MADANAPALLE INSTITUTE OF TECHNOLOGY & SCIENCE, MADANAPALLE

(Autonomous)

BUSINESS RESEARCH METHODS

Dr. THULASI KRISHNA. K, Ph.D.

Department of Management Studies

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 UNIT I

INTRODUCTION TO BUSINESS RESEARCH

Research

Research generally refers to a search for knowledge. One can define research as a
scientific and systematic search for significant information on a specific topic. In fact,
research is an art of scientific investigation. Dictionary definition of research is a careful
investigation or inquiry especially through search for new facts in any branch of knowledge.
Some people consider research as a movement from known to unknown. It is actually a
voyage of discovery.

Research can be defined as a step-by-step process that involves the collecting,

recording, analyzing and interpreting of information.
According to Robert Ross, research is essentially an investigation, a recording and
an analysis of evidence for the purpose of gaining knowledge.
A research need not lead to ideal solution but it may give rise to new problems
which may require further research. In other words research is not an end to a problem
since every research gives birth to a new question. It is carried on both for discovering new
facts and verification of old ones.

Features of Research
Research involves the discovery of new knowledge
It is essentially an investigation
It is concerned with the solution of a problem
It is based on observation or experimental evidences.
It demands accurate observation or experimentation.
In research, the researchers try to find out answers for unsolved questions
It should be carefully recorded and reported

Need For Research (Importance of Research)

The main importance of research is to produce knowledge that can be applied
outside a research setting. Research also forms the foundation of program development

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and policies everywhere around the universe. It also solves particular existing problems of
concern. Research is important because we are able to learn more about things, people, and
events. In doing research, we are able to make smart decisions.
Marketing research is important because it allows consumers and producers to
become more familiar with the products, goods, and services around them. Research is
important to society because it allows us to discover more and more that might make are
lives easier, more comfortable, and safer. It presents more information for investigation.
This allows for improvements based on greater information and study. It is very important.
Research encourages interdisciplinary approaches to find solution to problems and to make
new discoveries. Research is a basic ingredient for development and therefore serves as a
means for rapid economic development.
The main importance or uses may be listed as under:
It provides basis for government policies
Helps in solving various operational and planning problems of business and industry
Research helps in problem solving
It is useful to students, professionals, philosophers, literary men, analysts and
intellectuals.

Business Research

The purpose of business research is to gather information in order to aid business

related decision-making. In business, research is important in identifying opportunities and
threats. Often, a companys success or failure is dependent on the actions undertaken as a
result of conducting research. Although carrying out business research does not guarantee
success, it is likely to increase the possibility that a new product, service, brand identity or
even an event is successful.
Business research refers to systematic collection and analysis of data with the
purpose of finding answers to problems faced by the management. It can be carried out
with the objective to explore, to describe or to diagnose a phenomenon. It involves
establishing objectives and gathering relevant information to obtain the answer to a
business issue and it can be conducted to answer a business related question, such as: What
is the target market of my product? Business research can also be used to solve a business-

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related problem, such as determining how to decrease the amount of excess inventory on
hand.
When deciding whether business research is to be conducted or not, the firm keeps
in mind factors like the availability of data, time constraints and the value of the research
information to the company. Adequate planning and information-gathering are essential to
derive results for business.

Types of Research
Basic Research (Or Fundamental) and Applied Research (Or Action Research)
Basic or Fundamental research is mainly concerned with generalization with the
formulation of a theory. It is a research concerning principles or laws or rules. It aims at the
achievement of knowledge and truth. Research studies concentrating on examining the
financial statements, determining likely mergers and acquisitions, analysing the market
competition, assessment of factors influencing leadership style in a company are the
examples of fundamental research. It aims at some theoretical conclusions. It may verify the
old theory or establish a new one. It tries to explain the cause and effect relationship in
social phenomena. It is essentially positive and not normative. That is, it explains the
phenomena as they are and not as they should be.

Applied research is concerned with the solution of particular problems. It aims at

finding a solution for an immediate problem facing by the society or by an industrial
organization. It is empirical and practical. It is concerned with applied aspects of life.
Research to identify social, economic or political trends that may affect a particular
institution or the marketing research, how to cure Obsessive Compulsive Disorder, how best
to deal with host nationals in times of war, what methods can be used to prevent criminals
from acting again are the examples of applied research.

