MODUEL 01

INTRODUCTION TO BUSINESS RESEARCH

 Research
Research is defined as the systematic and objective process of
generating information for aid in making decisions.

“Research is the systematic approach to obtaining and confirming new

and reliable knowledge”
– Systematic and orderly (following a series of steps)
– Purpose is new knowledge, which must be reliable
 What is Research?

“Research is the systematic approach to obtaining and

confirming new and reliable knowledge”

– Systematic and orderly (following a series of steps)

– Purpose is new knowledge, which must be reliable

 Meaning

Research is an endeavor to discover answers to intellectual and practical problems

through the application of scientific method.

Research is an art of scientific investigation.

Research is the systematic process of collecting and analyzing information (data) in

order to increase our understanding of the phenomenon about which we are concerned or
interested.
 Research is the process of finding solutions
to a problem after a thorough study and
analysis of the situational factors

What is Research provides the needed information

that guides managers to make informed
research? decisions to successfully deal with problems

The information provided could be the

result of a careful analysis of data gathered
firsthand or of data that are already
available (in the company)
 I don’t know if
we should offer
on-site child
Information care?

Reduces

Uncertainty
 Objectives of Research
The purpose of research is to discover answers through the application of scientific procedures .

The objectives are:

To gain familiarity with a phenomenon or to achieve new insights into it – Exploratory or
Formulative Research.
To portray accurately the characteristics of a particular individual, situation or a group –
Descriptive Research.
To determine the frequency with which something occurs or with which it is associated with
something else – Diagnostic Research.
To test a hypothesis of a causal relationship between variables – Hypothesis-Testing Research.
 Characteristics/Nature of Research
Research is directed towards the solution of a problem.
Research is based upon observable experience or empirical evidence.
Research demands accurate observation and description.
Research involves gathering new data from primary sources or using existing data for a new
purpose.
Research activities are characterized by carefully designed procedures.
Research requires expertise i.e., skill necessary to carryout investigation, search the related
literature and to understand and analyze the data gathered.
Research is objective and logical – applying every possible test to validate the data collected
and conclusions reached.
Research involves the quest for answers to unsolved problems.
Research requires courage.
Research is characterized by patient and unhurried activity.
Research is carefully recorded and reported.
 BUSINESS RESEARCH
Business and management research is a systematic inquiry that
helps to solve business problems and contributes to
management knowledge. It Is an applied research.

Business research involves a systematic and objective process

of gathering, recording, and analyzing data to help in making
business decisions. It aims to provide managers and
stakeholders with insights and information that can guide
various aspects of business strategy and operations.
 • Business research helps to identify opportunities and threats.
• It helps identify problems and using this information, wise decisions
can be made to tackle the issue appropriately.

Advantage
• It helps to understand customers better and hence can be useful to
communicate better with the customers or stakeholders.

s of Busine • Risks and uncertainties can be minimized by conducting business

research in advance.

ss researc • Financial outcomes and investments that will be needed can be

planned effectively using business research.
h • Such research can help track competition in the business sector.
• Business research can enable a company to make wise decisions as to
where to spend and how much.
• Business research helps to measure reputation.
Disadvantages of Business research
• Business research can be a high-cost affair

• Most of the time, business research is based on assumptions

• Business research can be time-consuming

• Business research can sometimes give you inaccurate information,

because of a biased population or a small focus group.

• Business research results can quickly become obsolete because of the

fast-changing markets
 • Purpose clearly defined.
CRITERIA • Research process detailed.
OF A • Research design thoroughly planned.
• High ethical standards applied.
GOOD • Limitations frankly revealed.
RESEARCH • Adequate analysis for decision maker’s
needs.
• Findings presented unambiguously.
• Conclusions justified.
• Researcher’s experience reflected.
 Types of
Business
Research
Descriptive Exploratory
Research Research
(research that (research that
describes) explores)

