Research Methodology in Commerce

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1. Nature Of Research
Ans.
Meaning: Research means search for facts in order to find answers to certain questions or to find solutions to certain
problems.
Comparison: Research often referred to as „scientific inquiry‟ or „scientific investigation‟.
Definitions: William C. Emory in his book ‘Business Research Methods’ defines research as_
“Any organized inquiry designed and carried out to provide information for solving problems.”
Natures of research are
1. Use of scientific methods.
2. Objective and Logical.
3. Purposive investigations.
4. Development of principles and theories.
5. Multipurpose activity.
6. Manipulation of things or concepts.
7. Applied and basic research.
8. Deals with complex Human Behaviour.
9. Problem of experimentation in social research.
10. Problem of verification.
11. Research – a process.
12. Research – a continuous process.
2. Objectives of Research.
Ans.
problems.
Objectives of research are
1. To find solutions to problems.
2. To verify and test existing laws or theories.
3. To obtain information.
4. To extend knowledge.
5. To establish general laws.
6. To predict events.
7. To analyse inter – relationships.
8. To develop new tools, concepts and theories.
3. Types of Research.
Ans.
problems.
Types of research are
1. Applied and Fundamental Research.
2. Descriptive and Analytical Research.
3. Quantitative and Qualitative Research.
4. Conceptual and Empirical Research.
5. Field Research or Laboratory Research.
6. One – Time research Or multi – period research.
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7. Conclusion – oriented research or decision – oriented search.
8. Historical research or current situation research.
4. Methodology / Process of Research.

Ans.
problems.
Processes of Research are
Identifying and Defining Research Problem.
Extensive Literature Survey.
Formulating the Hypothesis.
Research Design.
Design a Questionnaire.
Designing a sample
Collection of Data.
Organisation of Data.
Analysis and Interpretation of Data.
Testing of Hypothesis.
Preparation of Research Report.
Follow - up of Report.
1. Identifying and Defining Research Problem.

2. Extensive Literature Survey.
3. Formulating the Hypothesis.
4. Research Design.
5. Design Questionnaire.
6. Designing a sample.
7. Collection of Data.
8. Organisation of Data.
9. Analysis and Interpretation of Data.
10. Testing of Hypothesis.
11. Preparation of Research Report.
12. Follow – up of Report.
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5. Basis / Essentials of scientific method.
Meaning: Scientific method is universal in nature. It refers to a procedure of investigation in a systematic

manner. It is objective in nature. It involves logical and systematic method of analysis of a situation or
problem.
Definition: Clover and Balsley define “Scientific method is a systematic step – by – step procedure following
the logical process of reasoning”.
Note: Scientific method × Arbitrary method.
Basis / Essentials of scientific methods are

1. Reliance on Empirical Evidence.
2. Use of Relevant concepts.
3. Commitment to objectivity.
4. Ethical Neutrality.
5. Generality.
6. Verifiability.
7. Logical Reasoning Process.
6. Four essential conditions for valid induction.

Ans.
Meaning: Induction is one of the scientific methods. It involves logical method of reasoning. It is a systematic
process in which the researcher arrives at universal generalisation from particular facts.
Four essential conditions are

1. Accuracy.
2. Representative.
3. Appropriate sample size.
4. Proper conclusions.
7. Types of Inductions.
Ans.
Types of Inductions are

1. Enumerative induction:
a. It is the most common form of induction used in social science research.
b. It involves generalisations from samples and the generalisations are usually derived through the
analysis of data.
c. For instance, if in a number of cases, it is observed that young females are not brand loyal in
respect of readymade garments, then it can be concluded that all young females are not brand
loyal in respect of readymade garments.
d. Induction by enumeration gives us only probable conclusion.
2. Analytic Induction:
a. It involves case – by – case analysis of specific facts.
b. It is a process of establishing a universal proposition by exhaustive enumeration of all the
instances of the type coved by the universal proposition.
c. Therefore, analytic induction can be called as scientific induction. The scientific induction gives as
us definite conclusions.
Donald Cressey has stated a systematic procedure in the case of analytic induction:
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 Define the phenomenon to be explained.

