BUSINESS RESEARCH
MBA – SEM II
Prof. PARUL GUPTA
UNIT I BUSINESS RESEARCH DEFINITION, NATUREAND SCOPE Research: A careful investigation or inquiry specially through search for new facts in any branch of knowledge.
What is Research? The task of research is to generate accurate information for use in decision making. The emphasis of research is on shifting decision makers from intuitive information gathering to systematic and objective investigation. Research is defined as the systematic and objective process of gathering, recording and analyzing data for aid in making decisions.
Why is Research needed / Important / Necessary? Research facilitates effective management. At many companies research drives every aspect of major decision making. making. For example, at ford motor company, research research is to fundamental fundamental that management makes hardly any significant decision without the benefit of some kind of research.
Characteristics of Research
1. Research begins with a problem in the form of a question in the mind of the researcher. 2. Research demands the identification of a problem, stated in clear, unambiguous terms. 3. Research requires requires a plan. 4. Research deals with the main problem through appropriate sub-problems. 5. Research seeks direction through appropriate hypotheses and is based upon obvious assumptions. 6. Research deals with facts and their meaning. 7. Research is circular.
When Research is Needed?
A manager faced with two or more possible courses of action faces the initial decision of whether or not research should be conducted. The determination of the need for research centers on – Conducting research research systemati systematically cally takes time. time. In many instances instances management management concludes concludes Time constraintsconstraints- Conducting that, because a decision must be made immediately, there will be no time for Research. 1
BUSINESS RESEARCH
MBA – SEM II
Prof. PARUL GUPTA
Availability of data - Often managers already possess enough information to make sound decisions with business research. When they lack adequate information, however, research must be considered. Managers must ask themselves if the research will provide the information needed to answer the basic questions about a decision. Furthermore, if a potential source of data exists, managers will want to know how much it will cost to obtain the data.
Types
of
Busin siness
Resea search :
The
two
main
types
are
Basic
and
Applied
research.
Basic Research - The basic The basic research is fundamental research driven by a scientist's curiosity. The main motivation behind it is to expand his knowledge, not to invent something. Applied research - Applied research on the other hand is designed to solve practical problems, rather than to gain knowledge. Applied research sets out to prove a specific hypothesis of value to the clients paying for the research. For example, a cigarette company might commission research that attempts to show that cigarettes are good for one's health. Many researchers have ethical misgivings about doing ap plied research.
1. 2. 3. 4. 5.
Descriptive Vs Analytical Applied (Basic) Vs Fundamental (Applied) Quantitative Vs Qualitative Conceptual Vs Empirical Special types types of research
Other Types of Research - Based on the purposes for which the researches are conducted, they may be divided into following categories:
1. Baseline/Bench-mark survey/Research. 2. Evaluation Research: a) Formative Evaluation (Mid-term) b) Terminal Evaluation. 3. Impact assessment/research 4. Feasibility studies. Baseline Baseline Survey- A baseline survey is a research in which data on pre-project socio-economic and business aspects are generated in order to facilitate the assessment of future impact of project intervention. A baseline survey is conducted in the absence of available published data on various socio-economic and business aspects. Evaluation Research – a. Formative or mid term evaluation is done to assess whether the project is in the right track. It is usually done to identify the strengths, weaknesses, opportunities and threats. On the basis of the findings of the formative evaluation research corrective measures are taken to attain the goals of the project.
