SENIOR HIGH SCHOOL

ACCOUNTANCY, BUSINESS, & MANAGEMENT DEPARTMENT

Work Immersion and Business Implementation 2

PRINTABLE LEARNING MATERIALS

MODULE 6: BUSINESS RESEARCH

Learning Objectives:

 create business research to improve and develop the product and the business itself,
 determine the purpose of the study, industry outlook, and target customers of the business research, and
 identify the competitor's analysis, methodology, findings, and action to be taken of the business research.

BUSINESS RESEARCH
 Business research is a process of acquiring detailed information on all the areas of business and using such
information to maximize the sales and profit of the business. Such a study helps companies determine which
product/service is most profitable or in demand. In simple words, it can be stated as the acquisition of information
or knowledge for professional or commercial purposes to determine opportunities and goals for a business.
 Business research can be done for anything and everything. In general, when people speak about business
research it means asking research questions to know where the money can be spent to increase sales, profits, or
market share. Such research is critical to make wise and informed decisions.
 For example, A mobile company wants to launch a new model in the market. But they are not aware of what are
the dimensions of a mobile that are in most demand. Hence, the company conducts business research using
various methods to gather information, and the same is then evaluated and conclusions are drawn, as to what
dimensions are most in-demand, This will enable the researcher to make wise decisions to position his phone at
the right price in the market and hence acquire a larger market share.

BUSINESS RESEARCH: TYPES AND METHODOLOGIES

 Business research is a part of the business intelligence process. It is usually conducted to determine whether a
company can succeed in a new region, understand its competitors, or simply select a marketing approach for a
product. This research can be carried out using qualitative research methods or quantitative research methods.

A. QUANTITATIVE RESEARCH METHOD

 Quantitative research methods are research methods that deal with numbers. It is a systematic empirical
investigation using statistical, mathematical, or computational techniques. Such methods usually start with data
collection and then proceed to statistical analysis using various methods. The following are some of the research
methods used to carry out business research.

o Survey Research
 Survey research is one of the most widely used methods to gather data especially for
conducting business research.
 Surveys involve asking various survey questions to a set of audiences through various
types like online polls, online surveys, questionnaires, etc. Nowadays, most of the major
corporations use this method to gather data and use it to understand the market and
make appropriate business decisions. Various types of surveys like cross-sectional
surveys which are needed to collect data from a set of audiences at a given point of time
or longitudinal surveys are needed to collect data from a set of audiences across various
time duration in order to understand changes in the respondents’ behavior are used to
conduct survey research. With the advancement in technology, now surveys can be sent
online through email or social media.

o Correlational Research
 Correlational research is conducted to understand the relationship between two entities
and what impact each one of them has on the other.
 Using mathematical analysis methods, correlational research enables the researcher to
correlate two or more variables. Such research can help understand patterns,
relationships, trends, etc. Manipulation of one variable is possible to get the desired
results as well. Generally, a conclusion cannot be drawn only on the basis of correlational
research.

o Causal-Comparative Research
 Causal-Comparative research is a method based on the comparison.
 It is used to deduce the cause-effect relationship between variables. Sometimes also
known as quasi-experimental research, it involves establishing an independent variable
and analyzing the effects on the dependent variable. In such research, manipulation is
 SENIOR HIGH SCHOOL
ACCOUNTANCY, BUSINESS, & MANAGEMENT DEPARTMENT
Work Immersion and Business Implementation 2

not done; however, changes are observed in the variables or groups under the influence
of the same changes. Drawing conclusions through such research is a little tricky as
independent and dependent variables will always exist in a group, hence all other
parameters have to be taken into consideration before drawing any inferences from the
research.

o Experimental research
 Experimental research is based on trying to prove a theory.
 Such research may be useful in business research as it can let the production company
know some behavioral traits of its consumers, which can lead to more revenue. In this
method, an experiment is carried out on a set of audiences to observe and later analyze
their behavior when impacted by certain parameters.

o Online research / Literature research

 Literature research is one of the oldest methods available.
 It is very economical and a lot of information can be gathered using such research.
 Online research or literature research involves gathering information from existing
documents and studies which can be available at Libraries, annual reports, etc.
Nowadays, with the advancement in technology, such research has become even more
simple and more accessible to everyone.
 An individual can directly research online for any information that is needed, which will
give him in-depth information about the topic or the organization. Such research is used
mostly by marketing and salespeople in the business sector to understand the market or
their customers. Such research is carried out using existing information that is available
from various sources, although care has to be taken to validate the sources from where
the information is going to be collected.