 Formulate hypothesis to examine the phenomenon.
 Study or observe a case to determine whether or not hypothesis fits in the case.
 If hypothesis does not fit the case, either reformulate the hypothesis or redefine the phenomenon
precisely, so that the case is excluded.
 Study a small number of cases to attain practical certainty; but whenever a negative case
disproving the explanation is discovered, reformulate the hypothesis.
 Study a small number of cases to attain practical certainty; but whenever a negative case
disproving the explanation is discovered, reformulate the hypothesis.
 Continue the procedure of examining cases, reformulating the hypothesis and redefining the
phenomenon, until a universal relationship is established.
 For purposes of proof, examine cases outside the area circumscribed by the definition to
determine whether or not the final hypothesis applies to them.
8. Merits of Induction Method.
 Induction provides the universal premise.

 Induction is helpful in finding out material truth.
 Induction points out the relativity of generalizations.
 Induction indicates that a particular generalization is valid in certain situation.
 It is scientific in nature.
 Some of the important laws or principles of physical and social science have been developed through the use of
inductive approach.
 Inductive generalizations are precise and accurate as they are based on observed facts and realistic foundation.
9. Demerits of Induction method.
 The collection of data for induction is a complex job.

 This method requires high degree of competence on the part of the researcher.
 Induction is not useful without deduction.
 Without deduction, induction produces only a mass of unrelated facts.
 It is a time consuming and expensive process, as lot of time, effort and money is required to collect and analyse a
large volume of data to arrive at generalisation.
10. Essential conditions for valid deductions.
Meaning: According to John Best, the deductive method establishes a logical relationship between a major premise, a
minor premise and a conclusion.
Where: A major premise is a previously established generalization.
Where: A minor premise is a particular case related to the major premise.
Where: The logical relationship of the major and minor premises leads to a conclusion.
For e.g.
 Major Premise: All human beings are animals.
 Minor Premise: Mr. A is a human being.
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 Conclusions: Mr. A is an animal.
Essential conditions for valid deductions.
1. The general premise or assumption must be correct.

2. If the general premise is correct, then the conclusion drawn can be right.
3. The general premise must be applied only to the cases have property come under it.
11. Merits of Deduction Method.
Meaning: According to John Best, the deductive method establishes a logical relationship between a major premise, a
minor premise and a conclusion.
Where: A major premise is a previously established generalization.
Where: A minor premise is a particular case related to the major premise.
Where: The logical relationship of the major and minor premises leads to a conclusion.
For e.g.
 Major Premise: All human beings are animals.
 Minor Premise: Mr. A is a human being.
 Conclusions: Mr. A is an animal.
Merits of deduction method.
1. Deduction is relatively simple and less time consuming compared to inductive method.
2. It is precise and accurate in generalisation as it makes use of logic and mathematical tools analysis.
3. In social science, where there is limited scope for experimentation, this method becomes the only method for the
development of generalisation.
Demerits of deduction method.
1. It may result in inaccurate generalizations, if the premises are incorrect or partially correct.
2. This method is abstract. Therefore, if a large amount of abstraction were used in generalizations, then such
generalization would become useless.
12. Relevance of Induction and deduction

Induction Deduction
1. It is useful in research activities. 1. It is useful in research activities.
2. It is an inseparable part of a system of 2. It is an inseparable part of a system of reasoning.
reasoning.
3. Distinct processes of inductive and 3. Distinct processes of inductive and deductive
deductive reasoning do not exist. reasoning do not exist.
4. Both the processes are often used 4. Both the processes are often used simultaneously.
simultaneously.
5. There is sequencing of induction – 5. There is sequencing of induction – deduction
deduction process, which is correctly process, which is correctly described by John Dewy
described by John Dewy as the „double as the „double movement‟ of reflective thought.
movement‟ of reflective thought.
It is often asked what the method of science is. Whether induction or deduction? The right answer is both. In this
connection, H.A. Larrabee states, “If extreme rationalist (deductionist) is like a spider spinning out theories
from within, the extreme empiricist (inductionist) is to be compared to an ant which piles useless heaps
of facts. Better than either the spider or the ant is the bee, which selectively gathers pollen from flowers
and transforms it into honey.”
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Therefore, in actual scientific research, both induction and deduction are combined in intricate ways.
13. Distinction between Induction and Deduction.

