Business Research Methods

Research Process

Definition
Business research process involves a series of steps for conducting BR starting from identification of problem/opportunity to preparation of research report

Stages of the Research Process

Problem Discovery and Definition Discovery and Definition

Research Design

and so on Conclusions and Report

Sampling Data Processing and Analysis Data Gathering

Stages In The Research Process

Problem Discovery and Problem Definition Planning Research Design Selecting Research Method Sampling Data Gathering Data Processing and Analysis Conclusions And Report

Problem Identification & Definition

Problem identification
Identifying problem is the first step Word problem is used in a broader context - to define an opportunity (chance to expand operations in a foreign country ) -to evaluate a programme (to evaluate professional development programme for employees) -to clarify a problem ( declining profits) Identification is a statement in general terms .What is to be investigated is not clear Only symptoms are apparent . profits may be declining but exact nature of problem may not be known

Problem definition
Indication of a specific business decision area that will be clarified by answering some research questions A problem well defined is a problem half solved A well defined problem -gives proper direction for carrying out investigations & to set research objectives -helps in effective utilisation of resources

Problem definition
Some research problems can be clearly defined but some need to be explored further through exploratory research Conducting research in news paper reading habit can be clearly defined Problem of declining sales needs to be explored further

Problem definition
A company producing cell phone wave protectors may realise that its new product is not selling but it may not know the reason Although problem is identified in a broader perspective it needs to be defined specifically in terms of what is to be researched

Exploratory research
It aims at understanding the topic being researched It is undertaken in the initial stages of research process. It is an informal process that helps defining the identified problem. It involves -Evaluating existing studies -Discussing problem with experts - Analysing the situation

Exploratory research
Tools of exploratory research include - Collection & Analysis of Secondary data (Data that have been previously collected for some project other than at handReview of literature) -pilot study(A small scale exploratory research technique that uses sampling but does not apply rigorous standards)

Preparing Statement of Research Objectives After identifying & clarifying problem with or without exploratory research ,a formal statement of the research objectives is to be made. Objectives have to be developed by analysing purpose of research thoroughly Objectives must be brief & specific It is preferable to limit the number of objectives

Preparing Statement of Research Objectives Research objectives comprise research questions and the hypothesis - If the objective is to study perception of the customer a typical research question could be Do customers perceive radiations from cell phones hazardous to health ? - Research questions such as To what extent the new compensation programme achieve its goal? are used in evaluation research

Developing a hypothesis
It is a statement based on some presumptions that can be tested through empirical data It makes a research question clearer and ensures that all relevant aspects of research are included in the research design The best expression of a research objective is a well formed testable research hypothesis - Male dominated unions discriminate against women

Developing a hypothesis
-If the research question is why are sales of refrigerators going up during winter ? -the hypothesis could be Sales of refrigerators are going up during winter due to off season discounts - So question on off season discount can be included in the questionnaire during research design phase Once hypothesis is developed research design can be selected

Developing a hypothesis
However a hypothesis cannot be developed for every research question -If a company wants to know whether its sales would increase then a hypothesis Sales will increase v/s Sales will not increasewill add no value to research question as they are almost the same as the research question itself

Planning A research Design

Planning the research design

A research design is a master plan specifying the methods and procedures for collecting and analysing the needed information It Should indicate - Objectives -Research method (Survey,Experiment etc) -Sampling Methodology -Time Schedule & Cost of research

Selecting Research Methods

Five basic methods of conducting a research study -Surveys -Experiments -Secondary Data studies -Qualitative Techniques -Observation techniques

 Research Technique used to gather primary data from a sample of respondents by employing a questionnaire Surveys are conducted by -meeting respondents in person - contacting them through telephone - internet/ e-mail Each has its own advantages /disadvantages Any of these methods could be adopted depending on their requirements

Surveys

Experiments
In BR experiments are conducted to study cause effect relationship It helps investigation of changes in one variable (productivity) while manipulating one or two other variables (monetary rewards) Test marketing conducted by companies to test viability of their new product is a form of business experimentation

