BUSINESS RESEARCH METHOD

What is Business Research Method?

• Business research methods refer to the systematic process
of gathering, analyzing, and interpreting information to
help make informed decisions in a business context.

• These methods are used to address business problems,

identify opportunities, evaluate performance, and guide
strategic planning

• They combine both qualitative and quantitative

techniques to provide a comprehensive understanding of
the market, customer behavior, industry trends, and
organizational operations.
 Concepts of Business Research:
Characteristics, Objectives, hypothesis and
theory
Characteristics of Business Research
∙ Systematic and Organized: It follows a clear, structured approach, including
identifying a problem, formulating hypotheses, collecting data, analyzing results,
and drawing conclusions.

∙ Objective and Impersonal: Business research strives to eliminate bias and

personal preferences. Researchers aim to be as neutral as possible in gathering
and analyzing data.

∙ Empirical: It is based on observed and measured phenomena. Business research

gathers quantitative or qualitative data, often using surveys, interviews, or
observations.

∙ Analytical: Business research uses logical and analytical methods to interpret

data. The results are used to support decision-making.

∙ Problem-Oriented: Research is often conducted to solve a specific problem faced

by the business or to identify opportunities.
Objectives of Business Research

∙ Identify Problems and Opportunities: Understanding issues such as customer

satisfaction, market trends, competition, or product performance.

∙ Evaluate Business Practices: Research is used to assess the effectiveness of

current strategies, policies, or practices.

∙ Make Data-Driven Decisions: Research provides a factual basis for making

informed business decisions.

∙ Predict Future Trends: By analyzing historical data, businesses can forecast

future trends in the market, customer preferences, or sales performance.

∙ Improve Efficiency and Effectiveness: It helps organizations improve their

operational processes, reduce costs, or enhance customer service.

∙ Assess Market Potential: Research identifies new market opportunities and

evaluates the potential for expansion into new regions or customer segments.
Hypothesis in Business Research

∙ Definition: A hypothesis is a testable statement or assumption about a

relationship between variables that can be confirmed or refuted through
research.

∙ Purpose: Hypotheses guide the research process by suggesting relationships to

test. They provide direction for the research and make the process more focused.
Types of Hypotheses:

❑ Null Hypothesis (H0): A statement suggesting no significant

relationship or effect between variables. Example: "There is no
correlation between advertising spending and sales growth."
❑ Alternative Hypothesis (H1): A statement suggesting a
significant relationship or effect exists. Example: "There is a
positive correlation between advertising spending and sales
growth."
❑ Testing Hypothesis: Business researchers use statistical methods
to test whether the data supports or rejects the hypothesis.
Theory in Business Research

∙ Definition: A theory is a set of principles or ideas that provide an

explanation for phenomena. It organizes knowledge and helps to
predict outcomes based on past patterns.

∙ Role in Research: Theories help to explain the relationships

between different variables and provide a framework for analyzing
data. A good theory can guide the development of hypotheses and
form the basis of further research.
Examples of Business Research Theories:

❑ Porter's Five Forces Theory: This theory explains how the competitive
environment in an industry shapes business strategies, based on factors like
the threat of new entrants, bargaining power of suppliers, and the threat of
substitutes.
❑ Maslow's Hierarchy of Needs: In marketing research, Maslow’s theory helps
understand consumer motivations and how businesses can target their
products to meet various customer needs.
❑ Theory of Planned Behavior: In business and marketing research, this theory
helps explain why people may or may not engage in certain behaviors, like
purchasing a product or brand loyalty.
Application of These Concepts in Business Research

∙ Market Research: Using theories, hypotheses, and systematic research to

understand customer needs, preferences, and market conditions.

∙ Business Strategy: Formulating hypotheses about industry trends and testing

them against empirical data to refine strategies.

∙ Operations Management: Identifying problems through business research, such

as inefficiencies in processes or low productivity, and testing solutions.
17 Types of Research:

Descriptive Research
∙ Purpose : To describe characteristics of a particular phenomenon or situation.

∙ Example: A study on the consumer behavior of buyers in a particular geographic location.

∙ Method: Surveys, questionnaires, or secondary data analysis.

Exploratory Research
∙ Purpose : To explore an issue or topic that hasn't been studied extensively.

