Business Research 1

Everywhere our knowledge is incomplete and problems are waiting to be solved.

We address the void in our knowledge, and those unresolved problems,

By asking relevant questions and seeking answers to them.

The role of research is to provide a method for obtaining those answers

By inquiringly studying the facts, within the parameters

Of the scientific method.

A perfect CIRCLE may look like an imperfect one!!!!!!

Seeing may not be believing!!!!

The Boeing Company has been a premier manufacturer of commercial jetliners for more than 40 years and provides products and services to customers in 145 countries.

Objective: • To continuously monitor the dynamic

market place• To Understand the needs and priorities of

airlines and their customers (people who fly)

To achieve this purpose BCA employs marketing research on a regular basis

Two stage methodology

First stage: first screened and qualified by telephone or via personal interviews

Second Stage: Online survey at home or work or at a central interviewing location913 interviews conducted in UK, Tokyo and Hong Kong with international travelers (above 18 years) who had taken at least one recent eight hour or longer flight.

Findings:o More than 60% prefer single –deck,

250 passenger to a double deck ,550 passenger airplane for nonstop flights

o 7 out of 10 prefer a non-stop trip on single deck

o Passengers in all classes believe smaller airplanes will provide better experience with check-in, boarding, baggage claim, customs or immigrations

Action:BCA developed a new version of Boeing 737 which caters to 100-215 seat marketOutcome: The 737 family has won orders for more than 5200 airplanes.

Definition: Business Research may be defined as the “systematic and objective process of gathering, recording and analyzing data for aid in making business decisions”.

Systematic-ness and Objectivity are its distinguishing features of Business Research, which is important tool for managers and decision-makers in corporate and non-corporate organizations

Business research methods are used in situations of uncertainty, that is, when decision-makers face two or more courses of action and seek to select the best possible alternative under the circumstances. Business Research is hence aimed at improving the quality of decision-making which, in turn, benefits the organization and helps ensure its continuity and efficiency.

Businesses and Corporations

Public-Sector Agencies

Consulting Firms

Research Institutes

Non-Governmental Organizations

Non-Profit Organizations

Independent Researchers and Consultants

Surveys Interviews Observation Experiments Archival and Historical Data Qualitative Analysis Quantitative Analysis

• A firm wants to produce and market a new product but first wants to ascertain if there is a potential consumer demand for this product in markets x, y and z

• A multinational firm wants to establish a production facility in another country after determining its technical and economic feasibility

• A government agency wants to ascertain the satisfaction level of its employees, the causes for any possible discontent, and propose a scheme for enhancing this level

• A financial institution wants to invest in commodities and commissions a study to determine the past trends and forecast future returns in a portfolio of commodities

• The CEO of a firm wants to undertake a SWOT-Analysis as part of his plan to redefine his organization’s priorities

Business Research

Problem Identification

Research

Problem-Solving Research

Market Potential ResearchMarket Share ResearchSales Analysis ResearchBusiness Trends Research

Segmentation ResearchProduct ResearchPricing ResearchPromotion Research

Types of

Research

Application ObjectivesInquiry Mode

Pure Research

Applied Research

DescriptiveResearch

ExplanatoryResearch

QuantitativeResearch

QuantitativeResearch

Co relationalResearch

ExploratoryResearch

Problem Definition Development of an Approach to the

problem Research Design formulation Fieldwork or Data collection Data Preparation and Analysis Report Preparation and Presentation

Importance of literature review in research Bring clarity and focus to your research problem Improve your methodology Broaden your knowledge base in your research area Contextualize your findings

Procedure for reviewing the literature Search existing literature in your area of study Review the literature selected Develop a theoretical framework Develop a conceptual frame work

A research problem can be defined as a gap or uncertainty in the decision makers’ existing body of knowledge which inhibits efficient decision making. The gap could be academic & theoretical (basic) or real time and action oriented (applied).

