Research Methodology

Module I
Introduction to Business Research

Amish Soni

Introduction to Business Research

1. Nature and Scope of Business Research. 2. Information Based Decision Making and Source of Knowledge. 3. The Research Process.

Defining Research Problem and Framing Hypothesis.

4. Preparing a Research Plan.

Nature and Scope of Business Research

Introduction Meaning of Research and Objectives What is Good Research? Why Study Business Research? Types of Research

Introduction
Investigation using scientific procedures, by searching again and again to find out the truth Research is the continual search for truth using the scientific method. It is the pursuit of the truth with the help of study, investigation, observation, comparison and/or experimentation.

What makes people to undertake research?

Desire to get a research degree along with its consequential benefits Desire to face the challenge in solving the unsolved problems. Ex. Concern over practical problems initiates research. Desire to get intellectual joy of doing some creative work. Desire to be of service to society Desire to get respectability.

Research as Career
Rewarding and satisfying career Opportunities for life-long growth Exciting fields for innovation Global career opportunities Main reward in doing

What it Takes?
Creativity Open mind Curiosity Patience Persistence Positive Attitude Discipline and focus

What is Research?
Research is a scientific and systematic search for
pertinent information on a specific topic. It is a careful investigation or enquiry specially through search for knowledge. It is a movement from known to unknown.

Objectives of Research
The Objective of research is to find out the answers to questions through the application of systematic and scientific way. Specific purpose behind each research study,
To obtain familiarity of a phenomenon. To determine the association or independence of an activity. To determine the characteristics of an individual or a group of activities and the frequency of its occurrence.

Features of a Good Research Study

Objectivity Control Generalisability Free from Personal Biases Systematic Reproducible

Hence, the following points must be ensured

Clearly defined purpose Detailed research process Thoroughly planned design High ethical standards Limitations addressed

Adequate analysis
Unambiguous presentation Conclusions justified
1-11

Credentials

Business Research
A process of planning, acquiring, analyzing, and disseminating relevant business data, information, and insight to decision makers in ways that mobilize the organization to take appropriate action that, in turn, maximize business performance. It is a systematic inquiry that provides information to guide managerial decisions.

Why Study Business Research?

New Research Perspectives Growth of Internet Greater Computing Power Business as a discipline

Stakeholder Influence

Factors

Competition Government Intervention

Complex Decisions

Types of Research Studies

Fundamental Research Applied Research Descriptive research Historical Research Formulative or Exploratory Research Experimental Research Ex-Post-Facto Research Case Study Approach

Significance of Research
Research Provides the basis for nearly all government policies in our economic system It solves various operational and planning problems of business industry It is important for social scientists in studying social relationships and in seeking answers to various social problem.

Information Based Decision Making and Source of Knowledge

Emerging Hierarchy of Information - Based Decision Makers How the Research Industry Works? Role of Research Methods/Research Methodology in Business/ Industry Current Status of Research in India Limitation of Research

Exhibit 1-2 Hierarchy of Business Decision Makers

Visionaries

Standardized Decision Makers

Intuitive Decision Makers Intuitive Decision Makers

1-17

Exhibit 1-2 Hierarchy of Business Decision Makers

Visionaries

Standardized Decision Makers

Intuitive Decision Makers

1-18

Exhibit 1-2 Hierarchy of Business Decision Makers

Visionaries Visionaries

Standardized Decision Makers

Intuitive Decision Makers

1-19

Exhibit 1-4 Who Conducts Business Research?

Internal

External

1-20

Exhibit 1-4 Business Research Suppliers

External Research Suppliers Business Research Firms Communication Agencies Consultants Trade Associations

1-21

Business Research Firms

Business Research Firms

Full Service

Specialists

Custom

Methods Syndicated Data Other

Proprietary

1-22

Full Service
Full-service researchers include some of the largest research firms, and some of the smallest. These firms are often involved in research planning from the moment of discovery of a dilemma or from the definition of a management question. Such firms often have expertise in both quantitative and qualitative methodologies, as well as multifaceted facilities. Some are capable of working in worldwide venues, while others are limited to one industry or geographic region. These firms are often a combination of research and consulting operations.

Some of the Worlds Largest Research Companies

Organization VNU Inc. www.vnu.com IMS Health Inc. www.imshealth.com Tylor Nelson Sofres USA www.tnsofres.com The Kantar Group www.kantargroup.com Research Revenues, 2003 ($ millions) $3,045.00

$1,381.80
$1,290.10 $1,002.10

Custom Researchers
Often described with phrases like ad hoc research or custom-designed research A custom researcher crafts a research design unique to the decision makers dilemma. In other words, each project starts from ground zero. What is implied is that such firms do not assume that a given methodology is appropriate for each clients research. Although a custom researcher may not always be a fullservice research firm, a full-service researcher would always fit into the custom research category.