resear arch ch is cond conduc ucte ted d to asse assess ss the the effi effici cien ency cy and and effe effect ctiv iven enes esss of the the b. Te Term rmina inall Evalu Evaluati ation on rese project/intervention. o Effectiveness: is the ratio ratio of actual and planned activities activities The The exten extentt of attai attainm nment ent of goal goal or the the degree degree of targ target et fulfi fulfill llme ment nt deter determi mine ness the level level of effectiveness. 2
BUSINESS RESEARCH
MBA – SEM II
Prof. PARUL GUPTA
o Efficiency: - Attaining maximum output with minimum input. Impact Assessment- The research, which is undertaken to measure the quantitative benefits derived out of project intervention and qualitative changes that occurred due to project intervention, is known as an impact assessment research. This type of research also provides information for identifying the negative impact of the project. Feasibility Studies - This type of research is undertaken prior to starting of any business enterprise or any business business related related project. project. This type of research research is done to assess assess the technical, technical, economic, market and financial financial viability of the project. The issue whether the project is socially desirable and environmentally acceptable is also taken into consideration
Objectives 1. To gain familiarity with a phenomenon or to explore new ideas 2. To portray accurately the characteristics of a particular individual, situation or a group 3. To determine the frequency with which something occurs or with which it is associated 4. To establish a cause and effect relationship and test the relationship between two variables Nature of Research a. BR- As an economic resource b. BR- As a system of authority c. BR- as an activity of business management d. BR- As a Team effort e. BR- AS an art or science f. BR- As a profession g. BR- as an interdisciplinary system
Scope & Its applications in different functions of management 1. Advertising Research a. Motivation research b. Copy research c. Media research d. Studies of advertisement effectiveness e. other
3. Corporate responsibility research a. Consumers’ “ rights to know” studies b. Ecological impact studies c. Studies of legal constraints
2. Busin usines esss research
econ conomic omic
and
corp corpo orat rate
a. Short range forecasting b. Long range forecasting c. Studies of business trends d. Pricing studies e. Plant and warehouse location studies f. product mix studies g. Acquisition Studies h. Export and international studies i. Others d. Social values and policies studies e. Others
4. Product research 5. Packaging research 3
BUSINESS RESEARCH
MBA – SEM II
Prof. PARUL GUPTA
6. Sales and market research a. Measurement of market potential b. Market share analysis c. Sales analysis d. Establishment of sales quotas qu otas & territories e. Distribution channel studies f. Test markets g. Consumer panel operation h. Sales compensation studies I Promotional studies j. Others
4
THE RESEARCH PROCESS Steps Of Business Research Process
(I) Defining the Research problem & Research Research Objective:Objective:Two steps are involved defining the research problem a. Understanding the problem thoroughly and b. Rephrasing the same into meaningful terms from analytical point of view Techniques for preliminary investigation a. Situation Analysis b. Informal investigations Researcher can review two types of literature a. The conceptual literature b. The empirical literature
(II) Review of theories, concepts and previous research findings (III) Development of Working Hypothesis Working hypothesis is tentative assumption made in order to draw out and test its logical or empirical consequences Approach 1. Discussion with colleagues and experts 2. Examination of data and records 3. Review of the same 4. Exploratory personal investigation which involves original field interviews
[I] Define Research Problem & Research Objective
[II] Review concepts and theories
[II] Review previous research finding
[III] Formulate Hypothesis
[IV] Design research (Including Sample
design)
F
FF
FF
[V] Collect data (Execution) F [VI] Analyze Data (Test Hypotehses)
[IX]Report preperation
F [VII]Interpretation and Implications
[VIII]Actionable Proposition
Where, F = Feed back ( Helps in controlling the sub-system to which it is transmitted ) FF = Feed forward ( Serves the vital function of providing criterion for evaluation )
(IV) Determining Determining Research designs (including (including sample design) design) Research Design is the basic framework which provides guidelines for the rest of the research work. It is a map m ap or a blueprint according to which the research is to be conducted
Research design categories a. Exploratory research designs b. Descriptive research designs c. Causal research designs Following points must be considered while selecting any of the research designs available 1. The means of obtaining the information 2. The availability and skills of the researcher and his staff 3. Time available 4. Cost factor 5. sampling plan Sample design: A sample design is a definite plan determined before any data is actually collected for obtaining a sample from a given population . It provides answer to the following four questions; 1. What sampling unit should be studied ? 2. What should be the sample size? 3. What sample procedure should be used? 4. What contact method should be used?