Management Decision Problem

Discussions with subject

experts

Review of existing literature

Organization Analysis

Qualitative analysis

Management Research Problem / Question

Research framework / Analytical model

Statement of Research Objectives

Formulation of Research Hypothesis

DECISION PROBLEM RESEARCH PROBLEM*

1. What should be done to increase the customer base of organic products in the domestic market? 2. How to reduce turnover rates in the BPO sector? 3. How to improve the delivery process of Widex hearing aids in India? 4. Should the company continue with its existing security services vendor or look at an alternative? 5. Can the Housing and real estate growth be accelerated? 6. Whom should ICICI choose as its next Managing director- Mr ABC or Mrs. XYZ?

1. What is the awareness and purchase intention of health conscious consumers for organic products? 2. What is the impact of shift duties on work exhaustion and turnover intentions of the BPO employees? 3. How does Widex/ industry leader manage its supply chain in India/Asia? 4. What is the satisfaction level of the company with the existing vendor? Are there any gaps? Can they be effectively handled by the vendor? 5. What is the current investment in Real Estate and Housing? Can the demand in the sector be forecasted for the next six months? 6a. what has been the Leadership initiatives and performance record of ABC viz. XYZ? 6b. Can a leading aggressive private sector bank accept a woman as its leader?

Management decision problem: the issue/decision that needs to be resolved through research

Discussion with experts: to get the right perspective on the issue, discussion/dialogue is held with subject/industry expert.

Review of literature: the most valuable source of framing the research question is to review the past work done on related topic(s).

Qualitative surveys: primary exploratory loosely structured surveys to attain the environmental context.

Management research problem: the four steps might lead to multiple directions/research problems the researcher can take.

The researcher has to identify THE alternative he/she will undertake

Theoretical model building (optional)

Statement of research objectives

Unit of analysis

Independent variable

Dependent variable

Extraneous independent variable

Intervening variables

Moderating variables

A proposition, condition, or principle which is assumed, perhaps without belief, in order to draw out its logical consequences and by this method to test its accord with facts which are known or may be determined. A proposition that is stated in a testable form ands that predicts a particular relationship between two (or more) variables. In other words , if we think that a relationship exits, we first stat it as a hypothesis and then test the hypothesis in the filed(Bailey,1978)

A hypotheses is any assumption/presupposition that the researcher makes about the probable direction of the results that might be obtained on the completion of the research process

Descriptive hypotheses: This is simply a statement about the magnitude, trend, or behaviour of a population under study.

Relational hypotheses: These are the typical kind of hypotheses which state the expected relationship between two variables.

Formulate your

Assumption

Collect The

required data

AnalyzeData

To drawconclusions

A hypothesis should be simple, specific and conceptually clear.

A hypothesis should be capable of verification.

A hypothesis should be related to the existing body of knowledge.

A hypothesis should be operationalisable

TypesOf

Hypothesis

AlternateHypothesis

ResearchHypothesis

NullHypothesis

Hypothesis ofNo difference

(null hypothesis)Hypothesis

Of difference

HypothesisOf point-

prevalence

HypothesisOf association

Type I Error: Rejection of a null hypothesis when it is true.

Type II Error: Acceptance of a null hypothesis when it is false.

Concepts : Concepts are mental images or perceptions and therefore their meanings vary markedly from individual to individual Constructs: Unobservable characteristics or constructs such as constructs such as aptitude, image, personality and patriotism.Variables:Variables are measurable.

Subjective impression

No uniformity as to its understanding among different people

As such can not be measured

Example: Rich High,academic achievement

Measurable though the degree of precision varies from scale to scale and from variable to variable

Example: Income per yearPercentage of Marks

Types of

variables

Causal model

Study design

Unit of

measurement

IndependentVariable

InterveningVariable

ExtraneousVariable

DependentVariable

Active Variable

AttributeVariable

QuantitativeVariable

Qualitative Variable

ContinuousVariables

CategoricalVariables

Constants

Dichotomies

Polytomies

A research design is a plan , structure and strategy of investigation so conceived as to obtain answers to research questions or program of research. It includes an outline of what the investigator will do from writing the hypotheses and their operational implication as to the final analysis of data (Kerlinger 1986).A traditional research design is a blue print or detailed plan for how a reserch study is to be completed- operationalizing variables so they can be measured, selecting a sample of interest to study, collecting data to be used as a basis for testing hypotheses, and analyzing the results (Thyer 1993).

