Unit-1

Business Research A theoretical framework

Q. 1 What Is Business Research? Explain Characteristics and
Objectives of Research.
Answer:
Introduction:
The word research is composed of two syllables, re and search. The
dictionary defines the former as a prefix meaning again, anew or over again
and the latter as a verb meaning to examine closely and carefully, to test
and try, or to probe. Together they form a noun describing a careful,
systematic, patient study and investigation in some field of knowledge,
undertaken to establish facts or principles.
Definitions:
Redman and Mory define research as a, Systematized effort to gain new
knowledge. Some People consider research as a movement, a movement
from the known to the unknown.
According to Clifford woody, research comprises defining and redefining
problems,
organizing

formulation
and

Hypothesis

evaluating

data,

or

suggested

making

solutions

deductions

collecting,

And

reaching

conclusions; to determine whether they fit the formulating hypothesis.

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According to Robert Ross, research is essentially an investigation, a

recording and an Analysis of evidence for the purpose of gaining
knowledge. It can generally be defined as a Systematic method of finding
solutions to problems.
Meaning:
Business

research is

field

of

practical

study

in

which

a company obtains data and analyzes it in order to better manage

the company. Business

research can

include

financial

data,

consumer

feedback, product research and competitive analysis.

Executives and managers who use business research methods are able
to better understand their company, the position it holds in the market and
how to improve that position. business research involves acquiring
information and knowledge for professional or commercial purposes such as
determining opportunities and goals for a business.
A research need not lead to ideal solution but it may give rise to new
problems which may Require further research. In other words research is not
an end to a problem since every research Gives birth to a new question. It is
carried on both for discovering new facts and verification of old ones.
Business research refers to systematic collection and analysis of data
with the purpose of Finding answers to problems facing management. It can
be carried out with the objective to explore, to describe or to diagnose a
phenomenon. It involves establishing objectives and gathering relevant
information to obtain the answer to a business issue and it can be
conducted to answer a business related question, such as: What is the
target market of my product? Business research can also be used to solve a

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business-related problem, such as determining how to decrease the amount

of excess inventory on hand.
Qualities / Characteristics of Business Research:1. Controlled: - There are many factors that affect an outcome. In a
study of cause and effect relationships it is important to be able to link
the effect(s) with the cause(s) and vice versa. The concept of control
implies that, in exploring causality in relation to two variable, you set
up your study in a way that minimize the effects of other factors
affecting the relationship.
2. Relevant:You must be scrupulous in ensuring that the procedures
followed to find answers to questions are relevant; appropriate and
justified.
3. Systematic: - This implies that the procedures adopted to undertake
an investigation follow a certain logical sequence. The different steps
cannot be taken in a haphazard way. Some procedures must follow
others.
4. Valid & Verifiable: - This concept implies that whatever you conclude
on the basis of your findings is correct and can be verified by you and
others.
5. Empirical: - This means that any conclusions drawn are based upon
hard evidence gathered from information collected from real life
experiences or observations.
6. Critical: - Critical scrutiny of the procedures used and the methods
employed is crucial to a research inquiry. The process of investigation
must be foolproof and free from drawbacks.
7. It means the discovery of new knowledge
8. It Is essentially an investigation
9. It is related with the solution of a problem
10.
It is based on observation or experimental evidences.
11.
It demands accurate observation or experimentation.
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12.

In research, the researchers try to find out answers for unsolved

questions
13.
It should be carefully recorded and reported
Purpose / Aims / Objectives of Research / Significance of
Research
1. Decision Making Objectives: - Decision making in now influenced by
research. The project identification and implementation is based on the
research conducted. There cannot be any business policy which is not
affected by research findings.
2. Environmental Objectives: - All the decisions in the business are taken
in relation to the environment in which business operates. All the factors
affecting business like state, investor, worker, customer and the competition
requires systematic investigation before any decision is to be taken.
3. Market Objectives: - The market objectives of research are defined as
market research. This includes the market share of products, profit margin
of the organization and total sales volume of the company.
4. Customer Objectives: - The need of the customer is assessed, well in
advance even before product is planned. The utilities of product are decided
on the basis of the quality of the product, in relation to the requirements of
the customers.
5. Profit and Promotional Objectives: - In most of the companies profit
maximization is the main objective to be attended by them. This requires
investigation and consultations be conducted. Surveys are also conducted
to work out the variables in support of the promotional activities.
Q. 2 explain the principles of a good Research / Scientific Research
with its importance & limitation.
Answer
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 Principle of Good Research :

