Business Research Methods Basics. Study Material.

1.        Business Research Methods Basics.

2.         Ethical issues in business research.  — Limitations of applying scientific methods in business research problems— Scientific approach to research in physical and management science— Marketing research— Criteria of good research— Types— Research – Meaning—Topics to be covered

3.         A scientific undertaking which by means of logical and systematic techniques, aims to:1. Discover new facts or verify and test old facts.2. Analyze their sequences, interrelationships and causal explanations.3. Develop new scientific tools, concepts and theories, which would facilitate valid and reliable study of human behavior.  — Research is an art of scientific investigation. It is also a systematic design, collection, analysis and reporting the findings and solutions for the marketing problems of a company.—Meaning

4.        Requirement of Research To identify and To find alternatefind solutions to strategies the problems Requirement of Research To help making To develop new decisions concepts  

5.         Research is required for the following reasons :1. To identify and find solutions to the problems.2. To help making decisions.3. To find alternate strategies.4. To develop new concepts  —Requirement of Research

6.        Types of Research Exploratory Descriptive Research Research Applied Research Action Research Types of Pure/ ResearcFundamental or h HistoricalBasic Research Research Conceptual Causal Research Research  

7.         Example : Exploring the reasons for sales decline of a product in a company.  — Carried out at the very beginning when the problem is not clear or is vague.— Often relies on secondary research such as reviewing available literature and/or data, or qualitative approaches such as informal discussions with consumers, employees, management or competitors and more formal approaches through in-depth interviews, focus groups, case studies or pilot studies.— Provides insights into and comprehension of an issue or situation.—Types of ResearchExploratory Research

8.         Example : Degree of viewing TV Channels, its variation with age, income level, profession of respondent as well  — Describes the characteristics of the respondent in relation to a particular product. Deals with demographic characteristics of the consumer.— Answers the questions who, what, where, when and how.— Describes data and characteristics about the population or phenomenon being studied.—Descriptive Research

9.         Example : To develop a new market for the product.  — Integrate previously existing theories.– May aid in conceptual clarification. – Puts theories to test. – Can contribute new facts about existing theories. –Applied Research ◦ Undertaken to find solutions for real-life problem requiring an action or policy decision. ◦ It may incidentally contribute to the development of theoretical knowledge. ◦ Contributions:

10.      Example : Theory of Relativity (by Einstein)  — Develops many alternative solutions.– Helps to find critical factors in a practical problem. – By developing principle, pure research offers solutions to many practical problems. – Does not have any commercial potential. ◦ Contributions: — Not directly involved with practical problems.— Undertaken for the sake of knowledge without any intention to apply or practice.—Pure/Fundamental or Basic Research

11.      Example : Various ideologies  — Researcher should collect the data to prove or disapprove his hypothesis.— Related to some abstract idea or theory.— Generally used by philosophers.—Conceptual Research

12.      Example: A clothing company selling blue denim jeans, causal research can measure the impact of the company changing the product design to the color white. The company bosses will be able to decide whether changing the color would be profitable.  — Way of seeing how actions now will affect a business in the future.— Conducted to determine the cause and effect relationship between the two variables.—Causal Research

13.      Main objective is to derive explanation and generalization from the past trends in order to understand the present and anticipate the future.  — Research has to depend on the conclusions or inferences drawn in the past.— There is no direct observation.— Historical study is a study of past records and data in order to understand the future trends and development of the organization or market.—Historical Research

14.      Verification of records are difficult.  — Accuracy of measurement of events is doubtful.— Reliability and adequacy information is subjective and open to question.— Example : Investors in the share market study the past records or prices of shares which he/she intends to buy. Studying the share prices of a particular company enables the investor to take decision whether to invest in the shares of a company.Shortcomings of Historical Research—

15.      Example : Test Marketing a product is an example of action research. Initially, the geographical location is identified. A target sample is selected from among the population. Samples are distributed to selected samples and feedback is obtained from the respondent.  — Action Research is conducted to solve a problem.— Research is undertaken by direct action.—Action Research