The formulated design must ensure three basic tenets:

Convert the research question and the stated assumptions/hypotheses into operational variables that can be measured.

Specify the process that would be followed to complete above task, as efficiently and economically as possible.

Specify the ‘control mechanism(s)’ that would be used to ensure that effect of other variables that could impact the outcome of the study have been controlled.

Identification and development of procedures and logistical arrangements required to undertake a study.

Research design emphasizes the importance of quality in these procedures to ensure their validity, objectivity and accuracy.According to Kerlinger(1986) these functions are called control of variance.

Research Design

Exploratory ResearchDesign

Conclusive Research design

Descriptive Research Causal Research

Longitudinal Design

Cross-Sectional Design

SingleCross-Sectional Design

MultipleCross- Sectional Design

To provide insights and understanding.

Information needed is defined only loosely.

Research process is flexible and unstructured.

Sample is small and non representative .

Analysis of primary data is qualitative.

Tentative Generally followed by further

exploratory or conclusive research.

To test specific hypotheses and examine relationships

Information needed is clearly defined.

Research process is formal and structured.

Sample is large and representative.

Data analysis is quantitative.

Conclusive Finding used as input into

decision making.

Objective: Discover ideas and insights. Characteristics: Flexible, versatile, often the

front end of total research design. Methods: Expert surveys, Pilot surveys,

Secondary data , Qualitative research.

Objective: Describe market characteristics or functions.

Characteristics: Marked by the prior formulation specific hypothesis. Preplanned and structured design.

Methods: Secondary data ,Surveys , Panels , Observational and other data.

Objective: Determine cause and effect relationships.

Characteristics: Manipulation of one or more independent variables. Control of other mediating variables.

Methods: Experiments.

Total Error

Random Sampling Error

Nonsampling Error

Response Error Nonresponse Error

Researcher Errors

Interviewer Errors

Respondent Errors

Primary versus Secondary data Advantages and Disadvantages of

Secondary data Criteria for evaluating secondary data Classification of Secondary data

Internal Ready to use Require further Processing External Published Materials Computerized Databases Syndicated Services

Characteristics:Group size 8 to 12Group Composition :Homogeneous:

respondents prescreenedPhysical setting Relaxed, informal

atmosphereTime Duration 1 to 3 hoursRecording Use of audio cassettes

and video tapes

Kindness with firmness Permissiveness Involvement Incomplete understanding Encouragement Flexibility Sensitivity

SynergismSnowballingStimulationSecuritySpontaneitySerendipitySpecializationScientific scrutinyStructureSpeed

Misuse Misjudge Moderation Messy Misrepresentation

Defining a problem more precisely. Generating alternative course of action. Developing an approach to a problem. Obtaining information helpful in

structuring consumer questionnaires. Generating hypotheses that can be

tested quantitatively. Interpreting previously obtained

quantitative results.

Characteristics: Unstructured Direct 30 min – 1 hour

Laddering: Line of questioning proceed from product characteristics to user characteristics.

Hidden issue questioning: It attempts to locate personal sore spots related to deeply felt personal concerns.

Symbolic Analysis: In this technique symbolic meaning of objects is analyzed by comparing them with their opposites

Survey Method: A structured questionnaire given to a sample of a population and designed to elicit specify information from respondents.

Survey Method

Telephone Interviewing

PersonalInterviewing

MailInterviewing

Electronic Interviewing

TraditionalComputer Assisted

In- HomeMall

InterceptComputer Assisted

Email InternetMailMail

Panel

The recording of behavioral patterns of people, objects and events in a systematic manner to obtain information about the phenomenon of interest.