Causal
Causal
Research
Research
(research
(researchthat
thatlooks
looks
for cause & effect)
for cause & effect) Descriptive Associational
Research Research
(research that (research that
describes) associates)

Comparative
Comparative
Research
Research
(research
(researchthat
that
compares)
compares)
 TYPES OF RESEARCH
Research can be categorized based on various criteria such as

Purpose
 Process
 Outcome
 Nature
 Action
Logic.
 Based on Purpose
Basic (Pure) Research: Aims to expand knowledge by formulating,
evaluating, or expanding a theory. It is driven by curiosity and the desire
to explore the unknown.
Applied Research: Focuses on solving specific, practical problems using
basic research's theoretical foundations.
Exploratory Research: Conducted to explore a problem or situation to
gain insights and understanding.
Descriptive Research: Seeks to describe the characteristics of a
phenomenon or a population.
Explanatory Research: Aims to explain the relationships between
variables.
 Based on Process
Qualitative Research: Involves collecting and analyzing non-numerical
data (e.g., texts, interviews) to understand concepts, opinions, or
experiences.
Quantitative Research: Involves collecting and analyzing numerical
data (e.g., statistics) to identify patterns and test hypotheses.
Mixed-Methods Research: Combines both qualitative and quantitative
research methods to provide a more comprehensive understanding.
 Based on Outcome

• Conclusive Research: Provides data and findings that lead to a final decision or
conclusion, often used to confirm insights gained from exploratory research.

• Predictive Research: Attempts to forecast future phenomena based on current

data or trends.

• Evaluation Research: Assesses the effectiveness of programs, interventions, or

policies.
 Based on Action

Action Research: A participatory, iterative research method aimed at

solving problems through direct action and reflection, often involving
collaboration with those affected by the problem.
Participatory Research: Involves participants in the research
process, often focusing on social change and empowerment.
 Based on Logic

Deductive Research: Starts with a theory or hypothesis and tests it through

observation and experimentation.
Inductive Research: Begins with observations and patterns, leading to the
formulation of new theories or hypotheses.
Abductive Research: Combines elements of both deductive and inductive
reasoning, often used to generate new hypotheses or theories when existing
explanations are inadequate.
Exploratory
Research
• Say it backwards: research that explores
• Initial research conducted to explore
(clarify and define) the nature of a
problem
• Does not provide conclusive evidence so
subsequent research is expected
• Helps to diagnose a situation
• Screen alternatives
• Discover new ideas
Exploratory
Research: Pilot Study

Major categories include:

– Focus group interviews
– Projective techniques

– Depth interviews
 Exploratory Research
What are its characteristics?

Research is flexible and unstructured

Findings tentative, cost incurred is less
Used as building block for more research
e.g. pilot surveys, secondary data, focus groups
Done on a small non-representative sample

Why is it used? / circumstances / purpose

When looking for insights into the problem

To help define hypotheses (but does not test) and key variables
To Diagnosing a situation, To identify alternative courses of action, discover new ideas.
 When Information needs unclear
 For establishing priorities for further research
 Exploratory Research Cont’d

What Methods Are Used?

 secondary data
 Literature research
 Experience survey
 focus groups
 Analysis of case studies

When is it done?
 Generally initial research conducted to clarify and define the nature of a
problem

What is it’s main limitation?

Does not provide conclusive evidence - subsequent research expected
 Conclusive Research
Characteristics

 inflexible
 Results conclusive
 Research formal and structured
 Used when information needs clearly defined

Why is it Used?

 to provide decision maker with the information needed to make sound

decision.
 Testing hypotheses and insights and examining relationships
 Provides estimates of population parameters
Descriptive
Research Examples
• Weight Watchers average customer
• Woman about 40 years old
• Household income of about $50,000
• At least some college education
• Trying to juggle children and a job
 Descriptive Research
What is the Objective?

To describe something, e.g. Target market population characteristics, proportion of users, predict future demand,

What are the characteristics of descriptive research?

