Business Research Note

Chapter- One
Definition of Research
Research is a process of steps used to collect and analyze information to increase our understanding
of a topic or issue.
Research is a careful and organized way of finding out new knowledge about something.
Research is the process of seeking information to answer questions or solve problems.
Research is the process of gathering, analyzing, and interpreting information or data to increase
knowledge and understanding about a particular topic or problem. It often involves investigation,
experimentation, or study to find answers or solutions.
At a general level, research consists of three steps:
1. Pose a question
2. Collect data to answer the question
3. Present an answer to the question
Business Research
Business research is defined as the systematic and objective process of gathering, recording, and
analyzing data for aid in making business decisions.
Business research is the process of gathering and analyzing information to help businesses make
better decisions.
Example of Business Research
1. Customer Satisfaction Survey: A restaurant conducts a survey to understand customer
satisfaction with its food and service. The research helps the restaurant identify areas of
improvement and make decisions to enhance the customer experience.
2. Market Analysis for Product Launch: A company planning to launch a new smartphone
conducts research on consumer preferences, competitor products, and market trends. The
findings help the company design the phone with features that are most appealing to
potential buyers.
Business Research- Cont.
Business research is the application of the scientific method in searching for the truth about
business phenomena. These activities include defining business opportunities and problems,
generating and evaluating alternative courses of action, and monitoring employee and
organizational performance. Business research is more than conducting surveys.
This process includes
 Idea and theory development
 Problem definition
 Searching for and collecting information
 Analyzing data
 And communicating the findings and their implications.
Two main research methods commonly used are basic research, which helps expand existing
knowledge about a subject and applied research, which provides a solution to an existing problem.
Basic Research
Basic Research or pure research attempts to expand the limits of knowledge. It does not directly
involve the solution to a particular, pragmatic problem. Basic research findings generally cannot
be immediately implemented. Basic research is conducted to verify the acceptability of a given
theory or to discover more about a certain concept.
Basic or fundamental research focuses on expanding our knowledge of a certain subject or
occurrence. This type of research examines data to find the unknown and fulfill a sense of curiosity.
Usually, basic research seeks to answer "how," "what," and "why" when explaining occurrences
Basic research aims to expand our fundamental knowledge and understanding of the world,
without necessarily having immediate practical applications.
Basic Research refers to the study that is aimed at expanding the existing base of scientific
knowledge. Basic Research is completely theoretical, that focuses on basic principles and testing
theories. It tends to understand the basic law.
Studying the human brain's structure: Neuroscientists conduct basic research to understand
how different parts of the brain work and interact. This knowledge helps advance our
understanding of cognition and can eventually lead to breakthroughs in treating neurological
disorders.

Basic Research Example:

 Looking at how stress affects productivity

 Determining which areas of a country are driest and wettest
 Understanding how a doctor makes a mental health diagnosis

Studying the impact of social identity on consumer preferences

A business researcher conducts a study to understand the basic psychological factors that shape
consumer behavior, such as how social identity influences purchasing decisions. This research
aims to contribute to general knowledge about consumer psychology but doesn’t have a direct,
immediate application to a specific product or service.
Some methods available for basic research include:

1. Experimentation
2. Conducting a survey or interview
3. Observation

Where basic research gathers information and data on a subject, applied research uses that data to
look for answers to questions. Applied research takes the data obtained in basic research and
applies it to answer a question and provide a possible solution.

Applied Research

Applied research is conducted when a decision must be made about a specific real life problem.
Applied research encompasses those studies undertaken to answer questions about specific
problems or to make decisions about a particular course of action or policy.

Applied research is the process of studying a specific problem to find practical solutions.

Applied research focuses on solving specific, practical problems in the real world. It uses existing
knowledge to develop solutions for current issues. Applied research is the study of practical
problems to find solutions.

Applied research looks to find solutions for existing and specific problems

Problem: Consumer Buying Behavior

 Basic Research Example: Studying how cultural factors influence consumer preferences
in general, without focusing on any specific market.
 Applied Research Example: Conducting research on how cultural influences affect
consumer buying behavior in a specific region or for a particular product to develop
targeted marketing strategies.

1. Applied research aims to address specific practical problems or improve existing processes,
while basic research seeks to expand general knowledge.
2. Applied research focuses on solving real-world challenges, whereas basic research
explores fundamental principles and concepts.
3. Applied research has a more immediate impact on solving problems and improving
practices, whereas basic research may have longer-term or indirect effects on knowledge
and innovation.

In contrast to basic research, which focuses on making theories that explain things, applied
research focuses on describing evidence to find solutions.
Differences between basic and applied research

Researchers tend to use similar data collection methods when conducting basic and applied
research. However, their end goals vary. Some differences between basic and applied research
include:

Advancing knowledge vs. finding a solution

Basic research focuses on the advancement of knowledge, rather than solving a problem. Applied
research directs its efforts toward finding a solution to a specific problem.

