BUSINESS RESEARCH METHODS

MODULE – 1: INTRODUCTION TO BUSINESS RESEARCH

➢ Research
Research is defined as the creation of new knowledge and/or the use of existing knowledge in a new
and creative way so as to generate new concepts, methodologies and understandings.

➢ Definition Business research

Is a process of acquiring detailed information on all the areas of business and using such information to
maximize the sales and profit of the business. Such a study helps companies determine which
product/service is most profitable or in demand.

➢ What is business research?

Business research is the systematic investigation and analysis of data and information to gain insights
and make informed decisions to enhance business practices and strategies.
Research conducted or describing the business problem(s) of a particular business, is called Business
research. For example, in order to start a particular business, it is very crucial for the entrepreneur or
the owner to have information about the type of customers and nature of competition in the market.

➢ According to McDaniel and Gates:

"Business research is the planning, collection and analysis of data relevant to business decision-making
and the communication of the results of this analysis to management".

➢ Characteristics of Research Methodology.

• Aims at solving a problem
• Research is Purposive
• Research gathers New Knowledge
• Research Involves Collection of Data
• Research Activities should be carried out with Research Design
• Research requires Expertise
• Research should be objective and Logical
• Research is a Process

➢ Objectives of Research
• To explore new Ideas and Concepts.
• To describe an Event
• To test the occurrence of an Event
• To Establish the causal relationship between the variables (cause & effect)

➢ Types of Research
1. Basic Research/Fundamental Research/Pure Research
Basic research is all about information-gathering and answering What, why, and How research
questions. It involves learning the facts about a subject, finding out why things happen, perhaps by
investigation or observation, and then using this expanded knowledge to better understand the topic.
Basic research is also called fundamental, foundational, or pure research. You use basic research
methods every day, whenever you are trying to learn more about something. Examples of basic
research? Examining the components of a cell, Looking at how stress affects productivity,
Understanding how a doctor makes a mental health diagnosis

2. Action Research/Applied Research

Action research refers basically learning by doing. First, a problem is identified, then some actions are
taken to address it, then how well the efforts worked are measured, and if the results are not satisfactory,
the steps are applied again. Action research is a research method that aims to simultaneously investigate
and solve an issue. In other words, as its name suggests, action research conducts research and takes
action at the same time. Action research is often intended to bring about change of practice, while
creating knowledge at the same time.
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MODULE – 1: INTRODUCTION TO BUSINESS RESEARCH
3. Empirical Research/ Analytical/ Hypothesis Research.
Empirical research is research that is based on observation and measurement of phenomena, as directly
experienced by the researcher. The data thus gathered may be compared against a theory or hypothesis,
but the results are still based on real life experience. It is used to validate multiple hypothesis and
increase human knowledge and continue doing it to keep advancing in various fields.

4. Descriptive Research
Descriptive research aims to accurately and systematically describe a population, situation or
phenomenon. It can answer what, where, when and how questions, but not why questions. A
descriptive research design can use a wide variety of research methods to investigate one or
more variables.

5. Exploratory research
Is defined as research used to investigate a problem which is not clearly defined. It is conducted to have
a better understanding of the existing research problem. Exploratory research is carried out when a topic
needs to be understood in depth, especially if it hasn’t been done before. The goal of such research is to
explore the problem and around it and not actually derive a conclusion from it.

6. Qualitative research
It involves collecting and analysing non-numerical data (e.g., text, video, or audio) to understand
concepts, opinions, or experiences. It can be used to gather in-depth insights into a problem or generate
new ideas for research. Qualitative research is the opposite of quantitative research, which involves
collecting and analysing numerical data for statistical analysis.

7. Quantitative Research
Quantitative research is a systematic investigation of phenomena by gathering quantifiable data and
performing statistical, mathematical, or computational techniques. Quantitative research collects
statistically significant information from existing and potential customers using sampling methods and
sending out online surveys, online polls, and questionnaires, for example.