B. QUALITATIVE RESEARCH METHOD

 Qualitative research is a method that has high importance in business research. Qualitative research involves
obtaining data through open-ended conversational means of communication. Such research enables the
researcher to not only understand what the audience thinks but also why he thinks it. In such research, in-depth
information can be gathered from the subjects depending on their responses. There are various types of
qualitative research methods such as interviews, focus groups, ethnographic research, content analysis, and case
study research that are widely used. Such methods are of very high importance in business research as it
enables the researcher to understand the consumer. What motivates the consumer to buy and what does not is
what will lead to higher sales and that is the prime objective for any business.
 Following are a few methods that are widely used in today’s world by most businesses.

 Interviews
 Interviews are somewhat similar to surveys, like sometimes they may have the same
questions used. The difference is that the respondent can answer these open-ended
questions at length and the direction of the conversation or the questions being asked
can be changed depending on the response of the subject. Such a method usually gives
the researcher, detailed information about the perspective or opinions of its subject.
Carrying out interviews with subject matter experts can also give important information
critical to some businesses.

 Focus Groups
 Focus groups are a set of individuals selected specifically to understand their opinions
and behaviors. It is usually a small set of a group that is selected keeping in mind, the
parameters for their target market audience to discuss a particular product or service.
Such a method enables a researcher with a larger sample than the interview or a case
study while taking advantage of conversational communication.
 Nowadays, focus groups can be sent online surveys as well to collect data and answer
why, what and how questions. Such a method is very crucial to test new concepts or
products before they are launched in the market.

 Ethnographic Research
 Ethnographic research is one of the most challenging researches but can give extremely
precise results. Such research is used quite rarely, as it is time-consuming and can be
expensive as well. It involves the researcher adapting to the natural environment and
observing its target audience to collect data. Such a method is generally used to
understand cultures, challenges, or other things that can occur in that particular setting.

 Case Study Research

 SENIOR HIGH SCHOOL
ACCOUNTANCY, BUSINESS, & MANAGEMENT DEPARTMENT
Work Immersion and Business Implementation 2

 Case study research is one of the most important in business research. It is also used as
marketing collateral by most businesses to land more clients. Case study research is
conducted to assess customer satisfaction, and document the challenges that were faced
and the solutions that the firm gave them. Using these inferences are made to point out
the benefits that the customer enjoyed for choosing their specific firm. Such research is
widely used in other fields like education, social sciences, and similar.
 Case studies are provided by businesses to new clients to showcase their capabilities
and hence such research plays a crucial role in the business sector.

 Website Visitor Profiling/Research

 Website intercept surveys or website visitor profiling/research is something new that has
come up and is quite helpful in the business sector. It is an innovative approach to collect
direct feedback from your website visitors using surveys. In recent times a lot of business
generation happens online and hence it is important to understand the visitors of your
website as they are your potential customers. Collecting feedback is critical to any
business as without understanding a customer, no business can be successful. A
company has to keep its customers satisfied and try to make them loyal customers in
order to stay on top.
 A website intercept survey is an online survey that allows you to target visitors to
understand their intent and collect feedback to evaluate the customers’ online
experience. Information like visitor intention, behavior path, and satisfaction with the
overall website, can be collected using this.
 Depending on what information a company is looking for, multiple forms of website
intercept surveys can be used to gather responses. Some of the popular ones are Pop-
ups or also called Modal boxes and on-page surveys.

The business research process involves a series of steps that systematically investigate a problem or an opportunity
facing the organization. The sequence of steps involved in the business research process is as follows:

1. Determine the Purpose of your Study

 There are many reasons why businesses might conduct market research. You may use them to
assess business risks (e.g., threats), reduce issues, or create opportunities. You can look at past
problems to decrease future risks. And, analyze past successes to see what you need to continue
to do in the future.
 Before starting any market research, determine whether the analysis is for internal or external
purposes. Internal purposes include things like improving cash flow or business operations.
External purposes include trying to convince lenders to give you a business loan.
 Your analysis is a critical part of your small business plan. It shows lenders that you know your
industry like the back of your hand and that your business has growth potential. The kind of
research you conduct varies depending on your analysis purpose. For example, say you conduct
a study for internal purposes. Because it’s for internal purposes, you likely won’t need to collect
as much data as you would with an external purpose.
 Make sure you determine whether your study will be internal, external, or both before proceeding
with your research.