∙ Example: Researching new market opportunities for a tech startup.

∙ Method: Interviews, focus groups, or case studies to gather qualitative data.

Analytical Research
∙ Purpose : To understand the cause and effect relationships between variables.

∙ Example: Analyzing the impact of leadership styles on employee motivation and productivity.

∙ Method: Statistical analysis, regression analysis, and quantitative data.

Applied Research
Purpose : To solve real-world problems, with an emphasis on practical application.
Example: Conducting market research to develop a business strategy for entering a new industry.
Method: Data collection from real-world scenarios, often combining both qualitative and
quantitative research
.
Quantitative Research
Purpose: To quantify data and identify patterns or relationships.
Example: A study on customer satisfaction using numerical ratings or survey results.
Method: Statistical analysis, data collection through surveys, experiments, and questionnaires .

Qualitative Research
Purpose: To understand underlying reasons, opinions, and motivations.
Example: A research project examining employee perceptions of company culture.
Method: Interviews, focus groups, content analysis, and ethnography.

Case Study Research

Purpose: To conduct an in-depth analysis of a single entity (like a company or event) to identify
lessons, strategies, or problems.
Example: A case study on how a successful company navigated a market crisis.
Method: Document analysis, interviews with key stakeholders, observation.
Comparative Research
Purpose: To compare two or more entities, situations, or groups to identify differences,
similarities, or trends.
Example: Comparing marketing strategies of two successful companies in different industries.
Method: Data comparison, analysis of secondary data, or structured interviews.

Action Research
Purpose: To find solutions to problems in a specific context (often within an organization),
with an emphasis on change and improvement.
Example: Researching and testing strategies to improve team collaboration in a corporate
environment.
Method: Participatory methods involving stakeholders in the research process, often with
iterative cycles.

Empirical Research
Purpose: To gain insights based on observable and measurable evidence.
Example: Studying the impact of remote work on employee productivity through surveys and
performance data.
Method: Observation, surveys, experiments, and data collection.

Longitudinal Research
Purpose: To study a particular phenomenon over an extended period.
Example: Tracking the career progression of MBA graduates over 5-10 years.
Method: Surveys and interviews conducted over time to observe changes and trends.
Cross-sectional Research
Purpose: To analyze data from a population at a single point in time, often
to compare different groups.
Example: Comparing customer satisfaction levels across different regions.
Method: Surveys, observational studies, and data analysis at a specific point
in time.

Bibliographic Research
Purpose: To review existing literature on a given topic and synthesize
findings from previous studies.
Example: A literature review on the evolution of digital marketing strategies.
Method: Reviewing books, academic journals, reports, and online databases.

Theoretical Research
Purpose: To develop or refine theories by analyzing existing concepts,
models, or frameworks.
Example: Developing a new model for leadership that can be applied in
modern organizations.
Method: Conceptual analysis, modeling, and comparison with existing
theories.
Secondary Research (Desk Research)
Purpose: To collect and analyze existing data or information.
Example: Reviewing market reports, company financial statements, and
industry analysis for insights.
Method: Analysis of existing publications, reports, databases, and records.

Experimental Research
Purpose: To test hypotheses by manipulating variables and observing
outcomes in a controlled environment.
Example: Conducting experiments to test the effect of different pricing
strategies on sales.
Method: Lab experiments or field experiments with controlled variables.

