Responsibility for learning belongs to the student regardless of age,- Robert Martin

Business Research & Methods

Module 1

INVENTION: Ice Cream Cone

INVENTOR: Charles E. Menches, U.S., and an anonymous lady friend; Abe Doumar, U.S. YEAR: 1904 HOW INVENTED: Menches was an ice cream salesman at the Louisiana Purchase Exposition, the great fair in St. Louis, Mo. Whenever Menches visited a certain lady friend, he brought a bouquet of flowers. On one occasion, for a super date, he brought flowers and an ice cream sandwich. Because his lady friend lacked a vase for the flowers, she took one of the sandwich layers and curled it into the form of a vase. Then she rolled the other layer to contain the ice cream itself--and the ice cream cone was born.

Research problem
I observed families riding on two-wheelers the father driving the scooter, his young kid standing in front of him, his wife seated behind him holding a little baby. It led me to wonder whether one could conceive of a safe, affordable, all-weather form of transport for such a family," Tata said.

In the end What is the outcome?

Four years efforts to realise this goal. Today, we indeed have a people's car, which is affordable , safe, fuel efficient We hope it brings the joy, pride and utility of owning a car to many families who need personal mobility ." This small car Nano is 20 per cent shorter in length than the Maruti 800 but Tata claims it has 21 per cent more space is powered by a 623 cc rear-mounted engine and will travel 20 km per litre. The car will cost Rs 1 lakh at the dealer-end but attract Value-Added Tax and transportation cost.

Nano will also come in two deluxe models with air conditioning.

 Mukesh Ambani says Ensuring better returns to Indian farmers and manufacturers and greater value for the Indian consumer, both in quality and quantity, will be an integral feature of this project.

Introduction to Business research Research Methodology Scientific methods Research Process Research Methodology Meaning of research Types, Objectives, Criteria of good research Scientific method in physical science & in marketing Distinction between scientific & Non scientific methods Difficulties in applying scientific methods in marketing

What is Business Research?

A systematic Inquiry whose objective is to provide information to solve managerial problems. Search for knowledge Systematised effort to gain new knowledgeredman & Mory Research comprises of Defining problems, formulating hypothesis, collecting, organising, and evaluating data, reaching solutions and at last testing the solutions to determine whether they fit the formulated hypothesis .

Why Managers need Better Information

Global and domestic competition is more vigorous Organizations are increasingly practicing data mining and data warehousing Increase in the complexity & risk More knowledge exists in every field Stake holders are better informed. The power & ease of todays computers to analyse the data

Why Study Research?

1. 2. 3. 4. Changes in business environment Managers increased need for information Explosive technology growth Problems with mergers, trade policies, Savings & investment issues 5. Continuous innovations
Research provides you with the knowledge and skills needed for the fast-paced decision-making environment

The Manager-Researcher Relationship

Managers obligations
Specify problems Provide adequate background information Access to company information gatekeepers

Researchers obligations
Develop a creative research design Provide answers to important business questions

Manager-Researcher Conflicts
Managements limited exposure to research Manager sees researcher as threat to personal status Researcher has to consider corporate culture and political situations Researchers isolation from managers

When Research Should be Avoided

When information cannot be applied to a critical managerial decision When managerial decision involves little risk When management has insufficient resources to conduct a study When the cost of the study outweighs the level of risk of the decision

Search is done through two methods 1. Arbitrary method Seeking answers to questions based on imagination, opinion, belief, or impression. Ex. Earlier belief that Shape of the earth was flat Disadvantages It is subjective Finding varies form person to person. It is vague & inaccurate

Scientific Method Scientific method is one which yields same results when repeated by different people. T he scientific method is a systematic step by step procedure following the logical process of reasoning. Scientific method encourages doubts & criticism so that what emerges is the real evidence. Scientist does not believe anything with out testing, adheres to the right path & arrive at the truth.

Steps in scientific methods

Observation Formulation of hypothesis Future predictions Testing the hypothesis Ex. Researcher conducts a market research for a client manufacturing women's jeans pant & tops

Advantages 1. Objective 2. Precise & arrives at conclusions on the basis of verifiable evidences. 3. Method is free from personal beliefs, attitudes & values.

