Research Methodology

Module IIntroduction to Business Research

Amish Soni

Introduction to Business Research

1. Nature and Scope of Business Research.

2. Information Based Decision Making and Source of Knowledge.

3. The Research Process. Defining Research Problem and Framing Hypot

hesis.

4. Preparing a Research Plan.

Nature and Scope of Business Research

Introduction Meaning of Research and Objectives What is Good Research? Why Study Business Research? Types of Research

Introduction

Investigation using scientific procedures, by searching again and again to find out the truth

Research is the continual search for truth using the scientific method. It is the pursuit of the truth with the help of study, investigation, observation, comparison and/or experimentation.

What makes people to undertake research?

Desire to get a research degree along with its consequential benefits

Desire to face the challenge in solving the unsolved problems. Ex. Concern over practical problems initiates research.

Desire to get intellectual joy of doing some creative work.

Desire to be of service to society Desire to get respectability.

Research as Career

Rewarding and satisfying career Opportunities for life-long growth Exciting fields for innovation Global career opportunities Main reward in doing

What it Takes?

Creativity Open mind Curiosity Patience Persistence Positive Attitude Discipline and focus

What is Research?

Research is a scientific and systematic search for pertinent information on a specific topic.

It is a careful investigation or enquiry specially through search for knowledge.

It is a movement from known to unknown.

Objectives of Research

The Objective of research is to find out the answers to questions through the application of systematic and scientific way.

Specific purpose behind each research study,

To obtain familiarity of a phenomenon. To determine the association or independence of an

activity. To determine the characteristics of an individual or a

group of activities and the frequency of its occurrence.

Features of a Good Research Study

Objectivity Control Generalisability Free from Personal Biases Systematic Reproducible

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Hence, the following points must be ensured

Clearly defined purposeClearly defined purpose

Detailed research processDetailed research process

Thoroughly planned designThoroughly planned design

High ethical standardsHigh ethical standards

Limitations addressedLimitations addressed

Adequate analysisAdequate analysis

Unambiguous presentationUnambiguous presentation

Conclusions justifiedConclusions justified

CredentialsCredentials

Business Research

A process of planning, acquiring, analyzing, and disseminating relevant business data, information, and insight to decision makers in ways that mobilize the organization to take appropriate action that, in turn, maximize business performance.

It is a systematic inquiry that provides information to guide managerial decisions.

Why Study Business Research?

Complex DecisionsComplex Decisions

Stakeholder Influence

Stakeholder Influence

CompetitionCompetition

FactorsFactors

Growth of Internet

Growth of Internet

Business as a discipline

Business as a discipline

Government InterventionGovernment Intervention

Greater Computing

Power

Greater Computing

Power

New Research Perspectives

New Research Perspectives

Types of Research Studies

Fundamental Research Applied Research Descriptive research Historical Research Formulative or Exploratory Research Experimental Research Ex-Post-Facto Research Case Study Approach

Significance of Research

Research Provides the basis for nearly all government policies in our economic system

It solves various operational and planning problems of business industry

It is important for social scientists in studying social relationships and in seeking answers to various social problem.

Information Based Decision Making and Source of Knowledge

Emerging Hierarchy of Information - Based Decision Makers

How the Research Industry Works? Role of Research Methods/Research Methodology i

n Business/ Industry Current Status of Research in India Limitation of Research

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Exhibit 1-2 Hierarchy of Business Decision Makers

Visionaries

Standardized Decision Makers

Intuitive Decision Makers

Intuitive Decision Makers

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Exhibit 1-2 Hierarchy of Business Decision Makers

Visionaries

Intuitive Decision Makers

Standardized Decision Makers

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Exhibit 1-2 Hierarchy of Business Decision Makers

Visionaries

Intuitive Decision Makers

Standardized Decision Makers

Visionaries

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Exhibit 1-4 Who Conducts Business Research?

Internal External

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Exhibit 1-4Business Research Suppliers

External Research Suppliers

Business Research Firms

Communication Agencies

Consultants

Trade Associations

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Business Research FirmsBusiness Research Firms

Full Service Specialists

Custom

Proprietary

Methods

Syndicated Data

Other

Full Service

Full-service researchers include some of the largest research firms, and some of the smallest.

These firms are often involved in research planning from the moment of discovery of a dilemma or from the definition of a management question.

Such firms often have expertise in both quantitative and qualitative methodologies, as well as multifaceted facilities.

Some are capable of working in worldwide venues, while others are limited to one industry or geographic region.

These firms are often a combination of research and consulting operations.

Some of the World’s Largest Research Companies

Organization Research Revenues, 2003 ($ millions)

VNU Inc. $3,045.00 www.vnu.com  IMS Health Inc. $1,381.80 www.imshealth.com  Tylor Nelson Sofres USA $1,290.10 www.tnsofres.com  The Kantar Group $1,002.10 www.kantargroup.com  

Custom Researchers

Often described with phrases like “ad hoc research” or “custom-designed research”

A custom researcher crafts a research design unique to the decision maker’s dilemma. In other words, each project starts from ground zero.

