Definition of Business Research

Business research is an important management activity that helps companies determine which
products will be most proIitable Ior companies to produce. Several steps are necessary when
conducting business research; each step must be thoroughly reviewed to ensure that the best
decision is made Ior the company.
!roduct Analysis
!roduct analysis is the Iirst step oI business research. Companies must Iind a product that meets
or exceeds consumer demand, or the product will Iail in the economic market place. One type oI
analysis is to Iind an existing product that can be improved through design or Ieatures. Another
type oI product analysis will Iind emerging markets with high demand and low supply, which
allows Ior companies to sell new products to meet consumer demand.
arket Analysis
Companies will conduct a market analysis to determine how much proIit may be earned Irom
current demand. Management will look at which stage oI the business cycle the market is
currently in, whether emerging, plateau, or declining. Each stage has its own level oI
proIitability, with the Iirst stage being the highest and the last stage being the lowest
proIitability. A market analysis will also determine the price points at which products can be
sold; Ior example, high-quality products at a higher price may not tempt consumers to start
buying the product based on quality itselI.
inancial Analysis
A Iinancial analysis determines the cost oI each production item used to produce goods and
services. High costs may not allow companies to price goods or services competitively, leading
to an unproIitable situation. Management will examine the costs oI raw materials, labor, and
manuIacturing overhead to Iind the best raw goods available to produce the most proIitable
product. Management will also review the best cost application methods, ensuring that all
production costs are properly applied to each product or service produced.
ompetitor Analysis
Analyzing the current competitors oI a market is an important part oI business research.
Knowing which companies have the best production methods or customer loyalty helps new
companies understand how they can create a competitive advantage when entering a new
market. !roper business research will also indicate how Iinancially stable companies are and iI
they can be purchased outright by a company wanting to enter the industry. Buying a competitor
may be cheaper than starting new operations Ior a company.
rowth Analysis
Business research usually includes Iorecasting the growth and direction oI the current industry or
market. Knowing which direction the market is headed helps companies determine the stability
oI new business operations. Entering a slow-growth industry may be unproIitable early on but
have better long-term growth potential. High-growth industries will sometimes Iace a quick
downIall, such as the dot.com boom oI 2000-2001. Strong growth early in the business cycle
quickly gave way to record losses, leading many businesses into bankruptcy Irom poor growth
analysis.

