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BUSINESS RESEARCH METHODS

‘You see things and you say “Why” but I dream

things that never were and I say “Why Not?”’

~ George Bernard Shaw

Causal research

Exploratory research

Pure research

Descriptive research

Fundamental research

Contents

1.Introduction to Research• Overview of Research Methodology• Meaning and definition of Research• Relevance and Significance of Research in business• Types of Research• Research problems• Evolution of Research2.Research Process• Introduction• Theoretical Framework• Research Hypotheses 3.Research Design• Introduction• Nature of and Classification of design• Developing an appropriate research design• Experimental Research Design

Contents

4. Randomized Design, Latin Square Design, Factorial Design• Basic principles, types of experimental design• Validity - external and internal 5. Scales and Measurements• Types of measurements• Scales and comparison between different scales• Characteristics – Validity• Different Methods of measurement• Developing Scales – Classification of scales• Rating Scales, Attitude Scales, Thurston scale• Likert scale, Semantic Differential scale• Types of Errors in measurement• Test of Reliability• Measures of Stability• Threats to Reliability

Contents6.Survey Research• Introduction and Purpose• Methods of data collection - Interviews, observation,

schedule, Questionnaire - other methods of data collection• Panel research, warranty cards, • Pantry audit and consumer panel• Mechanical Devices• Projective Techniques• Sociometry7.Overview of data sources and computer research• Data Type• Primary data- Sources of Primary data • Secondary data - Sources of Secondary data• Uses of Primary and secondary data, • Evaluation of primary and secondary data• Sampling Methods• Computer and internet application

Contents

8. Multivariate Analysis and use of statistical packages• Introduction• Nature and techniques of Multivariate Analysis8a. Analysis of dependence - Multiple Regression 8b. Discriminant Analysis8c. Analysis of interdependence - Factor analysis8d. Cluster analysis• Application of Major software packages (SPSS etc.)

9. Report writing• Types of reports• Planning and organizing a research project, • Harvard system of referencing• Bibliography, footnotes, checklist • Evaluation of report

Any trouble? Problem(s)? Explore Possibilities

What is the study about?

Why is the study being made?

Where will the study be carried out?

What time frame will the study cover?

Problem translated into scientific language

What will be the research design?

What data?

Where can the data be found?

What technique(s) of data collection?

Interpretation of results, report preparation and presentation

Implementation

How will the data be analysed? 1 1 3 SPSS

Value of Information?Cost of Information

• Research deals with the problems of life

• These problems are manifest in the social realm,

family and personal life, travel, leisure, purchases,

services rendered and demanded etc.

• NOT all problems can be solved by research

• Some problems can be solved without the aid of

formal research tools.

But our day to day life is sufficiently complex - that

thorough understanding of research methodology

facilitates and enhances reaching sound decisions.

Meaning and Definition of Research

The purpose of research is to search and develop knowledge.

In brief, research can be defined as

• a systematic investigation of a certain situation

• based on relevant and pertinent information and

principles

• procured from suitable sources – animate and / or

inanimate

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov

Declining Sales

EXAMPLES - Symptom(s) of Business Problem(s)

Productivity Gradually Increasing

MON TUE WED THU FRI SAT SUN

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??

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Survey is

• observational or descriptive• study in which • individuals are systematically examined or critically inspected• without detailed verification• for the absence or presence (or degree of presence) of characteristics of interest.

Survey is a component and form the basis for the majority of business research that is conducted.

• Empower people to create a better world• Uncovering and going beyond surface illusions• Uncover myths and hidden meanings

Relevance and Significance of Research in business

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• Guides the communication within and outside (current and potential customers) the walls of the organisation• Helps you identify opportunities in the marketplace • Minimizes the risk of doing business• Uncovers and identifies potential problems• Creates benchmarks and helps track progress• Helps evaluate success

Hallmarks

1. Purposiveness2. Rigor3. Testability4. Replicability5. Precision & Confidence6. Objectivity7. Generalizability8. Parsimony

Exercise Assess the hallmarks

The friendly telephone company Customers complaints were mounting, and the letters of

complaints detailing the problems they experienced with the residential telephone lines were constantly pouring in at the friendly telephone company. The company wanted to pinpoint the specific problems and take corrective action.

