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BUSINESS RESEARCH METHODS

BY
PROF. SAYANTANI GHOSH
 WHAT IS RESEARCH?

• The word “Research” refers to a search for knowledge.

• One can also define research as a scientific and systematic
search for pertinent information on a specific topic.
• In fact, research is an art of scientific investigation.
• As per the Dictionary of Current English the meaning of research
is “A careful investigation or inquiry, especially through
search for new facts in any branch of knowledge.”
• Redman and Mory define research as a
“Systematized effort to gain new knowledge.”

• Somepeople consider research as a movement, a

movement from the known to the unknown.
• It is a voyage of discovery.
• The curiosity is the mother of all knowledge and the
method, that man employs for obtaining the
knowledge of whatever the unknown, can be termed
research.
• Redman and Mory define research as a
“Systematized effort to gain new knowledge.”

• Somepeople consider research as a movement, a

movement from the known to the unknown.
• It is a voyage of discovery.
• The curiosity is the mother of all knowledge and the
method, that man employs for obtaining the
knowledge of whatever the unknown, can be termed
research.
 NATURE OF RESEARCH

1. Solution Oriented: The problem of research must be clearly defined and

stated. The research motive must be mentioned at the beginning of the
research work. The research should provide a solution to a business problem.
2. Logical: In a research we find out facts about a phenomenon and draw
conclusions about it. The inferences and generalizations thus made must be
logical. For example, all illiterate people in the village live longer than the
educated people in the cities leads to the conclusions that illiteracy is the
cause of longevity. This is an example of illogical research conclusion.
3. Objective: Observing true picture of a phenomenon without being affected
by observers own opinion is termed as ‘objective’. Objectivity means knowing
reality. The criterion of objectivity is that all researchers should arrive at the
same conclusion about the phenomenon on which they are pursuing
research.
3. Impartiality: A dishonest researcher may select data items of individuals to draw
conclusions in his favor. This brings bias into the research, which affects the objective of
the study. Therefore, true research must be impartial and unbiased.
4. Accuracy: A research worker needs to gain some expertise in the study he is
undertaking. This expertise results in achieving the accuracy in the solution drawn. The
accuracy of conclusions is a sensitive issue as it may affect the whole decision-
making.
5. Systematic: In research, there should be well-defined steps. Each step should be
sequentially linked with another, so that, the whole research work is an organized
structure.
6. Verifiability: The results of research are subjective to verifications. For building a
sound basis for decision making one verifies the research results by replicating the study.
7. Empirical: Research is an empirical process and involves data collection. The results
are based on observed experience or empirical evidence. Research rejects assumptions
and dogma (principle) as methods of established knowledge. It accepts only what is
verified by empirical observations.
OBJECTIVES OF RESEARCH

• Understanding a business problem: The first and foremost

objective of any study is to understand, analyze and explore a
business problem. Once complete familiarity with the phenomenon is
achieved, it is easier to decompose the complex problem into smaller
once.

• Identifying the cause-and-effect relationship: Individuals form

groups, and groups form organizations. They are interdependent. It is
very important for a researcher to identify the functional relationships
among various components of an organization. A scientific
investigation is necessary to study the cause-and-effect relationship of
variables involved in a business phenomenon.
• To innovate new ideas: One of the objectives of a researcher is
to bring constant improvement in the techniques of his
trade. Apart from verifying and testifying the existing
assumptions, one of the functions of research is to add
new knowledge to the state of the art. Research invokes the
innovation of new concepts, theories and ideas in a business
study. Apart from this, research also removes and discards
worthless theories that are prevalent in society.

