BUSINESS RESEARCH METHODS

Module I: Nature and Scope of Research Methodology

Research is a careful investigation or enquiry, especially through search for new facts in any branch of knowledge.

Research methodology is the process used to collect information and data for the purpose of making business
decisions. The methodology may include publication research, interviews, surveys and other research techniques,
and could include both present and historical information.

An experiment is a research method for investigating cause and effect under highly controlled conditions.

A survey is a research method in which subjects respond to a series of statements or questions in a questionnaire or
an interview.

Concept is anything that is socially acceptable of object and phenomenon.

Construct is ide in one’s mind.

Variable is any object or attribute to which values can be designed.

Proposition is jist of my understanding.

Model is a representation of a system in order to have better understanding.

Types of Research
1. Exploratory Research
Exploratory research, as the name implies, intends merely to explore the research questions and does not intend to
offer final and conclusive solutions to existing problems. This type of research is usually conducted to study a
problem that has not been clearly defined yet.

Conducted in order to determine the nature of the problem, exploratory research is not intended to provide
conclusive evidence, but helps us to have a better understanding of the problem.

Exploratory research design does not aim to provide the final and conclusive answers to the research questions, but
merely explores the research topic with varying levels of depth

Advantages of Exploratory Research

 Flexibility and adaptability to change
 Exploratory research is effective in laying the groundwork that will lead to future studies.
 Exploratory studies can potentially save time and other resources by determining at the earlier stages the types
of research that are worth pursuing

Disadvantages of Exploratory Research

 Exploratory studies generate qualitative information and interpretation of such type of information is subject to
bias
 These types of studies usually make use of a modest number of samples that may not adequately represent the
target population. Accordingly, findings of exploratory research cannot be generalized to a wider population.
 Findings of such type of studies are not usually useful in decision making in a practical level.
2. Conclusive Research
Conclusive research design, as the name implies, is applied to generate findings that are practically useful in reaching
conclusions or decision-making. In this type of studies research objectives and data requirements need to be clearly
defined. Findings of conclusive studies usually have specific uses. Conclusive research design provides a way to verify
and quantify findings of exploratory studies.

Conclusive research design usually involves the application of quantitative methods of data collection and data
analysis. Moreover, conclusive studies tend to be deductive in nature and research objectives in these types of
studies are achieved via testing hypotheses.

Conclusive research design can be divided into two categories:

1. Causal Research (Explanatory research)

Causal research, also known as explanatory research is conducted in order to identify the extent and nature of
cause-and-effect relationships. Causal research can be conducted in order to assess impacts of specific changes on
existing norms, various processes etc.

2. Descriptive Research
Descriptive research can be explained as a statement of affairs as they are at present with the researcher having no
control over variable.

Descriptive studies may be characterised as simply the attempt to determine, describe or identify what is, while
analytical research attempts to establish why it is that way or how it came to be.

In its essence, descriptive studies are used to describe various aspects of the phenomenon. In its popular format,
descriptive research is used to describe characteristics and/or behaviour of sample population.

An important characteristic of descriptive research relates to the fact that while descriptive research can employ a
number of variables, only one variable is required to conduct a descriptive study. Three main purposes of descriptive
studies can be explained as describing, explaining and validating research findings.

Difference between Exploratory and Conclusive Research:

Exploratory research Conclusive research

Structure Loosely structured in design Well structured and systematic in design

Have a formal and definitive

methodology that needs to be followed
Methodology Are flexible and investigative in methodology and tested

Most conclusive researches are carried

Hypotheses Do not involve testing of hypotheses out to test the formulated hypotheses

Findings might be topic specific and might not have Findings are significant as they have a
Findings much relevance outside of researcher’s domain theoretical or applied implication

Research Process
A typical research process comprises the following stages:

1. To define the problem statement

Researchers are employed by a company for a problem:
- Analysing past records of the company
- Taking expert opinion if required
- Conducting small qualitative study
 - Understanding environmental context of the problem
- Defining problem

Problem Definition involves stating the Management Decision Problem and identifying the Marketing Research
Problem
Management Decision Problem (MDP)
1. Asks what the decision maker needs to do
2. Action Oriented
3. Focuses on symptoms
4. Questions of change in research
5. For decision maker
6. Alternative the management takes
Ex. Decision regarding price change
Marketing Research Problem (MRP)
1. Asks what information is needed and how it should
be obtained
2. Information Oriented
3. Focuses on underlying causes
4. Researcher does a marketing research on MDP
questions
5. For researcher maker
6. Researching and understanding current consumer
perception
Ex. Studing price elasticity of demand

2. Approach to solve problems

We have to have a theoretical framework about the variables i.e. problem statement.
Then choose a model: Verbal, Graphical, Mathematical.
Formulate research questions: broad topics in which we are going to frame questionnaire.
Specification of information is needed
- What type of information is required to solve a problem?
- What is the source of information?
- Whether we require primary or secondary resources?