(IV) Data collection 1. By observation 2. Through personal interview 3. Through telephone interviews 4. Through Schedules 5. By mailing questionnaire
(V) Analysis of data The researcher should classify the raw data into some purposeful and usable categories Three operations have to de done before the raw data is brought in a form to be analyzed further a. Coding b. Editing c. Tabulation After successful completion of above operations following three steps are there to follow to complete Data analysis 1. Hypothesis Testing a. Chi Square b. F- test c. Z test 2. Generalization 3. Interpretation (VII) Interpretation and Implications
(VIII) Actionable Implications (IX) Report preparation PROBLEM IDENTIFIACTION AND DEFINITION What Is A Research Problem:- It refers to some difficulty which a researcher experiences in context of either a theoretical or practical situation and wants to obtain a solution for the same
Components of a research problem 1. 2. 3. 4. 5.
There must be an indivi individual dual or a group or an organizatio organization n There There must must be at at least least two two courses courses of of action action There There must must be at at least least two two possib possible le outcom outcomes es The courses courses of actions actions available available must must provide provide some chance chance of obtaining obtaining the the objective objective There must be some environment to which the difficulty pertains
Selecting a problem Following points to be avoided while selecting a problem, 1. Overdone Subject 2, Controversial subject 3. Too narrow and too vague problem 4. Unfeasible subject 5. Uneconomical and time consuming problem
Steps involved in defining a problem problem
(1) General definition of the problem (2) Understanding the nature of the problem (3) Surveying the literature available (4) Developing the ideas (5) Rephrasing the problem
Research question • •
Questions in the mind of researcher All are able to achieve research objective/ to solve research problem if put together
Three types of Research questions o o o
A. Descriptive questions B. Comparison Questions C. Relational Questions Association Questions (Happening together) Causal Questions a. Concomitant Variation (two things vary together) b. Time sequence of the variable (Occurrence of two variables) c. Cause variable (Reasons behind)
Illustration (1) What sport matches your personality Research questions 1. Sociability 2. Spontaneity 3. Discipline 4, Aggressiveness 5. Competitiveness 6. Mental focus 7. Risk taking
Variables
1 2 3 4 5 6 7
Very High
High
Medium
Low
Very Low
* * * *
Possible Answers 1. Swimming 2. Carom
* * *
3. Jogging
HYPOTHESIS FORMULATION Hypothesis: A tentative explanation for an observation, phenomenon, or scientific problem that can be tested by further investigation. A hypothesis describes in concrete terms, in the form of a statement, what you expect will happen will happen in your study. Following aspects should be kept in mind when formulating a hypothesis •
• •
•
Hypotheses can only be formulated after the researcher has gained enough knowledge regarding the nature, extent and intensity of the problem. Hypotheses should figure throughout the research process in o rder to give structure to the research. Hypotheses are tentative statements/solutions or explanations of the formulated problem. Care should be taken not to over-simplify and generalize the formulation of hypotheses. The research problem does not have to consist of one hypothesis only. The type of problem area investigated, the extent which encircles the research field are the determining factors on how many hypotheses will be included in the research proposal.
Criteria Criteria for the formulation of a hypothesis: hypothesis: Following criteria are of importance in formulating hypotheses. A hypothesis should:
1. stand a te test; 2. be expres expressed sed in clear clear langua language; ge; 3. be in accordance accordance with the general general theme theme of other hypotheses hypotheses stateme statements nts in the same field field of study, study, and should be regarded as valid; 4. be. coord coordina inated ted with with the the theor theory y of scien science; ce; 5. be a tentati tentative ve answer answer to the the formul formulate ated d problem problem;; 6. be logi logica call and sim simpl plis isti tic; c; 7. consider consider available available research research techniques techniques (to (to be able to analyze analyze and interpret interpret the results) results);; 8. be spec specif ific ic;; and and 9. Be relevant relevant to the the collection collection of empiric empirical al phenomenon phenomenon and not merely merely conclude conclude value value judgments judgments 10. In case of exploratory research generally there exist no hypothesis hypothesis
Steps in Formulating a Hypothesis 1.Decide what you want to explain: choose a dependent variable 2. Choose independent variables that also show variation 3. Think of multiple causes of the dependent variable 4. Consider alternative measures of both the dependent and independent variables .
