Research Methodology

Module I (Part 1)

Made By: Ashiya Shaikh

Business Research Defined

A process of planning, acquiring, analyzing, and disseminating relevant business data, information, and insights to decision makers in ways that mobilize the organization to take appropriate business actions that, in turn, maximize business performance

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Characteristics of Good Research

Clearly defined purpose Detailed research process Thoroughly planned design

High ethical standards

Limitations addressed Adequate analysis Unambiguous presentation Conclusions justified Credentials
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Who Conducts Business Research?

Internal

External

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Business Research Suppliers

External Research Suppliers Business Research Firms Communication Agencies Consultants Trade Associations

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Business Research Firms

Business Research Firms

Full Service

Specialists

Custom

Methods

Proprietary

Syndicated Data Other

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Basic vs. Applied Research

Fundamental/Basic Research: It is primarily intended to find out certain basic principles, viz. Maslows Hierarchy of Needs, Hawthorne experiment Applied Research: It is the application of basic scientific principles which helps to contradict, alter or modify any existing theory & helps to formulate policy. It is thus concerned with actual life & suggests remedial measures to alleviate social problems. E.g. Research in Marketing or HR.

Information based Decision Making: Literature Review

Helps to acquaint with the available body of knowledge in your area of interest In the initial stages, it helps to establish the theoretical roots of your study, clarify your ideas & develop your methodology Later on the literature review serves to enhance & consolidate your knowledge base & helps you to integrate your findings with the existing body of knowledge.

Functions of Literature Review

It reviews the means by which you establish the links between what you are proposing to examine & what has already been studied i.e. it helps refine your research methodology. Through the literature review you are able to show how your findings have contributed to the existing body of knowledge in your research.

It enables you to contextualize your findings. Thus it helps you to: Bring clarity & focus to your research problem Improve your methodology Broaden your knowledge base in your research area Contextualize your findings.

Source of Knowledge
Literature Review Secondary data

Variables
Independent variables are variables or alternatives that are manipulated and whose effects are measured and compared, e.g., price levels. Dependent variables are the variables which measure the effect of the independent variables on the test units, e.g., sales, profits, and market shares. Extraneous variables are all variables other than the independent variables that affect the response of the test units, e.g., store size, store location, and competitive effort.

Research Process/Plan
Step 1: Problem Definition
Discussion with decision makers Interviews with industry experts

Step 2: Development of an Approach to the Problem

Objective/Theoretical Framework Research Questions Hypotheses Identifying the information needed

Step 3: Research Design Formulation

Definition of Information needed Secondary Data Analysis Qualitative Research Methods of collecting quantitative data (Survey, Observation & Experimentation ) Measurement & Scaling procedures Questionnaire Design Sampling Process & Sample size Plan of Data Analysis

Step 4: Fieldwork or Data Collection

Personal Interviewing Telephone Mail Electronically

Step 5: Data Preparation and Analysis Step 6: Report Preparation and Presentation

Step 1: Defining Research Question (Problem Definition)

Management Decision Problem Vs. Research Problem

Management Decision Problem Should a new product be introduced? Research Problem To determine consumer preferences and purchase intentions for the proposed new product. To determine the effectiveness of the current advertising campaign.

Should the advertising campaign be changed?

Should the price of the brand be increased?

To determine the price elasticity of demand and the impact on sales and profits of various levels of price changes.

Proper Definition of the Research Problem

Research Problem

Broad Statement

Specific Components

Step2: Development of an approach to the problem

Objective/Theoretical Framework Research Questions Hypotheses Specification of the Information Needed

Objectives should be listed under two headings: Main Objective: Overall statement of the thrust of
your study. Also a statement of the main associations & relationships that you seek to discover or establish.

Sub objectives: Specific aspects of the topic that

you want to investigate within the main framework of your study. They should be numerically listed.

Research Questions and Hypotheses

Research questions are refined statements of the specific components of the problem. A hypothesis is an unproven statement or proposition about a factor or phenomenon that is of interest to the researcher. Often, a hypothesis is a possible answer to the research question.

Process of testing Hypothesis

Phase I: Formulate your assumption or hypothesis Phase II: Collect the required data Phase III: Analyze data to draw conclusions about the assumption or hypothesis true or false

The Role of Hypotheses

Guide the direction of the study

Identify relevant facts

Suggest most appropriate research design

Provide framework for organizing resulting conclusions
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Characteristics of Strong Hypotheses

Adequate A Strong Hypothesis Is

Testable

Better than rivals

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Types of Hypothesis
1) Descriptive Hypothesis 2) Relational Hypothesis i. Correlational Hypothesis ii. Causal Hypothesis

Descriptive Hypothesis
A descriptive hypothesis is a statement about the existence, size, form, or distribution of a variable. Researchers often use a research question rather than a descriptive hypothesis. Examples are provided in the slide. Either format is acceptable, but the descriptive hypothesis has three advantages over the research question.

Hypothesis Formats
Descriptive In Detroit, our potato chip market share stands at 13.7%. American cities are experiencing budget difficulties. Research Question What is the market share for our potato chips in Detroit? Are American cities experiencing budget difficulties?

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Relational Hypothesis
A relational hypothesis is a statement about the relationship between two variables with respect to some case. Relational hypotheses may be correlational or explanatory (causal). A correlational hypothesis is a statement indicating that variables occur together in some specified manner without implying that one causes the other.

A causal hypothesis is a statement that describes a relationship between two variables in which one variable leads to a specified effect on the other variable.

Relational Hypotheses
Correlational Young women (under 35) purchase fewer units of our product than women who are older than 35. The number of suits sold varies directly with the level of the business cycle. Causal An increase in family income leads to an increase in the percentage of income saved. Loyalty to a grocery store increases the probability of purchasing that stores private brand products.

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