining the information being too high, it might not
be accessible to the researcher.

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Step 2: Review of Literature

The next step is to become familiar with the problem and formulate it clearly. Literature
review involves a comprehensive review of published and unpublished work from the
secondary sources of data available in the relevant area of study. The researcher at this stage
may review all the available conceptual literature concerning the theories and concepts
related to the problem as well as the empirical literature comprising of studies done earlier
and bearing similarity to the problem under study. Literature review helps the researcher in

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two ways; firstly, it helps him in specifying his research problem in a meaningful context,
secondly, it would provide him with an insight into the methods and techniques adopted for
handling such problems. The researcher can access bibliographic databases which display
only the bibliographic citations like name of the author, title of the book, publisher, year,
volume and page number. He can also use abstract database which along with bibliographic
citations also provides him with an abstract of the article. The researcher can also use full text
databases which contain the entire text.

Step 3: Problem Formulation and Definition

Initially, the focus of the problem is not clearly defined. However, after the literature review,
the researcher is now in a position to formulate his problem clearly. In the words of Albert
Einstein, "The formulation of a problem is far more essential than its solution, which may be
merely a matter of mathematical or experimental skill". A problem well formulated will alone
yield fruitful results. It is a clear, precise, and concise statement of the matter that is to be
investigated. The problem statement is a fact oriented information gathering question. The
objectives of the study at this stage are clearly developed. While problem is being formulated,
the following should be taken into account:
Determine the objective of the study
Consider various environment factors
Nature of the problem
State the alternative

Step 4: Developing a Working Hypothesis

A hypothesis is a tentative assumption regarding the solution to the problem under study. The
hypothesis is the focal point around which the future research efforts will be directed. The
kind of data to be collected, the tools of analysis are influenced by the hypothesis. The
hypothesis is a predictive statement which is made in the light, of the available facts relating
to the problem under study. For example, a study conducted to find the amount of research
investment being done by the companies will have the following hypothesis:
Ho: Companies invest 1% of their sales revenue in research activities.
H1: Companies invest less than 1% of their sales revenue in research activities.

The Ho is called as the null hypothesis which assumes there is no difference between the
population parameter and the sample mean and the H1 is called as the alternative hypothesis
which presents the alternative solution. A hypothesis thus presents a relationship between the
different variables. In case of social research relating to human behaviour, the hypothesis
helps us in making a prediction about the population parameter.

Step 5: Research Proposal

A research proposal is a brief summary outlining the objectives of study and the modus
operandi of conducting the research. In case of a thesis, the research proposals are in the form
of a synopsis stating the research objectives, the proposed methodology of research, benefits
of study along with a detailed bibliography. In case of business or government organizations,
the research proposal, in addition to the above information, will contain information about the
researcher's qualification, the time and cost schedules, the resources and special facilities
required during research. Essentially, they contain an executive summary, right in the
beginning stating the objective of the study and benefit derived thereon. Research proposal is
very important and should be prepared carefully especially when it is to be reviewed by the
concerned authorities for approval to conduct further research.

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 UNIT-1, Business Research Methods

Step 6: Research Design

After approval of proposal, the next step is to work out the research design. Research design
outlines the conditions for collection and analysis of data. The what, when, where, how much
and the method of data collection are detailed in the research design. It will specifically
contain information about:
(a) The Sampling Design
(b) Data Collection Design
(c) Instrument Design

(a) The Sampling Design: A sample design is a definite plan determined before any data is
actually collected for obtaining a sample from a given population. If a research involves the
study of each and every unit of the population, it is termed as a census survey. However, it is
generally not feasible to conduct a census survey, especially if the universe of the study is
very vast. E.g. TRPs of TV programmes are developed on a sample basis rather than covering
all the households of an area. A sampling design will include a decision on the sampling unit,
the sample size and the sampling method.

'Sampling unit' is the most elementary unit which would be a part of the study e.g. in a survey
on newspaper readership pattern, a single household comprising of all the members of the
household can be regarded as a sampling unit..
Next, the decision on ‘sample size' is taken. The size depends on factors like the availability
of time and funds to the researcher, the ability of the researcher, the size of the population
and the nature of the population. The important thing to remember is that the sample size
should be such as to adequately represent the population.
Finally, a decision on the ‘sampling method’ is to be taken. A researcher can use a non-
probability method or a probability method of sampling. Non-probability method of
selecting a sample involves an element of bias. The probability of a unit being a part of the
sample is not known. Under this method, one can adopt various methods like convenience
sampling (easily accessible), purposive sampling (specific people for purpose), judgment
sampling (to choose for best data) and quota sampling.