Definition of Business Research ethods
A business research method is a careIul and diligent study oI a market, an industry or a particular
company's business operations, using investigative techniques to discover Iacts, examine
theories or develop an action plan based on discovered Iacts. Businesses use a number oI
research methods to help grow their operations or to solve problems in the company.
perational Research
A study oI a Iirm's operational systems identiIies each production step. This type oI business
research helps a Iirm to "reduce waste, ineIIiciency and poor perIormance by examining
procedures on a step-by-step basis -- an approach sometimes called methods improvement,"
according to the authors oI the book "Business Essentials."
ase Studies
One method oI conducting business research is through case studies that allow Ior investigation
oI industries, companies and business situations. A Iirm's patterns oI action communicate
business policies, conventions and practices. This type oI research can uncover business trends
and strategies.
Statistical Data
Examination oI inIormation and statistical data is another method oI business research. Financial
data is one important area oI statistical analysis that helps a Iirm to evaluate perIormance and
predict trends. It can lead to strategy revisions that translate into changes in a Iirm's internal
policies and procedures.
Surveys and ocus roups
Surveys and Iocus groups are a common business research method. It helps a Iirm to better
understand the potential customer Ior its products and services. This includes understanding who
the customer is, what the customer values and how the customer buys. This type oI research
Iocuses on identiIying demand trends.
What Is the Business Research ethod?
The business research method is how companies collect inIormation Irom consumers or
business-to-business customers. Some business research is conducted among smaller groups oI
people, with the objective oI clariIying research content. For example, a restaurant company may
test six menu items but try to Iind the best two Ior Iurther research. Other business research is Ior
garnering explanations oI customers' purchases or buying habits. There are several key steps in
the business research process.
Defining the -ectives
Companies that conduct business research must Iirst deIine their key objectives. Objectives can
include measuring satisIaction among customers, determining customer interest on a new
product, or measuring the impact oI advertising among consumers. Sometimes, the objective oI
business research is to Iind reasons and solutions Ior a particular problem. For example, a
soItware company may experience a 10 percent loss in customers. Hence, the objective may be
to Iind out why customers are purchasing products; and how to get the customers back.
Company managers should meet in groups to determine the key objectives Ior their business
research. Subsequently, a marketing research manager or marketing proIessional will need to
coordinate the eIIorts oI the business research.
Developing the Questionnaire
Business research almost always requires a questionnaire. A questionnaire contains a series oI
questions that researchers ask their consumer or business customers. Companies should ask
question in business research that address their key objectives, according to the Free
Management Library, an online reIerence site. Most questionnaires will contain a qualiIying
question at the beginning, which ensures that the researcher is reaching the right person. For
example, a qualiIying question may state: "Are you the person who usually buys groceries in
your household?" II a consumer answers aIIirmatively, the company will know that they are
talking to someone who can best answer their questions. Other questions in business research
may include "How satisIied are you with your new cell phone," or "How likely would you be to
purchase one oI our cars this year." In addition to questions, researchers must create speciIic
answers to the questions. QualiIying questions can use the "yes/no" Iormat. However,
researchers also use various scales to discern the magnitude oI a particular response. For
example, having a customer rate their product satisIaction on a scale oI one to 10 will tells the
researcher more than simply asking "Do you like our products?"
onducting the Survey
The survey process actually entails calling consumers and business customers. During the
survey, a surveyor will ask customers questions Irom the questionnaire. Most companies hire
proIessional marketing research agencies to conduct their surveys. !roIessional researchers are
more experienced at asking questions and obtaining the inIormation. Additionally, proIessional
research agencies use computer-assisted survey systems that are more eIIicient than merely
using paper and pencils. Business research surveys are usually conducted among large groups oI
consumers or business customers. The amount oI surveys a company completes is called the
sample size. A large sample size better ensures that all customer responses represent how the
population Ieels as a whole.
Analyzing and Reporting Results
Market researchers must analyze survey results once the marketing research agency delivers the
completed survey data. The analysis process involves studying all customer responses to the
survey questions. For example, a market researcher Ior a consumer products company may Iind
out that 90 percent oI customers like their new shaving cream product. However, a small
percentage oI people may also want an unscented version oI the product. Market researchers will
typically write a report aIter analyzing the survey research data. The report will usually be
distributed to key members oI the company management team. Subsequently, executives may
use the research report as a guide Ior developing marketing strategies Ior the company.


%ypes of Business Research ethods
Business research Iunctions to study the internal and external Iactors that aIIect proIitability and
market share Ior a company. There are several methods used in business research that helps
executives to Iocus the energy oI developers, production staII and distribution Iorces.
ternal Information
Industry data and competitor analysis is one strong method used in business research to
determine iI the products and services oI one company will penetrate a market. This method uses
external data Irom sources, such as Dun & Bradstreet, and competitor inIormation sources to
compare against its own set oI products.
ase Study
Case studies are comprehensive portrayal oI how a product or service IulIills one client's needs
through that client's experiences. This method reviews the strengths and weaknesses oI the
product or service through the course oI use by a client.
ocus roups
Focus groups are designed to get targeted consumers to provide honest Ieedback and suggestions
on a product or service. Groups are generally hired by a third party to give potential customers'
the opportunity to express how the product does or does not meet their needs and desires.
Interview Design
An interview oIten Iollows the actual consumer's experience oI the product. Consumers would
opt in to answer a series oI questions that express their level oI satisIaction.
istening
Those who interact with the customer base can be trained to obtain valuable inIormation by
listening and interacting with clients and consumers. This is an eIIective method oI business
research iI personnel are trained properly to understand what customers are saying and properly
relay that to management.
Questionnaires and Questioning
hether a consumer (or potential consumer) is being questioned via oral or written
questionnaires, it is important to have the questions easy to read, understand and answer. II they
are too in depth, consumers will be less likely to complete the questionnaire leaving the
company with the expense oI producing it with no results to work with.
ethods of Research in Business
Business research is conducted to learn how a product can aIIect a company through proIitability
and market share. There are many diIIerent methods oI business research, and the best method
can be determined by asking what inIormation the company is looking Ior. For example, iI a
company wants to know how proIitable a product was in a certain market last year, it will use a
diIIerent method than iI it were trying to Iigure out how and why certain customers use a certain
product. According to a study done by "USA Today," there are Iour methods oI research:
!rimary, secondary, quantitative and qualitative.
!rimary
!rimary research is research that is conducted by someone in the company or by an outsourced
group; it is usually directed at target markets. Some examples oI primary research are Iocus
groups, interviews and consumer surveys or questionnaires. Although this type oI research can
be very useIul when designing or marketing a product, it is very expensive and time-consuming.
Secondary
Secondary research collects data compiled by others. Although less expensive than primary
research, it is usually not as eIIective, because it was created with other products or similar target
markets in mind. Examples oI secondary research include reports written by someone who
conducted interviews, or a report written about the compilation oI the U.S. Census.
Quantitative
Quantitative research is based on numbers, statistics and Iacts. This can include Iinancial Iacts or
demographic numbers determined by surveys or data reports. Examples oI this type oI research
include the past growth rates oI a business, or the total amount consumers spent on a product in a
year. Companies can use these numbers to determine how much inventory will be needed in the
next year, or to Iorecast proIits Ior the Iuture by looking at trends.
Qualitative
Qualitative research looks at why people buy a product, instead oI how much money a product
can make. This type oI research is subjective and open to interpretation. Case studies are an
example oI qualitative research; they determine how and why people behave the way they do.
Experts in qualitative research can identiIy why people use a product and can Iorecast Iuture
needs oI the target customer.