VARIABLES AND ATTRIBUTES Variable: Any entity that can take on different different values. Anything that can be assigned a value. Age can change. Nationality can differ. Variables are not always ‘quantitative’ or numerical. Attribute: A specific value on a variable. The variable sex variable sex or gender has gender has two attributes: male and female and female.. Or, agreement might be defined as having five attributes: The variable agreement might 1=strongly agree 2=disagree 3=neutral 4=agree 5=strongly agree TYPES of VARIABLES 1. Independent Variable 2. Dependent Variable Example Research question – “How could extended use of the Internet negatively affect college students’ academic performance ?” Extended use of the Internet negatively affects most college students’ academic performance Independent variable - Internet use Attributes- high, moderate, low, none Dependent variable = Performance Attributes: Good, average, Bad Variable Traits A. Exhaustive B. Mutually exclusive Different forms of Hypothesis A. Non Directional Hypothesis: All examples of associated difference, sometimes called non directional hypotheses B. Directional Hypothesis 1. With magnitude 2. Without magnitude TYPES OF HYPOTHESIS The prediction is that variables A and B are related. •
•
The only other possible outcome is that variables A and B are not related not related
A. NULL NULL HYPOTHESIS B. ALTERNATIVE HYPOTHESIS A. The Alternative Hypothesis • • •
The alternative hypothesis is simply the question you are asking. Denoted by HA or H1 Just opposite to Null Hypothesis
H1: μ1 = μ2 TWO TAILED V/s ONE TAILED TEST EXAMPLE You are investigating the effects of a new employee training program and that you believe one of the outcomes will be that there will be less employee absenteeism. Your two hypotheses might be stated something like this:
The null hypothesis for this study is; HO: As a result of the XYZ company employee training program, there will either be no significant difference in employee absenteeism or there will be a significant increase. increase. which is tested against the alternative hypothesis: HA: As a result of the XYZ company employee training program, there will be a significant decrease in employee absenteeism.
0 How To Write a Research Proposal •
The goal of a research proposal (RP) is to present and justify a research idea you have and to present the practical ways in which you think this research should be conducted.
•
Having decided on the research topic and defined a clear research question or set of questions, together with appropriate methods of seeking answers, you now need to convey your plan of research clearly in a research proposal .
•
Research proposals serve a number of purposes. Among them: They convince others that your research is worth undertaking. They enable you to demonstrate expertise and competency in your particular area of study. They may serve as a contract between the researcher and her funders. They serve as a planning tool for the researcher
• • • •
•
Regardless of your research area and the methodology you choose, all research proposals must address the following questions: What you plan to accomplish, • Why you want to do it and • How you are going to do it. •
1. Title It should be concise and descriptive • Often titles are stated in terms of a functional relationship, because such titles clearly indicate the • independent and dependent variables. However, if possible, think of an informative but catchy title. An effective title not only pricks the • reader's interest, but also predisposes him/her favorably towards the proposal . 2. Abstract
It is a brief summary of approximately 300 words. It should include the research question, the rationale for the study, the hypothesis (if any), the method and the main findings. 3. Introduction •
•
• •
•
The main purpose of the introduction is to provide the necessary background or context for your research problem Try to place your research question in the context of either a current "hot" area, or an older area that remains viable. Secondly, you need to provide a brief but appropriate historical backdrop. Thirdly, provide the contemporary context in which your proposed research question occupies the central stage. Finally, identify "key players" and refer to the most relevant and representative pu blications.