Forming theories vs. discovering new information

Since curiosity motivates researchers to conduct basic research, they look to fill any existing gaps
in information. This type of research seeks to develop knowledge and make predictions or theories.
Applied research focuses on discovering new information. The two often overlap when basic
research provides a foundational understanding to help with applied research.

The Scientific Method

The Scientific Method is the way researchers go about using knowledge and evidence to reach
objective conclusions about the real world. The Scientific Method is the same in social sciences
such as business as in physical sciences such as physics.

In the scientific method, there are multiple routes to developing ideas. When the ideas can be
stated in researchable terms, we reach the hypothesis stage. The next step involves testing the
hypothesis against empirical evidence (facts from observation or experimentation). The results
either support a hypothesis or do not support a hypothesis. From these results, new knowledge is
generated.

The Scientific Method is a process used by researchers to understand the world through knowledge
and evidence. It works the same in both social sciences (like business) and physical sciences (like
physics). First, researchers come up with ideas that can be tested, forming a hypothesis. Then, they
test the hypothesis using facts from observations or experiments. The results will either support or
reject the hypothesis, and this helps generate new knowledge.
 When to Conduct Business Research?

Table 1When to conduct Business Research

Criteria Question Decision if Yes Decision if No

Is sufficient time available before a Do Not Conduct Business
Time Constraints Proceed to next step Research
decision will be made?
Availability of Do Not Conduct Business
Is it feasible to obtain the data? Proceed to next step Research
Data
Nature of the Is the decision of considerable strategic Do Not Conduct Business
Proceed to next step Research
Decision or tactical importance?
Does the value of the research
Benefits versus Conduct Business Do Not Conduct Business
information exceed the cost of Research
Costs Research
conducting research?

This table summarizes the decision-making process for determining whether to conduct business
research based on time constraints, data availability, decision importance, and cost-benefit
analysis.

Business Research in the 21 (Twenty-First ) Century

1. Communication Technologies
2. Global Business Research
Communication Technologies
Technology also has made it possible to store or collect data for lower costs than in the past.
Electronic communications are usually less costly than regular mail-and certainly less costly than
a face-to-face interview and cost about the same amount no matter how far away a respondent is
from a researcher.
Thus, the expressions "time is collapsing" and "distance is disappearing" capture the tremendous
revolution in the speed and reach of our communication technologies. Changes in computer
technology have made for easier data collection and data analysis. Today, even the most basic
laptop computers can solve complicated statistical problems involving thousands of data points in
practically a nanosecond. Communication technologies have drastically transformed the way we
exchange, store, and gather information. In just a few decades, the amount of data once contained
in an entire library can now fit in a personal computer. Information can now be shared almost
instantly, globally, and wirelessly, thanks to the internet and mobile devices. These technologies
have made communication faster and more cost-effective, allowing businesses to access research
data easily and cheaply. The advancements in communication technologies have effectively
reduced time and distance in exchanging information.
Global Business Research
Business research has become increasingly global as more and more firms operate with few, if
any, geographic boundaries. Some companies have extensive international research operations.
■ Companies that conduct business in foreign countries must understand the nature of those
particular markets and judge whether they require customized business strategies. For example,
although the fifteen nations of the European Union share a single formal market, research shows
that Europeans do not share identical tastes for many consumer products. Business researchers
have found no such thing as a "typical" European consumer; language, religion, climate, and
centuries of tradition divide the nations of the European Union. “Scantel Research”, a British firm
that advises companies on color preferences, found inexplicable differences in Europeans'
preferences in medicines. The French prefer to pop purple pills, but the English and Dutch favor
white- ones. Consumers in all three countries dislike bright red capsules, which are big sellers in
the United States. This example illustrates that companies that do business in Europe must research
throughout Europe to adapt to local customs and buying habits.
Business Research in the 21st Century
1. Communication Technologies:
o Faster Communication: Technology has made communication faster and more efficient.
Information can now be shared almost instantly, globally, through the internet and mobile
devices.
o Cost-Effective: Electronic communication is cheaper than traditional methods, like mail
or face-to-face interviews, regardless of distance.
o Improved Data Collection: Computers and software allow businesses to collect and
analyze large amounts of data quickly, making research more accurate and efficient.
o Global Reach: With these advancements, businesses can reach and communicate with
people worldwide without any significant delays or extra costs.
2. Global Business Research:
o Global Operations: Businesses today operate internationally, making research on global
markets essential.
o Customized Strategies: Companies must adapt their strategies to different countries.
Consumer preferences and habits vary from one region to another, requiring tailored
research.
 o Cultural Differences: For example, consumer preferences in the European Union differ
due to factors like language, culture, and tradition. Research helps businesses understand
and cater to these differences.
o Market Understanding: Companies must conduct thorough research in each market they
operate in to ensure they meet local needs and preferences effectively.
Chapter – Two
THE BUSINESS RESEARCH PROCESS: AN OVERVIEW

