Business Research Method

Session 2
Selected Examples of Real-Life Situations in Which
Business Research Methods are Used
 A firm wants to produce and market a new product but first wants to ascertain
if there is a potential consumer demand for this product in markets x,y and z
 A multinational firm wants to establish a production facility in another country
after determining its technical and economic feasibility
 A government agency wants to ascertain the satisfaction level of its employees,
the causes for any possible discontent, and propose a scheme for enhancing
this level
 A financial institution wants to invest in commodities and commissions a study
to determine the past trends and forecast future returns in a portfolio of
commodities
 The CEO of a firm wants to undertake a SWOT-Analysis as part of his plan to
redefine his organization’s priorities

2
Purpose of Research
The purpose of research is to:
• Review or synthesize existing knowledge,
• Investigate existing situations or problems,
• Provide solutions to problems,
• Explore and analyze more general issues,
• Construct or create new procedures or systems,
• Explain new phenomenon,
• Generate new knowledge,
• … or a combination of any of the above!!!

Introduction to Research 3
What is considered as Research?
• Enhancement from previous work
• Replication study
• Something totally new
• Adding knowledge to the existing knowledge
structure

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 Criteria for research
 MUST have: a clearly stated research purpose/ objective
 MUST have: a sequential plan of execution
 MUST have: a logical and explicitly stated justification for the
selected methods
 MUST have: an unbiased and neutral method of conduct and
reporting
 MUST have: complete transparency and ethical conduction of
the research process
 MUST have: provision for being reliable & replicable

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Research Method and Methodology
• Research methodology refers to the overall
approaches and perspectives to the research process
as a whole and is concerned with the following main
issues:
• Why you collect certain data
• What data you collected
• Where you collected it
• How you collected it
• How you analyzed it
• A research method refers only to the various specific
tools or ways data can be collected and analyzed, e.g.
a questionnaire, interview checklist, etc.

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Determining When to Conduct
Business Research
• Time constraints
• Availability of data
• Nature of the decision
• Benefits versus costs
When Should Business Research be Undertaken?

Is sufficient time
available?

Yes

Is information
inadequate? NO Do not
undertake Business Research
Yes

High importance
of decision?

Yes

Research benefits
greater than costs? Undertake Business Research
Value Should Exceed
Estimated Costs
Costs
Value •Research
expenditures
•Decreased
•Delay of business
uncertainty
decision and
•Increased likelihood
possible disclosure
of a correct decision
of information to
•Improved business
rivals
performance and
•Possible erroneous
resulting higher
research results
profits
Quiz Time
• Of the following statements which reflects why
business research information is advantageous for a
managerial decision?
• It describes what is occurring in the marketplace.
• It may provide detailed information about specific
mistakes or why failures occurred.
• It provides information to help managers learn about
changing environments.
• All of the above are reasons

Introduction to Research 10
Quiz 2
• The primary function of business research is to:
• Provide the solution to a business problem.
• Attempt to predict future behavior.
• Identify personal needs.
• Provide information to assist managers in making
decisions.

Introduction to Research 11
Quiz 3
• A research that is oriented towards building
theories and models in the field of management is
called:
• Theoretical research
• Model testing research
• Basic research
• Management research
• None of the above
• All of the above

Introduction to Research 12
Quiz 4
• Applied research is directed towards
a. Problem solving
b. Action oriented research
c. Real time problems
d. Management decision making
e. a&b
f. All of the above

Introduction to Research 13
Quiz 5
• A company wants to know what are the problems
faced by employees in the night shift duties. The
company is intending to undertake
• Pure research
• Applied research
• Basic research
• Causal research

Introduction to Research 14
Quiz 6
• Indigo wants to evaluate the impact of a
promotional offer of thousand rupees off on return
ticket fares on ticket sales. The kind of research
being conducted is
• Applied research
• Conclusive research
• Causal research
• Management research
• All of the above
• None of the above

Introduction to Research 15
Quiz 7
• How many people visit the mall on a weekend is an
example of
• Applied research
• Conclusive research
• Basic research
• Causal research
• Descriptive research
• All of the above

Introduction to Research 16
Quiz 8
• The Census carried out by the Government of India
is an example of
• Applied research
• Conclusive research
• Basic research
• Causal research
• Descriptive research
• All of the above