3. Research Design
The blueprint or framework for carrying out the research.
There are 2 types of Research design:
1. Exploratory: Only to gain understanding about the problem.
2. Conclusive: Applied to generate findings that are practically useful in reaching conclusions. There is always
hypothesis testing done to prove data is correct or not.
 Descriptive(Survey): Describing the phenomenon under study.
 Casual(Experiment): Trying to prove a cause and effect relationship.
Conclusive
Conduct Hypothesis
Collect data research
survey Testing
design

4. Data collection.
Data collection method(s) need to be selected on the basis of critically analyzing advantages and disadvantages
associated with several alternative data collection methods. It is done with the help of fieldwork.

5. Filtering Data for analysis.

Data is filtered and only relevant data is kept. It is done for the ease of data analysis.

6. Data analysis.
Analysis of data plays an important role in the achievement of research aim and objectives. Data analysis methods
vary between secondary and primary studies, as well as, between qualitative and quantitative studies.

7. Reaching conclusions.
Conclusions relate to the level of achievement of research aims and objectives. Conclusions also need to
cover research limitations and suggestions for future research.
Research Approach
Research approach can be divided into three types:

1. Deductive Research Approach

If you have formulated a set of hypotheses that need to be confirmed or rejected during the research process you
would be following a deductive approach. In deductive approach, the effects are assessed by developing hypotheses
that are tested during the research process.
Deductive approach follows the following path:

2. Inductive Research Approach

Alternatively, inductive approach does not involve formulation of hypotheses. It starts with research questions and
aims and objectives that need to be achieved during the research process.
Inductive studies follow the route below:

Deduction Induction

In a deductive inference, In an inductive inference,

when the premises are known premises are used
Logic true, the conclusion must also be true to generate untested conclusions

Generalizability Generalising from the general to the specific Generalising from the specific to the general

Data collection is used to

Data collection is used to explore a phenomenon,
evaluate propositions or identify themes and
Use of data hypotheses related to an existing theory patterns and create a conceptual framework

Theory Theory falsification or verification Theory generation and building

The application of inductive approach is associated with qualitative methods of data collection and data analysis,
whereas deductive approach is perceived to be related to quantitative methods.

The following table illustrates such a classification from a broad perspective:

Concepts associated with quantitative Concepts associated with qualitative
methods methods

Deduction Induction
Objectivity Subjectivity
Type of reasoning Causation Meaning

Pre-specified Open-ended
Type of question Outcome-oriented Process-oriented

Numerical estimation Narrative description

Type of analysis Statistical inference Constant comparison
Research Problem Identification and Formulation
It refers to some difficulty which a researcher experiences in the context of either a theoretically or practical
situation and wants to obtain a solution for the same.

Identification of a Research Problem

Identification is a sense of consciousness and awareness about social phenomena.
• Researcher Knowledge
• Keen observation
• Careful Investigation
• Cause and effect relationships

Formulation of the Research Problem

Steps involved in defining a problem are:
• Statement of the problem in a general way
• Understanding the nature of the problem
• Surveying the available literature
• Developing the idea through discussion
• Rephrasing the research problem into working proposition

Research Design
Research design is a broad framework that states the total pattern of conducting research project. It specifies
objectives, data collection and analysis methods, time, costs, responsibility, probable outcomes, and actions.
The research design is similar to broad plan or model that states how the entire research project would be
conducted.

Types of Research Designs

1. Exploratory Research Design:

This design is followed to discover ideas and insights to generate possible explanations. It helps in exploring the
problem or situation. It is, particularly, emphasized to break a broad vague problem statement into smaller pieces or
sub-problem statements that help forming specific hypothesis.

The hypothesis is an abstract statement about the relationship between two or more variables.
Naturally, in initial state of the study, we lack sufficient understanding about problem to formulate a specific
hypothesis. Similarly, we have several competitive explanations of marketing phenomenon. Exploratory research
design is used to establish priorities among those competitive explanations.

The exploratory research design is used to increase familiarity of the analyst with problem under investigation. This
is particularly true when researcher is new in area, or when problem is of different type.

This design is followed to realize following purposes:

1. Clarifying concepts and defining problem
2. Formulating problem for more precise investigation
3. Increasing researcher’s familiarity with problem
4. Developing hypotheses
5. Establishing priorities for further investigation

Exploratory research design is characterized by flexibility to gain insights and develop hypotheses. It does not follow
a planned questionnaire or sampling. It is based on literature survey, experimental survey, and analysis of selected
cases. Unstructured interviews are used to offer respondents a great deal of freedom. No research project is purely
and solely based on this design. It is used as complementary to descriptive design and causal design.

2. Descriptive Research Design:

Descriptive research design is typically concerned with describing problem and its solution. It is more specific and
purposive study. Before rigorous attempts are made for descriptive study, the well-defined problem must be on
hand. Descriptive study rests on one or more hypotheses.

Descriptive research requires clear specification of who, why, what, when, where, and how of the research.
Descriptive design is directed to answer these problems.

3. Experimental Research Design:

Experimental research design deals with determining cause and effect relationship. It is typically in form of
experiment.
In experimental research design, attempt is made to measure impact of manipulation on independent variables (like
price, products, advertising and selling efforts or marketing strategies in general) on dependent variables (like sales
volume, profits, and brand image and brand loyalty).
It has more practical value in resolving marketing problems. We can set and test hypotheses by conducting
experiments.