Characteristics of scientific method

Careful & accurate classification of facts Discovery of laws Self criticism- Scientist should critically examine his own research in a detached manner. Validity- Validity is the ability of measuring instrument to measure what is supposed to Ex. Questionnaires for measuring the attitudes of respondents Horlicks Ex. Barometer, thermometer, Scale

Basis of scientific method Relies on empirical evidence ( data collected thr observation or experiment) Use of relevant concepts Commitment to objectivity- Forming judgements based upon facts unbiased by personal impressions Ethical neutrality True & accurate statements Does not pass normative judgements( Good or bad) Generalisation Verifiability- Conclusions can be verified Ex Atom originally was considered to be indivisible Logical reasoning process -Based on reasoning process. Reasoning process is used for drawing inferences from the findings of a study Ex. Expenditure pattern of different income group families on basic necessities

Logical reasoning process consists of induction & deduction. Induction- Induction draws conclusions from one or more particular facts. It is a process of reasoning where by we arrive at universal generalisations from particular facts. Studying individual cases & drawing generalisations Ex. Test marketing of a new product

Induction
It involves two processes 1.Observation 2.Generalisation Ex. If it is observed that educated girls have expensive habits one may conclude that all educated girls have expensive habits.

Deduction Deduction is a form of inference that purports to be conclusive It is the process of drawing generalisations through a process of reasoning on the basis of certain assumptions which are self evident or based on observation. In deduction we deduce generalisations from universal to particular. Deduction can give conclusive evidence. Ex. Dr. Shekar is an adult. All adults are eligible to vote. Dr Shekar is eligible to vote. All products manufactured by TATA are good Nano car will also be good

Difference between scientific method & non scientific methods

More objective Ex. Hypothesis can be verified with the help of statistical principles More precise, measurement & numerical analysis can be done. More subjective Opinion differs from person to person.

Measurement & numerical analysis can not be done

Difference between scientific method & non scientific methods

Takes cognizance of the existing knowledge in a particular field, carries out further investigations & compare the results so obtained earlier. This leads to the expansion of knowledge. The process which is continuous & unending systematises knowledge. Non scientific method may not contribute to the accumulation of systematic knowledge.

Difficulties in applying Scientific method in marketing

Role of InvestigatorsMarketer is expected to be objective in his investigation. He can manipulate the data which is acceptable to clients Inaccuracy of measuring instruments Information is qualitative Ex. Brand preference Influence of measurement Human beings responses, behavior undergoes change. Time pressure

Difficulties in applying Scientific method in marketing

. Scientist can measure the minute changes in the lab. & is sure of the accuracy of his measurement. Market researcher has to deal with aspects like attitude of consumers, changes in their preferences & their impact on the consumption of a given product. The instrument of measurement is questionnaire which is crude & can not give high degree of precision. Questionnaire is used by many interviewers .Information collected by them will have different degrees of accuracy.

Scientific method is continuous & unending process leading to the accumulation of systematic knowledge. Marketing research is problem solving & problem oriented research. Focus of investigation is narrow. It is an exhaustive study.

Difference between Research in Social science & physical science

Scientific method is a body of techniques for investigating phenomena and acquiring new knowledge, as well as for correcting and integrating previous knowledge. It is based on gathering observable, empirical, measurable evidence, subject to the principles of reasoning. Hypothesis is also proposed. Social research is research conducted by social scientists in sociology social psychology human geography, political science, social anthropology and education. Sociologists. and other social scientists. They study diverse things.Ex.They conduct indepth analysis of the life of a single important person . They may monitor what is happening on a street today or what was happening a few hundred years ago.

 the process is objective so that the scientist does not bias the interpretation of the results or change the results outright. Another basic expectation is that of making complete documentation of data and methodology available for careful scrutiny by other scientists and researchers.

Social scientists use different methods in order to describe, explore and understand social life. Social methods can generally be subdivided into two broad categories. Quantitative methods are concerned with attempts to quantify social phenomena and collect and analyse numerical data, Qualitative methods, on the other hand, emphasise personal experiences & are more concerned with understanding
the meaning of social phenomena

 Experiments are conducted to quantify the results

Common tools of quantitative researchers include surveys, questionnaires,). Commonly used qualitative methods include focus groups, participant observation, and other techniques.