16.      Research design thoroughly planned – The procedural design of the research should be carefully planned to yield results that are as objective as possible. A survey of opinions or recollections ought not to be used when more reliable evidence is available from documentary sources or by direct observation.  — Research process detailed – The research procedures used should be described in sufficient detail to permit another researcher to repeat the research. Except when secrecy is imposed, research reports should reveal the sources of data and the means by which they were obtained.— Purpose clearly defined – The purpose of the business research-the problem involved or the decision to be made- should be clearly defined and sharply delineated in terms as unambiguous as possible. The statement of the decision problem should include its scope, its limitations, and the precise meanings of all words and terms significant to the research.—Criteria of Good Research

17.      Analysis adequate for decision maker’s needs- Analysis of the data should be extensive enough to reveal its significance, what managers call “insights”. The methods of analysis used should be appropriate.  — Limitations frankly revealed – The researcher should report, with complete frankness, flaws in procedural design and estimate their effect on the findings.— High ethical standards applied – Ethical issues in research reflect important moral concerns about the practice of responsible behavior in society. A research design that includes safeguards against causing mental or physical harm to participants and makes data integrity a first priority should be highly valued.—

18.      Conclusions justified – Conclusions should be limited to those for which the data provide an adequate basis. Good researchers always specify the conditions under which their conclusions seem to be valid.  — Findings presented unambiguously – Language that is restrained, clear, and precise; assertions that are carefully drawn and hedged with appropriate reservations; and an apparent effort to achieve maximum objectivity tend to leave a favorable impression of the researcher with the decision maker.—

19.      Marketing Research is the function which links the consumer, customer, and public to the marketer through information – information used to identify and define marketing opportunities and problems; generate, refine and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing process.  —Marketing Research -DefinitionAmerican Marketing Association

20.      Marketing Research is the systematic and objective identification, collection, analysis, diss emination and use of information for the purpose of improving decision making related to the identification and solution of problems and opportunities in marketing.  —

21.     Scientific Approach to Researchin Physical & ManagementScienceMarketing Research involves :a) Systematic problem analysisb) Model building, andc) Fact finding method, used for the purpose of important decision- making and to regulate the marketing of goods and services.  

22.     Scientific MethodScientific research is one which yields the same results when repeated by different individuals. Scientific method consists of the following steps:1. Observation – The researcher wants to observe a set of important factors that is related to his problem.2. Formulates Hypothesis – The researcher formulates a hypothesis which will explain what he has observed.3. Future Prediction – The researcher draws a logical conclusion.4. Testing the Hypothesis – The researcher will arrive at the conclusion based on data.  

23.     Characteristics of ScientificMethod Validity ValidityV Characteristics of Scientific Method Reliability  

24.      Reliability – Measurement by instruments such as thermometer or footruler can be repeated any number of times by different individuals, but the results will be the same.  — Validity – Validity is the ability of a measuring instrument to measure what it is supposed to.—Characteristics of ScientificMethod

25.     Why MR cannot be consideredscientific?In MR, the instrument used is a questionnaire. There are five main problems faced by researcher regarding validity and reliability:1. Different respondents interpret the same question in different manner. So the reply of the respondents will be different.2. It is difficult to ascertain whether the sample is a representative of the population or not.3. The same questionnaire administered by different interviewers will yield different results.  

26.      Lab experiments are held under controlled conditions, such as temperature, humidity, etc. In marketing research, it is not possible to control external factors surrounding the study.  — The measuring instrument, namely the questionnaire may not state clearly what is being measured.—

27.      How do you rank yourself about the financial literacy? Very good Good Average Poor  — The respondent is interviewed on a specific subject. After 60 days, the respondent is interviewed again reply could be very different from what he said earlier. This may happen because he gathered additional information, or had discussed the subject with others during this period.—Example

28.      Maintaining continuity in Investigation – Science is marked by continuity. This is because, every time there is an invention, the same is carried forward for further improving the same.  — Accuracy of measurement – Accuracy is possible through the use of scientific instruments as the measuring instrument is valid and reliable.— Rationality and objectivity – Researchers generally approach the respondents, who are easy to reach and with whom they are comfortable even though they may not represent the true sample.—Distinction between Scientificand Unscientific Methods

29.      Complexity of the subject  — Testing of hypothesis— Pressures of time-frame— Influence of measurement— Inaccuracy of measuring instruments— Role of investigators—Limitations of applying scientific methods inbusiness research problems