 More rigid than exploratory

 Problem well understood
 Tests specific hypotheses
 Formal and structured
 Large representative samples
 Provides a snapshot of the market environment
 Descriptive Research
What Methods are Used?
• Surveys
• panels
• scanner data

When Used? Or Objectives

•Often a follow-up to exploratory research

•To make specific predictions
•To determine the degree of market variables
Causal Research
• Conducted to identify cause and effect relationships
Causal Research

• Research that looks at cause & effect

• Conducted to identify cause and effect
relationships
• Statistics: Correlations, regression, t-
test, ANOVA, etc.
• Causal Research
• Provides evidence that a cause-and-effect relationship exists or does not exist.
• Premise is that something (and independent variable) directly influences the
behavior of something else (the dependent variable).

• To determine the nature of the relationship between the causal variables

and the effect to be predicted

• METHOD: Experiments
 Causal
Causal
Research
Research

Associational
Research
Looks for
relationships

Comparative
Comparative
Research
Research Designs: Stats:
Looks
Looksforfor
differences
differences
Experimental T-test
Quasi-experimental ANOVA
Ex post facto Correlation
Time series Multiple regression
Predictive Chi Square
Correlation Spearman Rho
Comparative Phi – Cramers V
Surveys Etc, etc, etc
Multivariate
Longitudinal
 Research methods are broadly classified as Qualitative and Quantitative.

Qualitative; Quantitative;
• One-to-one Interview • Survey research
• Focus Groups • Descriptive research
• Ethnographic studies • Correlation research
• Text Analysis

• Case Study
 Research Design: Definition

• A research design is a framework or blueprint for conducting the research

project. It details the procedures necessary for obtaining the information
needed to structure or solve research problems.
2 Major Types of Research Design
• Quantitative Research Design: In Quantitative Research Design, a researcher
examines the various variables while including numbers as well as statistics in a
project to analyze its findings. The use of graphics, figures, pie charts is the main
form of data collection measurement and meta-analysis.

• Qualitative Research Design: This type of research is quite contrary to quantitative

research design. It is explanatory in nature and always seeks answers to “What’s” and
“How’s”. It mainly focuses on why a specific theory exists and what would be the
respondent’s answer to it. This allows a researcher to draw a conclusion with proper
findings.
Case studies are mainly used in Qualitative Research Design in order to understand
various social complexities.
 Quantitative vs. Qualitative Research Design
Following is the difference between Quantitative vs. Qualitative Research Design

Quantitative Research Qualitative Research

Focuses on putting ideas and hypotheses to the test. Concentrate on generating ideas and developing a theory
or hypothesis.

Math and statistical analysis were used to examine the Summarizing, classifying, and analyzing data were used to
situation. conduct the analysis.

Numbers, graphs, and tables are the most common forms Mostly represented with words
of expression.

It necessitates the participation of a large number of Only a few people are required to answer.
people.

Closed questions (multiple choice) Open-ended inquiries

Key terms: testing, measurement, objectivity, replicability Key terms: understanding, context, complexity, subjectivity
 Quantitative and Qualitative Research can be
divided into the following major types of Research
Designs:
• Descriptive Research Design
• Correlational Research Design
• Experimental Research Design
• Diagnostic Research Design
• Explanatory Research Design
• Descriptive Research Design: In Descriptive • A correlational research design looks into
Research Design, the scholar explains/describes correlations between variables without allowing the
the situation or case in depth in their research researcher to control or manipulate any of them.
materials. This type of research design is purely on Correlational studies reveal the magnitude and/or
a theoretical basis where the individual collects
data, analyses, prepares and then presents it in an direction of a link between two (or more) variables.
understandable manner. Positive correlation
• Experimental research is a type of research design
Negative correlation
in which the study is carried out utilizing a
scientific approach and two sets of variables. Zero correlation
Experimentation is used in any research
undertaken under scientifically appropriate
• Diagnostic research design is a type of research design that
settings. tries to investigate the underlying cause of a certain
condition or phenomena.
 Explanatory research is a method established to explore phenomena
that have not before been researched or adequately explained. Its
primary goal is to notify us about where we may get a modest bit of
information.