Qualitative Research vs Quantitative Research

Here is a chart that highlights the major differences between qualitative and quantitative research:
Qualitative Research Quantitative Research

Focus on explaining and understanding experiences

Focus on quantifying and measuring phenomena.
and perspectives.

Use of non-numerical data, such as words, images, and Use of numerical data, such as statistics and
observations. surveys.

Usually uses small sample sizes. Usually uses larger sample sizes.

Typically emphasizes in-depth exploration and

Typically emphasizes precision and objectivity.
interpretation.

Data analysis involves interpretation and narrative Data analysis involves statistical analysis and
analysis. hypothesis testing.

Results are presented descriptively. Results are presented numerically and statistically.

8. Longitudinal Research
A longitudinal study is research conducted over an extended period of time. It is mostly used in medical
research and other areas like psychology or sociology. Longitudinal studies often use surveys to collect
data that is either qualitative or quantitative.
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MODULE – 1: INTRODUCTION TO BUSINESS RESEARCH
9. One time Research
A cross-sectional study examines a specific issue at one time, so they often are relatively short. The
study examines data at a specific time and provides only a quick overview of data to researchers.
10. Stimulation Research
A study is conducted over an Artificial Environment, to know the Cause and effect of the Problem
identified. It is mostly used in medical research. stimuli are the items used to evoke a reaction from
participants or respondents in a study.
11. Historical Research
Historical research is a process of collecting and interpreting data about past events or ideas in order to
find how they affected the present events and ideas. It studies possible reasons behind certain events to
explain their influence on the events that followed. It is the procedure in which a researcher collects and
evaluates data to understand reports or observation made by others.

➢ Research Applications in Functional Areas of Business:

Research methodology is a broad term with wide range of applicability in disciplines like, psychology,
biology, mathematics, etc, Research can be conducted either to discover or explain a theory or to solve
a specific problem faced by management.

1) Accounting and Finance:

Some of the main areas where research is conducted in the field of accounting and finance are
• Budgetary control systems,
• Designing new practices and methods for inventory costing,
• The practice of transfer pricing and its effects a profitability,
• Individual's attitude towards investment decisions

2) Human Resource Development and Organization Behaviour:

The areas of human resource and organisational behaviour are some of the core domains of research.
Some of the important issues in which research studies are carried-out are as follows:
• Individual behaviour and interpersonal relations,
• Attitudes of employees,
• Leadership characteristics and styles,
• Mechanisms used for performance appraisal,
• Assessment centre and evaluation.

3) Marketing Research:
There is widespread use of research in marketing. The company base all of its marketing strategies and
initiatives on the basis of consumer tastes and preferences, which can be understood with the help of
various researches conducted to get an in-depth knowledge about it. Marketing research can be carried-
but for varied like consumer behaviour, consumer attitudes, advertising effectiveness, distribution
channel efficiency, sales analysis, new product development, etc.
Some specific examples of marketing research are:
• Forecasting the demand for products,
• Analysing the buying behaviour of consumers,
• Measuring the effectiveness of advertising,
• Decisions regarding media selection for proper advertising,
• Market testing for new products,

4) Organisational Research:
The organisational research is a field that constitutes many disciplines. In an organisation, researchers
come from different, backgrounds and hence bring various concepts, tools, and methods for research.
It is widely being accepted that the knowledge of research methods is useful for the students who aspire
to become managers in future. Organisational research facilitates the managers to explore various
theories and findings that are relevant for the organisation. It also helps the managers to increase their
problem-solving efficiency.
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MODULE – 1: INTRODUCTION TO BUSINESS RESEARCH
5) Industrial Research:
Industrial research is a practical concept and is concerned with the wellbeing of a company. It is a
planned effort to gain better information and improve the new and existing products, services and
processes. Some of the major areas where industrial research is carried-out are:
o Finding ways to improve the quality of products and services,
o Developing new products and services to gain market share,
o Devising new ways to use the available resources,
o Decisions regarding minimising the cost,
o Ways to reduce hazards at workplace,

6) Production Research:
The production function in an organisation is dynamic in nature and needs continuous improvement in
process, product design, cost etc. But these changes and improvements lead to some complexities,
which can be resolved by production research. Production research is conducted in following areas:
o Finding new and better production methods,
o Ways to standardise and control the production,
o Finding strategies and methods troubleshooting.