Structured versus unstructured observation

Disguised versus undisguised observation

Natural versus contrived observation

Observation Methods

Personal Observation

ContentAnalysis

TraceAnalysis

AuditMechanical Observation

Concept of Causality Conditions for causality1. Concomitant variation2. Time order of occurrence of variables3. Absence of other possible causal

factors

Independent Variables Test Units Dependent Variables Extraneous Variables Experiment Experimental Design

Internal Validity: It measures whether the manipulation of the independent variables or treatments, actually caused the effects on the dependent variable(s).

External Validity: A determination of whether the cause-effect relationships found in the experiment can be gerneralized.

History Maturation Testing Effects Instrumentation Statistical Regression Selection Bais Mortality

Randomization Matching Statistical Control Design Control

Experimental Design

Pre-experimentalTrue

ExperimentalQuasi

ExperimentalStatistical

The frame into which we wish to make everything fit is one of our own construction; but we do not construct it at random, we construct it by measurement so to speak; and that is why we can fit the facts into it without altering their essential qualities (Poincare, 1952).

Ratio Scale

Interval Scale

Ordinal Scale

Nominal Scale

The Nominal Scale: Enables the classification

The Ordinal Scale: Enables classification and ranking

The Interval Scale: It has all the characteristics of ordinal PLUS it has a unit of measurement with an arbitrary starting and terminating point.

The Ratio scale: It has all the properties of an interval scale PLUS it has a fixed starting point.

This is the simplest and most often used method of primary data collection

There is a pre-determined set of questions in a sequential format

Is designed to suit the respondent’s understanding and language command

Can be conducted to collect useful data from a large population in a short duration of time

The spelt out research objectives need to be converted into specific questions

It must be designed to engage the respondent and encourage meaningful response

The questions should be designed in simple language and be self-explanatory

Formalized Non Formalized

Unconcealed Most research studies use Standardized Questionnaires like these.

The response categories have more flexibility

Concealed Used for assessing psychographic and subjective constructs

Questionnaires using projective techniques or sociometric analysis

Formalized & unconcealed questionnaire: self-explanatory with most response categories predefined

Out of the following options, where do you invest (tick all that apply)Precious metals----------------, real estate------------, stocks---------,

Government instruments---------, mutual funds------any other-------

Who carries out your investments? Myself-----------, agent---------, relative-----------,

friend------------, any other----------

What is your source of information for these decisions? Newspaper------------, investment magazines-----------,

company records etc.----------, Trading portals------------, agent------------

Formalized & concealed questionnaire: most response categories are predefined, but latent cause of behaviour are derived from indirect questions

Please indicate level of your agreement for the following statements.

SA - Strongly Agree; A-Agree; N-Neutral; SD- Strongly Disagree; D-Disagree

SA A N D SD

1 The individual of the present era is better informed about everything than the individual before.

2 I believe that one must live for the day and worry about tomorrow later.

3 An individual must at all times keep abreast of what is happening in the world around him/her.

4 Books are best friends anyone can have.

5 I generally read and then decide what to buy.

Non-formalized & concealed questionnaire: undisguised and most response categories are not predefined

Why do you think Maggi noodles are liked by young children? ---------------------------------------------------------------------------  How do you generally decide on where you are going to invest your money?-------------------------------------------------------------  Give three reasons why you believe that the 2010

Commonwealth Games in India are going to help the country? ------------------------------------------------------------------------- 

Non-formalized & concealed questionnaire: disguised and most response categories are not predefined,e.g.

Given below are two grocery lists –personify the user

Self-administered questionnaire: respondents fills in the questionnaire him/her self

Schedule: the investigator/researcher reads out the questions and records the respondents’ answers.