Research ethods for a Business Student
Research is an integral part oI a business student's academic career when he gets to college. All
oI the papers a business student writes and the presentations he gives must be backed up and
supported by research. Since a variety oI research methods exist, students must select the most
appropriate method to meet the needs oI the project.
Interviews
Interviews are an interactive research method that business students use when they want to get
direct quotes Irom experts and proIessionals. Interviews are question-and-answer sessions with
experts and proIessionals where the student records inIormation he intends to use Ior a thesis or
presentation. Students must attribute the inIormation they use, such as quotes or theories, back to
the original source, which is the interviewee.
Surveys
A business student may wish to develop and administer a survey as his research method. A
survey research method involves soliciting Ieedback, opinions and perceptions Irom people in a
randomly selected sample. The inIormation that the business student wants to obtain is turned
into questions on the survey. The survey can be administered either orally or on a piece oI paper.
It is important Ior students to realize that in order Ior a survey to be eIIective, it must be
quantitative. That is, the student must be able to measure or score survey answers to produce a
statistic that is used to support a particular argument. An example oI a quantitative question is
"Rate the importance oI customer service on a scale oI 1 through 5, with 1 being 'very important'
and 5 being 'not Important.'" A scale is an eIIective and accurate way to collect quantitative
inIormation.
'isual -servation
Depending on the topic at hand, a business student may perIorm a visual observation as his
method oI research. This type oI research method is best used when studying things such as
consumer buying behaviors. A business student goes into a store and visually observes how
random consumers behave when they make a purchase or pick out products. itnessing
consumers complain about prices, talk about the store's competitors or comment about the
quality oI the products is inIormation that a business student may use Ior a thesis on consumer
buying patterns.
iterary References
The most traditional way Ior business students to conduct research is through literary reIerences.
Literary reIerences, such as business journals, magazines, encyclopedias, textbooks and
newspapers, serve as sources Ior inIormation needed to support a thesis or point. Students quote
these sources to substantiate their arguments. Literary reIerences are oIten Iull oI inIormation,
and can be searched Ior in libraries or on the Internet Ior added convenience.