Probability method of sampling involves giving every member a known and unbiased
chance of being a part of the sample. Few probability methods are simple random sampling,
stratified sampling, cluster sampling, area sampling, and systematic sampling.

(b) Data Collection Design: The method of gathering the data is planned here. The data can
be collected through an experiment conducted in controlled settings or it can he conducted
through field survey. The survey can be a simple one involving data collection from one
source or it could involve areas spread all over the world. Hence, a well-planned data
collection design becomes necessary. Briefly speaking, some of the data collection
techniques available to a researcher are:

(i) Questionnaire: A set of questions pertaining to the topic under study are compiled and
the questionnaire is then mailed to the respondent through mail. This method of data
collection is particularly used in situations where a large number of respondents are to be
covered and they are spread over a wide area.

(ii) Interview: An interview method involves a direct interaction between the respondent and
the researcher/field workers. The interview can be a physical interview where the researcher
personally asks questions from the respondent or it can be a telephonic or virtual interview.

Department of Management, BIT, Durg

 UNIT-1, Business Research Methods

The telephonic or virtual method is adopted where the respondents are spread over a wide
area and time available is very less. An important thing to remember is that while conducting
an interview the researcher uses an interview schedule which is like a questionnaire.

(iii) Observation: Observation involves collecting data visually and recording the event.
Observation besides visual aspect also involves listening, smelling and touching. All
behavioural activities as well as nonbehavioural activities like physical condition analysis,
processes, and records can be analysed through observation. An observation also involves the
use of observation schedules which contains a list of all the items that are to be observed.

(c) Instrument Design: Instrument refers to the questionnaire or the schedule that the
researcher would use to collect data. The researcher while designing the questionnaire must
think in terms of following issues:
(i) Type of Data: It determines whether the data will be collected in a nominal, ordinal,
interval or ratio form. A nominal data has no order, distance or origin, ordinal data has an
order but no distance and origin, an interval data has order and distance but no origin and a
ratio data has order, distance as well as a unique origin.
(ii) Communication Approach: Before designing the instrument, the researcher has to
decide on how to collect the data i.e. through mailed questionnaire, interview or observation.
(iii) Question Structure: This decides the type of questions and their order. The instrument
can be completely direct structured, indirect unstructured questionnaire or combination of
these two approaches.
(iv) Question Wording: It should be the endeavour of every researcher to have questions
with simple words leaving no scope for ambiguity. Long questions are to be avoided and the
wording should not be biased.
After finalizing instrument, it will now be designed and subject it to pilot testing. Pilot testing
detects the weakness in the design and contents of the instrument. It involves selecting a
small sample from the target population and simulating the procedures for data collection that
have been designed.

Step 7: Data Collection

From this stage, the researcher moves ahead to data gathering stage. This involves sending
questionnaires to respondents, training field workers in interview and observation methods. A
careful control over the data collection process is maintained. Respondents who have
remained incommunicado in the first round of communication are once again contacted. The
basic aim in this stage is that the data is collected in the correct form and within the specified
schedules.

Step 8: Analysis of Data

The data gathered in the previous step does not have any meaning until it has undergone for
data analysis. Processing of this raw data will yield some kind of relevant information. The
raw data when it is aggregated, organized and analysed yields us some information which
helps us in decision making. Data analysis is concerned with reducing the bulk of
accumulated data to a manageable size. Generally, it involves the following procedures:

(a) Coding: Under this process, the various responses of the respondents are coded using
symbols/ legends e.g. respondents can be classified in term of education using symbol of L
(Literate) or IL (Illiterate). The basic purpose of coding is to group the responses in well-
defined categories which then become easy to tabulate.