➢ Emerging Trends in Business Research:

1) Expanding Market Freedom:

An important factor responsible for organisations designing products as per consumer's needs is the
emergence of competitive and free markets. Organisations are focusing on improving quality which
needs suggestions of employees as well as consumers. The market share and product line are being
expanded by organisations through research input.

2) International Research:
On the global scenario, countries have been benefited though the use of business research. The decisions
to be taken in unfamiliar cultures are also influenced by this research. For example, an organisation can
take decisions regarding acquisition in a foreign county only when it is aware of the economic market
structure of that country. Globalisation drives an organisation to think internationally

3) Relationship Marketing:
Nowadays, businesses are entering into the era of relationship marketing. The concept of relations
marketing significantly emphasise upon building and maintaining long term relationship with
stakeholders of the company by recognising the mutual benefits of both the stakeholders and the
company. There is a change in research concepts due to relationship marketing regarding what and
whom to study.

4) Information Revolution:
Information technology has created a tremendous change in the overall business environment and has
completely changed the way in which world does business. It has facilitated and developed several
research processes.

➢ Research Process
The research process consists of a series of systematic procedures that a researcher must go through in
order to generate knowledge that will be considered valuable by the project and focus on the relevant
topic.
Step 1: Identify/Define the Problem
Finding an issue or formulating a research question is the first step. A well-defined research
problem will guide the researcher through all stages of the research process, from setting objectives to
choosing a technique. There are a number of approaches to get insight into a topic and gain a better
understanding of it. Such as:A preliminary survey, Case studies, Interviews with a small group of
people, Observational survey.
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MODULE – 1: INTRODUCTION TO BUSINESS RESEARCH
Step 2: Evaluate the Literature Review
A thorough examination of the relevant studies is essential to the research process. It enables the
researcher to identify the precise aspects of the problem. Once a problem has been found, the
investigator or researcher needs to find out more about it. This stage gives problem-zone background.
It teaches the investigator about previous research, how they were conducted, and its conclusions. The
researcher can build consistency between his work and others through a literature review.

Step 3: Create/Formulate Hypotheses

Formulating an original hypothesis is the next logical step after narrowing down the research topic and
defining it. A belief solves logical relationships between variables. In order to establish a hypothesis, a
researcher must have a certain amount of expertise in the field. It is important for researchers to keep
in mind while formulating a hypothesis that it must be based on the research topic.

Step 4: Preparation of Research Design

Research design is the plan for achieving objectives and answering research questions. It outlines how
to get the relevant information. Its goal is to design research to test hypotheses, address the research
questions, and provide decision-making insights. The research design aims to minimize the time,
money, and effort required to acquire meaningful evidence.

Step 5: Preparation of sample design

Research projects usually look at a specific group of people, facilities, or how technology is used in the
business. In research, the term population refers to this study group. The research topic and purpose
help determine the study group. Suppose a researcher wishes to investigate a certain group of people in
the community. In that case, the research could target a specific age group, males or females, a
geographic location, or an ethnic group. A final step in a study’s design is to specify its sample or
population so that the results may be generalized.