Steps in Research Process

Formulating the Research problem Extensive literature Survey Development of working hypothesis Preparing the research design Determining the sample design Collecting the data Analysis of data Hypothesis testing Generalisation & interpretation Preparation of the report

Management problem
Problems faced by the management in an organisation Ex. Decrease in deposits in a bank Ex. Increasing cost of operation Problem to be put in the form of question Management questions do not specify what kind of research is to be one. How to increase deposits? How to reduce the cost?

WHAT IS A RESEARCH PROBLEM?

A research problem is the situation that causes the researcher to feel apprehensive, confused and ill at ease. It is the demarcation of a problem area within a certain context involving the WHO or WHAT, the WHERE, the WHEN and the WHY of the problem situation. There are many problem situations that may give rise to research. Three sources usually contribute to problem identification. Own experience or the experience of others may be a source of problem supply. A second source could be scientific literature. You may read about certain findings and notice that a certain field was not covered. This could lead to a research problem. Theories could be a third source. Shortcomings in theories could be researched.

EXAMPLES:

What factors are contributing to the banks failure to achieve stronger growth rate in deposits? How well is the bank doing regarding work climate, efficiency of operations compared to industry norms, financial conditions and competitors?

Example 2. Evaluation of training programmes in a bank

Characteristics of research
Research is systematic, structured & critical investigation into a phenomenon. It is not a mere compilation but a purposive investigation It aims at describing interpreting & explaining a phenomenon. It adopts a scientific method. It is objective, logical, applies possible tests & arrives at conclusions It is based on observable experience or empirical evidence. Research is directed towards finding answers to pertinent questions It emphasises the development of generalisation,principles or theories.

Objectives of Research
1. To gain familiarity with a phenomenon or to achieve new sights in to it 2. To determine the frequency with which some thing occurs 3. To test a hypothesis of a casual relationship between the variables 4. To portray accurately the characteristics of a particular individual , situation or a group.

 To find answers to various types of questions why, where, how, what Research unravels the mysteries of nature Research establishes generalisations & general laws & principles. Ex. Law of gravitation, law of demand, principles of organisation Aims at finding solutions to problems Aims at developing theories, concepts & principles Research aids planning & thus contributes to national development

Criteria of good research

The purpose should be clearly defined. The research procedure used should be described in detail to permit another researcher to repeat the research for further development. Procedural design of the research should be carefully planned to yield the results that are objective as for as possible. The researcher should report with complete frankness, The analysis of the data should be sufficiently adequate to reveal its significance.

Researcher should be experienced & a person of integrity. Method of analysis should be appropriate. The validity& reliability of data should be checked carefully. Conclusions should be confirmed to those justified by the data of the research.

Types of Research

1.Applied research ( Action Research)

It aims at finding a solution for an immediate problem facing a society or an organisation. Ex .1.Teacher finds that most of the students are
weak in comprehension A teacher innovates a method to improve the ability of the students. 2. Marketer studying the profitability of two or more products. 3. Developing a new market for the product.

2.Descriptive Research
It includes surveys & fact finding enquiries. It is concerned with describing the state of affairs as it exists at present. Ex. Trends in the consumption of soft drinks with respect to socio-economic characteristics such as age, family, income education level, profession. Employs any or all the methods of data collection. Ex, Questionnaire, Interview, observation

3.Fundamental Research
Concerned with generalisations & with the formulation of a theory. Ex. Research concerning natural phenomenon or relating to pure science, Human behaviour in order to make generalisations. IIsc

4. One time research & Longitudinal research

5.Exploratory research
This type of research is carried out at the beginning when the problem is very vague. To provide insights and understanding. Ex. Sales decline

6.Historical Research
It is that which utilises historical sources like documents, letters. Autobiographies, monuments, remains, paintings in order to establish facts & draw conclusions concerning the past. Ex. Investors in the share market study past records or prices of shares

7. Ex post Facto research

In social research, the Ex post Facto research term is used. He has no control over variables. He can only report what has happened or what is happening. Ex. Preferences of people.

8.Quantitative Research
Based on the measurement of quantity or amount.

9.Qualitative research
Concerned with qualitative phenomenon. Ex. Motivation research

10. Comparative Research

The research aims at comparing the institutions, practices, concepts, trends in economic variables. Ex. Customer service in different banks Model Building research Mostly done in the field of management. Model is constructed to show the relationship among many variables. Ex. Advertising models, Consumer behaviour models

11.Operations Research
The method of research to solve problems using scientific methods & quantitative techniques Ex. Construction of fly overs,

12.Library Research
Conducted with the help of written materials located in big libraries. Concerned with the evolution of theories, study involving cause & effect relationship & seeking out significant facts & interpretation of the past data.

