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Research Methodology

G07S202

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Unit I

Overview

Introduction to Research methodology/

Foundations of Research

Research meaning, objectivesMotivation & Utility

Characteristics of scientific method

Understanding the language of researchDeductive & Inductive theory

Research process

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What is Business Research?

Business Research may be defined as the

systematic and objective process of gathering,

recording and analyzing data for aid in making

business decisions (Zikmund, Business Research

Methods, 2002, p. 6)

Systematicness and Objectivity are its

distinguishing features of Business Research,

which is important tool for managers and decision

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A careful, systematic, patient study and

investigation in some field of knowledge,

undertaken to establish facts or princilpes

(Grinnell, 1993:4)

It is a discovery (Rediscovery); A voyage fromthe known to the unknown

An effort to be closer to the truth

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Defining Research

Research comprises the following:

Defining and redefining the problem

Formulating hypothesis Collecting, organizing and evaluating data

Making deductions and reaching conclusions

Carefully testing the conclusions to determine

whether they fit the hypothesis

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Defining Research Methodology

Methodology means the systematic study ofthe methods, principles, procedures and rules

applied within a discipline

Hence research methodology

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Objectives of Research

1. To gain familiarity with a certain phenomenon or

gain new insights (Exploratory research)

2. To determine the characteristics of an individual

or a group of activities and the frequency of its

occurrence

3. To Determine the association or independence of

an activity

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Typical Users of Business Research Methods

Businesses and Corporations

PublicSector Agencies

Consulting Firms Research Institutes

NonGovernmental Organizations

NonProfit Organizations

Independent Researchers and Consultants

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Examples Worlds largest Research companies

Organization Type of Research

Information ResourcesInc.

Provides Solutions to the consumer packagedgoods (CPG) industry

Arbitron Inc. Provides information services used to develop

the local marketing strategies of the electronic

media and their advertisers & agencies

Synovate (FormerlyMarket Facts, Inc)

Provides global marketing research & consultingto Business, Government & associations

The NPD Group Inc. Provides tracking studies (comprehensive

overview of product movement and consumer

behavior) in numerous industries, including

apparel, fashion, beauty, home & electronics.

Ipsos Explores market potential and market trends,

tests products and advertising, studies

audiences and their perceptions of various

media, and measures public opinion record.

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Why Study Business Research?

We do more than deliver data.

We deliver insight.

It is not enough to supply client

s with the data they can use

today. They must be enabled to

be at the forefront of

tomorrow.

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Motivational factors

Competition local, domestic and global

More complex business organizations, hence more complexdecisions

Stakeholders demanding greater influence

Growth of technology and greater computing power

Growth of Internet

More vigorous competition

Management as a group of disciplines

Greater computing power & speed

Lowercost of data collection

More & faster access to information

Better visualization tools

Powerful computations

More integration of data (data warehousing)

Customized reporting

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Significance /Relevance for management

Aid to Informed decision making

Helps identify problem areas

Aid to forecasting

Helps business budgeting Tool for efficient production and investment

decision making

Optimal utilization of resources

Basis for innovation

Managers need research to measure and compare

the ROI on various strategies.

Helps in a better understanding of employees,

stockholders and customers

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Features of A Good Research

Study

Objectivity: It must answer the research question

Control: It shall ensure adequate control over independent

variable

Generalisability: It should have same result when applied in

identical applications

Free from Personal Bias: It must be free from personal

bias.

Systematic: It must have various interrelated steps that

lead another step.

Reproducible: It must give approximately the same result

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Points to Remember

Purpose clearly detailed

Research design thoroughly planned

High ethical standards applied

Limitations frankly revealed

A complete and proper analysis

Findings presented unambiguously

Decision based conclusion

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Application of Research in Management

Marketing

Human Resource Management

Production

Finance and Accounting

Information Technology

Materials Planning and Production Control

Purchasing

Advertising and Sales Promotion

Social Responsibility Related Issues

Even beyond functional areas, we have scope to do research.

