Unit 1

Role of Business Research

What is Research ?
 What is Research ?
Research means finding answers to the
questions.
It is a systematic search for truth.
Through research, new and original

information, ideas about the world we live

in, are obtained.
Research is search for knowledge.
Research is defined as a scientific and

systematic search for information on a

specific topic.
 Definition of Research
…….as the search for knowledge, or as
any systematic investigation, with an
open mind, to establish novel facts,
solve new or existing problems, prove
new ideas, or develop new theories.
 Objective of Research
To gain familiarity with a phenomenon or
to achieve new insights into it.

To portray accurately the characteristics of

a individual, situation or a group

To test a hypothesis of a casual relationship

between the variables.
 Business Research Defined
........defined as the systematic and
objective process of gathering,
recording and analysing data for
aid in making business decisions.
 Business Research contd…

A process of determining, acquiring,

analyzing, synthesizing, and
disseminating relevant business data,
information, and insights to decision
makers in ways that mobilize the
organization to take appropriate
business actions that, in turn,
maximize business performance.
Scope of Business Research

To fulfill the need for knowledge of the

organization, the market ,economy or other area of
uncertainty.
Development and implementation of strategies

require information
Intuition without research can lead to
disappointment
Business Research helps decision makers shift from

intuitive information to systematic investigation.

Characteristics of Business
Research
Is aimed at answering a problem
Demands accurate observation and

description
Requires collection of primary data and

involves secondary data for a particular

purpose
Requires expertise of the researcher
Carefully recorded and reported.
Business Research Types

Basic Research

Applied Research
 Basic Research
Research that is intended to expand the
boundaries of knowledge itself or to verify
the acceptability of a given theory.
Research done to make contribution to
existing knowledge
Attempts to expand the limits of
knowledge.
Not directly involved in the solution to a

pragmatic problem.
 Basic Research
Generally can not be implemented
immediately.
Conducted to verify the acceptability of a

given theory or to discuss more about a

concept.
 Basic Research Example
Are members of highly cohesive work
groups are more satisfied than
members of less cohesive work groups?

 GE generates knowledge concerning

the different applications of electrical
energy –('we bring good things to life‘)
‘Imagination at work’.
 Applied Research
Research undertaken to answer questions
about specific problem or to make decisions
about a particular course of action
Conducted when a decision must be made

about a specific real-life problem

Research done with the intention of

applying the results of the findings to solve a

specific problem currently being
experienced.
Managerial value of Business
Research
Reduces uncertainty by providing
information that improves the decision
making process.
Supports managers with pertinent

information
 Determining When to Conduct
Business Research
Time constraints

Availability of data

Nature of the decision

Benefits versus costs

 Determining When to Conduct
Business Research
Availability of Data Benefits vs.
Time Constraints Nature of the Decision Costs
Is the infor- Does the value
Is sufficient time Is the decision Conducting
Yes mation already Yes Yes of the research Yes
available before of considerable
a managerial
on hand
strategic
information Business
inadequate exceed the cost
decision
for making
or tactical
of conducting Research
must be made? importance?
the decision? research?

No No No No

Do Not Conduct Business Research

Value Should Exceed Estimated Costs - Potential
Value of a Business Research Effort Should Exceed
Its Estimated Costs

Costs
Value •Research
•Increased certainty expenditures
•Increased likelihood •Delay of business
of a correct decision decision
•Improved business •Possible
performance and erroneous
resulting higher research results
profits
Characteristics of Good
Research
Clearly defined purpose
Detailed research process
Thoroughly planned design
High ethical standards
Limitations addressed
Adequate analysis
Unambiguous presentation
Conclusions justified
 Language of Research
What will be the department’s
reaction to the new flexible work
schedule?
Why did the stock market price surge
higher when all normal indicators
suggested it would go down?
Two types of definitions:

Dictionary definition
Operational definition
Operational definition- stated in terms of specific
criteria for testing or measurement.

Must refer to empirical standards ( able to count, measure

or gather information)

The object to be measured is physical( can of soup) or

highly abstract(motivation),must specify the characteristics
and how they are measured.

Specifications and procedures need to be so clear that any

competent person using them would classify the object in
the same way.