Induction Deduction
1. Generalization 1. Generalization
In induction, one arrives at universal In deduction, one deduces generalization from
generalization from particular facts. universal to particular facts.
2. Material truth 2. Material truth
Induction is concerned with the Deduction is not concerned with the material truth
establishment of the material truth of of the premises.
universal propositions.
3. Certainty of conclusions 3. Certainty of conclusions
The conclusions of the inductive method are The deductive method provides conclusions that
only probable and not always certain. This is are certain. This is because in deduction method,
because in induction method, conclusion is conclusion is implied in the premises.
not implied in the premises.
4. Observed facts 4. Observed facts
Induction is concerned with discovering The propositions from which deductions are made
facts and relation between them. are assumed.
Observed facts provide the basis for In deductive method observed facts are not
induction. relevant.
5. Conclusion and Premises 5. Conclusion and Premises
In the induction method, the conclusion In the deduction method, the conclusion does not
goes beyond the premises. The conclusion is go beyond the premises. The conclusion is not more
more general than premises. general than premises.
14. Limitations of Scientific Method in Social Science.
1. Problem of accuracy.
2. Problem of uniformity.
3. Problem of Bias.
4. Problem of sampling.
5. Problem of Respondents.
7. Problem of Laboratory experiments.
8. Problem of segregating cause – effect relationship.
15. Nature of Social Science Research.

Meaning: Science is a systematic body of knowledge, which is universally accepted. The science is broadly divided into two
groups.
a. Physical Science
b. Social Science
The physical sciences like physics, chemistry, mathematics, biology, etc are exact and accurate in nature, as they deal with
physical phenomena. Whereas social sciences like history, geography, sociology, economics, psychology, civics, economics,
etc are neither exact nor accurate in nature, as they deal with complex human behaviours, which changes from place to
place, from time to time, from situation to situation, from person to person etc. Controlled laboratory experiments are
possible in Natural Science and are not possible in Social Science. This is because the behaviour of human beings is
influenced by biological, psychological, socio – cultural, temporal and environmental factors.
Definition: Pauline Young, states, “Social science seeks to find explanations to unexplained social
phenomena to clarify the doubtful, and correct the misconceived facts of social life.”
Natures of Social Science Research are

1. Use of scientific method.
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2. Objective
3. Logical
4. Purposive Investigation.
5. Development of Principles.
6. Development of Theories.
7. Multi – purpose activity.
8. Manipulation of things or concepts.
9. Applied and basic research.
10. Social Research deals with complex human behaviour.
11. Difficulty in conducting Laboratory experiments.
13. Research – a process.
14. Research – a continuing process.
16. Objectives of social science research.
groups.
a. Physical Science
b. Social Science
Objectives.
1. To find solutions to problems.
2. To verify and test existing laws or theories.
3. To obtain information relating to human or social aspects.
4. To extend knowledge.
5. To establish generalization and general laws.
6. To predict events.
7. To analyse inter – relationships.
8. To develop new tools, concepts and theories.
17. Uses / scope of social science research are

groups.
a. Physical Science
b. Social Science
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Uses / scope of social science research are.
1. Economic planning.
2. Social welfare.
3. Control over social phenomena.
4. Helps to solve problems.
5. Helps to predict events.
6. Verifies and tests existing laws.
7. Extends knowledge.
8. Develops new tools and theories.
18. Difficulties in social science research.

groups.
a. Physical Science
b. Social Science
Difficulties in social science research are
1. Problem of accuracy.
2. Problem of uniformity.
3. Problem of Bias.
4. Problem of sampling
5. Problem of respondents
8. Problem of Laboratory experiments.
9. Problem of segregating cause – effect relation ship.
19. Objectivity in Social Science Research.

groups.
a. Physical Science
b. Social Science
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Objectivity means conducting research without any bias or personal prejudice on the part of the
researcher.
20. Factors affective objectivity.
Meaning: Objectivity means conducting research without any bias or personal prejudice on the part of
the researcher.
Factors affecting objectivity: Objectivity to a greater extent is possible in the case of physical science research. However, in
the case of social science research, it is difficult to achieve objectivity due to certain factors, such as.
1. Personal Prejudice and Bias.