Proprietary Methodology Researchers

A proprietary methodology is a research program or technique that is owned by a single firm. It may be a new method developed by the firm, or a twist on an established methodology. Firms often brand these methodologies to distinguish themselves from the competition. (ACNielsen did this with its Home scan syndicated panel.) The Gallup Organization reinvented itself using the proprietary research model, moving from public opinion pollster and custom researcher to research-based consulting firm.

One of its proprietary methodologies is called Q12.

Specialty Business Research Firms

Methodology Process Industry

Participant group
Geographic Region
1-27

Exhibit 1-6 Some Syndicated Data Providers

AC Nielsen Scarborough Millward Brown Nielsen Media Research Roper ASW CSA TMO Yahoo! ORC International DoubleClick Nielsen/NetRatings Taylor Nelson Sofres Intersearch J.D. Power Associates MediaMark Simmon (SMRB) BRMB Information Resources Inc.

1-28

Communication Agencies
Sales Promotion Advertising

Direct Business
1-29

Public Relations

Top Advertising Companies of India:

McCann-Erickson India Ltd: Mudra Communication Pvt. Ltd: J Walter Thompson India: Ogilvy and Mather: Leo Burnett India Pvt. Ltd :

Consultants and Trade Associations

Consultants Business General Business

Trade Associations General business Business specialties Research specialties

1-31

Exhibit 1-4 Who Conducts Research?

1-32

Role of Research Methods/Research Methodology in Business/ Industry

Research Methods are the methods or techniques employed by researchers in conducting research operations. Research Methodology is a scientific and systematic way to solve research problems. Marketing Research Government Policies and Economic System Solving Various Operational and Planning Problems of Business and Industry Social Relationships

Limitations of Research
Doesnt provide actionable results Some problems just cannot be researched Only provide a set of guidelines Do not include research in the overall problem or total decision making. Rely more on intuition and judgment

Research Process
Steps in Research Process Research Process Issues Defining Research Problem and Hypothesis

Defining the Research Problem Formulation of the Problem Research Question Management-Research Question Hierarchy Concept and Formulation of Hypothesis

Steps in Research Process

Defining the research problem and reviewing the literature Formulation of hypothesis Research design Collecting data Analyzing data and testing hypothesis Preparation of report and preliminary analysis Interpreting the reporting the findings

3-37

Research Process Issues

The Favored-Technique Syndrome Company Database StripMining Unresearchable Questions Ill-Defined Management Problems Politically Motivated Research
3-38

Defining the Research Problem

A problem properly defined is half solved. It could be any of the following three areas: Exploratory: gather preliminary information for defining the problem and suggesting hypothesis. Descriptive: Describe things i.e. demography and attitude of customer. market potential,

Casual: test hypothesis about cause and effect relationships

Formulation of the 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

The Research Question

Examine variables Fine-Tuning Set scope of study Evaluate hypotheses
3-41

Break questions down

Determine necessary evidence

Exhibit 3-2 Management-Research Question Hierarchy

3-42

Formulation of Hypothesis
Concept of Hypothesis
A hypothesis is a proposition a tentative assumption which a researcher wants to test for its logical or empirical consequences. Hypothesis are more useful when stated in precise and necessary, specially in case of exploratory researches. However, in problem oriented research, it is necessary to formulate a hypothesis or hypotheses.

Hypothesis Testing
Steps involved in testing a hypothesis: 1. Formulate a hypothesis 2. Set up a suitable significance level 3. Choosing a test criterion 4. Compute the statistic 5. Make decision

Preparing Research Plan

The Research Proposal Process Types of Research Proposal Structuring the Research Proposal The Research Proposal for MindWriter

4-46

Types of Research Proposal

Structuring the Research Proposal

Executive Summary Problem Statement Research Objectives Literature Review Importance/ Benefits of Study Research Design Data Analysis Nature/Form 4-48 Research Qualifications Budget Schedule Facilities Project Management Bibliography Appendices

Researcher Qualifications

Professional Research Competence

Relevant Management Experience

4-49

Exhibit 4-6 Sample Proposed Budget

4-50

Budgeting for Samples

Scientific Telephone Samples (STS) provides random dial, listed, and business samples for telephone and online surveys

4-51

Exhibit 4-7 CPM Schedule

Exhibit 3-6 Gantt Chart

MindWriter Project Plan

3-53

Elements of a Project Management Plan

Management competence

Financial/ Legal responsibility Team relationship with client

Organization of research team

Plan Elements Procedures Examples of past work

4-54

The Research Proposal for MindWriter

4-56

4-57