1. Purpose should be clearly defined: - The problem or decision to
be made should include its, scope, limitations and the summary
(meaning) of all words/terms that are signification for the research.
2. Should be based on Ethics: - Ethics is defined as a system of
moral principals or rules of behavior. While going for study, proper care
should be taken while designing the research procedure, i.e., the issues
related to study. Safeguards against causing mental or physical harm to
participants should be considered. It should not hamper religious and
sensitive norms while conducting research and interacting with
respondents.
3. Research Design/Methodologies should be clear and well
planned:- The nature of data required, the expected behavior of the
respondents, the procedure of data collection, sample coverage,
methods of data collection, models to be implemented, etc., should be
explained clearly.
4. The Researcher should be a Skilled Export:-The person involved
in the research should be an export in the concerned field of study.
He/she should be clear about the procedure, objectives, methodologies
and techniques of research.
5. Unbiased Analysis of Results: - There should be no biased
decision after getting the results of study. No elements of sympathy,
kindness, relationship, etc., should be involved in the research process.
No political or management interference should be there in the process
of analysis of the study.
6. The Conclusions should be justified: - The Conclusions should be
Specific ones and to the point as per the purpose of study. The exact
finding should be represented without bias. The validity of the
conclusions should be specified.
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7. Scope for Further Research: - The research procedures used

should e described in sufficient details and there should be ample scope
for the other research for further researcher for further research, if
necessary.
Importance:1. It provides basis for government policies
2. It helps in solving various operational and planning problems of
business and industry
3. Research helps in problem solving
4. It Is useful to students, professionals, philosophers, literary men,
analysts and intellectuals.

Limitations of Research
1. Conclusions in research are based upon data collected. Therefore when
the data collected Are not valid or adequate, the conclusion will not be
conclusive or appropriate.
2. Activities in a society are influenced by various internal and external
factors
3. Small organizations cannot afford to have research on various issues
4. Many people in society depend on customs, traditions, routines and
practices for taking Decision; instead of going for research.
5. Research is usually based on sample studies. But in many cases
samples are not true representatives. Therefore the research reports
based on these samples may not be accurate.

Q.3 Explain the Various Types of Research .

Answer :
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It is imperative that a marketer has to have a broad understanding of the

various types of Research, in general. There are eleven types of research
depending on whether it is primarily Fundamental or applied in nature.
They are as follows:
1. Applied research, also known as decisional research, use existing
knowledge as an aid to the Solution of some given problem or set of
problems.
2. Fundamental research, frequently called basic or pure research, seeks
to extend the Boundaries of knowledge in a given area with no necessary
immediate application to existing Problems.
3. Futuristic research: Futures research is the systematic study of
possible future conditions. It Includes analysis of how those conditions might
change as a result of the implementation of Policies and actions, and the
consequences of these policies and actions.
4. Descriptive research includes surveys and fact-finding enquiries of
different kinds. It tries to Discover answers to the questions who, what,
when and sometimes how. Here the researcher Attempts to describe or
define a subject, often by creating a profile of a group of problems, People
or events. The major purpose of descriptive research is description of the
state of Affairs as it exists at present
5. Explanatory research: Explanatory research goes beyond description
and attempts to explain The reasons for the phenomenon that the
descriptive research only observed. The research Would use theories or at
least hypothesis to account for the forces that caused certain Phenomenon
to occur.
6. Predictive research: If we can provide a plausible explanation for an
event after it has Occurred, it is desirable to be able to predict when and in
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what situations the event will Occur. This research is just as rooted in theory
as explanation. This research calls for a high Order of inference making. In
business research, prediction is found in studies conducted to Evaluate
specific courses of action or to forecast current and future values.
7. Analytical research: The researcher has to use facts or information
already available, and Analyze these to make a critical evaluation of the
material.
8. Quantitative

research:

Quantitative research is based on the

measurement of quantity or Amount. It is applicable to phenomena that can

be expressed in terms of quantity.
9. Qualitative research: It is concerned with qualitative phenomenon (i.e.)
phenomena relating To or involving quality or kind. This type of research
aims at discovering the underlying Motives and desires, using in depth
interviews for the purpose. Other techniques of such Research are word
association test, sentence completion test, story completion tests and
Similar other projective techniques. Attitude or opinion research i.e.,
research designed to Find out how people feel or what they think about a
particular subject or institution is also Qualitative research.
10. Conceptual research: Conceptual research is that related to some
abstract idea(s) or theory. It is generally used by philosophers and thinkers
to develop new concepts or to reinterpret Existing ones.
11. Empirical research: It is appropriate when proof is sought that certain
variables affect other Variables in some way. Evidence gathered through
experiments or empirical studies is today Considered to be the most
powerful support possible for a give hypothesis.