ssentials of Business Research ethods
hen companies want to determine what sales will be like during the holiday season or iI
consumers will respond well to the latest album by a musician, they undergo extensive business
research. Though some aspects oI business research entail reviewing consumer comments, most
oI it involves statistical modeling and quantitative research methods. Thus, the essentials oI this
Iield Iocus primarily on math and statistics.
Qualitative Research
Qualitative research is one oI the Iirst stages oI conducting business research. James !.
Neelankavil, author oI "International Business Research" states qualitative research is a Iorm oI
exploration: Analysts gather inIormation surrounding the task at hand. For instance, iI a shoe
company wants to assess how urban teens in New York City will respond to a new design, the
researchers have test groups oI teens and gauge their emotional reactions to the product.
Neelankavil lists Iocus groups, thematic apperception tests and interviews as types oI qualitative
research.
Inputting 'aria-les
Creating a business model used to Iormulate a theory or hypothesis starts with inputting
variables. Variables consist oI quantitative inIormation, such as past sales Iigures, number oI
purchases, inventory turnover and proIit or loss Iigures. Uma Sekaran and Roger Bougie, authors
oI "Research Methods Ior Business," explain that researchers assess diIIerent variables including
dependent, independent, moderating and mediating. Researchers also assess a time Irame in
which to record the data. For example, a 20-year old company will likely discard data Irom the
Iirst Iew years oI its operations because such inIormation is no longer relevant to its current
business model and organizational structure. The best and most accurate models include many
variables. Data speciIic to the company might also be assessed against competitor and industry-
related data. For example, a sharp decline in sales one month might be reviewed against
perIormance in the industry. Comparisons oI data indicate whether the trend is speciIic to the
company or is an industry-wide trend.
Weighting the Data
Business models designed to make a projection about the Iuture must weigh some data with
greater importance than others. For example, a card company trying to determine its Valentine's
Day sales will weigh sales in February with more importance than May's Iigures. Likewise,
home construction companies that believe an economic recession will continue into the
upcoming year will place more emphasis on construction Iigures Irom the last three months than
it would Irom construction Iigures during the housing boom. The weighting process involves
educated guesses by research analysts. However, these educated guesses can create many
diIIerent results. This leeway is one reason why economic and business Iorecasts can display
vastly diIIerent projections despite using the same data and variables.
ormulating %heories
Analysts develop theories and projections Irom the model's results. However, theories must be
careIully Iormulated to avoid misinterpretation oI the data. For instance, a researcher might
incorrectly theorize that sales are dropping because oI a lack oI consumer interest instead oI
major retailers no longer distributing the product. J.K. Sharma, author oI "Business Statistics,"
explains that researchers use a three-prong test to assess the relationship between variables:
Chance coincidence, the possibility oI a third variable inIluencing the data and mutual inIluence.


Research %echniques for Business anagement
Business management involves planning, coordinating, leading and controlling a company in
order to produce proIitable products and services. Research methods include conducting
interviews, running Iocus group meetings, sending out surveys and analyzing the results to make
inIormed decisions. The goal oI research is to improve business operations. Use a combination
oI techniques to obtain comprehensive results in order to make your business successIul.
!lanning
EIIective business management depends on making good decisions based on Iacts. Research
allows you to uncover these Iacts. First, decide what problem you are trying to solve by
conducting research Ior your business. Then, determine how you will use the results. Next,
identiIy who has the inIormation you need to perIorm your studies. For example, contact
customers, suppliers, employees and vendors. Determine what kind oI inIormation you need.
hen redesigning a product, contact customers about their use oI your current product or
perhaps a competitor's product. Decide how to collect the inIormation so you can easily analyze
the results to draw some useIul conclusions. Set a time Irame Ior conducting your research.
Schedule a date to present your Iindings. Once you have planned your research strategy, you can
begin to use a variety oI techniques to accomplish your goal.
Interviewing ustomers or mployees
hen interviewing customers or employees, get their reactions and Ieelings, perceptions,
examples oI how your product or service has changed the way they work, and examples oI how
your product or service has improved their workplace. Focus on learning about what works. Ask
interviewees to visualize what they want in Iuture products and services. This input should
inIluence your design.
onducting ocus roup eetings
Conduct a one- to two-hour Iocus group meeting Ior Iive to 10 people to get their collective
Ieedback. BeIore the meeting, identiIy your objective and develop two or three questions to help
you meet that objective. Invite your participants and encourage their candid Ieedback. Consider
creating an audio or video recording oI the meeting, with the participants' permission.
During the meeting, allow each participant to respond to the questions. Then, allow Ior
discussion. Make sure to allow enough time to thoroughly debate each question. Conclude your
meeting by summarizing the general consensus. !roduce a Iollow-up report.
Sending Surveys
Decide who you want to participate in the survey, the questions you want to ask (the shorter your
survey the more likely it will be completed) and what tool you want to use to distribute the
questions. Targeting a particular population interested in your results increases the participation
rates. Generally speaking, 30 oI your invited participants should complete your survey to
ensure that your results reIlect the population. Set a time Irame Ior conducting your survey.
Typically, responses occur within a day or two oI receiving the invitation. Analyze the results to
determine a course oI action. Using these research techniques produces analysis that enables
good business decision making.


