BUSINESS RESEARCH METHODS Module I: Nature and Scope of Research Methodology Research is a careful investigation or enquiry, especially through search for new facts in any branch of knowledge. Research methodology is the process used to collect information and data for the purpose of making business decisions. The methodology may include publication research, interviews, surveys and other research techniques, and could include both present and historical information.
An experiment is a research method for investigating cause and effect under highly controlled conditions. A survey is a research method in which subjects respond to a series of statements or questions in a questionnaire or an interview. Concept is anything that is socially acceptable of object and phenomenon. Construct is ide in one’s mind. Variable is any object or attribute to which values can be designed. Proposition is jist of my understanding. Model is a representation of a system in order to have better understanding.
Types of Research 1. Exploratory Research Exploratory research, as the name implies, intends merely to explore the research questions and does not intend to offer final and conclusive solutions to existing problems. This type of research is usually conducted to study a problem that has not been clearly defined yet. Conducted in order to determine the nature of the problem, exploratory research is not intended to provide conclusive evidence, but helps us to have a better understanding of the problem. Exploratory research design does not aim to provide the final and conclusive answers to the research questions, but merely explores the research topic with varying levels of depth Advantages of Exploratory Research Flexibility and adaptability to change Exploratory research is effective in laying the groundwork that will lead to future studies. Exploratory studies can potentially save time and o ther resources by determining at the earlier stages the types of research that are worth pursuing
Disadvantages of Exploratory Research Exploratory studies generate qualitative information and interpretation of such type of information is subject to bias These types of studies usually make use of a modest number of samples that may not adequately represent the target population. Accordingly, findings of exploratory research cannot be generalized to a wider population. Findings of such type of studies are not usually useful in decision making in a practical level.
2. Conclusive Research Conclusive research design, as the name implies, is applied to generate findings that are practically useful in reaching conclusions or decision-making. In this type of studies research objectives and data requirements need to be clearly defined. Findings of conclusive studies usually have specific uses. Conclusive research design provides a way to verify and quantify findings of exploratory studies. Conclusive research design usually involves the application of quantitative methods of data collection and data analysis. Moreover, conclusive studies tend to be deductive in nature and research objectives in these types of studies are achieved via testing hypotheses.
Conclusive research design can be divided into two categories: 1. Causal Research (Explanatory research) Causal research, also known as explanatory research is conducted in order to identify the extent and nature of cause-and-effect relationships. Causal research can be conducted in order to assess impacts of specific changes on existing norms, various processes etc.
2. Descriptive Research Descriptive research can be explained as a statement of affairs as they are at present with the researcher having no control over variable. Descriptive studies may be characterised as simply the attempt to determine, describe or identify what is, while analytical research attempts to establish why it is that way or how it came to be. In its essence, descriptive studies are used to describe various aspects of the phenomenon. In its popular format, descriptive research is used to describe characteristics and/or behaviour of sample population. An important characteristic of descriptive research relates to the fact that while descriptive research can employ a number of variables, only one variable is required to conduct a descriptive study. Three main purposes of descriptive studies can be explained as describing, explaining and validating research findings. Difference between Exploratory and Conclusive Research: Exploratory research
Conclusive research
Loosely structured in design
Well structured and systematic in design
Are flexible and investigative in methodology
Have a formal and definitive methodology that needs to be followed and tested
Hypotheses
Do not involve testing of hypotheses
Most conclusive researches are carried out to test the formulated hypotheses
Findings
Findings might be topic specific and might not have much relevance outside of researcher’s domain
Findings are significant as they have a theoretical or applied implication
Structure
Methodology
Research Process A typical research process comprises the following stages:
1. To define the problem statement Researchers are employed by a company for a problem: - Analysing past records of the company - Taking expert opinion if required - Conducting small qualitative study
-
Understanding environmental context of the problem Defining problem
Problem Definition involves stating the Management Decision Problem and identifying the Marketing Research Problem Management Decision Problem (MDP) Marketing Research Problem (MRP) 1. Asks what the decision maker needs to do 1. Asks what information is needed and how it should be obtained 2. Action Oriented 2. Information Oriented 3. Focuses on symptoms 3. Focuses on underlying causes 4. Questions of change in research 4. Researcher does a marketing research on MDP questions 5. For decision maker 5. For researcher maker 6. Alternative the management takes 6. Researching and understanding current consumer perception Ex. Decision regarding price change Ex. Studing price elasticity of demand
2. Approach to solve problems We have to have a theoretical framework about the variables i.e. problem statement. Then choose a model: Verbal, Graphical, Mathematical. Formulate research questions: broad topics in which we are going to frame questionnaire. Specification of information is needed - What type of information is required to solve a problem? - What is the source of information? - Whether we require primary or secondary resources?
