Business Research Methods Research Process Definition Business research

Business Research Methods Research Process

Definition • Business research process involves a series of steps for conducting BR starting from identification of problem/opportunity to preparation of research report

Stages of the Research Process Problem Discovery and Definition Research Design Discovery and Definition and so on Conclusions and Report Sampling Data Processing and Analysis Data Gathering

Stages In The Research Process • • Problem Discovery and Problem Definition Planning Research Design Selecting Research Method Sampling Data Gathering Data Processing and Analysis Conclusions And Report

Problem Identification & Definition

Problem identification • Identifying problem is the first step • Word problem is used in a broader context - to define an opportunity (chance to expand operations in a foreign country ) -to evaluate a programme (to evaluate professional development programme for employees) -to clarify a problem ( declining profits) • Identification is a statement in general terms. What is to be investigated is not clear • Only symptoms are apparent. • profits may be declining but exact nature of problem may not be known

Identifying problems and opportunities • BR helps in identifying problems and opportunities through scanning internal & external business environment & also in monitorong & evaluation • Problems: Loss of market share : Decline in profits : IR problems : Ad campaign not effective • Opportunities: To tap a new market : To introduce a new product : To seek a new investment opportunity : To take over a new unit • Evaluations: Continuous tracking of sales : Impact of new schemes introduced on sales : Continuous monitoring of a project to ensure that it is going as envisaged Varsha Varde 7

Problem definition • Indication of a specific business decision area that will be clarified by answering some research questions • A problem well defined is a problem half solved • A well defined problem -gives proper direction for carrying out investigations & to set research objectives -helps in effective utilisation of resources

Problem definition • Some research problems can be clearly defined but some need to be explored further through exploratory research • Conducting research in news paper reading habit can be clearly defined • Problem of declining sales needs to be explored further

Problem definition A company producing cell phones may realise that its new product is not selling but it may not know the reason • Although problem is identified in a broader perspective it needs to be defined specifically in terms of what is to be researched

Exploratory research • It aims at understanding the topic being researched • It is undertaken in the initial stages of research process. • It is an informal process that helps defining the identified problem. It involves -Evaluating existing studies -Discussing problem with experts - Analysing the situation

Exploratory research • Tools of exploratory research include - Collection & Analysis of Secondary data (Data that have been previously collected for some project other than at hand. Review of literature) -pilot study(A small scale exploratory research technique that uses sampling but does not apply rigorous standards)

Distinction between Management decision problem & Business research problem • Management Decision Problem is the problem confronting the decision maker • It is action oriented & is concerned with possible actions DM can take • It focuses on symptoms -loss of market share for a particular product -Management Decision problem is how to recover this loss

Business research problem • Business research problem asks what information is needed and how it should be obtained • It is information oriented • It focuses on underlying causes -Causes for loss of market share could be: ineffective ad. campaign, inappropriate segmentation of market, incorrect price strategy, improper distribution better product of the competitor -After exploratory research it is found that problem is caused by inappropriate segmentation of the market -Research problem would be identification & evaluation of an alternative basis for segmenting the market

Distinction between Management decision problem & Business research problem Management decision Business research problem • To determine consumer • Should a new product be preferences & purchase introduced ? intentions for proposed product • Should the ad. Campaign • To determine the effectiveness of the current be changed? Ad. Campaign • Determine price elasticity • Should the price of the of demand& its impact on brand be increased? sales &profit

Distinction between Management decision problem & Business research problem Management decision Business research problem • To determine relative • What should be done to strengths & weaknesses of improve patronage of our the store vis-a vis other store? major competitors with respect to factors that influence store patronage

“The formulation of the problem is often more essential than its solution. ” Albert Einstein

Problem Definition • The indication of a specific business decision area that will be clarified by answering some research questions.

• • Preparing Statement of Research Objectives After identifying & clarifying problem with or without exploratory research , a formal statement of the research objectives is to be made. Objectives have to be developed by analysing purpose of research thoroughly Objectives must be brief & specific It is preferable to limit the number of objectives

Preparing Statement of Research Objectives • Research objectives comprise research questions and the hypotheses If the objective is to study impact of micro finance services at the end user’s level • Research Questions could be

Research Questions § Who is being served by Micro finance? § Does MF lead to reduction in poverty? § Does MF contribute to enterprise growth & Income? § Does women’s role as MF clients translate into their empowerment? § What effect MF has on other systems of financing? § What products & services are more effective?

Developing a hypothesis • It is a statement based on some presumptions that can be tested through empirical data • It makes a research question clearer and ensures that all relevant aspects of research are included in the research design • The best expression of a research objective is a well formed testable research hypothesis

Developing a hypothesis -If the research question is why are sales of refrigerators going up during winter ? -the hypothesis could be “ Sales of refrigerators are going up during winter due to off season discounts” - So question on off season discount can be included in the questionnaire during research design phase • Once hypothesis is developed research design can be selected • However a hypothesis cannot be developed for every research question

Research Questions • Research questions are refined statements of specific components of the problem • They ask what specific information is required w. r. t. problem component • They are interrogative in nature • State the research questions

Hypothesis • Hypothesis goes beyond research questions • An unproven proposition or statement of relationships • A possible solution to a problem • Guess • Hypothesis are declarative in nature • Can be tested empirically

RESEARCH QUESTION • 1) What is the mean income of heavy-drinkers of beer? • 2) What age group of purchasers of product ‘X’ buys ‘X’ the most? • 3) What will be the result on sales of a 20 percent increase in price? HYPOTHESIS 1 ) The lower income people consume more beer. 2) The age group 35– 44 is the heaviest user. 3) A 20 percent increase in price will not lead to a decrease in rupee sales 4) Who is being served by Micro Finance? 4) More than 80% of MF clients are women.

