Business Research Methods - Basics

What is Research?
Research in common parlance refers to a search for knowledge.
Research is a scientific and systematic search for pertinent information on a specific
topic.
Research is an art of scientific investigation. The Advanced Learners Dictionary of
Current English lays down the meaning of research as a careful investigation or
inquiry specially through search for new facts in any branch of knowledge.
According to Clifford Woody research comprises defining and redefining problems,
formulating hypothesis or suggested solutions; collecting, organising and evaluating
data; making deductions and reaching conclusions; and at last carefully testing the
conclusions to determine whether they fit the formulating hypothesis.
Business Research
Business research is defined as the systematic and objective process of generating
information for aid in making business decisions.
Motivation for Research
Motivation for Research by Individuals
Motivation for Research by Organizations
Motivation for Research by Individuals
Inquisitiveness
To demystify the mystery
Desire to undertake a challenge in solving unsolved problems
Desire for self-advancement
Completion of mandatory assignment in professional courses and career

Desire to get a Ph. D. degree

Desire to get recognition and distinguishing oneself from others by being the first to
do something new
Desire to help mankind by discovering medicines, surgical procedures, improving
productivity and quality of cereals, vegetables fruits etc., improving modes of
communication and entertainment etc.
Motivation for Research by Organizations
Self-motivation
Regulatory
Competition
Customer Driven
Failure
Technological Innovations
Environmental Considerations
Economic
Infrastructure
Operations/Process Driven
Coping with Changes
Business Research Types
Basic research
Applied research
Basic Research
Attempts to expand the limits of knowledge.
Not directly involved in the solution to a pragmatic problem.
Basic Research Example
Is executive success correlated with high need for achievement?
Are members of highly cohesive work groups more satisfied than members of less
cohesive work groups?
"The secret of success is to know something nobody else knows. " -Aristotle Onassis
Applied Research
Conducted when a decision must be made about a specific real-life problem
Applied Research Examples
Should McDonalds add Italian pasta dinners to its menu?
Should Procter & Gamble add a high-priced home teeth bleaching kit to its product
line?
Research showed Cadbury Oreo would sell well at a retail price of Rs. 15/Information

Reduces uncertainty

Helps focus decision making

Types Of Research
Exploratory
Descriptive
Causal
Research
Research
Design

Explorator
y
Research

Conclusive
Research

Descriptive
Research

CrossSectional

Single
Cross
Sectional

Causal
Research

Longitudin
al Study

Multiple
Cross
Sectional

Exploratory
Research
Initial research conducted to clarify and define the nature of a problem
Does not provide conclusive evidence
Subsequent research expected
Descriptive Research
Describes characteristics of a population or phenomenon
Some understanding of the nature of the problem
I keep six honest serving men, (they taught me all I knew), their names are-What, and
Why, and When, and How, and Where and Who. --Rudyard Kipling.
Descriptive Research Example
Mens fragrance market
1/3 size of womens fragrance market
But growing at a faster pace
Women buy 80 % of mens fragrances
Causal Research
Conducted to identify cause and effect relationships
A researcher wishes to determine whether the presence of Salespeople (Causal
variable) will influence the sales of Housewares (Effect variable)
Research Methods v/s Research Methodology
Research methods may be understood as all those methods/techniques that are
used for conduction of research.
Research methods or techniques*, thus, refer to the methods the researchers use in
performing research operations.
Research methodology is a way to systematically solve the research problem.
It may be understood as a science of studying how research is done scientifically. In
it we study the various steps that are generally adopted by a researcher in studying
his research problem along with the logic behind them.
It is necessary for the researcher to know not only the research methods/techniques
but also the methodology.

Research Stages
Cyclical process - conclusions generate new ideas
Stages can overlap chronologically
Stages are functionally interrelated
Forward linkages
Backward linkages

Stages In The Research Process

 Problem Discovery and Problem Definition

Research Design
Sampling
Data Gathering
Data Processing and Analysis
Conclusions And Report
Problem Discovery And Definition
First step
Problem, opportunity, or monitor operations
Discovery before definition
Problem means management problem
The formulation of the problem is often more essential than its solutionAlbert Einstein
State the research questions and research objectives.
Hypothesis
A statement that can be refuted by empirical data
If you do not know where you are going, any road will take you there.