2. Value Judgement.
3. Ethical Dilemma.
4. Personal Pre conceptions.
5. Social Phenomena.
21. Measures for Achieving Objectivity.

Meaning: Objectivity means conducting research without any bias or personal prejudice on the part of
the researcher.
Although, it is difficult for social science researcher to be objective in his research work, yet it is possible to attain a
reasonable level of objectivity consistent with logical and systematic thinking. Important measures for achieving
objectivity are
1. Broadmindedness.
2. Patience and self – control.
3. Use of standardised concepts.
4. Use of quantitative techniques.
5. Proper sampling.
6. Trained Investigators.
7. Proper questionnaire.
8. Appropriate assumptions.
22. Need for Interdisciplinary Approach.

Introduction: Social science research needs interdisciplinary approach in handling problems or situations.
According to Pauline Young, “Man lives in a socio – economic and political world and thrives on its varied
relationships. It is inconceivable that a study of bare and isolated events on any one aspect of man‟s life would yield any
meaningful results.”
According to Gunnar Myrdal, “In reality there are no economic, sociological or psychological problems, but simply
problems and they are complex.”
Myrdal‟s most important contribution of „circular cumulative causation‟ emphasizes that no social science by itself
is sufficiently self – contained to deal with any social problems.
For instance, the problem of unemployment cannot be studied from a mere economic angle. It has to be dealt with
from social, political, legal and other forces and factors.
Therefore, there is a need to blend various social sciences to deal with social problems in a particular society. The
interdisciplinary approach facilitates better understanding and management of the complex problems or situations facing
a particular society.
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Need for interdisciplinary and multidisciplinary approaches in social research are.
1. Limitations of Individual social sciences.

2. Interrelationships among social sciences.
3. Complexity of social phenomenon.
4. Need for objectivity in Research findings.
23. Role of theory in Social Science Research.
Definition: Research is closely related to theory. In the words of James Black, “Theory is a systematically related
propositions specifying causal relationships among variables.”
1. Components of theory
The major components of theory are as follows.
a. Assumptions and Ideas.
b. Concepts
c. Frames of Reference.
d. Variables.
e. Propositions.
2. Theory V/s Facts.

Facts Theory
Theory and facts are interrelated
 Fact is an empirically verifiable observation.  Theory specifies the relationships between
facts or arranges them in a meaningful way.
 Fact is empirical in nature.  Theory is conceptual in nature.
 Facts help to initiate theories. (i.e.) formulation  Theory indicates the type of data to be
and reformulation of theories. collected.
 Facts can help to reject theory, which does not  Theory summarizes facts into empirical
confirm to established facts. It can also help to generalizations, and also predicts facts.
clarify and (or) modify theories.
 Role of theory in Research.

Theory plays an important role in social science research.
1. Theory of orientation.
2. Theory of conceptualization and classification.
3. Theory facilitates summarisation.
4. Uniformity
5. Prediction.
6. Theory points to Gaps in our knowledge.
24. Sources of Research Problem.

Meaning: - A research problem refers to some situation or a obstacle, which requires a solution to handle it or to deal
with it. The problem may be attributed to an individual, a group or an organisation.
The research problem can be located from various sources. Some important sources from which one can locate the
problem(s) are as follows.
1. Intuition.
2. Research studies.
3. Brain storming sessions.
4. Investing suggestions.
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5. Consultants
6. Daily experiences
7. Field surveys.
8. Academic discussions
9. Reading.
25. Criteria of selecting Research Problem.

A problem for the purpose of study must be selected only after considering certain factors or criteria. The criteria can be
broadly grouped into two groups.
a. Internal factors.
b. External factors.
Internal Factors: -
i. Researcher‟s interest
ii. Researcher‟s competence.
iii. Availability of resources.
External Factors: -
i. Quality of Research Problem.
ii. Availability of Facilities.
iii. Social Relevance.
iv. Research Personnel.
v. Urgency and importance of the problem.
vi. Feasibility of the research.
26. Components of Research Problem.

