Module 1 Business Research

Business Research & Methods

Module 1

Padma S Rao Asst Professor Global Academy of Technology

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Introduction to Business research Research Methodology Scientific methods Research Process Research Methodology Meaning of research Types, Objectives, Criteria of good research Scientific method in physical science & in marketing m arketing Distinction between scientific & Non scientific methods Difficulties in applying scientific methods in marketing Padma S Rao Asst Professor Global Academy of Technology

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Introduction to Business research Research Methodology Scientific methods Research Process Research Methodology Meaning of research Types, Objectives, Criteria of good research Scientific method in physical science & in marketing m arketing Distinction between scientific & Non scientific methods Difficulties in applying scientific methods in marketing Padma S Rao Asst Professor Global Academy of Technology

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Business Research A

systematic Inquiry whose objective is to provide information to solve managerial problems.  Search for knowledge  Systematised effort to gain new knowledgeredman & Mory  Research comprises of Defining problems, formulating hypothesis, collecting, organising, and evaluating data, reaching solutions and at last testing the solutions to determine whether they fit the formulated hypothesis . Padma S Rao Asst Professor Global Academy of Technology

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Defn contd..  Business

research is defined as the systematic and objective process of gathering, recording and analysing data for aid in decision making.

Padma S Rao Asst Professor Global Academy of Technology

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Why Managers need Better Information Global and domestic competition is more vigorous Organizations are increasingly practicing data mining  and data warehousing  Increase in the complexity & risk  More knowledge exists in every field  Stake holders are better informed. The power & ease of today’s computers to analyse the data 

Padma S Rao Asst Professor Global Academy of Technology

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Why Study Research? 1. 2. 3. 4.

Changes in business environment Manager’s increased need for information Explosive technology growth Problems with mergers, trade policies,Savings & investment issues 5. Continuous innovations Research provides you with the knowledge and skills needed for the fast-paced decision-making environment Padma S Rao Asst Professor Global Academy of Technology

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The Manager-Researcher Relationship 

Manager’s obligations   

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Specify problems Provide adequate background information Access to company information gatekeepers

Researcher’s obligations  

Develop a creative research design Provide answers to important business questions

Padma S Rao Asst Professor Global Academy of Technology

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Manager-Researcher Conflicts 

Management’s limited exposure to research

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Manager sees researcher as threat to personal status Researcher has to consider corporate culture and political situations

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Researcher’s isolation from managers Padma S Rao Asst Professor Global Academy of Technology

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When Research Should be Avoided  When

information cannot be applied to a critical managerial decision  When managerial decision involves little risk  When management has insufficient resources to conduct a study  When the cost of the study outweighs the level of risk of the decision Padma S Rao Asst Professor Global Academy of Technology

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Theory .

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Search is done through two methods 1. Arbitrary method Seeking answers to questions based on imagination, opinion, belief, or impression. Ex. Earlier belief that Shape of the earth was flat Disadvantages It is subjective Finding varies form person to person. It is vague & inaccurate Padma S Rao Asst Professor Global Academy of Technology

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Scientific Method Systematic rational approach to seeking facts The scientific method is a systematic step by step procedure following the logical process of reasoning. Scientific method encourages doubts & criticism so that what emerges is the real evidence. Scientist does not believe anything with out testing, adheres to the right path & arrive at the truth. Advantages 1. Objective 2. Precise & arrives at conclusions on the basis of verifiable evidences. 3. Method is free from personal beliefs, attitudes & values. Padma S Rao Asst Professor Global Academy of Technology

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Continued Three distinct characteristics of scientific method  Careful & accurate classification of facts  Discovery of laws  Self criticism- Scientist should critically examine his own research in a detached manner.

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Basis of scientific method  Relies on empirical evidence  Use of relevant concepts  Commitment to objectivity- Forming judgements based upon facts unbiased by personal impressions

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Ethical neutrality  – True & accurate statements. Does not pass

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Generalisation Verifiability- Conclusions can be verified Ex Atom originally was considered to be indivisible Logical reasoning process -Based on reasoning process. Reasoning process is used for drawing inferences from the findings of a study Ex. Expenditure pattern of different income group families on basic necessities

  

normative judgements( Good or bad)

Padma S Rao Asst Professor Global Academy of Technology

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Difference between scientific method & non scientific methods  More

objective Ex. Hypothesis can be verified with the help of statistical principles More precise, measurement & numerical analysis can be done.