ow to Apply Quantitative Analysis to the ospitality Industry

Quantitative analysis techniques such as descriptive statistics, regression analysis, time-series
regression and input-output analysis provide useIul methods Ior analyzing the challenges Iaced
by hospitality-oriented businesses. These techniques allow managers oI hospitality and tourism-
reliant businesses to monitor customer satisIaction and analyze the growth oI their business over
time. In addition, hospitality managers, chamber oI commerce oIIicials, and economic analysts
can use quantitative techniques to estimate the impact oI tourism industries on the local
economy.
Instructions

1
Measure customer satisIaction by using satisIaction surveys. A high level oI customer
satisIaction is an important outcome measure Ior hospitality-related businesses, such as hotels,
restaurants, and resorts. SatisIaction surveys can be printed on a postcard-sized Iorm with
questions asking customers to rate their satisIaction with various aspects oI their visit, such as
quality oI accommodations, Iood and service. The surveys can ask customers to rate their
experience with a Likert scale oI responses (e.g., excellent, good, Iair, poor). These responses
can be numerically coded in a spreadsheet and analyzed with Irequency distributions and
descriptive statistics.

2
Estimate the impact oI the hospitality and tourism industry by using input-output analysis. This
matrix-based method oI economic analysis shows how parts oI a system are aIIected by changes
in one part oI a system. The hospitality industry consists oI diIIerent sectors, including hotels,
restaurants, resorts, convention Iacilities, airlines, and other sectors. Each oI these sectors can be
thought oI as inputs that combine to produce a local or regional economic impact.
3
Use longitudinal methods oI analysis, such as time-series regression techniques, to analyze the
hospitality industry over time. Managers oI hospitality and tourism-related businesses are likely
to encounter longitudinal data, such as sales Iigures over multiple years, average daily hotel rates
compared to other hotels, restaurant and hotel sales Iigures over a number oI years, or hotel
occupancy rates. Regression, which analyzes the impact oI one oI more independent variables
over an outcome (dependent variable) oI interest, such as sales or occupancy rates, provides a
useIul technique oI analysis.

Application of Regression Analysis in Business
Linear regression analysis is a method oI analyzing data that has two or more variables. By
creating the "best Iit" line Ior all the data points in a two-variable system, values oI y can be
predicted Irom known values oI x. Linear regression is used in business to predict events,
manage product quality and analyze a variety oI data types Ior decision-making.


Linear regression analysis is an excellent management tool.


%rend ine Analysis
Linear regression is used in the creation oI trend lines, which uses past data to predict Iuture
perIormance or "trends." Usually, trend lines are used in business to show the movement oI
Iinancial or product attributes over time. Stock prices, oil prices, or product speciIications can all
be analyzed using trend lines.
Risk Analysis for Investments
The capital asset pricing model was developed using linear regression analysis, and a common
measure oI the volatility oI a stock or investment is its beta--which is determined using linear
regression. Linear regression and its use is key in assessing the risk associated with most
investment vehicles.
Sales or arket orecasts
Multivariate (having more than two variables) linear regression is a sophisticated method Ior
Iorecasting sales volumes, or market movement to create comprehensive plans Ior growth. This
method is more accurate than trend analysis, as trend analysis only looks at how one variable
changes with respect to another, where this method looks at how one variable will change when
several other variables are modiIied.
%otal Quality ontrol
Quality control methods make Irequent use oI linear regression to analyze key product
speciIications and other measurable parameters oI product or organizational quality (such as
number oI customer complaints over time, etc).
inear Regression in uman Resources
Linear regression methods are also used to predict the demographics and types oI Iuture work
Iorces Ior large companies. This helps the companies to prepare Ior the needs oI the work Iorce
through development oI good hiring plans and training plans Ior the existing employees.




ow to Use Qualitative Research ethods in Business Research
Qualitative research methods in business research Iocus on the "why" Iactors that inIluence
consumer behavior. This is a big change Irom normal quantitative research, which relies on hard
data and statistics to draw conclusions. Qualitative research analyzes unstructured inIormation to
help business owners make inIormed decisions about everything Irom policy changes to
communication. Some oI the more structured Iorms oI qualitative research include Iocus groups,
open-ended surveys, in-depth interviews, case studies and content analysis. To use qualitative
research methods in business research, the company must Iirst decide what it wishes to learn
Irom the research and choose a research model accordingly.
Instructions