Exploratory Research Techniques

Two Examples
Secondary data (historical data)
Previously collected
Census of population
Literature survey
Pilot study
A number of diverse techniques
EXPLORATORY STUDY
Research Design
Master plan
Framework for action
Specifies methods and procedures
Basic Research Methods
Surveys
Experiments
Secondary data
s
Observation
Selecting a Sample-Sample: subset of a larger population.
Sampling
Who is to be sampled?
How large a sample?
How will sample units be selected?

population

Sample Designs and Sampling Procedures

Data Gathering Stage
Data Processing and Analysis
Conclusions And Report Writing
Effective communication of the research findings
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

Exploratory Research

Qualitative versus Quantitative Research

Purpose
Exploratory versus descriptive and conclusive
Small versus large samples
Broad range of questioning versus structured questions
Subjective interpretation versus statistical analysis

Exploratory research
Secondary data
Experience survey
Pilot studies
Exploratory Research
Initial research conducted to clarify and define the nature of a problem
Does not provide conclusive evidence
Subsequent research expected
What is Exploratory Research?-1) QUANTITATIVEDATA 2) QUALITATIVEDATA
Why Conduct Exploratory Research?- 1)Diagnose a situation 2)Screening of
alternatives 3)Discover new ideas
Concept Testing
Exploratory research procedure that tests some sort of stimulus as a proxy for an
idea about a new, revised, or repositioned product
Categories of Exploratory Research
Experience surveys
Secondary data analysis
Case studies
Pilot studies
Experience Surveys
Ask knowledgeable individuals about a particular research problem

most are quite willing

Secondary Data Analysis
Data collected for a purpose other than the project at hand
Economical
Quick source for background information
Case Study Method
Intensely investigates one or a few situations similar to the problem
Investigate in depth
Careful study
May require cooperation
Pilot Study
A collective term
Any small scale exploratory study that uses sampling
But does not apply rigorous standards
Pilot Studies
Focus Group Interviews
Projective Techniques
In-Depth Interviews

Projective Techniques
Word association tests
Sentence completion method
Third-person technique
Role playing
T.A.T.
Picture frustration version of T.A.T.
A man is least himself when he talks in his own person; when given a mask he will tell the
truth.--Oscar Wilde
Word Association
Subject is presented with a list of words
Asked to respond with first word that comes to mind
Word Association Examples
GREEN- Money
Lawn
Eggs and Ham
SOAP- Lux
Lifebuoy
Patanjali

Thematic Apperception Test

T.A.T.
Focus Group Interviews
Unstructured
Free flowing
Group interview

 Start with broad topic and focus in on specific issues

Characteristics of Focus Groups
Group Size
8-12
Group Composition
Homogeneous, respondents, prescreened
Physical Setting
Relaxed, informal atmosphere
Time Duration
1-3 hours
Recording
Use of audiocassettes and videotapes
Moderator
Observational, interpersonal, and
communication skills of the moderator
Outline for a Focus Group
Establish a rapport
Begin with broad topic
Focus in on specific topic
Generate discussion and interaction
The Moderator
Develops rapport - helps people relax
Interacts
Listens to what people have to say
Everyone gets a chance to speak
The Focus Group Moderator
Maintains loose control and focuses discussion
Stimulates spontaneous responses
Key Qualifications of Focus Group Moderators
1. Kindness with firmness: The moderator must combine a disciplined detachment with
understanding empathy so as to generate the necessary interaction.
2. Permissiveness: The moderator must be permissive yet alert to signs that the groups
cordiality or purpose is disintegrating.
3. Involvement: The moderator must encourage and stimulate intense personal
involvement.
4. Incomplete understanding: The moderator must encourage respondents to be more
specific about generalized comments by exhibiting incomplete understanding.
5. Encouragement: The moderator must encourage unresponsive members to participate.
6. Flexibility: The moderator must be able to improvise and alter the planned outline amid
the distractions of the group process.
7. Sensitivity: The moderator must be sensitive enough to guide the group discussion at an
intellectual as well as emotional level.
Procedure for Planning and Conducting Focus Groups
Determine the Objectives of the Research Project and Define the Problem
Specify the Objectives of Qualitative Research
State the Objectives/Questions to be Answered by Focus Groups
Write a Screening Questionnaire
Develop a Moderators Outline
Conduct the Focus Group Interviews
Review Tapes and Analyze the Data
Summarize the Findings and Plan Follow-Up Research or Action
Use of Focus Group at GM

Buick division of General Motors used focus groups and survey research to help develop
the Regal two-door, six passenger coupe. Buick held 20 focus groups across the country to
determine what features customers wanted in a car. The focus groups told GM they
wanted a stylish car, legitimate back seat, at least 20 miles per gallon, and 0 to 60 miles
Based on these results, Buick engineers created clay models of the car and
mock-ups of the interior. These were shown to another set of focus groups of
target buyers. These respondents did not like the oversized bumpers and the
per hour acceleration in 11 seconds or less.
Focus groups also helped refine the advertising campaign for the Regal.
Participants were asked which competing cars most resembled Buick in image
and features. The answer was Oldsmobile, a sister GM division. In an effort to
differentiate the two, Buick was repositioned above Oldsmobile by focusing on
comfort and luxury features.
The tag line for the 1998 Regal, official car of the Supercharged family, was
based on focus group findings. This repositioning has greatly aided the sales of
Buick Regal.