The most popular methods of explanatory research are:

• Literature research
• In-depth interview
• Focus groups
• Case studies
 Theory building in research

Theory building in research is a crucial process that involves developing a

systematic and coherent explanation of a phenomenon.

A theory is a set of interrelated concepts, definitions, and propositions that

explain or predict events or situations by specifying relations among
variables. Theories provide a framework for understanding, predicting, and
potentially controlling certain aspects of the world.

https://www.youtube.com/watch?v=W3EeaPe3cFE
The Building Blocks of Theory

• Concepts
• Constructs
• Definitions
• Variables
• Propositions and Hypotheses
• Theories
• Models
 Understanding Concepts
A concept is a bundle of meanings or characteristics associated with
certain events, objects, conditions, situations, and behaviors
Formally and logically developed ideas about classes of phenomena that
a researcher seeks to study
Concepts are based on our experiences. Concepts can be based on real
phenomena and are a generalized idea of something of meaning.
Example: When you drop a ball, it falls to the ground due to gravity.
 What is a Construct?
A construct is an image or idea specifically invented for a given research

and/or theory-building purpose.

A construct is a theoretical concept, theme, or idea based on empirical

observations. It's a variable that's usually not directly measurable.

Example: Constructs Psychologists develop and research constructs to

understand individual and group differences.
 Proposition

A proposition is a tentative and conjectural relationship between

constructs that is stated in a declarative form. 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 we
can judge whether it is true or false.
 Hypotheses
The empirical formulation of propositions, stated as relationships between
variables, is called hypotheses. Hypotheses can be strong or weak.

Ex;“An increase in students’ IQ score causes an increase in their grade

point average.”
Scientific hypotheses should clearly specify independent and dependent
variables
Hypotheses are empirically testable using observed data and may be
rejected if not supported by empirical observations. Of course, the goal of
hypothesis testing is to infer whether the corresponding proposition is
valid.
https://www.youtube.com/watch?v=G4LPPS-8Co0
 Variables
Anything that may assume different numerical values; the empirical assessment
of a concept.

An attribute is a specific value on a variable. For instance, the variable Student

grade has two attributes: pass and fail. Or, the variable agreement might be
defined as having five attributes:
1 = strongly disagree
2 = disagree
3 = neutral
4 = agree
5 = strongly agree
 Types of Variables
Independent Variable

Dependent variable

Moderating Variable

Intervening variables

Extraneous Variables
 Independent Variable
Independent variable also known as explanatory variable a variable
which influences the other variables, under consideration, in the study
The value of this variable decided or controlled by the researcher.

In the research relating to studying relationship between two variables,

the independent variable influencing the dependent variable also called
‘causal or ‘explanatory’ variable
 Dependent Variable
It depends on an independent variable defined in a study.

The value of dependent variable not manipulated or controlled in a research

study
It changes due to change in independent variable.

Example : "Expenditure on R&D" could be taken as independent variable,

in pharmaceutical firms, and sales could be termed as dependent variable
(on expenditure on R&D)
 Moderating Variable

A variable not a independent variable but forms strong contingent/ contextual

effect on the relationship of the independent and dependent variable.
Example relationship between training and performance in an organisation.

training - independent variable

performance - dependent variable.

‘willingness to learn’ – Moderating Variable

 Moderating Variable
• Willingness to learn - neither an independent variable nor a dependent variable,
but has strong effect on the relationship between training and performance. Those
employees who are more willing to learn, will grasp the training effectively and
intern will improve the performance. But if the employees are not willing to
learn, even if they are trained, it may not improve their performance.