Department of Management, BIT, Durg

 UNIT-1, Business Research Methods

(b) Editing: The next step is the editing of responses. Many times the response given by the
respondent is either incomplete, incomprehensible or is written in short hand. Editing
removes ambiguities regarding responses, shunts out the invalid responses and thus improves
the quality of data for statistical analysis.
(c) Tabulation: It is the process of putting the classified data in the form of tables. Tables
can be one dimensional where data is tabulated in terms of one feature e.g. sales figure in
terms of time. They can be multidimensional where data is tabulated using two or more
features e.g. sales figure in terms of time, region and product are depicted simultaneously in a
table.
(d) Statistical Analysis: In the last stage, the tabulated data is analysed using various
statistical techniques like averages, percentages, trend analysis, correlation and regression
techniques etc. Statistical analysis these days has become highly dependent on computers and
softwares e.g. IBM SPSS Statistics, e-views.

Step 9: Hypothesis Testing

After analysing the data, the next step is to test the hypothesis that had been formulated in the
beginning of the research process. There are various parametric and non-parametric tests like
t-test, z-test, f-test, Kruskal-Wallis test, Wilcoxon-Man-Whitney test etc. The choice of test
selected for hypothesis testing depends on factors like the nature and objective of research,
characteristics of population distribution, the sampling technique, type of data etc. Hypothesis
testing will help a researcher in establishing the validity of his results. It will help in
determining whether the difference is real or simply an outcome of random fluctuations.

Step 10: Data Interpretation and Generalisation

In case of no-hypothesis testing research, data interpretation is done with the intention of
seeking explanation for the research results on the basis of existing theories. The results are
interpreted in the light of existing theories and doors are thrown open for newer explanations
and possibilities for further research. In case of hypothesis testing research, after the data has
been analysed, generalizations are made to builda new theory. Such generalizations come up
with better explanation and new theories for existing phenomenon and greatly contribute to
the existing data bank.
The last section which includes appendices supporting the research with items like
questionnaires and schedules used, glossary of terms and any other matter which although not
a part of the main research but required in order to support the research can be included.
Thus, this is a brief listing of the steps involved in a research process. A researcher should
keep in mind that these steps are not rigid. Their sequence can be altered; steps can overlap or
jumped depending on the topic of research.

Step 11: Reporting of Results

The last step is concerned with bringing in public the results of the research so that the
findings can be put to application. The style and method of reporting would depend on the
target audience, the purpose and the time of reporting the results. Any research report
whether it is presented in a detailed form or in the form of a brief note should essentially have
the following contents.
The preliminary section containing the title of the report, table of contents, list of tables,
graphs, preface and an executive summary, which gives briefly the research objectives and
The findings and importance of the study.
A main text section which contains the problem background, research objectives, a note on
research methodology used, the importance of conducting the research and the conclusion

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 UNIT-1, Business Research Methods

arrived thereof. A special mention of the recommendation given by the researcher in light of
the findings made by him should also be included.

FEATURES OF A GOOD RESEARCH STUDY

In other words, we can state the qualities of a good research as under:

1. Good Research is Systematic: It means that research is structured with specified steps to
be taken in a specified sequence in accordance with the well-defined set of rules. Systematic
characteristic of the research does not rule out creative thinking but it certainly does reject the
use of guessing and intuition in arriving at conclusions.
2. Good Research is Logical: This implies that research is guided by the rules of logical
reasoning and the logical process of induction and deduction are of great value in carrying
out research. Induction is the process of reasoning from a part to the whole whereas
deduction is the process of reasoning from some premise to a conclusion which follows from
that very premise. In fact, logical reasoning makes research more meaningful in the context
of decision making.
3. Good Research is Empirical: It implies that research is related basically to one or more
aspects of a real situation and deals with concrete data that provide a basis for external
validity to research results. Validity and reliability of data should be checked and researchers
should consider an adequate amount of data.
4. Good Research is Replicable: This characteristic allows research results to be verified by
replicating the study and thereby building a sound basis for decisions.
5. Good Research has Utility: The ultimate objective of any research program should be
oriented towards providing benefit to the society/ business. The research work should either
form foundation for further advancement in the domain, draw some concrete conclusions or it
should be beneficial from the social, commercial, or educational point of view.
6. Good Research is Creative: Creativity is the most important factor in research proposal.
Ideally no two research proposals should be identical to each other. Research proposal should
be designed meticulously so as to consider all factors relevant to the objective of the project.
Difference in the formulation and structure of two research programs results in difference in
creativity and also in findings. Any sorts of guessing or imagination should be avoided in
arriving at conclusions of a research program.

Department of Management, BIT, Durg