 More

subjective Opinion differs from person to person. Measurement & numerical analysis can not be done

Padma S Rao Asst Professor Global Academy of Technology

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Difference between scientific method & non scientific methods Takes cognizance of the existing knowledge in a particular field, carries out further investigations & compare the results so obtained earlier. This leads to the expansion of knowledge. The process which is continuous & unending systematises knowledge. 

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Non scientific method may not contribute to the accumulation of systematic knowledge.

Padma S Rao Asst Professor Global Academy of Technology

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 Scientific

method is continuous & unending process leading to the accumulation of systematic knowledge. Marketing research is problem solving & problem oriented research. Focus of investigation is narrow. It is an exhaustive study.

Padma S Rao Asst Professor Global Academy of Technology

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Logical reasoning process consists of induction & deduction. Induction- A process of reasoning where by we arrive at universal generalisations from particular facts Studying individual cases & drawing generalisations Logical reasoning process Involves two processes 1.Observation 2.Generalisation Ex. If it is observed that educated girls have expensive habits one may conclude that all educated girls have expensive habits. Padma S Rao Asst Professor Global Academy of Technology

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Methods of logical reasoning process     

Induction- Particular to general Deduction- General to particular Deduction is a form of inference that purports to be conclusive Induction draws conclusions from one or more particular facts. Induction occurs when we observe a fact and ask Why is this? To answer the question hypothesis is formulated.

Deduction Deductive reasoning uses a top-down approach to logic. Deductive reasoning usually starts with a theory. A hypothesis, or a definition of a theory suitable for testing, follows. Observations from the tests of the hypothesis either confirm or disprove the hypothesis and theory. Deduction can give conclusive evidence. Ex. Dr. Shekar is an adult. All adults are eligible to vote. Dr Shekar is eligible to vote.

Padma S Rao Asst Professor Global Academy of Technology

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Examples for Deduction All managers take decisions- Premise 1 True Ram is a manager- Premise 2 True Argument is valid Deduction is Ram takes decisions- true 1. All organisations manufacture manufacturing goods. 2. ABC Ltd is an organisation 3. Argument  The set of sentences deriving conclusions from other sentences are called arguments. Padma S Rao Asst Professor Global Academy of Technology

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When induction is followed? 

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Inductive reasoning is a bottom-up method of logic. By beginning with an observation or several observations, a pattern can be recognized. Once the pattern is defined, it becomes a tentative hypothesis. Once the hypothesis is defined and tested, the hypothesis and theory can be proven or disproven. Observation must be correctly performed, data collected should be accurate Observations must cover representative cases drawn from a specific universe. Observations must cover adequate number of cases Conclusions must be confined to inferences drawn from the findings

When deduction is used?  The

general rule or assumption must be correct  The general rule must be applied only to the cases which properly fall under it

 Refer

Methodology of research in social sciences by O R Krishna swamy 1 chapter  Business research methods By Donald R Cooper

Difference between Research in Social science & physical science 

Scientific method is a body of techniques for investigating phenomena and acquiring new knowledge,, as well as for knowledge correcting and integrating previous knowledge. It is based on gathering observable,, empirical observable empirical,, measurable evidence, subject to the principles of reasoning.Hypothesis reasoning .Hypothesis is also proposed.

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Social research is research conducted by social scientists in sociology social psychology human geography, geography, political science,, social anthropology science and education education.. Sociologists Sociologists.. and other social scientists. They study diverse things.Ex.They conduct indepth analysis of the life of a single important person . They may monitor what is happening on a street today or what was happening a few hundred years ago.

Padma S Rao Asst Professor Global Academy of Technology

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

the process is objective so that the scientist does not bias the interpretation of the results or change the results outright. Another basic expectation is that of making complete documentation of data and methodology available for careful scrutiny by other scientists and researchers.

Social scientists use different methods in order to describe, explore and understand social life. Social methods can generally be subdivided into two broad categories. Quantitative methods are concerned with attempts to quantify social phenomena and collect and analyse numerical data, Qualitative methods, on the other hand, emphasise personal experiences & are more concerned with understanding the meaning of social phenomena

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Experiments are conducted to quantify the results

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Common tools of quantitative researchers include surveys, questionnaires,). Commonly used qualitative methods include focus groups, participant observation, and other techniques.