Population characteristics

Population spread

Study area

Convert the Research Objectives into the Information Needed

Content of the Questions

Method of Administering the Questionnaire

Motivating the Respondent to Answer

Determining Type of Questions

Pilot Testing the Questionnaire

Question Design Criteria

Determine the Questionnaire Structure

Physical presentation of the Questionnaire

Administering the Questionnaire

Now I am going to give you a set of cards. Each card will have the name of one television serial (Hand

over the cards to the respondent in a random order). I want you to examine them carefully (give her

some time to read all the names). I would request you to hand over the card which has the name of the

serial you like to watch the most. (Record the serial and keep this card with you). Now of the remaining

nine serials name your most favorite serial (continue the same process till the person is left with the last

card)

T.V. SERIAL RANK ORDER 1. 1 ___________________ 2. 2 ___________________ 3. 3 ___________________ 4. 4 ___________________ 5. 5 ___________________ 6. 6 ___________________ 7. 7 ___________________ 8. 8 ___________________ 9. 9 ___________________ 10. 10 ___________________

Please listen very carefully; I am going to slowly read the name of ten popular T.V. serials. I want to know

how much you prefer watching them. You need to use a 1 to 10 scale, where 1 means I do not like watching

it and 10 means I really like watching it. For those in between you may choose any number between 1 and

10. However, please remember that the higher the number the more you like watching it. Now, I am going to

name the serials one by one. In case the name is not clear I will repeat the list again. So, the serial’s name

is-------------------. Please use a number between 1 and 10 as I had told you. O.k. thank you, the next name

is---------------------. And so on till all the 10 names have been read out and evaluated.

SERIAL 1. Balika Badhu 1 2 3 4 5 6 7 8 9 10 2. Sathiya 1 2 3 4 5 6 7 8 9 10 3. Sasural Genda Phool 1 2 3 4 5 6 7 8 9 10 4. Bidai 1 2 3 4 5 6 7 8 9 10 5. Pathshala 1 2 3 4 5 6 7 8 9 10 6. Bandini 1 2 3 4 5 6 7 8 9 10 7. Laptaganj 1 2 3 4 5 6 7 8 9 10 8. Sajan Ghar jaaana Hai 1 2 3 4 5 6 7 8 9 10 9. Tere liye 1 2 3 4 5 6 7 8 9 10 10. Uttaran 1 2 3 4 5 6 7 8 9 10

In the next question you will find the names of ten popular Hindi serials that are being aired on television

these days. You are requested to rank them in order of your preference to watch these programmes. Start

by identifying the serial which is your most favorite, to this you may give a rank of 1. Then from the rest of

the nine, pick the second most preferred serials and give it a rank number of 2.Please carry out this process

till you have ranked all 10. The one you prefer the least should have a score of 10. You are also requested

not to give two serials the same rank. The basis on which you decide to rank the serials is entirely

dependent upon you. Once again you are asked to rank all the 10 serials.

SERIAL RANK ORDER 1. Balika Badhu ___________________ 2. Sathiya ___________________ 3. Sasural Genda Phool ___________________ 4. Bidai ___________________ 5. Pathshala ___________________ 6. Bandini ___________________ 7. Laptaganj ___________________ 8. Sajan Ghar Jaaana Hai ___________________ 9. Tere Liye ___________________ 10. Uttaran ___________________

Essential to ask the questionTo gauge consumer’s shopping behaviour

Please indicate the level of your agreement for the following statements.

SA - Strongly Agree; A-Agree; N-Neutral; SD- Strongly Disagree; D-Disagree

Compared to the past (5-10 years)

SA A N D SD

1 The individual customer today shops more 2 The consumer is well informed about market offerings 3 The consumer knows what he/she wants to buy before he enters the

store

4 The consumer today has more money to spend 5 There are more shopping options available to the consumer today

Several questions or single question“Why do you like the serial--------------(the one you

ranked/prefer watching most)?” (Incorrect)

"What do you like about-------------?" “Who all in your household watches the serial? and "How did you first happen to hear about the

serial?" (Correct)

Assisting the respondent to provide the answerDoes he have the answer?