1
Design the research approach to use Ior the qualitative study. Use the Iollowing guidelines to
create an eIIective qualitative study. DeIine the purpose oI the study in terms oI the decisions
that need to be made with the results and/or the aspect oI the business you need to analyze.
Consider the intended audience Ior the results oI the study. For example, investors need diIIerent
inIormation than managers. IdentiIy the type oI inIormation needed to make the necessary
decisions deIined earlier and to make the desired impact on the intended audience. IdentiIy
where the inIormation will be gathered. !ossible sources include employees, customers,
management or similar groups. IdentiIy possible Iorms oI qualitative data collection based on the
Iactors discussed above and the deadline Ior obtaining the inIormation. In addition to the
common Iorms mentioned in the introduction, qualitative research also includes the analysis oI
customer reviews, media clips and reports.
2
Create the materials Ior the chosen research method as determined by the Iactors discussed in the
previous step. For example, an open-ended survey requires the creation oI the survey questions
and the Iormat in which the survey will be administered. This may be in a traditional paper
Iormat or an online Iormat, depending on the intended source oI the inIormation.
3
Conduct the qualitative research. Execute the chosen method with the target group Ior the source
oI the inIormation. For example, provide a Ieedback Iorm to each customer who buys a product,
or administer the survey to the workers in a speciIic department.
4
Gather the data and analyze the results. Revisit the research design created in the Iirst step to
help organize the data collected. Reviewing the goals and intended audience Ior the research
design is the key to analysis. Read through the data to identiIy recurring themes such as
strengths, weaknesses and suggestions. Organize the data according to the themes identiIied.
IdentiIy any causal relationships, patterns or associations. For example, customers who bought
widget B came Irom the same ZI! code or everyone who attended the weekend seminar
expressed doubts about the company's goals.
5
Interpret the data based on the results oI the analysis. !ut the results oI the analysis in
perspective whenever possible. This may include describing the program or product's strengths
and weaknesses or comparing the actual results to any predicted outcomes. The perspective
depends largely on the Iactors discussed during the research design phase. Draw conclusions and
make recommendations based on the inIormation provided by the research. This includes
suggestions Ior improving a product or a process and the current state oI company goals, iI
applicable. ReIerence the conclusions and recommendations with speciIic inIormation Irom the
data analysis wherever possible. For example, the presentation materials Ior the weekend
seminar need to be revised to explain the company goals more clearly, because everyone who
attended the last seminar expressed serious concern about the direction oI the company.
6
Report the data. The intended audience identiIied during the research design phase determines
how the data must be reported. Internal reports Ior upper-level management use diIIerent
language than a document seeking external Iunding, Ior example. Allow employees to review
the report and its conclusions. Create action plans based on the conclusions drawn in the report.
These action plans will attempt to correct any weaknesses or Ilaws exposed by the results oI the
qualitative research. Create a presentation that discusses the report and the resulting action plans
Ior potential investors and management teams. Outline the exact process used to create the
research results Ior duplication at a later date. Conducting the same study will provide major
insights regarding the eIIectiveness oI the action plans.


What Are Qualitative Research ethods?
Qualitative research seeks to explain intangible elements that are not easily measured with
numbers and statistics. Those who practice qualitative research use diIIerent methods to attain
inIormation about the subjects they seek to study. Qualitative methods are used in various Iields
to attain inIormation about how people act in speciIic situations. A researcher's approach, subject
and discipline all determine the type oI qualitative method used to attain inIormation.
Approaches to Research
There are a number oI diIIerent approaches to qualitative research. Approaches are dependent on
the type oI research question or situation a researcher chooses to investigate. Ethnography and
Iield research are approaches that seek to describe a situation. !henomenology and grounded
theory are approaches that seek a theoretical understanding oI a topic and Iocus on explaining
rather than describing. DiIIerent approaches require the use oI diIIerent methods Ior researchers
to accomplish their goals.
-servational ethods
Observational methods are used most oIten in conjunction with ethnography and Iield research.
They can also be used with grounded theory and phenomenological approaches but it is less
common. There are two types oI observational methods. !articipant observation is observation in
the research participant's natural habitat. !articipants oIten know that they are being observed.
Direct observation implies that the researcher is less involved in the situation being observed and
may be observing unbeknownst to the participants.
Interviews and ocus roups
Researchers set criteria Ior participants in order to obtain usable inIormation.
Interviews and Iocus groups yield very detailed inIormation but rely on the participants to
provide inIormation about their own experiences. Interviews consist oI speciIic questions
developed to gather inIormation about the research topic. Researchers recruit many participants
Ior individual interviews to gather as much inIormation as possible about a subject. Focus
groups consist oI a group oI people asked to provide inIormation on a speciIic topic, and are
most oIten used in marketing research.
Data -tained
Qualitative research methods leave the researcher with data. For observational methods,
researchers take Iield notes on what they see and hear. These notes are transcribed, analyzed and
coded Ior inIormation relevant to the researcher's topic. Interviews and Iocus groups are
recorded then transcribed and analyzed in the same way as Iield notes. Researchers look Ior
common themes in their data that add understanding to the situation they are seeking to explain
or describe.