The introduction generally covers the following elements: •
•
• • •
•
• •
State the research problem, which is often referred to as the purpose of the study. Provide the context and set the stage for your research question in such a way as to show its necessity and importance. Present the rationale of your proposed study and clearly indicate w hy it is worth doing . Briefly describe the major issues and sub-problems to be addressed by your research . Identify the key independent and dependent variables of your experiment. Alternatively, specify the phenomenon you want to study. State your hypothesis or theory , if any. For exploratory exploratory or phenomenologi phenomenological cal research , you may not have any hypotheses. (Please do not confuse the hypothesis with the statistical null hypothesis.) Set the delimitation or boundaries of your proposed research in order to provide a clear focus. Provide definitions of key concepts. (This is optional.)
4. Literature Review • • • •
• • •
•
Ensures that you are not "reinventing the wheel". Gives credits to those who have laid the groundwork for your research . Demonstrates your knowledge of the research problem. Demonstrat Demonstrates es your understanding understanding of the theoretical theoretical and research issues related to your research question. Shows your ability to critically evaluate relevant literature information. Indicates your ability to integrate and synthesize the existing literature. Provides new theoretical insights or develops a new model as the conceptual framework for your research . Convinces your reader that your proposed research will make a significant and substantial contribution to the literature (i.e., resolving an important theoretical issue or filling a major gap in the literature).
Literature reviews suffer from the following problems : 1. Lackin Lacking g organi organizati zation on and and struc structur turee 2. Lackin Lacking g focus focus,, unity unity and coheren coherence ce
3. 4. 5. 6. 7. 8.
Bein Being g repet repetit itiv ivee and verb verbos osee Failin Failing g to cite cite influe influenti ntial al paper paperss Failin Failing g to keep keep up with with recent recent devel developm opment entss Failin Failing g to critic criticall ally y evaluat evaluatee cited cited papers papers Citing Citing irrel irreleva evant nt or trivi trivial al refere references nces Dependi Depending ng too too much much on secon secondar dary y sourc sources es
5. Methods (Methodology) •
The Method section is very important because it tells your Research Committee how you plan to tackle your research problem
•
In short, what actions are you going to take in order to answer the question? When will you know whether the hypothesis has been proven wrong, or has survived enough tests to be considered, for now, valid? Those tests and the way you are supposed to handle them to give rigor to your research is what is understood under methods.
•
Methods divide in qualitative (interviews, questionnaires) and quantitative (statistics, stuff that deals intensively with numbers)
For quantitative studies , the method section typically consists of the following sections: •
•
•
•
Design -Is it a questionnaire study or a laboratory experiment? What kind of design do you choose? Subjects or participants - Who will take part in your study? What kind of sampling procedure do you use? Instruments - What kind of measuring instruments or questionnaires do you use? Why do you choose them? Are they valid and reliable? Procedure - How do you plan to carry out your study? What activities are involved? How long does it take?
6. Results & Discussion You also need to mention the limitations and weaknesses of the proposed research , which may be justified by time and financial constraints as well as by the early developmental stage of your research area. Common Mistakes in Proposal Writing
1. 2. 3. 4. 5. 6. 7. 8.
Failure Failure to to provide provide the the proper proper context context to frame frame the research question. Failure Failure to to delimit delimit the boundary boundary conditions conditions for your your research . Failur Failuree to cite cite landm landmark ark studie studies. s. Failure Failure to accurately accurately present present the theoretical theoretical and empirical empirical contributi contributions ons by other researcher researchers. s. Failur Failuree to to stay stay focuse focused d on on the the research question. Failure Failure to develop develop a coherent coherent and persuasive persuasive argument argument for the the proposed proposed research . Too much detail detail on on minor minor issues, issues, but not enough enough detail detail on major major issues. issues. Too Too much much ramb rambli ling ng -- going going "all "all over the map" map" with withou outt a clea clearr sens sensee of dire direct ctio ion. n. (The (The best best proposals move forward with ease and grace like a seamless river.) 9. Too many many citation citation lapses lapses and and incorrec incorrectt referen references ces
7. Synopsis 1. Statement of Problem A. Introduction to subject B. Specific problem formulation 2. Objective of study 3. Scope of study 4. Research methodology a. Hypothesis Formulation C. Data collection D. Analysis and presentation of data E. Limitation of study 5. Presentation of Study 6. Bibliography