Introduction to Research 17
Quiz 9
• The impact of higher interest rates in PPF (public
provident fund) on individuals investment in the
instrument is an example of
• Applied research
• Conclusive research
• Basic research
• Causal research
• Descriptive research
• All of the above

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Quiz 10
• Which of the following problems require research
• Acceptance of a recycled paper packaging at McDonalds
• Flexible work hours on turnover intentions
• Acceptance of more women oriented serials on prime
time
• Investments in insurance policies
• Voting patterns of western versus eastern UP
• a&b
• a&c
• All of the above

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 The
Management Dilemma
Basic vs Applied

Defining the Research Problem

research Formulating the Research Hypothesis

process Developing the Research Proposal

The Research Framework

Research Design

Data Collection Plan Sampling Plan

Instrument Design

Pilot Testing

Data Collection

Data Refining and Preparation

Data Analysis & Interpretation

Research Reporting

Introduction to
Management Research Decision
/ Research 20
Defining the research problem

A research problem can be defined as a gap or

uncertainty in the decision makers’ existing body
of knowledge which inhibits efficient decision
making. The gap could be academic &
theoretical (basic) or real time and action
oriented (applied).
Problem identification process
Management Decision Problem

Discussions Review of Organization Qualitative

with subject existing Analysis analysis
experts literature

Management Research Problem / Question

Research framework / Analytical model

Statement of Research Objectives

Formulation of Research Hypothesis

Decision problems
DECISION PROBLEM
1. What should be done to increase the
customer base of organic products in the
domestic market?
2. How to reduce turnover rates in the BPO
sector?
3. How to improve the delivery process of
Widex hearing aids in India?
4. Should the company continue with its
existing security services vendor or look at an
alternative?
5. Can the Housing and real estate growth be
accelerated?
6. Whom should ICICI choose as its next
Managing director- Mr ABC or Mrs. XYZ?
Research problems
RESEARCH PROBLEM*
1. What is the awareness and purchase
intention of health conscious consumers for
organic products?
2. What is the impact of shift duties on work
exhaustion and turnover intentions of the BPO
employees?
3. How does Widex/ industry leader manage its
supply chain in India/Asia?
4. What is the satisfaction level of the company
with the existing vendor? Are there any gaps?
Can they be effectively handled by the vendor?
5. What is the current investment in Real Estate
and Housing? Can the demand in the sector be
forecasted for the next six months?
6a. what has been the Leadership initiatives
and performance record of ABC viz. XYZ?
6b. Can a leading aggressive private sector
bank accept a woman as its leader?
 Problem identification process
 Management decision problem: the issue/decision that
needs to be resolved through research

 Discussion with experts: to get the right perspective on

the issue, discussion/dialogue isheld with subject/industry
expert.

 Review of literature: the most valuable source of framing

the research question is to review the past work done on
related topic(s).
 Qualitative surveys: primary exploratory loosely
structured surveys to attain the environmental context.
 Problem identification process

 Management research problem: the four steps

might lead to multiple directions/research problems
the researcher can take.
 The researcher has to identify THE alternative he/she
will undertake

 Theoretical model building (optional)

 Statement of research objectives

 Elements of a research problem
 Unit of analysis

 Independent variable

 Dependent variable

 Moderating variables

 Intervening variables (Can’t be measured)

 Extraneous independent variable (Excluded from

study)
 The research hypotheses
A hypotheses is any assumption/presupposition that
the researcher makes about the probable direction of
the results that might be obtained on the completion of
the research process
 Descriptive hypotheses: This is simply a statement
about the magnitude, trend, or behaviour of a
population under study.
 Relational hypotheses: These are the typical kind of
hypotheses which state the expected relationship
between two variables.
Criteria for hypotheses formulation
 In simple, declarative statement form

 Measurable and quantifiable

 Is essentially a conjectural (Conclusion based on

incomplete Information) statement

 Has underlying assumptions on the testing of the

stated relationships
 Formulating a Research proposal
Home Assignment
• First identify a research-based article from a management journal of your choice
and then read it carefully to understand the research process that was conducted,
taking Figure above as a framework.
• Once this is done, then the idea is to put yourselves in the shoes of the researcher
and formulate a research proposal that the author might have framed for
conducting the study.
The contents of the proposal must carry the following sections:
• Executive summary
• Background of the problem
• Problem statement and research objectives
• Research design
• Scheduling the research
• Results & Outcomes of the research
• Cost & Budgeting of the research
Introduction to Research 29