Components refers to the elements of research problem. R.L. Ackoff states five components / elements of research
problem.
1. Research – consumer.
2. Research – consumer‟s objectives.
3. Alternative means to meet the objectives.
4. Doubt in regard to selection of alternatives.
5. There must be one or more environments.
R.K. Merton states three main components in the progressive formulation of a problem for social research.
1. What one wants to know? The originating of questions.
2. Why one wants to know? The rationale of questions.
3. What are the possible answers to the originating questions? The specifying questions.
1. The originating of questions.

2. The rationale of questions.
3. Specifying questions.
27. Conditions conducive [helpful] to formulation of problems.
There are certain conditions conducive to the formulation of research problem. The conditions must be fulfilled in order to
formulate important research problems. The conditions are
1. Systematic involvement in the subject matter.
2. Study of Relevant Literature on the subject.
3. Discussions with experienced persons.
28. Technique in formulation of Research Problem/ Steps in formulation of Research Problem.

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Ans. The research problem should be clearly defined. In order to do so, the researcher must follow a systematic process.
The technique in this purpose involves a series of steps in defining and formulating the research problem.
1. Statement of the problem

2. Understanding the nature of the problem.
3. Surveying the Relevant literature.
4. Discussions with experienced persons.
5. Rephrasing [Arranging again] the research problem
6. Operational definition of concepts.
7. Delimiting the scope of the study.
29. Research Design.
Meaning: - The research design is the conceptual structure within which the research is conducted. It constitutes the
blue print for the collection, measurement and analysis of data. It provides the guidelines in which the research process is
conducted. It is the logical presentation of the process of reach project.
Definition: - According to David and Nachmias, “Research design actually constitutes the blue print for the collection,
measurement and analysis of data.”
Whatever may be the nature of research problem, all research design should contain he answers to the following
questions.
1. What the study is about?

2. Why the study is undertaken?
3. What are the data requirements?
4. Where the data can be availed?
5. What technique of getting data can be used?
6. In which areas, the study will be undertaken?
30. Features / Essential of a good research design.
questions.

Features of Research Design are
1. Focus on Research Objectives.

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2. Simplicity.
3. Suitability.
4. Flexibility. (Not to be rigid).
5. Acceptable.
6. Easy to implement.
7. Easy to understand.
8. Cost effective.
9. Pilot study.
10. Training to field staff.
11. Selection of prober technique and method
31. Areas/ Aspect of decision making in Research Design.
questions.

Areas / Aspect of decision making in Research Design are
1. The time period of the research project.

2. The sources of data.
3. The data collection method and technique.
4. The research universe.
5. The area of research.
6. The sample design.
7. The method of analysis.
8. The resources required.
9. The area from where the resources can be availed.
32. Need and importance of Research Design.

questions.
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Need and importance of Research Design are
1. Provides guidelines.
2. Facilitates organising of resources.
3. Timely execution of research work / task.
4. Facilitates collection of relevant data at proper time.
5. Advance notification about research work.
6. Monitoring expenses.
7. Provides training to field staff.
8. Enables selection of prober technique and methods.
9. Achievement of research objectives.
33. Steps in Research Design.

questions.

Steps in Research Design are
1. Define the Research problem.

a. Identifying the problem or opportunity.
b. Situation analysis
c. Model development.
d. Specification of information needs.
2. Estimate the cost of information
3. Select the sources of data collection.
4. Select the measurement techniques.
5. Select the sample.
6. Select the method of analysis
7. Find out the time and cost needs.
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8. Prepare the research design.
34. Types of Research Design.
questions.