13. Individual & Group research

Causal Relationship
It is conducted to determine the cause and effect relationship between 2 variables Ex. Effect of advertisement on sales

Significance of Research All progress is born of enquiry. Doubt is better than

1. 2. 3. 4. overconfidence. For it leads to inquiry and inquiry leads to invention. Research inculcates inductive thinking and it promotes development of logical thinking . Several complex business problems can be solved through research It provides the basis for all govt. policies Important for social scientists in studying the social relationships and to seek answers for social problems

5. Operational & planning problems of business & industry can be solved with the help of research. 6. For students- A career 7. Professionals- Source of livelihood 8.Literary men & women Development of new styles & creative work. 9.Philosophers Analysts & intellectuals- Generalisation of new theories.

What are Research Ethics?

Ethics are norms or standards of behavior that guide moral choices about our behavior and our relationships with others The goal is to ensure that no one is harmed or suffers adverse consequences from research activities

Ethical Treatment of Participants

Rights of the participants should be protected. For that Researcher should follow 3 guidelines Begin data collection by explaining to the participant the benefits expected from the research Explain to the participants that their rights and wellbeing will be adequately protected, and say how this will be done Be certain that interviewers obtain the informed consent of the participant

Deception
Deception occurs when the participant is told only part of the truth or when the truth is fully compromised. There are two reasons for deception To prevent biasing the participants before the survey or experiment To protect the confidentiality of a third party ( sponsor) The benefits to be gained by deception should be balanced against the risks to the participants.

Issues Related to Protecting Participants

Obtain Informed consent from participants Debriefing- Explanation of deception, Description of hypothesis, goal or purpose of study to participants, post study sharing of results with the participants. Right to Privacy/Confidentiality Guarantee of confidentiality must be given to the participants.

Ethical Issues related to the Client

Sponsor non-disclosure- Some clients wish to undertake research with out revealing themselves. Purpose non-disclosure- Researcher has to protect the purpose of the study. Findings non-disclosure

Right to quality research This right entails 1. Providing a research design appropriate for the research question. 2. Maximising the sponsors value for the resources expended. 3. Providing appropriate data handling and reporting techniques for the data collected.

Ethics Related to Sponsor

Sometimes researchers will be asked by sponsors to participate in unethical behavior. To avoid coercion by sponsor the researcher should: Educate sponsor to the purpose of research Explain researchers role Explain how distortion of the truth leads to future problems If necessary, terminate relationship with sponsor

Ethical Issues related to Researchers and Team Members

Safety= it is the responsibility of the researcher to design a project so that the safety of all interviewers , surveyors, observers or experimenters is protected. Ethical behavior of assistants- Researcher expects ethical compliance or behaviour from the assistants. Protection of anonymity- Researcher & assistants should protect the confidentiality of the sponsors information & theanomity of the participants.

Rights of the Respondents

Rights of the respondents Information collected for the MR should not be misused for any other purpose. Respondents should not be forced to answer a questionnaire. Information should be kept confidential. Respondents should be given the opportunity to think & answer the questions that are of personal nature. It is the responsibility of the market researcher to accurately reflect the respondents replies in his report.

What is Thematic Appreciation Test (TAT)

It is a projective technique. Participants are shown pictures and asked to tell a story based on what they see. This tool helps to elicit important information about underlying psychological fears and needs. The TAT was developed in 1935 by Morgan and Murray. Ironically, it was initially used in a study of normal personalities done at Harvard Psychological Clinic. The test comprises 31 cards. One card is blank and the other thirty include blurred but emotionally powerful (or even disturbing) photographs and drawings

Difference between Research methods & Research Methodology

Research methods refer to techniques that are used for conducting research ex. Observation, Questionnaires, interviews, Analysis of historical records, Case studies Research methodology is a way to systematically solve the research problem.

Research Methodology
It is a way to systematically solve the research problem. It is a science of studying how research is done scientifically ( step by step) Researcher needs to know not only the methods & techniques but also as to how to use relevant method at the appropriate time Ex researcher in designing a building Research methodology has many dimensions & methods only constitute a part of the research methodology.