• To improve the quality: The whole exercise of any activity is

done for the improvement of the quality of a product, machinery,
or life of human beings. For a business organization, it is atmost
important to improve the quality of its products. This can be
achieved by a systematic and critical investigation i.e. research
TYPES OF RESEARCH
1. Descriptive Research
2. Analytical research
3. Applied Research
4. Fundamental research
5. Quantitative Research
6. Quantitative research
7. Conceptual Research
8. Empirical research
9. Other types of research
DESCRIPTIVE AND ANALYTICAL RESEARCH

• Descriptive research basically describes what is. It mainly involves

collection, recording, describing, and analyzing the facts related to the study.
It tries to find a phenomenon's existing status, trend, and state of
affairs. Descriptive research involves surveys, but they are not
merely data collection as they also involve measurement,
classification, analysis, comparison, and interpretation. In this type of
research, the variables under study are uncontrollable. One can only
observe and report what is happening in a situation.
• Analytical research, on the other hand, deals with what will be. In this
type of research, the variables involved are carefully, scientifically
controlled, and manipulated. Analytical research is also known as
experimental research and is a very sophisticated technique. This kind of
research is based on four important characteristics namely; control,
manipulation, observation, and replication.
APPLIED AND FUNDAMENTAL RESEARCH

• Applied research is action-oriented or solution-oriented. The main

goal of applied research is to obtain an immediate, specific, and practical
solution to a problem that a business organization is facing right now. It gives
here-and-now solutions in actual problem situations. It involves scientific
investigations but the methods are not as rigorous as in fundamental
research. It finds solutions to be applied in the local environment and they
may not be universally acceptable. Applied research does not promise to add
new knowledge to the discipline.
• Fundamental research is carried out to scientifically enhance the
organized body of knowledge of a discipline. Also known as basic
research, it is concerned with the formulation of theory and
generalizations of principles. To evaluate and expand a formulated theory
it may use empirical data. Basic research involves systematic, highly
sophisticated scientific techniques. Fundamental research may not suggest
the solutions of immediate problems, it draws long-term conclusions.
QUANTITATIVE AND QUANTITATIVE RESEARCH
• Quantitative research is based on quantitative variables, which can be
measured in appropriate units. These involve objects and
individuals that vary in size, quantity, amount, scale, or
degree. For example, prices of commodities can be measured in
rupees, the weight of a product is measured in kilograms and the
mileage of a vehicle is measured in kilometers per liter.
• Qualitative research, on the other hand, is based on qualitative
variables, which vary in quality of type. These variables cannot
be measured on a scale or in any units. Social scientists use
qualitative research to study human behavior. In market research
surveys qualitative research is carried out to investigate the likes and
dislikes of customers. It helps in understanding the current pattern of
demand of a company’s products.
CONCEPTUAL AND EMPIRICAL RESEARCH

• Conceptual research involves the development of new theories,

abstract ideas, and generalized principles. Philosophers, intellectuals,
and thinkers carry out this kind of research. On the basis of their
conceptual knowledge, they build theoretical models. Conceptual
research is an intellectual process to develop and verify knowledge.

• Empirical research is based on observation and experimentation. The

information collected in the form of facts develops conclusions and theories
about a phenomenon. The models, so developed, can again be verified
by a replication of data collection. To test a given hypothesis
empirical research is the most popular and powerful tool in the
modern world.
THEORY BUILDING

• Theories are simply generalizations that help us better

understand reality. If a theory does not hold true in practice,
then that theory holds no value.
• • A theory is a formal, testable explanation of some events
that includes explanations of how things relate to one
another.
TWO PURPOSE OF THEORY

• Understanding, to gain an understanding of the

relationship among various phenomena.
• Prediction, a theory enables us to predict the
behavior or characteristics of one phenomenon from
the knowledge of another phenomenon.
 CONCEPT OR CONSTRUCT
• Definition of Constructs
• Constructs: Abstract concepts specifically chosen or created to explain
a given phenomenon. They are not directly observable but are inferred
from related observable behaviors or indicators.
• Examples of Constructs in Business Research
• Customer Satisfaction: Represents customers' overall evaluation of
their experience with a product or service.
• Employee Engagement: Reflects the level of commitment,
involvement, and enthusiasm employees have towards their
organization.
• Market Orientation: Indicates the extent to which a firm prioritizes
and responds to market conditions and customer needs.
PROPOSITION