ow Is Statistical Research Used in Business Decisions?
Having the right inIormation and being able to act on it is sometimes the diIIerence between liIe
and death Ior a small business. Firms need to be able to identiIy their target consumers and
respond to their needs eIIectively or they risk Iading away in an increasingly Iast-paced business
climate. Statistical research arms managers with some oI the important inIormation they need to
make more inIormed and more successIul business decisions. Understanding how statistics can
be applied to describe markets, develop advertising, set prices and respond to changing
consumer demands is an integral part oI becoming an eIIective business manager.
Defining %arget onsumers
Statistical research helps inIorm business decisions by deIining the target consumer. Market
research -- statistical analysis oI consumer trends, buying power and preIerences -- helps
business managers develop products that better meet the needs oI their customers. Using
statistical research, businesses can get a better idea oI what sorts oI products consumers need,
how they will use them and what they will be able to pay.
Advertising !roducts
Statistical research is also used to decide how to brand and advertise products or services.
Statistical analysis helps to deIine target consumers, provide inIormation about the industry and
describe buying trends. All oI this inIormation can be very helpIul to business managers and
advertisers when making decisions about what sorts oI messages to use and what products to
Ieature in advertising. Statistical research about media circulation -- or what kinds oI consumers
use a certain type oI media, and how many -- can help inIorm decisions about where to purchase
advertising.
!ricing Decisions
One oI the most important ways that statistical research is used in business decisions is to inIorm
pricing decisions. !ricing a product Ior success can be diIIicult, so it's oIten very important Ior
business managers to be armed with statistical inIormation that can help guide this process.
Statistics can help managers determine pricing trends, the sensitivity oI consumers to higher or
lower prices and the ratio oI production costs to price.
nvironmental onsiderations
According to the Missouri Small Business & Technology Development Centers, businesses'
decision-making practices are becoming increasingly reliant on statistics regarding their
environmental impact. This is because a serious adverse eIIect on the environment has the
potential to attract both regulatory and press attention and potentially damage a brand's
reputation among target markets. Making decisions that help limit a Iirm's environmental impact
requires managers to have inIormation about the potential environmental eIIects oI a given
production, distribution or sales method. Firms also use statistical inIormation to determine the
potential costs associated with more environmentally Iriendly business initiatives and to assess
their Ieasibility.



Quantitative ethods for Business Decisions
SuccessIul business decisions rely on quantitative methods to narrow possibilities and help
predict what options will have the greatest chance oI success. hether you are making
purchasing, marketing or Iinancing decisions, it is essential to obtain a quantitative Ioundation to
assist in the decision-making process. Using math and numbers to back up your business
decisions helps you make more inIormed choices and can help increase your company's success.
!ro-a-ility
Use probability to determine the long-term chance oI proIitability on products you oIIer and to
help allocate resources. For example, in the insurance Iield business decisions on rates can be set
by the probability oI claims based on variables such as demographic and geographic diIIerences.
You also can use probability to determine which oI your products or services have the greatest
potential Ior proIits. Make the business decision to allocate Iinancial and employee resources
based on proIit potential.
orecasting
Apply Iorecasting techniques such as moving average, exponential smoothing and linear
regression to predict Iuture business events based on prior data. Most Iorecasting methods
assume that Iuture events will be similar to prior events, given that no major changes occur.
Forecasting can be used to help make Iinancing decisions, product decisions and even staIIing
decisions. Forecasting is one oI the most powerIul quantitative methods Ior assisting with
business decisions. Use Iorecasting inIormation as a Ioundation and modiIy based on known
changes to increase business decision reliability.
Data ining
Use data mining techniques such as averaging, stacking or meta-learning to discover patterns or
relationships in your business data. Look Ior customer buying patterns, Ieature preIerences,
seasonal variations and any variable that can be used to pinpoint Iuture customer choices. II you
sell dresses, you may Iind that halI oI your customer purchases are Ior black dresses and that
sales spike at the beginning oI December. Armed with this inIormation, you can make the
business decision to stock more black dresses and to increase your dress inventory in December
to maximize sales.
%ime Analysis
Apply time series analysis methods to make Iinancial business decisions. Time value oI money
is a Ioundational concept in Iinance and helps you determine what investments will be worth in
the Iuture. These methods can be used Ior standard Iinancial instruments like bonds, but also can
be applied to capital investments like building decisions. Make business decisions by comparing
the Iuture value oI a capital investment to alternative investments. For example, you can
compare the Iuture value oI a new production plant versus investing in a high-yield bond to see
iI the plant investment would beat a standard market return.