Survey Research
Purpose: To collect data from a large group of people to identify trends,
opinions, or behaviors.
Example: A survey on employee job satisfaction within a corporation.
Method: Questionnaires or online surveys, analyzing responses for patterns.
Manager and researcher relationship
Key elements in this dynamic:
The relationship between a manager and a researcher is built on a
foundation of collaboration, trust, and clear communication. Here’s a break
down of the key elements in this dynamic:
• Communication
• Autonomy and Guidance:
• Setting Expectations and Goals:
• Feedback and Development:
• Support and Resources:
• Collaboration and Teamwork:
• Trust and Mutual Respect:
Communication
Manager’s Role:
The manager should maintain an open line of
communication with the researcher, ensuring they are
aligned on goals, deadlines, and any challenges that may
arise. They should provide regular feedback and listen to
any concerns or needs the researcher might have.
Researcher's Role:
The researcher should proactively communicate progress,
results, obstacles, and any adjustments needed. Regular
updates keep the manager informed and allow for timely
support or adjustments in direction.
Autonomy and Guidance:
• Manager’s Role:
A good manager strikes a balance between offering
guidance and allowing the researcher the freedom to
explore ideas independently. While managers ensure
resources and goals are aligned with the organization's
broader objectives, they should also respect the researcher’s
autonomy in their methods and approach.
• Researcher’s Role:
The researcher must be responsible for their work, taking
initiative and staying focused on research objectives. While
they need some level of autonomy, they must also be willing
to seek advice or clarification when necessary.
Setting Expectations and Goals:
• Manager’s Role:
The manager should set clear expectations and realistic
goals for the researcher, ensuring the work aligns with
organizational priorities. They need to be flexible in
adjusting timelines or expectations when challenges arise in
the research process.
• Researcher’s Role:
The researcher should be clear on what is expected of them
and how their work fits into the larger organizational or
project goals. They should strive to meet deadlines and
communicate any risks to progress.
Feedback and Development:
• Manager’s Role:
Managers provide regular feedback, both positive and
constructive, to help researchers improve and grow in their
roles. They should offer support for professional
development, such as training or opportunities for growth
within the organization.
• Researcher’s Role:
Researchers should be receptive to feedback, using it to
refine their work. They should also take responsibility for
their own development, seeking guidance and opportunities
to expand their skills.
Support and Resources:
• Manager’s Role:
A manager is responsible for ensuring the researcher has
access to the necessary resources, tools, and support to
conduct their work efficiently. This includes securing
funding, arranging access to data or technology, and
navigating any organizational barriers.
• Researcher’s Role:
The researcher should make use of the resources provided,
but also communicate if something is lacking or if they need
additional support to overcome challenges in their research.
Collaboration and Teamwork:
• Manager’s Role:
Managers can foster a culture of collaboration within
research teams, ensuring that researchers work together
effectively and share ideas. If a researcher works with other
teams, the manager should facilitate these interactions.
• Researcher’s Role:
Researchers should be open to collaboration, sharing
insights and findings with colleagues, and contributing to
the collective success of the project or team.
Trust and Mutual Respect:
• Manager’s Role:
Managers should trust the researcher’s expertise and
decision-making capabilities, providing the freedom needed
for innovation. At the same time, they must also hold the
researcher accountable for delivering results.
• Researcher’s Role:
Researchers should respect the manager’s guidance and
recognize that the manager has a broader perspective on
the organization's goals and priorities. They should be
reliable and follow through on commitments.
 The research process in Business Research
Methodology (BRM)
Identifying the Research Problem:
The first step involves understanding the problem or issue that needs to be
addressed. A research problem could stem from an existing business issue,
new trends, or gaps in current knowledge.
Review of Literature:
This stage involves reviewing existing studies, theories, and frameworks
related to the research problem. It helps to establish a theoretical foundation,
understand what has already been studied, and identify gaps in knowledge.
• Searching academic journals, books, and credible online resources
• Synthesizing findings from previous research
 Define Research Objectives and Hypothesis

• Objective: Clearly define what you aim to achieve with the

research. This includes setting specific research objectives
and formulating hypotheses (if applicable).

• Hypothesis: The hypothesis is a tentative statement

predicting the relationship between variables based on the
literature review.
 Research Design
• Objective: Decide on the research design, which includes the
methodology (qualitative, quantitative, or mixed methods) and
the approach for data collection.
• Key components:Methodology: Whether you will use
qualitative (e.g., interviews, case studies) or quantitative (e.g.,
surveys, experiments) methods.
• Sampling: Determine the sample size, sampling technique
(random, purposive, convenience, etc.), and population.
• Data Collection Methods: Choose the tools for gathering data such as
surveys, interviews, focus groups, or secondary data from reports and
databases.
 Data Collection
• Objective: Collect primary or secondary data based on the
research design. This could involve fieldwork, experiments,
or extracting data from existing sources.

• Data Integrity: It’s important to ensure the data is reliable

and valid, and ethical guidelines for data collection are
followed (e.g., informed consent).
 Data Analysis
• Objective: Analyze the collected data using appropriate
analytical tools and techniques.