• A statement that explains the relationship between two or

more constructs.
• A research proposition is a statement about the concepts that
may be judged as true or false if it refers to observable
phenomena.
• An example of a proposition is: “An increase in student
intelligence causes an increase in their academic
achievement.” This declarative statement does not have to
be true, but must be empirically testable using data, so that
VARIABLES
• A variable is a characteristic that can be measured and that
can assume different values. Height, age, income, province
or country of birth, grades obtained at school and type of
housing are all examples of variables.
• Types of Variables
• Independent Variables (IV): The variables that are
manipulated or categorized to observe their effect on
dependent variables.
• Example: In a study on the impact of training on employee
performance, the training program is the independent
variable.
• Dependent Variables (DV): The variables that are measured
HYPOTHESIS

• Hypothesis: A specific, testable prediction about the

relationship between two or more variables, derived from
theoretical propositions.
• Research hypothesis is a statement that introduces a
research question and proposes an expected result.
FEATURES OF A GOOD RESEARCH

The following criteria must be fulfilled for good research:

• The purpose of the research should be clearly defined and common

concepts be used.
• The research procedure used should be described in sufficient detail to
permit another researcher to repeat the research for further advancement,
keeping the continuity of what has already been attained.
• The procedural design of the research should be carefully planned to yield
results that are as objective as possible.
• The researcher should report with complete frankness (quality being open,
honest or direct in speech or writing) or, flaws in procedural design and
estimate their effects upon the findings.
• The analysis of data should be sufficiently adequate to reveal its
significance and the methods of analysis used should be appropriate. The
validity and reliability of the data should be checked carefully.
• Conclusions should be confined to those justified by the data of the
research and limited to those for which the data provide an adequate basis.
• Greater confidence in research is warranted if the researcher is
experienced, has a good reputation in research, and is a person of integrity.
RESEARCH PROCESS
The following order concerning various steps provides a useful procedural guideline
regarding the research process
1. Formulating the research problem.
2. Extensive literature survey.
3. Developing the hypothesis.
4. Preparing the research design.
5. Determining sample design.
6. Collecting the data.
7. Execution of the project.
8. Analysis of data.
9. Hypothesis testing.
10. Generalizations and interpretations, and
11. Preparation of the report or presentation of the results, i.e., formal write-up of
conclusions reached.
 Define
I
research
Problem Literature Feed forward
review
II
Feedback
Review the Review the
previous research concepts and
findings theories VII
Interpret and
report
Formulate
hypothesis III
Feedback Feedback
V VI
IV
Design research Collect data Analyse data
(Including sample design) ( Exhecution) (Test hypothesis if
any

Feed Forward

Feedback help in controlling the system system

Feedforward serve the vital function of providing criteria for evaluation
 Internet and research
Internet research is the practice of using Internet information, especially
free information on the World Wide Web, or Internet-based resources
(like Internet discussion forums) in research. Internet research has had a
profound impact on the way ideas are formed and knowledge is created.
ROLE OF INTERNET IN RESEARCH

• Technological advances, especially the internet, opened new

horizons for almost all scientific fields. As an integral part of
science, research also took advantage of the benefits internet
brought. Now, it is practically impossible to imagine any
researcher who doesn’t use the internet for research
purposes in one way or another. For instance, currently, using
the internet is the best way to measure customer
satisfaction. Thousands of companies around the world use it
for this purpose.
ROLE OF INTERNET IN RESEARCH
• Access to an immense amount of data
• No geographical restrictions
• More participants
• Sensitive topics
• Easy publication
DRAWBACKS OF USING THE INTERNET
FOR RESEARCH

• Source confirmation
• Privacy
PREVIOUS YEAR QUESTIONS

• 1. Define business research. What are the major components of good

research study?
• 2. What is descriptive analysis? Illustrate.
• 3. Distinguish between pure and applied research.
• 4. explain key types of research based on logic.
• 5. How has the internet transformed the research process?
• 6. Formulate a hypothetical research topic and a suitable hypothesis
based on those characteristics