Advantages of Online -Focus Groups

Fast
Inexpensive
Bring together many participants from wide-spread geographical areas
Respondent anonymity
Transcript automatically recorded
Disadvantages of Online- Focus Groups
Less group interaction
Absence of tactile stimulation
Absence of facial expression and body language
Moderators job is different
Streaming Media

Sample Designs and Sampling Procedures

Sampling Terminology
Sample
Population or universe
Population element
Census
Sample
Subset of a larger population
Population
Any complete group
People
Sales territories

 Stores
Census
Investigation of all individual elements that make up a population

Target Population
Relevant population
Operationally define
Comic book reader?
Sampling Frame
A list of elements from which the sample may be drawn
Working population
Mailing lists - data base marketers
Sampling frame error
Sampling Units
Group selected for the sample
Primary Sampling Units (PSU)
Secondary Sampling Units
Tertiary Sampling Units
Random Sampling Error
The difference between the sample results and the result of a census conducted
using identical procedures
Statistical fluctuation due to chance variations
Systematic Errors
Nonsampling errors
Unrepresentative sample results
Not due to chance
Due to study design or imperfections in execution
Errors Associated with Sampling
Sampling frame error
Random sampling error
Nonresponse error
Two Major Categories of Sampling
Probability sampling
Known, nonzero probability for every element
Nonprobability sampling
Probability of selecting any particular member is unknown
Nonprobability Sampling
Convenience
Judgment
Quota
Snowball

Probability Sampling
Simple random sample
Systematic sample
Stratified sample
Cluster sample
Multistage area sample
Convenience Sampling
Also called haphazard or accidental sampling
The sampling procedure of obtaining the people or units that are most conveniently
available
Judgment Sampling
Also called purposive sampling
An experienced individual selects the sample based on his or her judgment about
some appropriate characteristics required of the sample member
Quota Sampling
Ensures that the various subgroups in a population are represented on pertinent
sample characteristics
To the exact extent that the investigators desire
It should not be confused with stratified sampling.
Snowball Sampling
A variety of procedures
Initial respondents are selected by probability methods
Additional respondents are obtained from information provided by the initial
respondents
Simple Random Sampling
A sampling procedure that ensures that each element in the population will have an
equal chance of being included in the sample
Systematic Sampling
A simple process
Every nth name from the list will be drawn
Stratified Sampling
Probability sample
Subsamples are drawn within different strata
Each stratum is more or less equal on some characteristic
Do not confuse with quota sample
Cluster Sampling
The purpose of cluster sampling is to sample economically while retaining the
characteristics of a probability sample.
The primary sampling unit is no longer the individual element in the population
The primary sampling unit is a larger cluster of elements located in proximity to one
another
What is the Appropriate Sample Design?
Degree of accuracy
Resources
Time
Advanced knowledge of the population
National versus local
Need for statistical analysis

Scaling & Measurement

Concept

A generalized idea about a class of objects, attributes, occurrences, or processes

Operational Definition
Specifies what the researcher must do to measure the concept under investigation
Scale
Series of items arranged according to value for the purpose of quantification
A continuous spectrum
Scale Properties
Uniquely classifies
Preserves order
Equal intervals
Natural zero
Index Measures
ATTRIBUTES A single characteristic or fundamental feature that pertains to an
object, person, or issue
COMPOSITE MEASURE A composite measure of several variables to measure a
single concept; a multi-item instrument

The Goal of Measurement Validity

Reliability
The degree to which measures are free from random error and therefore yield consistent
results
Reliability refers to the extent to which a scale produces consistent results if repeated
measures are made

Reliability
Test-Retest Reliability
An approach for assessing reliability in which the respondents are administered identical
sets of scale items at two different times under as nearly equivalent conditions as possible
Alternative-Forms Reliability
An approach for assessing reliability that requires two equivalent forms of the scale to be
constructed and then same respondents are measured at two different times
Internal Consistency Reliability
An approach for assessing the internal consistency of the set of items when several items
are summated in order to form a total score for the scale
Split-Half Reliability
A form of internal consistency reliability in which the items constituting the scale are
divided into two halves and the resulting half score are correlated
Coefficient Alpha
A measure of internal consistency reliability that is the average of all possible split-half
coefficients resulting from different splitting of the scale items
Validity
The ability of a scale to measure
what was intended to be
measured