Descriptive Research and Analytical Research

Descriptive research includes survey and fact finding enquiries of different kinds. It
describes the state of affairs as it exists at present. The researcher has no control over the
variables. He can only report what has happened or what is happening.
Frequencies of shopping, preferences of people are a few examples of descriptive research.

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 In Analytical research one has to use facts or information already available and
analyse these to make a critical evaluation of the material.
Examining the fluctuations of U. S. International Trade Balance is a descriptive
research and explaining why and how U.S. Trade Balance moved is an analytical research.

Quantitative Research and Qualitative Research

Quantitative research is applicable to phenomena that are measurable so that they
can be expressed in terms of quantity.
Survey that concludes that the patient has to wait for an average time of two hours
in the waiting room of a certain doctor before being treated is an example of quantitative
research.
Qualitative research is concerned with qualitative phenomenon. Research designed
to find out how people feel or what they think about a particular subject is a qualitative
research. Qualitative research is especially important in the behavioural sciences where the
aim is to discover underlying motives of human behaviour.

Conceptual Research and Empirical Research

Conceptual research is that related to some abstract ideas or theory. It is generally
used by philosophers and thinkers to develop new concepts or to interpret existing ones.
Empirical research relies on experience or observation alone. It is data based research
coming up with conclusions capable of being verified by observation or experiment. It can
be experiment research. In empirical research, the researcher has to first set up a
hypothesis or guess as to the probable results. He then works out to get enough facts to
prove or disprove his hypothesis.
Empirical studies have a great potential as they lead to inductions and deductions.
Thus research enables one to develop theories and principles and to arrive at
generalizations. As research is based on observations and empirical evidences, it improves
knowledge and understanding as well as decision making skill and ability.
Exploratory Research
Exploratory research is a type of research conducted for a problem that has not been
clearly defined. Exploratory research helps determine the best research design, data
collection method and selection of subjects.

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SCIENTIFIC INVESTIGATION

Scientific Method

Research is a scientific endeavour. It involves scientific method. The scientific

method is a step by step procedure following the logical process of reasoning. Scientific
method is a means for gaining knowledge of the universe. It does not belong to any
particular body of knowledge. It is universal. The facts may be related to many fields. It is
not the facts themselves which makes science, but the method by which they are dealt with.
Thus, the scientific method does not refer to a field of specific subject of matter, but rather
to a procedure or more of investigation. It is an objective, logical and systematic method of
analysis of phenomena, devised to permit the accumulation of reliable knowledge.

Basis of Scientific Method

The scientific method is based on certain elements which are mentioned below-

i. Reliance on empirical evidence

ii. Use of relevant concept
iii. Verifiability
iv. Generalisation
v. Logical reasoning process

Reliance on Empirical Evidence

Truth is established on the basis of evidence. Conclusion is admitted only when it is

based on evidence. Scientific method involves a systematic process. The answer to a
question is not decided by imagination. Relevant data are collected through observations,
questionnaires or experimentation.

Use of Relevant Concepts

People experience a number of facts through senses. Facts are things which actually
exist. In order to deal with them, people use concepts with specific meanings.

A concept is "an abstraction based on characteristics of perceived reality."

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The concept of "education" has all sorts of things we observe in the world around us in it--
like schools, libraries, life experience, and so on. If we change the concept to "formal
education," the box gets smaller, including only institutions that document what is learned
in some way and award degrees of some kind, like Degree, Post-Graduate Degree and
colleges, tech schools.

Verifiability

The conclusions arrived at by a scientist should be verifiable. He must make known

to others how he arrived at his conclusions. He should thus expose his own methods and
conclusions to critical scrutiny.

Generalisations

Scientists are not concerned with isolated events, but with the commonality
(generalization) of a series of events.

Logical Reasoning Process

The scientific method involves the logical process of reasoning. This reasoning
process is used for drawing inference from a finding of a study or for arriving at conclusion.
This process consists of Induction and Deduction.

Induction

It is one of the methods of logical reasoning processes which consist of studying

several individual cases and drawing a generalization. Therefore, Induction involves two
processes namely observation and generalization.