Types of Research
Business research can be classified on the basis of either technique or purpose. Experiments,
surveys, and observational studies are just a few common research techniques. Classifying
research by its purpose, such as the situations described above, shows how the nature of a decision
situation influences the research methodology.
The following section introduces the three types of business research:
1. Exploratory 2. Descriptive 3. Causal
1. Exploratory: Primarily qualitative, sometimes quantitative.
2. Descriptive: Both qualitative and quantitative.
3. Causal: Primarily quantitative.

Exploratory Research
Exploratory research is conducted to clarify ambiguous situations or discover potential business
opportunities. Exploratory research is particularly useful in new product development.
Exploratory research is not an end unto itself. Usually exploratory research is a first step,
conducted with the expectation that additional research will be needed to provide more conclusive
evidence.
Exploratory research is a preliminary investigation that helps researchers understand a problem,
identify key concepts, and form hypotheses
Explanatory research is a research method that explores why something occurs when limited
information is available.
Exploratory research is "the preliminary research to clarify the exact nature of the problem to be
solved."
Exploratory research is generally qualitative in nature. It focuses on exploring a topic or problem
in depth, gathering insights, and generating ideas or hypotheses. The aim is to gain a deeper
understanding of an issue, usually through methods like interviews, focus groups, observations,
and content analysis, rather than through numerical data.
Exploratory research is a type of research used to investigate a problem or topic that has not been
clearly defined, aiming to gain insights and understanding.
A real-life example of exploratory research is
A company trying to understand why their customers are unhappy with a new product. Since the
issue isn’t well-defined, the company conducts informal interviews, surveys, and focus groups
with customers to explore their feelings, identify potential problems, and gather ideas for
improvement before launching a more structured investigation or solution.
Descriptive Research
Descriptive research is to describe characteristics of objects, people, groups, organizations, or
environments.
In other words, descriptive research tries to “paint a picture” of a given situation by addressing
who, what, when, where, and how questions.
Descriptive research often helps describe market segments. For example, researchers used
descriptive surveys to describe consumers who are heavy consumers (buy a lot) of organic food
products.
Descriptive research is primarily quantitative, as it focuses on measuring and describing
phenomena using numerical data, though it can also include qualitative aspects.
Descriptive research is a type of research that seeks to describe characteristics or behaviors of a
phenomenon without manipulating it.
Descriptive research is a type of research that explains "what" is happening by observing and
recording facts.
Descriptive research simply describes things as they are. It's like taking a snapshot of what's
happening. It does not answer questions about how/when/why the characteristics occurred. Rather
it addresses the "what" question (what are the characteristics of the population or situation being
studied?).
Example of Descriptive research
Imagine you want to know the average age of people who visit your local coffee shop on a Saturday
morning. You sit outside the shop for a few Saturdays and simply record the age of each person
who enters. At the end, you calculate the average age. That's descriptive research. You're just
describing the age distribution of your coffee shop's Saturday morning customers. You're not
trying to figure out why they're there or how the age affects coffee purchases, just simply what the
average age is.
A real-life example of descriptive research is a school conducting a survey to determine how
many students prefer online learning over in-person classes. The school collects data on students'
preferences and presents it as percentages, without trying to change or influence the outcomes.
A real-life example of descriptive research is a grocery store tracking how many customers buy
certain products each month to understand buying patterns. They simply record the data without
changing anything.
Causal Research
Causal research seeks to identify cause and-effect relationships. When something causes an effect,
it means it brings it about or makes it happen. The effect is the outcome.
Rain causes grass to get wet. Rain is the cause and wet grass is the effect.
It aims to find out why something happens.
Causal research is quantitative. It aims to identify cause-and-effect relationships by manipulating
variables and measuring their impact, often through experiments or statistical analysis.
Causal research is a type of research that seeks to determine cause-and-effect relationships between
variables. Causal research is a type of research that tries to find out if one thing causes another.
Causal research is a method that studies how variables cause other variables to change.
Education: Increased study hours often lead to improved academic performance. In this case,
increased study hours is the cause and improved academic performance is the effect. Causal
research is a type of study that looks at how one thing affects another
Imagine a company notices a drop in sales. They want to know why sales are down. This is where
causal research comes in
A real-life example of causal research is a school testing if adding extra study hours improves
students' test scores. They change the study schedule and then measure if test scores improve,
showing the cause-and-effect relationship.
Let's take a new product launch as an example to demonstrate all three types of research:
1. Exploratory Research: Before launching the product, the company conducts informal
interviews with potential customers to explore their feelings, needs, and expectations about
similar products, gaining insights to better shape the new product.
2. Descriptive Research: After launching the product, the company conducts a survey to
gather data on how many customers are purchasing it, their demographics, and how often
they use it, to describe customer behavior and preferences.
3. Causal Research: The company then tests whether increasing the product's price causes a
decline in sales by experimenting with different price points and measuring the impact on
customer purchases. This helps understand the cause-and-effect relationship between price
and sales.
 Aspect Exploratory Research Descriptive Research Causal Research Formatted: Centered
Formatted Table
Uncertainty Very unclear. Somewhat clear. Very clear.
Formatted: Centered
Purpose To learn more about a To describe what is To find out if one thing causes
problem. happening. another. Formatted Table
When It’s At the start, when you know When you know some After you know the problem Formatted: Centered
Done little. details but need more. well. Formatted: Centered
Approach Very flexible and open. More organized and Very structured and specific.
Formatted: Centered
planned.
Examples “Why are sales down?” “How many customers “Does raising the price lower Formatted: Centered
buy this product?” sales?”
Results Gives ideas but not clear Gives clear answers but Gives clear answers to make Formatted: Centered
answers yet. might need more info. decisions.