Padma S Rao Asst Professor Global Academy of Technology

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Theory  Theories

provide explanation of the reasons for the behaviour of variables.  Explanation of observed regulatities.  Theory is a coherent set of general propositions used as principles of explanation of the apparent relationships of certain observed phenomenon rent relationships of certain observed phenomenon. Padma S Rao Asst Professor Global Academy of Technology

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Concept  It

is a generalised idea about a class of objects, attributes, occurances, or processes that has been given a name.GNP, Inflation.

Padma S Rao Asst Professor Global Academy of Technology

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Characteristics of research        

Research is systematic & critical investigation into a phenomenon. It is not a mere compilation but a purposive investigation It aims at describing interpreting & explaining a phenomenon. It adopts a scientific method. It is objective, logical, applies possible tests & arrives at conclusions It is based on observable experience or empirical evidence. Research is directed towards finding answers to pertinent questions It emphasises the development of generalisation,principles or theories.

Padma S Rao Asst Professor Global Academy of Technology

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Objectives of Research 1. To gain familiarity with a phenomenon Or to achieve new sights in to it 2. To determine the frequency with which some thing occurs 3. To test a hypothesis of a casual relationship between the variables 4. To portray accurately the characteristics of a particular individual , situation or a group . Padma S Rao Asst Professor Global Academy of Technology

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To find answers to various types of questions why, where, how, what Research unravels the mysteries of nature Research establishes generalisations & general laws & principles. Ex. Law of gravitation, law of demand, principles of organisation Aims at finding solutions to problems Aims at developing theories, concepts & principles Research aids planning & thus contributes to national development

Padma S Rao Asst Professor Global Academy of Technology

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Criteria of good research  

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The purpose should be clearly defined. The research procedure used should be described in detail to permit another researcher to repeat the research for further development. Procedural design of the research should be carefully planned to yield the results that are objective as for as possible. The researcher should report with complete frankness, The analysis of the data should be sufficiently adequate to reveal its significance. Padma S Rao Asst Professor Global Academy of Technology

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 Researcher

should be experienced & a person of integrity.  Method of analysis should be appropriate.  The validity& reliability of data should be checked carefully.  Conclusions should be confirmed to those  justified by the data of the research. 

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Validity refers to the degree to which a study accurately reflects or assesses the specific concept that the researcher is attempting to measure Reliability: consistency" or "repeatability

Padma S Rao Asst Professor Global Academy of Technology

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Types of Research  Applied

research ( Action Research) aims at finding a solution for an immediate problem facing a society or an organisation. Ex .1.Teacher finds that most of the students are weak in comprehension A teacher innovates a method to improve the ability of the students. 2. Marketer studying the profitability of two or more products. Padma S Rao Asst Professor Global Academy of Technology

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Descriptive Research It includes surveys & fact finding enquiries.  It is concerned with describing the state of affairs as it exists at present. Ex characteristics of people, market & association between variables.  Employs any or all the methods of data collection. Ex, Questionnaire, Interview, observation In social research, the Ex post Facto research term is used. He has no control over variables. He can only report what has happened or what is happening. Ex. Preferences of people. 

Padma S Rao Asst Professor Global Academy of Technology

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 Fundamental

Research

Concerned with generalisations & with the formulation of a theory. Ex. Research concerning natural phenomenon or relating to pure science, Human behaviour in order to make generalisations.  One

time research & Longitudinal research

Padma S Rao Asst Professor Global Academy of Technology

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 Quantitative Research

Based on the measurement of quantity or amount.  Qualitative

research

Concerned with qualitative phenomenon. Ex. Motivation research  Exploratory

research

To provide insights and understanding.  Historical

Research

It is that which utilises historical sources like documents, letters. Autobiographies, monuments, remains, paintings in order to establish facts & draw conclusions concerning the past. Padma S Rao Asst Professor Global Academy of Technology

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 Comparative

Research The research aims at comparing the institutions, practices, concepts, trends in economic variables. Ex. Customer service in different banks  Model Building research Mostly done in the field of management. Model is constructed to show the relationship among many variables. Ex. Advertising models, Consumer behaviour models Padma S Rao Asst Professor Global Academy of Technology