What is implied is that such firms do not assume that a given methodology is appropriate for each client’s research.

Although a custom researcher may not always be a full-service research firm, a full-service researcher would always fit into the custom research category.

Proprietary Methodology Researchers

A proprietary methodology is a research program or technique that is owned by a single firm.

It may be a new method developed by the firm, or a twist on an established methodology.

Firms often brand these methodologies to distinguish themselves from the competition. (ACNielsen did this with its Home scan syndicated panel.)

The Gallup Organization reinvented itself using the proprietary research model, moving from public opinion pollster and custom researcher to research-based consulting firm.

One of its proprietary methodologies is called Q12.

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Specialty Business Research Firms

Methodology

Process

Industry

Participant group

Geographic Region

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Exhibit 1-6 Some Syndicated Data Providers

AC Nielsen Scarborough Millward Brown Nielsen Media Research Roper ASW CSA TMO Yahoo! ORC International

DoubleClick Nielsen/NetRatings Taylor Nelson Sofres

Intersearch J.D. Power Associates MediaMark Simmon (SMRB) BRMB Information Resources Inc.

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Communication Agencies

Direct Business

Public Relations

AdvertisingSales Promotion

Top Advertising Companies of India:

McCann-Erickson India Ltd: Mudra Communication Pvt. Ltd: J Walter Thompson India: Ogilvy and Mather: Leo Burnett India Pvt. Ltd :

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Consultants and Trade Associations

Consultants Business General Business

Trade Associations General business Business specialties Research specialties

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Exhibit 1-4 Who Conducts Research?

Role of Research Methods/Research Methodology in Business/ Industry

Research Methods are the methods or techniques employed by researchers in conducting research operations.

Research Methodology is a scientific and systematic way to solve research problems.

Marketing Research Government Policies and Economic System Solving Various Operational and Planning Problems of

Business and Industry Social Relationships

Limitations of Research

Doesn’t provide actionable results Some problems just cannot be researched Only provide a set of guidelines Do not include research in the overall problem or

total decision making. Rely more on intuition and judgment

Research Process

Steps in Research Process Research Process Issues Defining Research Problem and Hypothesis

Defining the Research Problem Formulation of the Problem Research Question Management-Research Question Hierarchy Concept and Formulation of Hypothesis

Steps in Research Process

Defining the research problem and reviewing the literature

Formulation of hypothesis Research design Collecting data Analyzing data and testing hypothesis Preparation of report and preliminary analysis Interpreting the reporting the findings

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Research Process Issues

The Favored-Technique Syndrome

Company Database Strip-Mining

Unresearchable Questions Ill-Defined Management

Problems Politically Motivated

Research

Defining the Research Problem

A problem properly defined is half solved. It could be any of the following three areas:

Exploratory: gather preliminary information for defining the problem and suggesting hypothesis.

Descriptive: Describe things i.e. market potential, demography and attitude of customer.

Casual: test hypothesis about cause and effect relationships

Formulation of the 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

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The Research Question

Determine necessary evidence

Determine necessary evidence

Set scope of study

Set scope of study

Examine variables

Examine variables

Break questions

down

Break questions

down

Evaluate hypotheses

Evaluate hypotheses

Fine-TuningFine-Tuning

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Exhibit 3-2 Management-Research Question Hierarchy

Formulation of Hypothesis

Concept of Hypothesis

A hypothesis is a proposition – a tentative assumption which a researcher wants to test for its logical or empirical consequences.

Hypothesis are more useful when stated in precise and necessary, specially in case of exploratory researches.

However, in problem oriented research, it is necessary to formulate a hypothesis or hypotheses.

Hypothesis Testing

Steps involved in testing a hypothesis:

1. Formulate a hypothesis

2. Set up a suitable significance level

3. Choosing a test criterion

4. Compute the statistic

5. Make decision

Preparing Research Plan

The Research Proposal Process Types of Research Proposal Structuring the Research Proposal The Research Proposal for MindWriter

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Types of Research Proposal

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Structuring the Research Proposal

Executive Summary Problem Statement Research Objectives Literature Review Importance/ Benefits of

Study Research Design Data Analysis Nature/Form

Research Qualifications

Budget Schedule Facilities Project Management Bibliography Appendices

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Researcher Qualifications

Relevant ManagementExperience

Professional Research

Competence

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Exhibit 4-6 Sample Proposed Budget

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Budgeting for Samples

Scientific Telephone Samples (STS) provides random dial, listed, and business samples for telephone and online surveys

Exhibit 4-7 CPM Schedule

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Exhibit 3-6 Gantt Chart

MindWriter Project Plan

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Elements of a Project Management Plan

Financial/ Legal

responsibility

Financial/ Legal

responsibility

Team relationship with client

Team relationship with client

Procedures Procedures

Organization of research team

Organization of research team

Managementcompetence

Managementcompetence

Examples ofpast work

Examples ofpast work

Plan Elements

Plan Elements

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The Research Proposal for MindWriter

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