3. Research Design The blueprint or framework for carrying out the research. There are 2 types of Research design: 1. Exploratory: Only to gain understanding about the problem. 2. Conclusive: Applied to generate findings that are practically useful in reaching conc lusions. There is always hypothesis testing done to prove data is correct or not. Descriptive(Survey): Describing the phenomenon under study. Casual( Experiment): Trying to prove a cause and effect relationship.
Collect data
Conduct survey
Hypothesis Testing
Conclusive research design
4. Data collection. Data collection method(s) need to be selected on the basis of critically analyzing advantages and disadvantages associated with several alternative data collection methods. It is done with the help of fieldwork.
5. Filtering Data for analysis. Data is filtered and only relevant data is kept. It is done for the ease of data analysis.
6. Data analysis. Analysis of data plays an important role in the achievement of research aim and objectives. Data analysis methods vary between secondary and primary studies, as well as, between qualitative and quantitative studies.
7. Reaching conclusions. Conclusions relate to the level of achievement of research aims and objectives. Conclusions also need to cover research limitations and suggestions for future research.
Research Approach Research approach can be divided into three types:
1. Deductive Research Approach If you have formulated a set of hypotheses that need to be confirmed or rejected during the research process you would be following a deductive approach. In deductive approach, the effects are assessed by developing hypotheses that are tested during the research process. Deductive approach follows the following path:
2. Inductive Research Approach Alternatively, inductive approach does not involve fo rmulation of hypotheses. It starts with research questions and aims and objectives that need to be achieved during the research process. Inductive studies follow the route below:
Deduction
Induction
Logic
In a deductive inference, when the premises are true, the conclusion must also be true
In an inductive inference, known premises are used to generate untested conclusions
Generalizability
Generalising from the general to the specific
Generalising from the specific to the general
Use of data
Data collection is used to evaluate propositions or hypotheses related to an existing theory
Data collection is used to explore a phenomenon, identify themes and patterns and create a conceptual framework
Theory
Theory falsification or verification
Theory generation and building
The application of inductive approach is associated with qualitative methods of data collection and data analysis, whereas deductive approach is perceived to be related to quantitative methods. The following table illustrates such a classification from a broad perspective: Concepts associated with quantitative methods
Concepts associated with qualitative methods
Type of reasoning
Deduction Objectivity Causation
Induction Subjectivity Meaning
Type of question
Pre-specified Outcome-oriented
Open-ended Process-oriented
Type of analysis
Numerical estimation Statistical inference
Narrative description Constant comparison
Research Problem Identification and Formulation It refers to some difficulty which a researcher experiences in the context of either a theoretically or practical situation and wants to obtain a solution for the same.
Identification of a Research Problem Identification is a sense of consciousness and awareness about social phenomena. • Researcher Knowledge • Keen observation • Careful Investigation • Cause and effect relationships
Formulation of the Research 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
Research Design Research design is a broad framework that states the total pattern of conducting research project. It specifies objectives, data collection and analysis methods, time, co sts, responsibility, probable outcomes, and actions. The research design is similar to broad plan or model that states how the entire research project would be conducted.
Types of Research Designs 1. Exploratory Research Design: This design is followed to discover ideas and insights to generate possible explanations. It helps in exploring the problem or situation. It is, particularly, emphasized to break a broad vague problem statement into smaller pieces or sub-problem statements that help forming specific hypothesis. The hypothesis is an abstract statement about the relationship between two or more variables. Naturally, in initial state of the study, we lack sufficient understanding about problem to formulate a specific hypothesis. Similarly, we have several competitive explanations of marketing phenomenon. Exploratory research design is used to establish priorities among those competitive explanations. The exploratory research design is used to increase familiarity of the analyst with problem under investigation. This is particularly true when researcher is new in area, or when problem is of different type. This design is followed to realize following purposes: 1. Clarifying concepts and defining problem 2. Formulating problem for more precise investigation 3. Increasing researcher’s familiarity with problem 4. Developing hypotheses 5. Establishing priorities for further investigation Exploratory research design is characterized by flexibility to gain insights and develop hypotheses. It does not follow a planned questionnaire or sampling. It is based on literature survey, experimental survey, and analysis o f selected cases. Unstructured interviews are used to offer respondents a great deal of freedom. No research project is purely and solely based on this design. It is used as complementary to descriptive design and causal design.
2. Descriptive Research Design:
Descriptive research design is typically concerned with describing problem and its solution. It is more specific and purposive study. Before rigorous attempts are made for descriptive study, the well-defined problem must be on hand. Descriptive study rests on one or more hypotheses. Descriptive research requires clear specification of who, why, what, when, where, and how o f the research. Descriptive design is directed to answer these problems.
3. Experimental Research Design: Experimental research design deals with determining cause and effect relationship. It is typically in form of experiment. In experimental research design, attempt is made to measure impact of manipulation on independent variables (like price, products, advertising and selling efforts or marketing strategies in general) on dependent variables (like sales volume, profits, and brand image and brand loyalty). It has more practical value in resolving marketing problems. We can set and test hypotheses by conducting experiments.