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 Operations

Research

The method of research to solve problems using scientific methods & quantitative techniques Ex. Construction of fly overs,  Library

Research

Conducted with the help of written materials located in big libraries. Concerned with the evolution of theories, study involving cause & effect relationship & seeking out significant facts & interpretation of the past data.  Individual

& Group research Padma S Rao Asst Professor Global Academy of Technology

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Significance of Research “ All progress is born of enquiry. Doubt is better than 1. 2. 3. 4.

overconfidence. For it leads to inquiry and inquiry leads to invention.” Research inculcates inductive thinking and it promotes development of logical thinking . Several complex business problems can be solved through research It provides the basis for all govt. policies Important for social scientists in studying the social relationships and to seek answers for social problems

Padma S Rao Asst Professor Global Academy of Technology

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5. Operational & planning problems of business & industry can be solved with the help of research. 6. For students- A career 7. Professionals- Source of livelihood 8.Literary men & women  – Development of new styles & creative work. 9.Philosophers Analysts & intellectuals- Generalisation of new theories.

Padma S Rao Asst Professor Global Academy of Technology

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Research Process          

Defining formulating a research problem Extensive research survey Development of working hypothesis Preparing the research design Determining the sample design Collecting the data Analysis of data Hypothesis testing Generalisations and interpretation Preparation of the report.

1. Formulating a problem  What

is a research problem? It refers to some difficulty which an organisation is facing and wishes to obtain a solution for the same.

Formulating a problem contd..  Means

a question or issue to be studied  Decide about the general area of study.

Why research problem to be defined? Problem formulation is a key to research process.  It is converting management problem in to a research problem.  Problem has to be stated in order to attain clarity  Finding a solution becomes easy  Helps to collect data M.P: Sales are declining 

R.P: Which product’s sales are declining? Writing 

brief summary of the problem

2. Extensive research survey

 Academic

journals,

 Magzines,  Text

books  Articles  Reports

3. Development of working hypothesis  Hypothesis

is a tentative assumption made to draw inferences and test its empirical consequenses  It should be specific  It puts the researcher right on track.

4. Preparation of research design A

conceptual structure with in which research work is conducted.  A plan for the study

5. Determining sample design  Sample

design is a way of selecting the sample or a plan  Population- All the items in any field of inquiry constitute universe or population.  Sample size  Sampling method- Probability or non probability sampling techniques

6. Collection of data  Observation  Questionnaires  Interview

Analysis of data  Establishment

of categories  Application of catagories to raw data through coding  Tabulation  Drawing inferences  Conputation of percentages mean, standard deviation etc.

Hypothesis testing  Do

the facts support the hypothesis?  Chi sqaure test, F test, t test are used to test the hypothesis.  Hypothesis testing results in either accepting or rejecting the hypothesis.

Generalisation and interpretation  Generalisations:

idea of conclusions having general application.  Interpretations: based on findings

Preparation of the report Lay out of the report  Preliminary pages  Main text  The end matter

Preliminary pages  Title  Acnowledgements  Foreward  Table

of contents  List of tables  List of graphs and charts

Main text  Introduction  Theoretical

concepts  Review of literature  Objectives of the research  Research methodology  Scope of the study  Limitations

Summary of findings  Statement

of findings  Discussion  Recommendations and conclusions

Research proposal A

proposal is supposed to be a description of the goals for one’s research.  A proposal should describe reseracher’s questions, and why they are important questions  It is very important for the researcher to read a couple of the most important papers in the field chosen before writing your proposal. Since it is a proposal Padma S Rao Asst Professor Global Academy of Technology

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 In

the proposal, researcher should describe an angle on a problem that he/she thinks important, and doesn't seem to be covered by the papers he has read.

Padma S Rao Asst Professor Global Academy of Technology

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What are Research Ethics?  Ethics are

norms or standards of behavior that guide moral choices about our behavior and our relationships with others

 The

goal is to ensure that no one is harmed or suffers adverse consequences from research activities

Padma S Rao Asst Professor Global Academy of Technology

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Ethical Treatment of Participants Rights of the participants should be protected. For that Researcher should follow 3 guidelines  Begin data collection by explaining to the participant the benefits expected from the research  Explain to the participants that their rights and wellbeing will be adequately protected, and say how this will be done  Be certain that interviewers obtain the informed consent of the participant

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Deception Deception occurs when the participant is told only part of the truth or when the truth is fully compromised. There are two reasons for deception  To prevent biasing the participants before the survey or experiment  To protect the confidentiality of a third party ( sponsor) The benefits to be gained by deception should be balanced against the risks to the participants.