1. How do you evaluate the negotiation skills module with the Communication and presentation skill module? (Incorrect)

 1. Have you been through the following training modules?

Negotiation skills module Yes/no

Communication & presentation skills Yes/no

In case the answer to both is yes, please answer the following question else move to the next question.

How do you evaluate the negotiation skills module with the Communication and presentation skill module? (Correct)

Assisting the respondent to provide the answerDoes he remember?How much did you spend on eating out last month? (Incorrect)

1. When you go out to eat, on an average your bill amount is: ________ Less than Rs100 ________ Rs 101-250 ________ Rs 251-500 ________ more than Rs 500  2. How often do you eat out in a week?________ 1-2 times.________ 3-4 times________ 5-6 times________ every day (correct)

Assisting the respondent to provide the answer

Can he articulate?Describe the river rafting experience.……...

(incorrect)Describe the river rafting experience (Correct)

1 Unexciting exciting

2 Bad good

3 Boring interesting

4 Cheap expensive

5 Safe dangerous

Assisting the respondent to answerThe perspective is not clear

“How many credit cards do you own?” or “When did you last go on a holiday?” or “How many movies do you watch in a fortnight?”

(incorrect)

A spillover of a healthy quality of working life is also reflected in a person’s way of living. Thus, we would like to know how you live. (correct)

Assisting the respondent to answerSensitive information/topicHave you ever used fake receipts to claim your medical

allowance? (Incorrect)

Have you ever spit tobacco on the road (to tobacco consumers)? (Incorrect)

Do you associate with people who use fake receipts to claim their medical allowance? (Correct)

Do you think tobacco consumers spit tobacco on the road? (Correct)

Question Content

Open – ended Closed - ended

Dichotomous Multiple Responses

Scales

Open ended questions: What is your age?

How would you evaluate the work done by the present government?

How much orange juice does this bottle contain?

What is your reaction to this new custard powder?

Why do you smoke Gold Flake cigarettes?

Which is your favorite TV serial?

What training programme have you last attended?

With whom in your work group do you interact with after office hours?

Closed ended questions

1. Dichotomous questions

Are you diabetic? Yes / No

Have you read the new book by Dan Brown? Yes/no

What kind of petrol do you use in your car? Normal/Premium

What kind of cola do you drink? Normal/diet

Your working hours in the organization are fixed/ flexible

Closed ended questions

2. Multiple choice questions How much do you spend on grocery products (average in one

month)?- Less than Rs. 2500/- - Between Rs 2500-5000/-- More than Rs 5000/-

You do not currently sell organic food products because (Could be 1)

 - You do not know about organic food products.

- You are not interested. - You are interested but you do not know how to procure it. - It is not profitable. -The customer demand is too low - any other--------------------

Clearly specify the issue

Use simple terminology

Avoid ambiguity in questioning

Avoid leading questions

Avoid loaded questions

Avoid implicit choices and assumptions

Avoid double-barrelled questions

Instructions

Opening questions

Study questions

Classification information

Acknowledgement

Sampling Techniques

ProbabilityNon-

Probability

Simple RandomSampling

Systematic sampling

Stratified Sampling

Cluster Sampling

Proportionate DisproportionateOne- stage Sampling

Two- StageSampling

Multi-StageSampling

Non-ProbabilitySampling

ConvenienceSampling

Judgmental Sampling

QuotaSampling

SnowballSampling

Parameter: It is the true value that would be obtained if a census rather than a sample were undertaken.Statistic: It is a summery description of a characteristic or measure of a sample.Finite population correction :It is a correction for overestimation of the variance of a population parameter.Precision Level: The desired size of the estimating interval. This is the maximum permissible difference between the sample statistic and the population parameter.Confidence Interval: The confidence interval is the range into which the true parameter will fall.Confidence level: The confidence level is the probability that a confidence interval will include the population parameter.

The distribution of the values of sample statistic computed for each possible sample that could be drawn from the target population under a specific sampling plan.Statistical Inference: The process of generalizing the sample results of the population results.Standard Error: The standard distribution of the sampling distribution of the mean or proportion.