Training Performance
Independent Variable Dependent Variable

Willingness to Learn
Moderating Variable
 Intervening Variables
In a study involving independent and dependent variables, there could be a
variable / factor which might affect the dependent variable, but it cannot be
directly observed or measured.
For example, the sales of a retail store might increase with increasing
discounts (e-g. ''2%, 3%.... 5 %, etc.), and a relationship could be
established. Suppose, a scheme is introduced that monthly prizes will be
given to randomly selected customers, this might increase the sales of a
store but it cannot be measured; only its impact can be observed- monthly
prizes scheme is an intervening factor.
 Extraneous Variable
Extraneous variable -one that is outside or external to the situation under
study, and its impact on dependent variable is beyond the scope of the
study.
For example, the family income of students could be taken as extraneous
variable while studying performance of MBA students. The value of
extraneous variable may be ‘controlled’ to remove/ neutralize its impact.
For example, if we wish to compare the performance of MBA students with
commerce and engineering background, we may include those students of
both streams in the study who have almost the same financial background.
 Theory Building

Deductive Logic / Deduction

• The basic concept in deduction-
‘Many to One’
or
‘Population to Sample’
• In this type of logic, we are given information about a population, and we deduce the information
about a sample or just one unit

• A deductive approach to research is the one that people typically associate with scientific
investigation.

• Ex: Deductive reasoning is a type of deduction used in science and in life. It is when you take two
true statements, or premises, to form a conclusion. For example, A is equal to B. B is also equal to
C. Given those two statements, you can conclude A is equal to C using deductive reasoning.
 Deduction Example
• Premise - All the MBA graduates recruited in a company through a rigorous
selection process have proved to be very innovative and effective
• Given Information - Sajay, an MBA student has been recruited in the
company
• Deduction/Conclusion - Sajay will prove to be very innovative and effective
 Induction / Inductive Logic

• The basic concept of induction - from :

One to Many
or
Sample to Population
• In this type of logic, we are given information about a sample, and we induce
the information about a population or generalisation about population from
sample
• Inductive reasoning is a method of drawing conclusions by going from the
specific to the general. It's usually contrasted with deductive reasoning,
where you proceed from general information to specific conclusions.
Inductive reasoning is also called inductive logic or bottom-up reasoning.
 Induction Example
• Observation - One biscuit from a packet is stale
• Induction / Conclusion - All the biscuits in the packet are stale.
 Research is a creative process

The “…research includes far more than mere logic … It

Process includes insight, genius, groping, pondering – ‘sense’
… The logic we can teach; the art we cannot”

of Research requires (or at least works best) with

Researc imagination, initiative, intuition, and curiosity.

h There are different types of creativity, characteristic

of different situations – “applied” and “theoretical”
most closely associate with research
The Process of Research
Step 1. Problem Discovery
And Definition

• A well-identified problem will lead the researcher to accomplish all-

important phases of the research process, starting from setting
objectives to the selection of the research methodology.
• But the core question is: whether all problems require research.
• a research problem is of primary concern to a researcher.
• A research problem is a perceived difficulty, a feeling of discomfort, or a
discrepancy between the common belief and reality.
 Step – 2: Reviewing of
Literature
• A review of previous documents to similar or related phenomena is essential even for
the beginning researchers.
• To ignore the existing literature may lead to wasted effort on the part of the
researchers
• A review, not only provides him exposure to a larger body of knowledge but also
equips him with enhanced knowledge to efficiently follow the research process.
• It helps the researcher to understand if there are any significant controversies,
contradictions, and inconsistencies in findings.
• It allows the researcher to understand if there are any unanswered research
questions.
• It might help the researcher to develop an analytical framework.
 Step – 3: Setting research questions, objectives, and
hypotheses

• A research question is 'a question that a research project sets out to answer'.
Choosing a research question is an essential element of both quantitative and
qualitative research. ... Good research questions seek to improve knowledge
on an important topic, and are usually narrow and specific.

• An objective will precisely say what should be researched. The best expression
of a research objective is a well-formulated, testable research hypothesis.