Applications for Quantitative %echniques in Business Decision aking
Quantitative techniques use surveys, tests, experiments and other data-gathering methods to
assemble inIormation. The Iacts gathered in this way can be used to help make business
decisions about marketing, advertising, packaging, assembly techniques, Iinancial decisions,
which services to oIIer and many other business considerations. Both gathering and analyzing
inIormation is crucial to applying quantitative data to good business decisions.
inances
One area where quantitative techniques are applied in business is in the area oI Iinances. Some
oI the models that Iinancial managers and analysts use are return on investment, decision trees
and net present value. Financial analysts determine how much proIit a particular product brings
in versus the costs oI producing that product. They run regressions and analyses to note trends
over time and determine how much to invest in a particular business line. Financial analysts also
use quantitative methods to determine productivity and whether or not to hire, retain or lay oII
workers. They use quantitative data to manage risk and create investment vehicles.
Advertising
Advertisers use quantitative data to determine how many viewers or readers will see a particular
advertisement in a particular medium. They use data Irom rating services to Iind out how many
people click on a certain website or watch a particular television show at any time. Advertisers
also use quantitative data to do pre- and post-testing oI advertisements. Advertisers use surveys
to test ad recall in viewers, and attitudes about proposed advertisements, among other things.
arketing
Companies make heavy use oI statistics to determine how to market their products, which
markets their products and services will do best in and which consumers will buy their products.
There are thousands oI companies in the United States that gather and analyze data about
consumer interests, desires, likes, dislikes, motivations and concerns. Marketers use this data to
Iocus sponsorships, direct mail campaigns and position their companies in the general culture.
Marketers also use data Irom U!C codes at stores (oIten in combination with shopper discount
cards) to determine who is buying their products, how oIten and where. This also gives them
important inIormation to use in making decisions about stocking, delivery and promotions.
Insurance
Insurance companies have a multitude oI applications Ior quantitative data. Although many oI
these applications could transIer to other businesses, insurance companies have dozens oI
statisticians or actuaries on staII. ThereIore, they have the manpower and know-how to analyze
mountains oI data. For example, insurance companies gather data about each salesperson in each
line oI business. They then analyze the data to see iI there are similarities in the top salespeople
so they can recommend improvements to those not doing so well. They also see which lines oI
business produce proIit and which should be closed down because they are unproIitable.
Insurance company actuaries also analyze data on accidents, Iires, Iloods and other mishaps that
require them to pay out money and use these analyses to set insurance rates Ior their customers.


%he Advantages of Using Quantitative ethods in Nursing Research

hen doing any kind oI research, it is important to decide whether you will use qualitative data,
quantitative data or a mixed methods approach. A lot oI research that is done in the medical Iield
is quantitative.
unction
The Iunction oI quantitative data is to use an accurate approach to collect and analyze any data
that has been measured. It is generally precise and based upon numbers. One oI the purposes oI
quantitative research is to be deductive, rather than inductive.
Benefits
Quantitative research is numbers-based. This can make it very precise, which is important when
you are doing research in the medical Iield. hen used appropriately, the results oI quantitative
research can be generalized.
onsiderations
hen you are doing quantitative research, you will need a hypothesis. You should select your
approach to research based on what is suitable Ior your topic.