• Qualitative Data: Analyzed through thematic coding,

content analysis, or narrative techniques.

• Quantitative Data: Analyzed using statistical tools such as

SPSS, Excel, or other software. Techniques include
descriptive statistics, regression analysis, and hypothesis
testing.
 Interpretation of Results
• Objective: Interpret the findings in the context of the
research problem and objectives.

• Outcome: Discuss the results, compare them with existing

literature, and explain any discrepancies or new insights.
 Conclusion and Recommendations
• Objective: Conclude the study by summarizing the key
findings and providing practical or theoretical
recommendations based on the results.

• Implications: Recommendations should be actionable,

offering value to managers, policymakers, or other
stakeholders in the business.
 Report Writing
• Objective: Present the research process, findings, and
conclusions in a structured format
• Components:Introduction: Overview of the research problem,
objectives, and significance.
• Literature Review: Summary of relevant research and
theoretical frameworks.
• Methodology: Detailed description of the research design,
sampling, and data collection methods.
• Results and Discussion: Presentation and analysis of the data.
• Conclusion and Recommendations: Summing up the research
and suggesting further areas for study or practical business
applications.
THE RESEARCH DEVELOPMENT PROCESS
 Designing the Research
• It is a plan, framework, blueprint, or methodology explaining how a
business should conduct research

• Moreover, it outlines how the research will be conducted, what data

will be collected, and how it will be analyzed to answer the research
question or hypothesis.
• Identify the Research Problem
∙ Focus Area: Begin by selecting an area of business that interests you.
For example, marketing, human resources, finance, operations, etc.
∙ Specific Problem: Narrow down to a specific issue or challenge within
that area. Your research question should address an existing gap in the
literature or a problem faced by organizations.
• Define Your Research Objectives

∙ Primary Objective: Clearly define the main goal of your research. For
instance, "To assess the impact of customer loyalty programs on customer
retention in retail businesses."

∙ Secondary Objectives: These could be related sub-goals like understanding

different loyalty strategies, examining demographic influences, etc.

• Formulate Hypotheses or Research Questions

∙ Hypothesis: If your research is quantitative, formulate a testable hypothesis.

Example: "Customer loyalty programs significantly increase customer
retention rates in retail businesses."

• Research Questions: For qualitative research, you may instead pose

research questions. Example: “What are the key fac
• tors that influence customer retention in businesses with loyalty programs?”
Choose the Research Methodology

∙ Quantitative vs. Qualitative:

o Quantitative: If your research involves numerical data and
statistical analysis, use surveys, experiments, or secondary data
analysis.
o Qualitative: If your research aims to explore deeper insights, use
interviews, case studies, or focus groups.

∙ Mixed Methods: Sometimes combining both approaches offers a

comprehensive understanding of the problem.
 Data Collection Methods

∙ Surveys/Questionnaires: If quantitative, design structured surveys

with closed-ended questions to gather numerical data.

∙ Interviews/Focus Groups: If qualitative, prepare interview guides or

focus group topics for open-ended discussions.

∙ Secondary Data: You can also analyze existing reports or databases to

support your study.
 Data Analysis Plan

∙ Quantitative Analysis: Use statistical tools like SPSS, Excel, or R for analyzing
numerical data. Techniques may include regression analysis, correlation, and
hypothesis testing.
∙ Qualitative Analysis: Use content analysis, thematic coding, or case study
analysis for textual or interview data.
Ethical Considerations

∙ Informed Consent: Ensure participants are informed about the purpose of the
study and their right to confidentiality.
∙ Data Privacy: Protect the privacy of participants by securing their data and
ensuring it is only used for the purposes of the research.
∙ Transparency: Maintain transparency in data collection and analysis, and
avoid bias.
 Research Limitations

• Be clear about the limitations of your study. For example, time constraints,
sample size limitations, or biases that might have impacted results.

Collecting data

Before collecting data, you need to clearly define the research objectives.
What are the problems you are trying to solve? What information will help
answer your research questions? The research objectives guide the data
collection process.
 Types of Data
• There are two main types of data used in business research:

• Primary Data: This is data collected firsthand for the specific purpose of
the research. It is original and directly related to the research problem.