• A hypothesis is an unproven statement or proposition that can be refuted or

supported by empirical data. Hypothetical statements assert a possible answer
to a research question.
 Step -4: Choosing the study design

• The research design is the blueprint or framework for fulfilling objectives

and answering research questions.
• It is a master plan specifying the methods and procedures for collecting,
processing, and analyzing the collected data.

There are four basic research designs that a researcher can use to conduct his
or her study;
• survey,
• experiment,
• secondary data study, and
• observational study.
 Step – 5: Deciding on the sample design

The basic idea of sampling is that it involves any procedure that uses a
relatively small number of items or portions (called a sample) of a universe
(called population) to conclude the whole population.

A population is the total collection of elements.

A sample is a part of the population

Sample design refers to the methods to be followed in selecting a sample

from the population and the estimating technique, vis-a-vis formula for
computing the sample statistics.
 Step – 6: Collecting data

The gathering of data may range from simple observation to a large-scale

survey in any defined population.
• The most common means for collecting quantitative data is the structured
interview.
• Studies that obtain data by interviewing respondents are called surveys.
Data can also be collected by using self-administered questionnaires.
Telephone interviewing is another way in which data may be collected.
• Other means of data collection include the use of secondary sources, such
as the census, vital registration records, official documents, previous
surveys, etc.
• Qualitative data are collected mainly through in-depth interviews, focus
group discussions and observational studies.
Step-7: Processing and
Analyzing Data

Data analysis usually involves reducing Data processing generally begins with the
accumulated data to a manageable size, editing and coding of data. Data are edited to
developing summaries, searching for patterns, ensure consistency across respondents and to
and applying statistical techniques for locate omissions.
understanding and interpreting the findings in
the light of the research questions.
Step-8: Writing the report – Developing Research Proposal, Writing
Report, Disseminating and Utilizing Results
 A research report should contain sections on:
 An executive summary;

 Background of the problem;

 Literature review;

 Methodology;

 Findings;

 Discussion;

 Conclusions and

 Recommendations.
 Qualities of Good Research

1. Good research is anchored on a sound research question.

2. Good research follows a systematic, appropriate research
methodology.
3. Good research acknowledges previous research on the topic.
4. Good research uses relevant, empirical data and proper data analysis
methods.
5. Good research is representative and generalizable.
6. Good research is ethical.
 Empirical research: Definition
Empirical research is defined as any
research where conclusions of the Types and methodologies of empiri
cal research
study is strictly drawn from
concretely empirical evidence, and
therefore “verifiable” evidence. 1. Quantitative research
2. Qualitative research
For example: A research is
being conducted to find out if
listening to happy music while
working may promote creativity?

” I will not believe it unless I see it”.

 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 forum) in research.

Internet research is distinct from library research (focusing on library-bound

resources) and commercial database research (focusing on commercial
databases). While many commercial databases are delivered through the
Internet, and some libraries purchase access to library databases on behalf
of their patrons, searching such databases is generally not considered part
of “Internet research”.
How is the Internet useful in
Research?
• Accessing available data
• Collecting data

Useful Sources of Information on the Internet

• Government websites
• Including Statistics
• Associations
• Open source journals
• Book chapters/excerpts
• Digital libraries
Technologies used in Research
• Internet
• Email
• Browsers
• Websites
 Business
information systems

Business information systems are sets of

inter-related procedures using IT
infrastructure in a business enterprise to
generate and disseminate
desired information. Such systems are
designed to support decision making by
the people associated with the enterprise
in the process of attainment of its
objectives.

Business information
systems represent a system of
controls and processes which
a business uses to
analyze information needed to
effectively manage their business..
 Features of Business Information System:

1. To balance the conflicting objectives Key Components of

in the process of designing business Business
information systems. (subject to the Information System:
dynamics of business environment)
2. Business information systems need 1. Decisions
to be proactive. 2. Transactions and processing
3. To cater to the information needs 3. Information and its flow
for decision making in business. 4. Individuals or functions
4. The business information systems involved.
have to be designed keeping in view
the availability of financial and
human resources to the business
enterprise.