Secondary data studies

It is concerned with analysis of already existing data that is related to research topic in question Sales of a product may be related to disposable personal income data on which can be obtained from government sources and a mathematical model could be fitted Cell phone wave protector research secondary data on TC set up ,mobile networking ,waves used in wireless telephony& its effects may be required

Qualitative Techniques
Qualitative methods are used to probe the minds of respondents to collect factual data Used in brainstorming sessions to generate new ideas It involves group dynamics which gives responses not possible in one-to-one interview Depth Interviews, FGDs, Projective techniques Require behavioural specialists to analyse findings

Observation technique
It is a process where the respondents are merely observed without any interruption by the observer Shopping pattern of customers in supermarket assessed by observers The number of automobiles that pass the proposed site for a petrol pump Attitudes, opinions, motivations cannot be recorded by this technique

Selecting Research Methods

There is no one best research method for all situations Selection of most appropriate research method develops with experience It also depends on type of research(Exp/Des/Cau) In chicago museum the most popular exhibit was found out by keeping track of how often floor tiles in front of various exhibits need to be replaced- an unobtrusive observational technique. It is not necessary to always use surveys

SAMPLING

Sampling
Sampling is generally a part of research design but is considered separately in a research process

Sampling
The Process of Obtaining Information About a Whole by Examining Only a Part Whole = Population Part = Sample Everyday Life Concept Example: Physician makes diagnosis on the basis of the findings of a small sample of blood Auditors use sampling to draw conclusions about large volumes of transactions Market researchers use sample of customers to determine market potential Sample Inspection is done to accept or reject a lot ?

Varde Varde

28

Why Sampling
Population too large to be studied in full Sampling is Cheaper & Quicker as compared to Census Necessary in destructive testing Census not feasible-testing of medicines

Purpose of Sampling
To Estimate Value of a Population Parameter (Mean, Variance, Proportions etc.) on the basis of Value of the Corresponding Sample Statistic. More Representative the Sample, More Accurate is the Estimate. Bigger the Sample, Better the Estimate. Bigger the Sample, Greater is Cost & Time
Varde Varde 30

Sample Size
How Big Should Be My Sample? Sample Size Depends Upon the Sampling Technique Selected for the Purpose. Therefore, First We Must Know About the Various Sampling Techniques.

Varde Varde

31

Sampling Techniques
A Statistical /Probability Sample Should Be:

Selected Objectively so that Inferences Drawn from it are Reliable, Free from Personal Biases, Giving Equal or Known Chance of Selection to Every Unit of the Population. A non probability sample selects sample units on the basis of personal judgment. It does not give equal or known chance of selection to every unit of population
Varde Varde 32

DATA COLLECTION
Execution phase of research process begins with data collection There are two phases of data collection -pre-testing for a small sub sample -the main study Pre testing on a small scale helps -to test if the data collection plan is appropriate -to decide on way of tabulating collected data

Processing &Analysing the data

Data processing starts with editing & coding Editing involves checking data collection forms for omission, legibility, consistency and other interviewer errors (entry in wrong column ) Coding involves rules for interpreting ,categorising and recording data to facilitate computer or hand tabulation

Analysis It is application of analytical techniques to understand and interpret the data Analytical techniques are determined by -managements information requirement -characteristics of research design(Ex/Des/Cau) -nature of data collected Statistical analysis -Univariate,Bivariate or Multivariate

Preparing & Presenting Report

This is the last stage of research process Effective communication of research findings Research report should contain - Executive summary -Table of Contents -Introduction - Research objectives - Research Methodolgy - Analysis - Findings -Limitations - Recommendations - Bibliography

Preparing & Presenting Report

Research report should not be filled up with technical details but should portray research findings most effectively as per requirements of the management Research report should also be presented in oral form Written report acts as a historical document

Research Proposal
A written statement of the research design that includes a statement explaining the purpose of the study. Detailed outline of procedures associated with a particular methodology

Circular presentation
Conclusions from the research studies usually generates new ideas and problems that need to be further investigated Hence stages are portrayed in a circular form

Stages of the Research Process

Problem Discovery and Definition Discovery and Definition

Research Design

and so on Conclusions and Report

Sampling Data Processing and Analysis Data Gathering