Provides an understanding and measurement

of concepts.
Variables:
Variable is a symbol of an event ,act ,
characteristic or attributes that can be
measured
Depending on the variable property, a
numerical value is assigned
Variables – dichotomous – can have two
values
Variable can be continuous or discrete
Types of Variables

Male/Female
Dichotomous
Dichotomous
Male/Female
Employed/
Employed/Unemployed
Unemployed

Ethnic
Ethnicbackground
background
Discrete
Discrete Educational
Educationallevel
level
Religious
Religiousaffiliation
affiliation

Income
Income
Temperature
Continuous
Continuous Temperature
Age
Age
Independent(IV) and Dependent variables(DV):
To define relationship among variables.
To study the dependency relationship in research
Dependency relationship means one or more
variables dependent on other set of variables.
Variable which depends on one or more variable
called as DV.
Independent(IV) and Dependent variables(DV):
IV is considered to be the presumed cause for DV
DV as predicted or criterion or effect
Synonyms for IVs and DVs

IV DV
Predictor Criterion
Presumed cause Presumed effect
Stimulus Response
Predicted from…. Predicted to….
Antecedent Consequence

Manipulated Measured outcome

Independent an Dependent variable:

Is Price dependent on advertisement

expenses
Sales person’s ethical standards influence
his/her performance
Moderating or Interaction variable:

A moderating or interaction variable is a

second IV that is included because it has a
significant contributory or contingent effect
on the original IV – DV relationship.
Extraneous variable(EV):
Role of family income of students’ in their
academic performance
Ev is one that is outside or external to the
situation under study
Its impact on DV will be beyond the scope
of the study
The value of Evs can be ‘controlled’
Extraneous variable(EV):
Infinite number of variables exists that
affect a given relationship.
Some can be treated as IVs or MVs
Infinite number of variables can not be
considered .
Most can be ignored because their impact
has little effect or not relevant to the core
problem.
To check whether the results are
influenced by them, include them as ‘Control
variable ‘(CVs)
Ex: Weather condition
Intervening variable(IVV):
IVV is a conceptual mechanism through
which IV and MV might affect DV.
IVV can be defined as a factor that
theoretically affects the DV but cannot be
observed or has not been measured, its
effect must be inferred from the effects of
the IV and MV on the observed
phenomenon.
Ex: Job satisfaction
Extraneous variable(EV):
 EVs can also be ‘confounding variables’.

Ex: Kind of work- time spent in attending a

meeting
Research Process and
Design: An overview
 Research Process

Research process consist of series of action or steps

necessary to carry out research .
These activities overlap continuously rather than


following a stickily prescribed manner

Steps involved in the research process are not


mutually exclusive; nor they are separate.

 Research Process
Formulating the research problem
Extensive literature survey
Development of working hypotheses
 Preparing the research design
Determining sample design
Collecting the data
Execution of the project
Analysis of data
Hypothesis testing
Generalizations and interpretation and
Preparation of the report or the thesis
Step-1
Formulating a Research
Problem
Problem!

1. A question raised for inquiry, consideration or

solution.
2. A complex unsettled question.
Formulating the Research Problem
Research Problem

A research problem refers to some difficulty that a

researcher experiences in the context of either a
theoretical or practical situation and wants to
obtain a solution for the same.
 Components of a Research
Problem
There must be an individual or a group which has
some difficulty or the problem.
There must be some objective(s) to be attained.
There must be alternative means or courses of
action for obtaining the objective.
There must remain some doubt in the mind of a
researcher with regard to the selection of
alternatives.
There must be some environment(s) to which the
difficulty pertains.
A problem well defined is problem half solved
Careful attention to problem definition allows a
researcher to set the proper objectives.
If the purpose of the research is clear, chances of
collecting the necessary and relevant information is
more.
Managers often concentrate on getting the right
answer than asking the right question.
If data is collected before clear definition of
problem, data will not help solve the problem.
Factors to consider in Selecting a
Research Problem

► The topic should be important (significant)

► Avoid a subject that has been overdone for it
will be difficult to throw any new light in such a
case.
More Factors to Consider…

► Consider the feasibility of the project.

» How much time do you have available
» How difficult is it. Are data available?
» How much will it cost?
More Factors…

► Controversial subjects should be avoided by an average

researcher.
Factors to Consider in Selecting a Research Problem

► You should have a personal interest in the topic.

 By the time you are done, you may really be tired of

the topic.
More Factors to Consider…

► The “newness” of the topic may hold you interest

longer, however there is some value in repeating
previous research.
 Management Problem v/s.
Research Problem
Management problem should focus on a decision
which should be in managements term

E.g.: 1.Can we identify another gap in the market

2.How can we increase productivity?
3.How can we attract better qualified IT staff?
Research problem – management problem , when
translated becomes research problem.