30.      Inaccuracy of measuring instruments – Accuracy of measurement separates scientific and unscientific methods. Since human beings are the participants, subjectivity invariably creeps in. Most of the information obtained from the respondent is qualitative in nature.  — Role of investigators – Organisations are the clients of researchers. Sometimes, the investigator tries to fit in results which are readily acceptable to clients. This is possible when the investigator manipulates the data or does not conduct an exhaustive study.—

31.      Pressures of Time-frame – Marketing research must be conducted and completed within a given time-span. If more time is consumed in conducting the research, competitors might enter and capture the market.  — Influence of Measurement – In physical sciences, the researcher can repeat an experiment any time to get the same results. This is not the case with marketing research. As human reaction changes quickly, reliability and validity of research will suffer a great deal.—

32.      Complexity of the Subject – The subject becomes very complex, due to the fact that it is human beings, who interact with the researcher. Human reaction varies from time to time. Different individuals react differently for a given stimuli. Added to this are the environmental factors and peer influence adding to the complexity.  — Testing of Hypothesis – Any hypothesis formed in MR must be tested. Thus, experimentation has to be restored to. In Marketing Research, it is almost impractical to carry out experiment due to many factors which come in the way.—

33.     Ethical Issues in BusinessResearchEthics are norms or standards of behavior that guide moral choices about our behavior and our relationships with others. The goal of ethics in research is to ensure that no one is harmed or suffers adverse consequences from research activities.  

34.     Principles of ethics in ResearchAutonomy Beneficence Principles of Ethics in ResearchJustice Non-maleficence  

35.      Beneficence – Obligation on the part of the investigator to attempt to maximize benefits for the individual participant and or society, while minimizing risk of harm to the individual.  — Autonomy – Obligation on the part of the investigator to respect each participant as a person capable of making an informed decision regarding participation in the research study.—Principles of ethics inresearch

36.      Non-maleficence – It suggests that a proposed research project involving human participants should not cause them harm.  — Justice – Demands equitable selection of participants, i.e. avoiding participant populations that may be unfairly coerced into participating, such as prisoners.—

37.      The rights of the respondents must be protected.i. Right to privacy –The researcher should convince the customer that the survey does not involve unethical things and it is being conducted for mutual benefits.ii. Voluntary participation – Prospective research participants must be fully informed about the procedures and risks involved in research and they give their consent to participate.iii. Right to safety – The researcher must not inflict psychological harm by putting the respondents under pressure to answer.iv. Right to be informed – The researcher must inform the customer in advance about the purpose.  — Data collected from respondents must be correct and should not be manipulated.— Information that should not be disclosed and made public, i.e., participants name and secrecy must be protected.—1. Ethics in the treatment of the Respondent

38.      Ethically state the right methods - The method for conducting the research and the results obtained should be accurate. The researcher should ethically state the—2. Ethics in the treatment of Buyers and Clients –  Protection from unqualified researchers – Researcher should not commit his services to a client if his capabilities do not match those that the research project demands.  — Confidentiality and privacy -The researcher should keep the identity of the client and information generated by a particular research project confidential.—right methods and not list the procedures that are simply convenient to him.

39.      Limited funds – Certain firms have limited funds allocated to carry out the research. For eg., the firm may have a budget to be conducted on a regional basis but the firm does not make this clear to the researcher while inviting proposals. It may so happen that such ambiguity may cause the researcher to prepare his proposal for a nationwide research, but upon bagging the project, the funds released are sufficient only to conduct research on regional basis.  — Selecting the bidders – Sometimes firms, for the sake of formality, call for quotations from a number of market research agencies, even though they have already decided to whom the project should be given.—3. Ethics in the treatment of Researchers

40.      Political research – Political organizations hire some research consultants to carry out a research. In such cases, there is all likelihood that the consulting firm or organization will be politically pressurized to produce reports and forecast in favor of the party commissioning it.  — Pseudo-Pilot studies – Some clients ask the research agencies to conduct pilot studies and promise that if the researcher does a good job during the pilot study stages, there will be an additional major contract immediately. This is not an ethical practice.— Non-availability of data – Some firms give projects to their researcher, but do not provide him with required sales and cost data. Since this may be the basis for carrying out the research, the researcher feels frustrated.—