2. Look at your Industry’s Outlook

 In your analysis, outline the current state of your industry. Include where the industry is heading
using metrics such as size, trends, and projected growth. Be sure to have relevant data to back
up your claims. This section will let investors or lenders see that you’ve done your homework on
your business’s industry. And, it will show them whether or not your industry is worth their time
and money.

3. Pinpoint Target Customers

 The truth is, not every person will be your customer. But that’s OK! When you analyze the market,
you must determine who your potential customers are. This part of the process is called a target
market analysis. You need to fully understand who your customers are and where they come
from. Your research should paint a clear picture of your potential customers. Look at things like
Age, Income, Gender, Location, Occupation, Education level, Marital or family status
 Once you narrow down who your customers are, find out their needs, interests, personalities, and
demographics. Consider also creating customer personas based on your research. Many
businesses have multiple customer personas. After you compile different customers’
characteristics, build different personas to represent your typical customers.
 Pinpointing your target market can help you better cater to future customers and market more
efficiently. As your business grows, your potential customers may evolve or change. Revisit your
target market from time to time to ensure they still fit your business.
 SENIOR HIGH SCHOOL
ACCOUNTANCY, BUSINESS, & MANAGEMENT DEPARTMENT
Work Immersion and Business Implementation 2

4. Compare your Competition

 To further analyze the market, you need to understand your competition. And, you must know
who your competitors are trying to target. Take the time to research what other businesses are
out there. Look at things like your competition’s offerings, location, targeted customers, and
disadvantages in the market.
 Make a list of all of your main competitors. Go through each one on the list and determine their
strengths and weaknesses (SWOT analysis). What does their business have that you don’t? Why
would a customer pick a competitor’s business over yours? Do they pose any threat to your
business?
 Once you outline your competitors’ strengths, weaknesses, opportunities, and threats, rank them
from most to least threatening. Then, determine your startup’s advantages and marketing
position.

5. Gather Additional Data

 Information is your greatest ally when it comes to conducting a market analysis. The more
information you gather and have, the better off your business will be. The data you have should
be unbiased, relevant, and factual. You should be able to back up your research and make
decisions based on accurate information.
 Use credible sources to gather additional data. You can take advantage of different resources,
such as The Bureau of Labor Statistics, The Census Bureau, State, and local commerce
websites, Trade journal articles, Competitors’ strengths and weaknesses, Target market surveys
or questionnaires, Information from interviews or focus groups within your target market

6. Analyze your Findings

 After you analyze the market, it’s time to take a look at your findings. Lay out all of your research
and organize it using different sections. Include sections for your purpose, target market, and
competition.
 Here are some other things you should include in your findings:
 An overview of your industry’s size and growth rate
 Your projected market share percentage
 Your outlook for the industry
 Discounts you plan on offering
 Buying trends
 Your business’s forecasted growth
 Prices of your offerings
 How many customers are willing to pay
 Your cash flow projection
 Your customer groups
 Results of your other analyses
 Based on your research, you will be able to forecast other things for your business, such as your
cash flow cycle, gross margin, and customers’ buying habits.

7. Put your Analysis into Action

 Conducting a market analysis might seem like a daunting task, but your business will thank you
for it later. Sure, you’ll spend a good chunk of time working on your marketing analysis. But, it’s
well worth it. Don’t put all that extensive research to waste. Put your analysis into action.
 For internal purposes, look at how you can use your findings to improve your business. Use your
analysis to see if you can make any of your business processes more efficient. If you conducted
an analysis for external purposes, be prepared to speak with lenders about your research and
conclusions.
 Don’t just box up your analysis and pack it away for “later.” Revisit your market analysis every
now and then for necessary tweaking

Licensing & Attributions / References

 Kappel, M. (2019, August 15). How to Conduct a Market Analysis the Right Way. Retrieved from PATRIOT:
https://www.patriotsoftware.com/blog/accounting/how-to-conduct-a-market-analysis/
 QuestionPro. (n.d.). Business Research: Definition, Methods, Types and Examples. Retrieved from QuestionPro:
https://www.questionpro.com/blog/business-research/
 Tutor2u. (2020). quantitative and Qualitative Market Research. {Video File}. Retrieved from.
https://www.youtube.com/watch?v=nY5vtYCYUfo
 Young Entrepreneurs Forum. (2018, November 30). How to Write a Market Research Plan for Your Business. Retrieved
from Youtube: https://www.youtube.com/watch?v=7B6CNRfowd0


Prepared By: Mr. Anthony Karl M. Perez, LPT.
WIBUSEN2 Teacher