E.g.: 1.Why don’t our job advertisements attract well

qualified IT applications?
2.Does expansion into international operations
enhance the firms image.
Management Problem v/s Research Problem

Management Problem Research

Problems
• Focus on symptoms
• Action oriented • Focus on causes
• Data oriented
 MANAGEMENT PROBLEM RESEARCH PROBLEM
What should be done to increase the
l
l
What is the awareness and purchase
customer base of organic products in intention of health conscious consumers
domestic market? for organic products ?

How to reduce turnover rates in the

l What is the impact of shift duties on work
l

BPO sector? exhaustion and turnover intentions of the

BPO employees?
Can the housing and real estate
l

growth be accelerated? What is the current investment in real

l

estate and housing? Can the demand in the

sector be forecasted for the next six
l
Should the company continue with its months?
existing security services vendor or
look at an alternative?
l
What is the satisfaction level of the
company with existing vendor? Are there
any gaps?
Literature Review
It is an extensive survey of all
available past studies relevant to the
field of investigation.

It gives us knowledge about what

others have found out in the related
field of study and how they have done
so.
 PURPOSE OF REVIEW

To gain a background knowledge of the research topic.

To learn from other researchers mistakes and avoid
making the same ones.
To identify the concepts relating to it, potential
relationships between them and to formulate researchable
hypothesis.
To identify appropriate methodology, research design,
methods of measuring concepts and techniques of analysis.
To identify data sources used by other researchers.
To learn how others structured their reports.
Sources Of Literature
Books and Journals
Electronic Databases [Ebscohost, ABI/Inform
(proquest.com), Social Sciences Citation
Index(SSCI)]
Bibliographic Databases
Abstract Databases
Full-Text Databases
Govt. and Industry Reports
Internet
Research Dissertations / Thesis
Points to be kept in mind while
reviewing literature
Read relevant literature.
Refer original works.
Read with comprehension.
Read in time.
Index the literature.
3.Development of working
hypotheses

Hypothesis is tentative assumption made in

order to draw out and test its logical or
empirical consequences.
 Hypothesis
•Hypothesis is a tentative statement about
something, the validity of which is usually
unknown.
•Hypothesis is a declarative statement about
the relationship between two or more
variables.
•Can be proven or disproven by valid and
reliable data
•Is a possible answer to a question
•Educated guess about the answer to a
question framed in a particular study
 4.Preparing the research design
Is the blueprint for fulfilling objectives and answering
questions .
Defines the conceptual structure within which research is
conducted.
Facilitates research to yield maximum information.
The function of research design is to collect the relevant
information with minimum expenditure, effort, time and money.
5.Determining the sample design
All the items under consideration in any field of
inquiry constitutes a universe or population
Complete enumeration of all items in the
population is known as census.
Selection of only a few items from the universe is

called as sample
Researcher must decide the way of selecting a
sample – sample design
Sample design is a definite plan
determined before any data are actually
collected for obtaining a sample from a
given population.
Samples can be probability or Non
probability samples
Probability sample – each element has a
known probability of being included in the
sample
Non probability sample - do not allow
researcher to determine this probability
 6.Collecting the data
Primary data

Secondary data

Primary data can be collected in one or more

ways-
By observation
Through personal interview
Telephone interview
Mailing of questionnaire
Through schedules
7.Execution of the project
If Execution of the project proceeds
on correct lines, the data to be collected
would be adequate and dependable.
Data collected has to be according to
pre-defined standard of accuracy
Respondents non response to be
controlled
8.Analysis of Data
Analysis of data requires some
closely related operations like editing,
coding, tabulation and then drawing
statistical inferences.
9.Hypothesis testing
Checking whether the data collected supports the
hypotheses or they happen to be contrary.
Hypotheses can be tested using one or more tests
like t test, F test, Chi square test etc.
10.Generalization and
interpretation
If a hypotheses is tested ,it may be
possible for the researcher to arrive at
generalization
If the researcher had no hypotheses to
start with ,some pre-defined theories
need to be referred to explain the
findings of the study.
 11.Preparation of the report
The layout of the report should be as
follows.
a)preliminary stage
b)main text
c)end matter
Preliminary stage – Carry title,
acknowledgement, table of content, list of
tables and figures.
Main text- Introduction, Summary of
findings, Conclusion
End matter- Appendices
Research Design: Definition
•A research design is a framework or blueprint for
conducting the research project.
•Research design is the plan and structure of investigation
as to obtain answers to research questions.
•Provides a framework for the collection and analysis of
data.
•It details the procedures necessary for obtaining the
information needed to structure or solve research
problems.
Research design addresses the following questions
1.Why is the study being conducted?
2.What is the study all about?
3.When will the study carried out?
4.Where will the study be conducted?
5.What is the kind of data required?
6.Where is the required data available.
7.What is the technique of collecting data?
8.Method of data analysis adopted?
9.Method of sampling?
Components of a Research Design
•Design the exploratory, descriptive, and/or causal
phases of the research .
•Define the information needed .
•Specify the measurement and scaling procedures.
•Construct and pretest a questionnaire (interviewing
form) or an appropriate form for data collection.
•Specify the sampling process and sample size.
•Develop a plan of data analysis.
Need for Research Design
•Facilitates smooth sailing of various
research operations yielding maximal
information with minimal expenditure of
effort, time and money
•Stands for advance planning of he
methods to be adopted for collecting data
and techniques to be used in their analysis.
•Constitutes as research foundation.
Characteristics of a research
Design
•Reliability-constant result
•Validity- accurate and correct results
•Objectivity- no inclination(free from bias)
•Generalisation
A Classification of Research Designs
Research Design