Step 6: Data Collection

Data collection is important in obtaining the knowledge or information required to answer the research
issue. Every research collected data, either from the literature or the people being studied. Data must be
collected from the two categories of researchers. Techniques of collecting Primary and Secondary
data: Primary data:
Experiment
Questionnaire
Observation
Interview
Secondary data categories are:
Literature survey
Official, unofficial reports
An approach based on library resources

Step 7: Editing, Coding and Tabulation

[Link] First step in analysis is to edit the raw data. Editing detects errors and omissions, corrects
them whatever possible. Editor’s responsibility is to guarantee that data are – accurate; consistent with
the intent of the questionnaire; uniformly entered; complete; and arranged to simplify coding and
tabulation.
[Link]: Coding refers to the process of assigning numerals or other symbols to answers so that
responses can be put into a limited number of categories or classes. Such classes should be appropriate
to the research problem under consideration. They must also possess the characteristic of exhaustiveness
(i.e., there must be a class for every data item) and also that of mutual exclusively which means that a
specific answer can be placed in one and only one cell in a given category set
3. Tabulation: Editing is the procedure that improves the quality of the data for coding. With coding the
stage is ready for tabulation. Tabulation is a part of the technical procedure wherein the classified data
are put in the form of tables.
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MODULE – 1: INTRODUCTION TO BUSINESS RESEARCH
Step 8: Data Analysis
During research design, the researcher plans data analysis. After collecting data, the researcher analyses
it. The data is examined based on the approach in this step. The research findings are reviewed and
reported. Data analysis involves a number of closely related stages, such as setting up categories,
applying these categories to raw data through coding and tabulation, and then drawing statistical
conclusions. The researcher can examine the acquired data using a variety of statistical methods.

Step 9: Hypothesis testing

Is a systematic procedure for deciding whether the results of a research study support a particular theory
which applies to a population. Hypothesis testing uses sample data to evaluate a hypothesis about a
population.

Step 10: Generalizations and interpretation

If a hypothesis is tested and upheld several times, it may be possible for the researcher to arrive at
generalization, i.e., to build a theory for the complete Population. As a matter of fact, the real value of
research lies in its ability to arrive at certain generalizations. If the researcher had no hypothesis to start
with, he might seek to explain his findings on the basis of some theory. It is known as interpretation.

Step 11: The Report-writing

After completing these steps, the researcher must prepare a report detailing his findings.
The Layout: On the first page, the title, date, acknowledgments, and preface should be on the report. A
table of contents should be followed by a list of tables, graphs, and charts if any. Introduction: It should
state the research’s purpose and methods. This section should include the study’s scope and limits.
Summary of Findings: A non-technical summary of findings and recommendations will follow the
introduction. The findings should be summarized if they’re lengthy. Principal Report: The main body
of the report should make sense and be broken up into sections that are easy to understand.
Conclusion: The researcher should restate his findings at the end of the main text. It’s the final result.

➢ Research Problem
Finding an issue or formulating a research question is the first step. A well-defined research
problem will guide the researcher through all stages of the research process, from setting objectives to
choosing a technique.

➢ Research design
A research design is a strategy for answering your research question using empirical data. Creating a
research design means making decisions about: Your overall research objectives and approach. Whether
you'll rely on primary research or secondary research.

➢ Format of Research Design

1. Objectives of the Study

2. Importance of the study
3. Statement of the Problem
4. Period of the Study
5. Area of the Study
6. Methodology (Data, Sampling Design, Collection of Data, Analysis of Data)
7. Chapter Scheme (Report Writing)

➢ Importance of Research Design

1. A researcher without a research design is like being lost on a journey without a guiding light.
2. It gives maximum Output
3. It helps a researcher design relevant and irrelevant data
4. It is a tool to get accurate Data.
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MODULE – 1: INTRODUCTION TO BUSINESS RESEARCH
➢ Characteristics of a good Research Design
1. Objectivity: Consider your aims and approaches, Determine the research questions and
objectives, and identify the theoretical framework and methodology for the study
2. Reliability: With regularly conducted research, the researcher expects similar results every
time. You’ll only be able to reach the desired results if your design is reliable. Your plan
should indicate how to form research questions to ensure the standard of results.
3. Validity: There are multiple measuring tools available. However, the only correct measuring
tools are those which help a researcher in gauging results according to the objective of the
research. The questionnaire developed from this design will then be valid.
4. Generalization: The outcome of your design should apply to a population and not just a
restricted sample. A generalized method implies that your survey can be conducted on any
part of a population with similar accuracy.