Exploratory Research Descriptive Causal Research

Research
Amount of Uncertainty Highly ambiguous Partially defined Clearly defined
Characterizing Decision
Situation
Key Research Research question Research question Research hypothesis
Statement
When Conducted? Early stage of decision Later stages of decision Later stages of decision
making making making
Usual Research Unstructured Structured Highly Structured
Approach
Examples “Our sales are declining for “What kind of people products in a blue
no apparent reason.”\ patronize our stores package?” “Which of two
What kinds of new products compared to our advertising campaigns
are fast-food customers primary competitor?” will be more effective?”
interested in? “What product features
are most important to
our customers?”
Nature of Results Discovery oriented, Can be confirmatory Confirmatory oriented.
productive, but still although more research Fairly conclusive with
speculative. Often in need of is sometimes still managerially actionable
further research needed. Results can be results often obtained
managerially actionable
 Stages in the Research Process Formatted: Centered, Indent: Left: 0.5"

Defining the
Research
Objectives

Conclusions Research
and Reporting Design

Data Analysis Sampling

Data
Collection

The stages of business research:

1. Defining the Research Objectives
o Identify the purpose of the research and what you need to find out.
2. Planning a Research Design
o Decide on the research methods, tools, and approach (qualitative or quantitative).
3. Planning a Sample
o Choose who or what to study (target audience, sample size, etc.).
4. Collecting the Data
o Gather the information needed through surveys, interviews, observations, etc.
5. Analyzing the Data
o Process and interpret the collected data to identify trends or insights.
6. Formulating the Conclusions and Preparing the Report
o Summarize findings, draw conclusions, and present them in a report for decision-
making.

Business Research Cycle: 1 → 2 → 3 → 4 → 5 → 6 (Then repeat as necessary based on findings)

The image is a flowchart titled "Flowchart of the Business Research Process" (Exhibit 4.6). It
visually represents the sequential steps involved in conducting business research.

Key Components of the Flowchart:

1. Problem Discovery and Definition

o Define research objectives.
o Selection of exploratory research techniques.
o Various exploratory research methods:
 Secondary (historical) data
 Previous research
 Experience survey
 Case study
o Problem definition (statement of research objectives).
2. Planning the Research Design
o Selection of the basic research method:
  Survey (Interview, Questionnaire)
 Experiment (Laboratory, Field)
 Secondary data study
 Observation
3. Sampling
o Selection of sample design.
o Two types of sampling:
 Probability sampling
 Nonprobability sampling
4. Data Gathering
o Collection of data (fieldwork).
5. Data Processing and Analysis
o Editing and coding data.
o Data processing and analysis.
6. Drawing Conclusions and Preparing Report
o Interpretation of findings.
o Final report preparation.

Notes:

 Diamond-shaped boxes indicate decision points where one or more methods must be
selected.
 Dotted lines represent alternative paths that skip exploratory research.

Aspect Exploratory Research Descriptive Research Causal Research Formatted: Font: Bold

Uncertainty Very unclear. Somewhat clear. Very clear.

Purpose To learn more about a problem. To describe what is happening. To
find out if one thing causes another.
When It’s Done At the start, when you know little. When you know some details but
need more. After you know the problem well.
Approach Very flexible and open. More organized and planned. Very
structured and specific.
Examples “Why are sales down?” “How many customers buy this product?”
“Does raising the price lower sales?”
Results Gives ideas but not clear answers yet. Gives clear answers but might need
more info. Gives clear answers to make decisions.