Exploratory Conclusive
Research Design Research Design

Descriptive Causal
Research Research

Cross-Sectional Longitudinal
Design Design

Single Cross- Multiple Cross-

Sectional Design Sectional Design
Exploratory Research
•Exploratory research is to explore and obtain clarity about the
problem situation.
•Meaningful in any situation where the researcher does not
have enough understanding to proceed with the research work.
•Exploratory studies are generally carried out-
1.When not much is known about the situation(area of
investigation is new or vague)
2.When we want to solve a problem but no information is
available as to how same or similar problem was solved in
past.
Is flexible in its approach and involves qualitative
approach.
Rarely involves structured questionnaires ,large
samples and probability sampling plans.
Doing a study for the first time in a particular
organization does not make research
exploratory ,but only when knowledge is scant
and deeper understanding is sought makes it
exploratory.
Exploratory Research isl conducted for the
following purposes -
Formulate a problem or define a problem
more precisely
Identify alternative courses of action
Develop hypotheses
Isolate key variables and relationships for
further examination
Gain insights for developing an approach to
the problem
Establish priorities for further research
Example
“Quality of service is declining and we don’t know why.”

“Would people be interested in our new product idea?”

“How important is business process reengineering as a strategy?”

Methods/Techniques of Exploratory
Research
Quantitative and Qualitative
Relies more on qualitative technique
Approaches
1)Secondary data analysis
2)Experience surveys
3)Case Studies
4)Pilot studies- Focus group, depth
interviews and projective techniques
 Conclusive Research
When researcher clearly has the
information
Objectives are clearly defined
Test specific hypothesis and examine
specific relationships.
Research design is more formal and
structured.
Based on large sample
Data obtained are subjected to quantitative
analysis.
Eg: Training increases productivity
 Exploratory & Conclusive Research Differences
Exploratory Conclusive
To provide insights and
understanding. To test specific hypotheses and
Objective: examine relationships.
Information needed is defined only
loosely. Research process is flexible Information needed is clearly
Character-
and unstructured. Sample is small defined. Research process is formal
istics:
and non-representative. Analysis of and structured. Sample is large and
primary data is qualitative. representative. Data analysis is
quantitative.
Tentative.

Generally followed by further Conclusive.

Findings exploratory or conclusive research.
/Results: Findings used as input into decision
making.
Outcome:
 Descriptive Research
Describe something- Market characteristics
or functions
To know the characteristics of this class
to design pedagogy
Preplanned and structured
Large sample
Requires a clear specification of who,
what, when, where, why and way of the
research.
Descriptive research is conducted for the
reasons-
To describe the characteristics of relevant groups,
such as consumers, salespeople, organizations, or
market areas(describing the profile of frequent
shoppers) .
To estimate the percentage of units in a specified
population exhibiting a certain behaviour(percentage
of frequent shoppers).
To determine the perceptions of product
characteristics( how do households perceive the
various department stores in terms of factors of the
choice criteria).
To make specific predictions(what will be the sales
of MK Ahmed in Bangalore south area).
 A Comparison of Basic Research Designs
Exploratory Descriptive Causal
Objective: Discovery of ideas and Describe market Determine cause
insights characteristics or and effect
functions relationships
Characteristics: Flexible, versatile Marked by the prior Manipulation of
formulation of specific one or more
Often the front end of hypotheses independent
total research design variables
Preplanned and
Expert surveys structured design Control of other
Pilot surveys mediating variables
Secondary data Secondary data
Methods: Qualitative research Surveys Experiments
Panels,Observation and
other data
Example
What have been the trends in organizational
downsizing over the past ten years?
What is the average age at which children learn to
walk?
 Cross-sectional Designs
Involves collection of information from any given
sample of population elements only once.
Most frequently used descriptive design
Involves slice of the population
In single cross-sectional designs(sample survey
research design), there is only one sample of respondents
and information is obtained from this sample only once.