➢ Importance Concepts Related to Research Design.

1. Variable: A variable in research simply refers to a person, place, thing, or phenomenon that you
are trying to measure in some way.
2. Independent variable: An independent variable is exactly what it sounds like. It is a variable
that stands alone and isn't changed by the other variables you are trying to measure. For
example, someone's age might be an independent variable. Other factors (such as what they eat,
how much they go to school, how much television they watch) aren't going to change a person's
age. In fact, when you are looking for some kind of relationship between variables you are
trying to see if the independent variable causes some kind of change in the other variables, or
dependent variables.
3. Dependent variable: Just like an independent variable, a dependent variable is exactly what it
sounds like. It is something that depends on other factors. For example, a test score could be a
dependent variable because it could change depending on several factors such as how much
you studied, how much sleep you got the night before you took the test, or even how hungry
you were when you took it.
4. Extraneous variable is any variable that you’re not investigating that can potentially affect
the dependent variable of your research study.
5. Confounding variable is a type of extraneous variable that not only affects the dependent
variable, but is also related to the independent variable.
6. Experiment: a scientific procedure undertaken to make a discovery, test a hypothesis, or
demonstrate a known fact. In other word the researcher Manipulates the Independent Variable
and observes the changes in the dependent Variable.
7. Treatment: The Different Conditions under which the experiment is conducted is called as
treatment.
8. Control: Minimizing the effect of the extraneous variables is called as Control.
9. Test Unit: It refers to the sampling unit which are subjected to the treatment.
10. Experimental Group: While conducting an Experiment those units which are Subject to the
treatment will be called as Experimental Groups.
11. Control Groups: The group which is exposed to the usual Conditions are called as Control
groups.

➢ Types of Research Design:

1. Exploratory research: is a methodology approach that explores research questions that have not
previously been studied in depth. It is often used when the issue you're studying is new, or the
data collection process is challenging in some way.
2. Descriptive: In a descriptive composition, a researcher is solely interested in describing the
situation or case under their research study. It is a theory-based design method created by
gathering, analysing, and presenting collected data.
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3. Diagnostic research: In diagnostic design, the researcher is looking to evaluate the underlying
cause of a specific topic or phenomenon. This method helps one learn more about the factors
that create troublesome situations.
4. Experimental: Experimental research establishes a relationship between the cause and effect of
a situation. It is a causal research design where one observes the impact caused by the
independent variable on the dependent variable. For example, one monitors the influence of an
independent variable such as a price on a dependent variable such as customer satisfaction or
brand loyalty.

➢ Difference Between Research Methods Vs Research Methodology

➢ Measuring Scales of research:

There are four different scales of measurement. The data can be defined as being one of the four scales.
The four types of scales are:
• Nominal Scale
• Ordinal Scale
• Interval Scale
• Ratio Scale
Nominal Scale
A nominal scale is the 1st level of measurement scale in which the numbers serve as “tags” or “labels”
to classify or identify the objects. A nominal scale usually deals with the non-numeric variables or the
numbers that do not have any value.
Ordinal Scale
The ordinal scale is the 2nd level of measurement that reports the ordering and ranking of data without
establishing the degree of variation between them. Ordinal represents the “order.” Ordinal data is known
as qualitative data or categorical data. It can be grouped, named and also ranked.
Interval Scale
The interval scale is the 3rd level of measurement scale. It is defined as a quantitative measurement scale
in which the difference between the two variables is meaningful. In other words, the variables are
measured in an exact manner, not as in a relative way in which the presence of zero is arbitrary.
Ratio Scale
The ratio scale is the 4th level of measurement scale, which is quantitative. It is a type of variable
measurement scale. It allows researchers to compare the differences or intervals. The ratio scale has a
unique feature. It possesses the character of the origin or zero points.