This method is followed when new facts are studied and new generalizations are
formulated from a research project.

Ex: The application of recommended dosage of chemical fertilizers results in increase in the
yield per hectare. A sample of experiments farms and control farms are selected in an area,
and then the experiments are conducted to draw conclusions.

Four conditions are essential to satisfy the Induction. They are-

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 1. Observations must be correctly performed and recorded. Data collected should be
accurate.
2. Observations must cover representative cases drawn from a universe.
Ex: For instance a survey of job satisfaction of Bank executives is undertaken. The
universe from which a sample has to be drawn should be defined exactly, say officers
of public sector bank, specific geographical area etc.,
3. Observations must cover an adequate number of cases.
4. Conclusions must be confined to inferences drawn from the findings.

Deduction

Deduction is a reasoning process of applying a generally accepted principle to a

specific individual case falling under the general principle. It is regarded as reasoning from
the general to the particular. This reasoning establishes a logical relationship between a
major premise, a minor premise and a conclusion. A major premise is a previously
established generalization or assumption; a minor premise is particular case related to the
major premise; and a logical relationship of these premises lead to a conclusion.

Ex: Major premise [argument] All men are intelligent; Minor premise Varshith is a
man

Conclusion Varshith is an intelligent.

Use of Deduction

This deductive method of moving from the general assumption to the specific
application is useful for solving problems, but it is not useful in arriving at new truth.

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LANGUAGE OF RESEARCH

1. Concepts: To understand and communicate information about objects and events, there
must be a common ground on which to do it. Concept is an accepted collection of meanings
or characteristics associated with certain events, objects, conditions, situations and
behaviours.

Ex: Running, Walking, Skipping etc.,

The researchers gather data using these measurement concepts. The success of
research depends on

i. How clearly they conceptualise and

ii. How well others understand these concepts.

A concept is best defined as an abstract label that represents an aspect of reality (usually
in the form of an object, policy, issue, problem, or phenomenon). Every discipline has its own
concepts. For example, common concepts in criminal justice and criminology include
criminality, law, rehabilitation, and punishment.
Concepts are viewed as the beginning point for all research endeavors, and are often very
broad in nature. They are the bases of theories, and serve as a means to communicate,
introduce, classify, and build thoughts and ideas. To conduct research, the concept must
first be taken from its conceptual or theoretical level to an observational level. In other
words, one must go from the abstract to the concrete before research can occur. This
process is often referred to as conceptualization.
2. Constructs

A construct is an image or abstract idea specifically invented by a given research and or

theory-building purpose. Constructs can be built by combining the simpler, more concrete
process, especially when the idea or image we intend to convey is not subject to direct
observation.

3. Definitions

Confusion about the meaning of concepts can destroy research study value without the
researchers or client even knowing it. If words have different meanings to the parties

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involved, then there is every scope that they may mis-understand the concepts. Definitions
are one way to reduce this danger. Researchers struggle with two types of definitions
namely Dictionary definitions and Operational definitions.

Ex: A customer is defined as a Patron; A Patron in turn is defined as a customer or client of

an establishment; A client is defined as one who employs the services of any professional.
Circular definitions may be adequate for general communication but not for research. In
research, we measure concepts and constructs and this requires more rigorous definitions.

4. Variables

A variable is symbol of an event, act or characteristic that can be measured and do

which we assign categorical values. For the purposes of data entry and analysis, we assign
numerical value to a variable based on the variables properties. Researchers are most
interested in relationships among variables.

There are two types of variables: dependent and independent. A dependent variable is
a factor that requires other factors to cause or influence change. Dependent variables are
factors over which the researcher has no control.
The independent variable is the influential or the predictor factor. These are the
variables believed to cause the change or outcome of the dependent variable, and are
something the researcher can control. Some better-known independent variables used in
criminal-justice and criminological research are gender, race, marital status, and education.
Identifying and recognizing the difference between the variables is important in research,
but sometimes may get lost. Therefore, it is important for research to specifically call
attention to the variables.

5. Propositions and Hypothesis

A Proposition is a statement about observable phenomena (concepts) that may be

judged as true or false. When a proposition is formulated for empirical testing, it is called as
a Hypothesis.

The hypothesis is a specific statement describing the expected relationship between

the independent and dependent variables.

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