In multiple cross-sectional designs, there are two or

more samples of respondents, and information from each
sample is obtained only once. Often, information from
different samples is obtained at different times.
Cohart analysis is a type of multiple cross
sectional design .
Consists of series of surveys conducted at
appropriate time intervals.
A cohart is a group of respondents who experience
the same event within same interval of time.
Eg: 1)considering age cohart of people between 8 – 19 years to
study soft drink consumption pattern.
Study was conducted every 10 years for 30 years.
 Longitudinal Designs
A fixed sample (or samples) of population
elements is measured repeatedly on the
same variables.
A longitudinal design differs from a cross-
sectional design is that the sample or
samples remain the same over time.
A panel consists of a sample of
respondents who have agreed to provide
information at specified intervals.
Methods of Descriptive Research
Secondary data studies
Surveys- a research technique in which
information is gathered from a sample of
people using questionnaire.
Panels
Observation techniques-record what is
observed
eg: 'people meter '- is a machine attached
to TV sets to record the programs being
watched by various member of a household.
Causal(experimental /hypothesis
testing) Research
 Causal is used to obtain cause and effect
relationships
 Requires a planned and structured design
Causal research is appropriate for the following
purposes:
1)To understand which variable are the
cause(independent variable) and which variables
are the effect(dependent variable)
2)To determine the nature of the relationship
between the causal variables and effect to be
predicted.
Method of Causal Research
Experimental design
Experiment - The process of manipulating one or more
independent variables and measuring their effect on one or
more dependent variables, while controlling for the
extraneous variables.
Errors in Research
 3-88
Tree Diagram of Total Survey Error
Total error

Random sampling error Systematic error (bias)

Administrative error Respondent error

Non response bias Response bias

Data processing Sample selection Interviewer Interviewer
error error error cheating
Deliberate Unconscious
falsification misrepresentation

Acquiescence bias Extremity bias Interviewer bias Auspices bias Social desirability bias
 3-89

Random Sampling Error

 A statistical fluctuation that occurs

because of change variation in the
elements selected for the sample
 3-90

Systematic Error

 Systematic error results from some

imperfect aspect of the research design
or from a mistake in the execution of the
research
 3-91

Tree Diagram of Total Survey Error

Administrative
error

Systematic
error (bias)

Respondent
error
 3-92

Tree Diagram of Total Survey Error

Non response
error

Respondent
error

Response
bias
 3-93

Respondent Error

 A classification of sample bias resulting

from some respondent action or
inaction
 Nonresponse bias

 Response bias
 3-94

Non response Error

 Non respondents - people who refuse to
cooperate
 Not-at-homes
 3-95

Tree Diagram of Total Survey Error

Deliberate
falsification
Response
bias

Unconscious
misrepresentation
 3-96

Response Bias

 A bias that occurs when

respondents tend to answer
questions with a certain slant that
consciously or unconsciously
misrepresents the truth
 3-97

Tree Diagram of Total Survey Error

Acquiescence bias

Extremity bias

Interviewer bias

Auspices bias

Social desirability bias

 3-98

Acquiescence Bias

 A category of response bias that results

because some individuals tend to agree
with all questions or to concur with a
particular position.
 3-99

Extremity Bias

 A category of response bias that results

because response styles vary from
person to person; some individuals tend
to use extremes when responding to
questions.
 3-100

Interviewer Bias
 A response bias that occurs because the
presence of the interviewer influences
answers.
 3-101

Auspices Bias

 Bias in the responses of subjects

caused by the respondents being
influenced by the organization
conducting the study.
 3-102

Social Desirability Bias

 Bias in responses caused by

respondents’ desire, either conscious or
unconscious, to gain prestige or appear
in a different social role.
 3-103

Tree Diagram of Total Survey Error

Administrative
error

Systematic
error (bias)

Respondent
error
 3-104

Administrative Error

 Improper administration of the research

task
 Blunders
 Confusion
 Neglect

 Omission
 3-105

Tree Diagram of Total Survey Error

Data processing error

Sample selection error

Interviewer error

Interviewer cheating
 3-106

Administrative Error
 Interviewer cheating - filling in fake
answers or falsifying interviewers
 Data processing error - incorrect data
entry, computer programming, or other
procedural errors during the analysis
stage.
 Sample selection error -improper
sample design or sampling procedure
execution.
 Interviewer error - field mistakes