Q.4 Explain the Process of Research.

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 Step of Research Process:

Planning of research means deciding the question to be studied, setting the
objectives of the Study and determining the means of achieving those
objectives. Planning research refers to Determining, in advance, various
steps to be followed in a research.
1. Identifying, Evaluating and Formulating the Research Problems-:
After creating interest in a research work, a researcher has to think about
formulating the Problem related to his research work. Choosing a correct
problem for study is the most Important step in the entire research process.
After selecting the problem, the researcher has to formulate the problem.
2. Extensive Literature Survey:- Before formulating the research it is
desirable that researcher examines all available Literature, both conceptual
and empirical. The conceptual literature is one which deals with Concepts
and theories. Empirical literature is that which contains studies made earlier
and so It consists of many facts and figures observed in the earlier studies.
3. Writing a Primary Synopsis:- After formulating the problems a brief
summary of it should be written down. A research Worker has to write a
synopsis of the topic selected for research work mentioning the Summary of
what is going to be done under his research.
4. Indentifying and Labeling Variables: - In any research the problem
under study deals with relation between variables. The Variables whose
change has affected the other variable, is called independent variable.
Therefore there is a cause and effect relation between the variables. The
research problem Must be formulated in such a manner that it highlights the
nature, extent and implications of Relation existing between the variables. It
is only through this process of establishing the Effective relation between
variables that meaningful conclusions are derived from the study.
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5. Setting Up Of Hypothesis: - Specification of working hypothesis is a

basic step in the research process. A hypothesis is a Tentative conclusion
logically drawn. The research work is conducted to test the truth of this
Hypothesis.
6. Preparing the Research Design:- A research design is a plan that
specifies the sources and types of information relevant to The research
problem. It is a strategy which approach will be used for gathering and
Analyzing the data. It includes the time and cost budgets since most studies
are done under These two constraints. A research design provides a rational
approach to research enabling One to decide in advance what to do, how to
do, in investigating the subjects.
7. Determining the Sample Design:- A sample design is a definite plan
determined before any data are actually collected for Obtaining a sample
from a given universe. Sample design refers to the technique or the
Procedure which the researcher would adopt in selecting some sampling
units from the Universe for drawing inferences about the universe. If the
proper procedure is followed to Select the sample, definitely the sample will
give all dependable information.
8. Collecting of Data: - There are several ways of collecting the
appropriate data. Some of the methods of collecting Primary data are (1)
Observation method. (2) Direct personal interview method. (3) Telephone
interview method. (4) Questionnaire method. (5) Schedule method. A choice
of One of these methods.
9. Execution of the Project: - The researcher has to see that the project
is executed in a systematic manner and in time. He Should make necessary
preparations for successful conduct of the project.

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10. Processing, Analysis and Interpretation of Data by Statistical

Methods: - The Processing of data consists of classification, tabulation and
coding. By classification and Tabulation the unwieldy data can be condense
into few manageable and purposeful groups And tables so that further
analysis becomes simple. Coding converts the data into symbols And small
figures so that the data can be dealt with in an easy manner. Editing
improves the Quality of the data since it is at this stage that data which is
irrelevant can be dropped. Analysis and interpretation of data results in
observation, analysis, conclusion, induction And deduction. For this various
statistical measures are computed.
11. Testing of Hypothesis: - Depending upon the nature of data and
conclusions to be Arrived one or two of these tests can be applied. Testing of
hypothesis will results in either Accepting or rejecting the hypothesis.
Testing of hypothesis may prove or disprove a theory And a theory
facilitates formulating of a further hypothesis. Testing of hypothesis will
result In contribution to existing theory or the generation of a new theory.
12. Preparation of the Report or Thesis:- A report is a detailed
description of what has been done and how it has been done with Respect
to a particular area or topic. The report should contain the preliminary
section, the Acknowledgement foreword and table of contents. The
important section of a report is its Main body. It carries introduction,
methodology, statements of findings, conclusions and Recommendations.
The end matter includes appendix, literature selected and bibliography. The
appendix includes letters, questions or other tools used. Bibliography is the
list of Books, journals. Reports, bulletins etc. used for reference.

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