Padma S Rao Asst Professor Global Academy of Technology

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Issues Related to Protecting Participants  Obtain

Informed consent from participants  Debriefing- Explanation of deception, Description of hypothesis, goal or purpose of study to participants, post study sharing of results with the participants.  Right to Privacy/Confidentiality  – Guarantee of confidentiality must be given to the participants.

Padma S Rao Asst Professor Global Academy of Technology

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Ethical Issues related to the Client  Sponsor

non-disclosure- Some clients wish to undertake research with out revealing themselves.  Purpose non-disclosure- Researcher has to protect the purpose of the study.  Findings non-disclosure

Padma S Rao Asst Professor Global Academy of Technology

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 Right

to quality research This right entails 1. Providing a research design appropriate for the research question. 2. Maximising the sponsor’s value for the resources expended. 3. Providing appropriate data handling and reporting techniques for the data collected. Padma S Rao Asst Professor Global Academy of Technology

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Ethics Related to Sponsor  Sometimes

researchers will be asked by sponsors to participate in unethical behavior.  To avoid coercion by sponsor the researcher should: Educate sponsor to the purpose of research Explain

researcher’s role

Explain

how distortion of the truth leads to future problems If necessary, terminate relationship with sponsor Padma S Rao Asst Professor Global Academy of Technology

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Ethical Issues related to Researchers and Team Members  Safety=

it is the responsibility of the researcher to design a project so that the safety of all interviewers , surveyors, observers or experimenters is protected.  Ethical behavior of assistants- Researcher expects ethical compliance or behaviour from the assistants.  Protection of anonymity- Researcher & assistants should protect the confidentiality of the sponsor’s information & theanomity of the participants. Padma S Rao Asst Professor Global Academy of Technology

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Rights of the Respondents     



Rights of the respondents Information collected for the MR should not be misused for any other purpose. Respondents should not be forced to answer a questionnaire. Information should be kept confidential. Respondents should be given the opportunity to think & answer the questions that are of personal nature. It is the responsibility of the market researcher to accurately reflect the respondents replies in his report.

Padma S Rao Asst Professor Global Academy of Technology

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What is Thematic Appreciation Test (TAT) It is a projective technique. Participants are shown pictures and asked to tell a story based on what they see. This tool helps to elicit important information about underlying psychological fears and needs. The TAT was developed in 1935 by Morgan and Murray. Ironically, it was initially used in a study of normal personalities done at Harvard Psychological Clinic.  The test comprises 31 cards. One card is blank and the other thirty include blurred but emotionally powerful (or even disturbing) photographs and drawings

Padma S Rao Asst Professor Global Academy of Technology

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Difference between Research methods & Research Methodology Research methods refer to techniques that are used for conducting research ex. Observation, Questionnaires, interviews, Analysis of historical records, Case studies Research methodology is a way to systematically solve the research problem.

Padma S Rao Asst Professor Global Academy of Technology

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Research

Methodology

It is a way to systematically solve the research problem. It is a science of studying how research is done scientifically ( step by step) Researcher needs to know not only the methods & techniques but also as to how to use relevant method at the appropriate time Ex researcher in designing a building Research methodology has many dimensions & methods only constitute a part of the research methodology. Padma S Rao Asst Professor Global Academy of Technology

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1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13.

Define Business Research. Explain its significance in modern times. Define Research. Explain how scientific research differs from social research. Differentiate between basic research & applied research with examples. What are the difficulties in applying scientific method in marketing research. Differentiate between research methods & research methodology. What is ex-post facto research. Explain the objectives of research Write a note on research & scientific method. Explain three general categories of research with examples. Explain the criteria of good research. Explain the types of research with a suitable example. What are the diffrences between scientific method & non-scientific method? Explain the difference between deduction & Induction. Padma S Rao Asst Professor Global Academy of Technology

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Example for Combining deduction and induction Q: Why didn’t sales increase? We promote a product but sales did not increase

Induction

Why?

Deduction Ineffective promotion

Deduction: Effective promotion

We run an effective promotion and sales will increase

Hypothesis: The promotion was poorly executed