On the basis of information to be collected the research design may be classified as follows.
1. Exploratory research
2. Descriptive research
3. Diagnostic research
4. Experimental research / hypothesis testing research
5. Action research
6. Case study
7. Surveys
1. Exploratory research: The exploratory study is a preliminary study of an unfamiliar problem about which the
researcher may have little or no knowledge. An exploratory study is often used as an introductory phase of a large
study and the results are used in developing specific techniques for large study.
Such type of research is useful under the following situations:
1. To formulate a problem for more precise and detailed investigation.
2. To select the possible causes out of a number of alternatives.
3. To establish priorities among research problems for further research.
4. To understand such problems about which no prior information is available.
5. To assist in formulating hypothesis.
Exploratory research is the starting point of all research projects. It helps to define the problem in precise terms,
gather information on the problem, identify and generate alternative courses of action, etc.
According to D. Katz,
“Exploratory study represents the earlier stage of science”
Path breaking exploration is a complex affair. One has to start from the scratch, without guide posts or yardsticks.
One has to develop his own guide posts and yardsticks.
 He must decide what to look for and what to ignore.
 What to record and what to omit.
 Which clues to follow and which to abandon?
Though the exploratory research have unlimited freedom, it is often terrifying.
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2. Descriptive Research: - Descriptive research is a fact – finding investigation with adequate interpretations. It
is the simplest form of research and more specific than exploratory study. It is designed to gather descriptive
information of the problem under study. Data is collected using one or more of the following appropriate data
collecting methods such as
 Observation
 Personal interview
 Questionnaire
It is designed to describe the present situation or the characteristics of the population, group, community or users
of a particular product etc.
For instance, a study of a community of people in terms of percentage of members who are in high income group
and low income group, age structure, sex ratio, etc.
Most studies of this nature are based on survey research and secondary data.
It is useful for
1. Collecting demographic information like age, sex, income etc.
2. It can be applied directly for research as the data is collected from different media.
3. It can be used for making specific predications.
4. It discovers and tests the relationship between certain variables.
For example, whether the rate of saving is high among low income group than the high income coup of people?
Descriptive study is simple to start. However, if it is conducted without clear objectives and planning, the data
collected proves to be of no value to the researcher.

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OMTEX CLASSES

“THE HOME OF SUCCESS”

4. Methodology / Process of Research.

Identifying and Defining Research Problem.

Extensive Literature Survey.

Formulating the Hypothesis.

Analysis and Interpretation of Data.

Preparation of Research Report.

1. Identifying and Defining Research Problem.

Meaning: Scientific method is universal in nature. It refers to a procedure of investigation in a systematic

Note: Scientific method × Arbitrary method.

Basis / Essentials of scientific methods are

6. Four essential conditions for valid induction.

Four essential conditions are

Types of Inductions are

 Define the phenomenon to be explained.

8. Merits of Induction Method.

 Induction provides the universal premise.

9. Demerits of Induction method.

 The collection of data for induction is a complex job.

10. Essential conditions for valid deductions.

Essential conditions for valid deductions.

1. The general premise or assumption must be correct.

11. Merits of Deduction Method.

Merits of deduction method.

Demerits of deduction method.

12. Relevance of Induction and deduction

13. Distinction between Induction and Deduction.

14. Limitations of Scientific Method in Social Science.

15. Nature of Social Science Research.

Natures of Social Science Research are

16. Objectives of social science research.

17. Uses / scope of social science research are

Uses / scope of social science research are.

18. Difficulties in social science research.

Difficulties in social science research are

19. Objectivity in Social Science Research.

20. Factors affective objectivity.

1. Personal Prejudice and Bias.

21. Measures for Achieving Objectivity.

22. Need for Interdisciplinary Approach.

1. Limitations of Individual social sciences.

23. Role of theory in Social Science Research.

2. Theory V/s Facts.

 Role of theory in Research.

24. Sources of Research Problem.

25. Criteria of selecting Research Problem.

26. Components of Research Problem.

1. The originating of questions.

27. Conditions conducive [helpful] to formulation of problems.

28. Technique in formulation of Research Problem/ Steps in formulation of Research Problem.

1. Statement of the problem

29. Research Design.

1. What the study is about?

30. Features / Essential of a good research design.

1. What the study is about?

Features of Research Design are

1. Focus on Research Objectives.

31. Areas/ Aspect of decision making in Research Design.

1. What the study is about?

Areas / Aspect of decision making in Research Design are

1. The time period of the research project.

32. Need and importance of Research Design.