Researchers were called in, and they spoke to a number of customers, nothing the nature of the specific problems they faced. Because the problem had to be attended to very quickly, they developed a theoretical base, collected relevant detailed information from a sample of 100 customers, and analyzed the data. The results promised to be fairly accurate with at least 85 % chance of success in problem solving. The researchers will make recommendations to the company based on the results of data analysis.

Induction & Deduction

Hypothetico-deductive Method

• Observation : A sales manager experiences dissatisfaction among the customers, perhaps they are not pleased with the product

• Problem Identification• Theory formulation• Hypothesizing• Research design• Deduction

Customers

Salespersons

Types of Research

Exercise

• ABC Ltd. Saw trouble brewing. It was in distress experiencing computer problems. Turnover among programmers was unusually high and processing of a claims becomes a big nightmare. Clients were canceling their policies, claims for bypass surgery and such were sure way up, and premiums paid out relative to clients’ medical expenses, on a percentage basis, was close to 85%.

Basic or Fundamental Research

(Theoretical or Pure Research)

• Aims at expanding frontiers of knowledge, with NO necessary application to existing problems.

• Does NOT always involve pragmatic (realistic, practical) problems

• Answers more fundamental questions

• Usually does NOT answer queries dealing with immediate commercial potential

E.g., what people would look like in future.

Applied or Decisional Research

• Proceeds with a specific problem

• Specifies alternative solutions and their outcomes

• Prompted by commercial considerations

E.g., 1) A certain home appliance manufacturer wants to predict what consumers’ life-style would be five years hence, thus starting the planning and development cycle of the new products.

2) A Financial company is interested in identifying the profile of potential investors

Types of Research

Quantitative Research

• Assess market share

• Predict sales

• Allocation of budget

• Census

• Planning policies

Qualitative Research

• “Motivational Research”(in-depth interviews) finds as to WHY people do, think and behave in certain ways.

• Sentence completion tests, comprehension tests, other projective techniques.

• How different situations influence the thoughts, behaviour and actions of people

Conceptual Research

• Related to abstract ideas or theories

• Generally used by philosophers, thinkers and pioneers of knowledge

• Used to develop new ideas and concepts or to re-interpret existing ones

Empirical Research

• Relies on experience or observation alone, often without due regard to theory or system

• Comes up with conclusions which are capable of being verified by observation or experiment only

• 1) The researcher first and foremost MUST provide himself with a working hypothesis

2) He then works to get enough and appropriate information to prove or disprove this hypothesis, using research tools and techniques

Some other types of research

• One-time Research or Longitudinal Research

• Field Research or Laboratory Research or Simulation Research

• Clinical (Diagnostic) Research

~ follows case-study methods or in-depth approaches to reach basic causal relationships

~ uses very small samples and deep-probing data gathering devices

• Exploratory Research or Formalised Research

• Conclusion-oriented Research or Decision-oriented Research

Exploratory research

• when there are few or no earlier studies to which references can be made for information

• aim is to look for patterns, ideas or hypotheses rather than testing or confirming a hypothesis

• the focus is on gaining insights and familiarity with the subject area for more rigorous investigation later.

Descriptive Research

• description of state of affairs as it exists• researcher has NO control over the variables• reports what has happened or what is happening

Q&A’s

One hears the word research being mentioned by several groups such as research organizations, college and university professors, doctoral students, graduate assistants working for faculty, graduate and undergraduate students doing their term papers, research departments in the industry, newspaper reporters, journalists, lawyers, doctors, and many other professionals and non- professionals.

Which among the aforementioned groups are involved in the areas of basic or applied research? Why?

Dilemmas of Nisha Sabarwal Nisha Sabarwal, Chief production Manager, was on top of the world

just two years ago. In her non traditional job, she was cited to e a real backbone of the company, and a performance was in no small measure responsible fr the mergers the institution was contemplating with other well known global cooperations.

Of late though , the products of the company had to be recalled several times owing to safety concerns . Quality glitches and production delays also plagued the company.

To project a good image to customers, Sabarwal developed a very reassuring website and made sweeping changes in the manufacturing process to enhance the guilty of he product, minimize defects and enhance the efficiency of the workers. A year after all these changes the company continues to recall defective products!!!

Any doubts?

Thank you