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General Business Conditions and

Corporate Research

Short- & Long-Range Forecasting,

Business and Industry Trends

Global Environments

Inflation and Pricing

Plant and Warehouse Location

Acquisitions

Financial and Accounting Research

Forecasts of financial interest rate trends,

Stock,bond and commodity valuepredictions

capital formation alternatives

mergers and acquisitions

risk-return trade-offs

portfolio analysis

impact of taxes

research on financial institutions

expected rate of return

capital asset pricing models

credit risk

cost analysis

FieldsWhere Business Research is oftenUsed

Management and Organizational

Behaviour Research

Total Quality Management

Morale and Job Satisfaction

Leadership Style

Employee Productivity

Organizational Effectiveness

Structural ssues

Absenteeism and turnover

Organizational Climate

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Sales an

d Marketin

g Research Market Potentials

Market Share

Market segmentation

Market characteristics

Sales Analysis

Establishment of sales quotas Distribution channels

New product concepts

Test markets

Advertising research

Buyer behaviour

Customer satisfaction

Website visitation rates

In

formation

Systems Research

Knowledge and information needsassessment

Computer information system use andevaluation

Technical suppot satisfaction

Database analysis

Data mining

Enterprise resource planning systems

Customer relationship managementsystems

Corporate ResponsibilityResearch

Ecological Impact

Legal Constraints on advertising andpromotion

Sex, age and racial discrimination / workerequity

Social values and ethics

Fields where Business Research is often used

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Science and the Scientific Method

Science has been defined as the methodological and

systematic approach to acquisition of new knowledge

(Geoffrey Marcyzk, David DeMatteo, David Festinger,

Essentials of Research Design and Methodology, John Wiley

& Sons, 2005, p. 4)

The scientific method, which has evolved since the 13th

century, concerns the set of tools, techniques and

procedures used by basic and applied researchers to

analyze and understand phenomena and prove or disprove

prior conceptions.

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Comparison of Scientific and NonScientific Method

of Research

Basis Scientific Method Nonscientific

Method

Objectivity It is more objective It may have chances

of subjectivity

Degree of

Accuracy

It is highly precise where

quantitative concept can be

defined and measured

effectively.

It is comparatively

less degree of

preciseness

Continuing

andExhaustive

It takes cognizance of the

existing knowledge and helpsin accumulation of systematic

knowledge which is continuous

and unending

The same is always

not true in everysituation

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The Essence of the Scientific Method

Characteristics of the Scientific MethodObjectivity

Systematic Analysis

Precise

Logical Interpretation of Results

Elements of the

Scientific Method

Empirical Approach

Observations

Questions

Hypotheses

Experiments

AnalysisConclusion

Replication

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When Should Business Research be Undertaken?

Is sufficient time

available?

Is informationinadequate?

High importance

of decision?

Research benefits

greater than costs?

Yes

Yes

Yes

Undertake Business Research

NO Do notundertake Business Research

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Value and Costs ofUndertaking Business Research

VALUE

Decreased Uncertainty

Higher Likelihood of

CorrectDecisions

Better Business

performance

Higher Profits

Better Reputation

COSTS

Research Costs

Delay in Making Business

Decisions

Disclosure of Information

to Rivals

Possibility ofError

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Understanding the language of Research

Concept

It is a generally accepted collection of meanings or

characteristics associated with certain events, objects.,

conditions, situations and behaviors.

Eg: A man

movements, table, excel sheet, warrantycard, familys total income etc.

Importance to Research:

1. How clearly we conceptualize

2. How well others understand the concepts we use

Eg Familys total income

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Construct

It is an image or abstract idea specifically invented fora given research .

Eg: Presentation quality

Definition

Confusion about the meaning of concepts may destroya research studys value

If words have different meanings to the parties

involved, then the parties are not communicating well

Definitions are one way to reduce this danger

Variable

It is used as a synonym for construct or the property

being studied

Eg: Age, income, temperature.

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Inductive Reasoning

Inductive reasoning is, moving from specific observations

to broader generalizations and theories.

Inductive reasoning is all about arriving at a conclusion on

the basis of principle facts which guide you towards the

conclusion. Bottomup approach

Observation

PatternTentativehypothesis

Theory

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Deductive Reasoning

Deductive reasoning works from the more general to the

more specific.

Topdown approach

Theory hypothesis Observation Confirmation

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Research process- Steps

1. Problem identification & formulation of a

research problem

2. Research Proposal

Purpose, time frame, scope, sampling design,limitations etc.

3. Pilot testing

4. Data collection & entry

5. Data Analysis & interpretation6. Research reporting

7. Management Decision

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End of Unit 1