• Secondary Data: This is data that has already been collected by others,
typically for a different purpose but can be relevant to your research.
Sources include books, journals, government reports, and market research
studies.
 Data Collection Methods
• The data collection method will depend on the research design, whether
qualitative or quantitative. Some common methods include:

• Primary Data Collection Methods:

• Surveys and Questionnaires: One of the most common ways to collect

data. You can design a set of structured questions (close-ended or open-
ended) and distribute them to your target audience through online
platforms, in person, or via mail.
• Advantages: Quick, can gather large amounts of data.
• Disadvantages: May have response biases and low response rates
 Data Collection Tools
• Tools and technologies can help streamline the process:
• Survey Platforms (e.g., Google Forms, SurveyMonkey, Typeform) for
online surveys.
• Data Management Software (e.g., Excel, SPSS, NVivo) for organizing
and analyzing data.
• CRM Systems (Customer Relationship Management) for gathering
customer-related data.
• Mobile Data Collection Apps (e.g., KoboToolbox, Open Data Kit) for
field research.
 Data Collection Ethics
• When collecting data, especially from individuals, it is
important to ensure ethical considerations:
• Informed Consent: Participants should be informed about
the purpose of the research and how their data will be
used.
• Confidentiality: Protect the privacy of participants and
their data.
• Avoid Bias: Make sure the data collection process is
neutral and does not influence responses.
 Challenges in Data Collection
• Non-Response Bias: A significant number of respondents
may not reply to surveys or interviews, leading to biased
results.

• Data Quality: Ensuring the accuracy, reliability, and

validity of the data collected.

• Cost and Time Constraints: Data collection can be

expensive and time-consuming, especially for large-scale
studies.
 Analysing and Interpreting the data
• Data Collection: Before analysis can begin, data must be collected through
various research methods (e.g., surveys, interviews, observations, or
secondary data from existing sources). It's important to ensure the data is
reliable, valid, and relevant to the research question.
• Data Cleaning and Preparation: Before you analyze data, clean it to ensure
quality:
• Check for errors: Identify missing values, outliers, or inconsistencies.
• Standardize the data: Ensure all data entries follow the same format (e.g.,
consistent units, date formats).
• Handle missing data: Decide whether to exclude missing values, replace
them, or use imputation techniques.
 Descriptive Statistics
• This step involves summarizing and describing the key features of the
data. Common techniques include:
• Measures of central tendency: Mean, median, and mode.
• Measures of variability: Range, variance, and standard deviation.
• Frequency distributions: To show how often each value occurs in the
dataset.
• Descriptive statistics help in getting a snapshot of the data, allowing you
to understand basic patterns and trends.
Ethics in research
 Ethics in research
• Ethics in research, especially in business research, is critical for
maintaining integrity, credibility, and trust within the research process. It
ensures that the research is conducted in a responsible and moral way,
protecting the rights of participants, the research community, and the
organization involved. Here are some key ethical considerations in
business research:
• 1. Informed Consent

∙ Definition: Participants in a study must be fully informed about the nature, purpose, and
potential risks of the research.

∙ Application: Before collecting data, researchers must obtain the participants' consent to
participate in the study. This ensures that participants are voluntarily involved and
understand the implications of their participation.
• 2. Confidentiality and Privacy

∙ Definition: Researchers must protect the confidentiality of participants'

information.

∙ Application: Sensitive data, like financial information or personal opinions,

should be kept confidential. In business research, this is especially important to
prevent misuse of the data or its exposure to unauthorized third parties.

• 3. Avoiding Harm

∙ Definition: The research should not cause physical, emotional, or psychological

harm to participants.

∙ Application: Researchers must ensure that the study does not place participants
at risk, whether through direct harm or indirect harm (such as damage to
reputation or emotional distress).
• 4. Transparency and Honesty

∙ Definition: Researchers must report results truthfully, without altering data or

fabricating information.

∙ Application: Researchers are responsible for ensuring that their findings are
accurate and presented honestly. Misleading data can damage trust in the
research community and affect decision-making processes based on the research
results.

• 5. Avoiding Plagiarism

∙ Definition: Using someone else’s work or ideas without proper attribution is

unethical.

∙ Application: Business researchers must cite all sources and give credit where it’s
due. Copying text, data, or ideas without proper attribution constitutes academic
misconduct.