Planning A research Design

Planning the research design • A research design is a master plan specifying the methods and procedures for collecting and analysing the needed information • It Should indicate - Objectives -Research method (Survey, Experiment etc) -Sampling Methodology -Time Schedule & Cost of research

Selecting Research Methods • Five basic methods of conducting a research study -Surveys -Experiments -Secondary Data studies -Qualitative Techniques -Observation techniques

Surveys • Research Technique used to gather primary data from a sample of respondents by employing a questionnaire • Surveys are conducted by -meeting respondents in person - contacting them through telephone - internet/ e-mail • Each has its own advantages /disadvantages • Any of these methods could be adopted depending on their requirements

Experiments • In BR experiments are conducted to study cause effect relationship • It helps investigation of changes in one variable (productivity) while manipulating one or two other variables (monetary rewards , motivations) • Test marketing conducted by companies to test viability of their new product is a form of business experimentation

Secondary data studies • It is concerned with analysis of already existing data that is related to research topic in question • Sales of a product may be related to disposable personal income data on which can be obtained from government sources and a mathematical model could be fitted • Cell phone wave protector research secondary data on TC set up , mobile networking , waves used in wireless telephony& its effects may be required

Qualitative Techniques • Qualitative methods are used to probe the minds of respondents to collect factual data • Used in brainstorming sessions to generate new ideas • It involves group dynamics which gives responses not possible in one-to-one interview • Depth Interviews, FGDs, Projective techniques • Require behavioural specialists to analyse findings

Observation technique • It is a process where the respondents are merely observed without any interruption by the observer • Shopping pattern of customers in supermarket assessed by observers • The number of automobiles that pass the proposed site for a petrol pump • Attitudes, opinions, motivations cannot be recorded by this technique

Selecting Research Methods • There is no one best research method for all situations • Selection of most appropriate research method develops with experience • It also depends on type of research(Exp/Des/Cau) • In chicago museum the most popular exhibit was found out by keeping track of how often floor tiles in front of various exhibits need to be replaced- an unobtrusive observational technique. • It is not necessary to always use surveys

SAMPLING

Sampling • Sampling is generally a part of research design but is considered separately in a research process

Sampling • The Process of Obtaining Information About a Whole by Examining Only a Part • Whole = Population Part = Sample • Everyday Life Concept • Example: Physician makes diagnosis on the basis of the findings of a small sample of blood Auditors use sampling to draw conclusions about large volumes of transactions Market researchers use sample of customers to determine market potential Sample Inspection is done to accept or reject a lot ? Varde 38

Why Sampling • Population too large to be studied in full • Sampling is Cheaper & Quicker as compared to Census • Necessary in destructive testing • Census not feasible-testing of medicines

Purpose of Sampling • To Estimate Value of a Population Parameter (Mean, Variance, Proportions etc. ) on the basis of Value of the Corresponding Sample Statistic. • More Representative the Sample, More Accurate is the Estimate. • Bigger the Sample, Better the Estimate. • Bigger the Sample, Greater is Cost & Time Varde 40

Sample Size • How Big Should Be My Sample? • Sample Size Depends Upon the Sampling Technique Selected for the Purpose. • Therefore, First We Must Know About the Various Sampling Techniques. Varde 41

Sampling Techniques A Statistical /Probability Sample Should Be: • Selected Objectively so that Inferences Drawn from it are Reliable, • Free from Personal Biases, • Giving Equal or Known Chance of Selection to Every Unit of the Population. A non probability sample selects sample units on the basis of personal judgment. • It does not give equal or known chance of selection to every unit of population Varde 42

DATA COLLECTION • Execution phase of research process begins with data collection • There are two phases of data collection -pre-testing for a small sub sample -the main study • Pre testing on a small scale helps -to test if the data collection plan is appropriate -to decide on way of tabulating collected data

Processing &Analysing the data • Data processing starts with editing & coding • Editing involves checking data collection forms for omission, legibility, consistency and other interviewer errors (entry in wrong column ) • Coding involves rules for interpreting , categorising and recording data to facilitate computer or hand tabulation

Analysis • It is application of analytical techniques to understand interpret the data • Analytical techniques are determined by -management’s information requirement -characteristics of research design(Ex/Des/Cau) -nature of data collected • Statistical analysis -Univariate, Bivariate or Multivariate

Preparing & Presenting Report • This is the last stage of research process • Effective communication of research findings • Research report should contain - Executive summary -Table of Contents -Introduction - Research objectives - Research Methodolgy - Analysis - Findings -Limitations - Recommendations - Bibliography

Preparing & Presenting Report • Research report should not be filled up with technical details but should portray research findings most effectively as per requirements of the management • Research report should also be presented in oral form • Written report acts as a historical document

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 ----Background ----Objective -----Proposed methods of Investigation -----Time & Cost Budget

Circular presentation • Conclusions from the research studies usually generates new ideas and problems that need to be further investigated • Hence stages are portrayed in a circular form

Stages of the Research Process Problem Discovery and Definition Research Design Discovery and Definition and so on Conclusions and Report Sampling Data Processing and Analysis Data Gathering