Business Research Methods

1. Definition of Research: Research means searching again and again to

acquire knowledge.
a) Research is an art of scientific investigation for pertinent
information on a specific topic.
b) Research is an academic activity to solve problem.
c) Research pursuit of truth with the help of study, observation,
comparison and experiment.
d) Research is the systematic collection analysis and interpretation of
data to answer a certain question or solve a problem.

2. Objectives of Research: To get answer of research question.

3. Areas of Research:
Social Science: Why people migrating from this country to other
country?
Medical Science: Is there any side-effect of Paracitamol Tablet?
Business: Why national sectors of our country facing loss every year?

5. Characteristics of Research: Searching is research but all searching is

not research. Research is an academic activity but all academic activity is
not research.
a) It demands a clear statement of the problem. (It must have clear
research Que.)
b) It should be systematic and scientific.
c) It must contribute (some new ideas) to the existing stock of
knowledge. (Research has to show something new)
Research question is a question which has no answer discovered yet.

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6. Definition of Business Research: Business research is defined as the
systematic and objective process of gathering, recording and analyzing data
for aid in making decision in deferent areas of business viz., production,
finance and accounts, marketing and management etc.
Aspect of business research is mainly to make business decision.

4 major functional areas of business: a) Production; b) Finance &

Accounts; c) Management and d) Marketing.

7. Characteristics of Business Research:

a) It demands a clear statement of the problem. (It must have clear
research Que.)
b) It should be systematic and scientific.
c) It must contribute (some new ideas) to the existing stock of
knowledge. (Research has to show something new)
d) Business Research is mainly undertaking for making busines
decision.
e) It is to be conducted in the area of production, finance &
accounts, management, marketing etc.

8. Business Research topics in different areas of business:

a) Production Area: Productivity (input-output ratio) study/research
What is the level of productivity?
What can be done to improve production performance?
b) Finance & Accounts Area:
What is the profitability of the organization? (Profit over Sales, Capital,
Fixed Assets etc.)
c) Management Area:
Why the employee turnover rate is high in our organization?
d) Marketing Area:

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 Whether the advertisement is effective or not? (Customer remember
the Brand, Information)

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9. Managerial value of business research: The research is required or
important in each and every stages of decision making process.
Why business research is important / valuable to the management?
Manager can make right decision.
It is reduces uncertainty in decision making.
Decision making is a process of 4 different stages:
1. Understanding the issue of decision making.
2. Developing the alternatives.
3. Evaluating the alternatives. ( a. Qualitative factors and b.
Quantitative factors)
4. Choosing the best alternatives.
Decision making is a process of choosing the best alternatives.

10. Factors to be considered in business research: There are 4 factors

to be considered in business research.

Research
Nature of Cost vs.
Time YES Data YES
Decision
YES
Benefit
YES will be
started

NO NO NO NO

Research will not be undertaken

11. Types of business research:

a) From the viewpoint of objective
i. Pure Research: Research which is conducted either to develop
theory or verify the theory is called pure research. e.g. Abraham
Maslow’s Need Hierarchy Theory, EOQ, Linier Programming,
Darwin’s Theory of Evaluation on Mankind etc.
ii. Applied Research: If the research is undertaken to solve any
business problem is called applied research.

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b) From the viewpoint of function
i. Descriptive Research: The research which is undertaken to
describe the situation is called descriptive research.
What is the productivity of the factory?
What is the sales/financial performance? Etc.
ii. Exploratory Research: The research which is undertaken to
explore the underlying causes is called exploratory research.
What are the causes of poor productivity?
iii. Causal Research: The research which is undertaken to find out
the cause and effect relationship among the variables (which can
measure the quantity) and attributes (which can measure the
quality) is called causal research.
Which one is the most responsible cause of poor
productivity?
Which one is responsible to what extent?
Research Situation:
1. Situation of complete certainty. [ Descriptive Research
Conducted ]
 All data of research are available & easily
collectable.
2. Situation of Uncertainty. [ Causal Research Conducted ]
 Do not have any data. (Dark Situation)
 Do not know from where to collect the data.
3. Situation of Absolute Ambiguity [ Exploratory Research
Conducted ]
 Neither completely certain nor absolute
ambiguity.

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 c) From the viewpoint of data
i. Qualitative Research
ii. Quantitative Research
d) From the viewpoint of research place
i. Desk Research (e.g. Financial Performance)
ii. Field Research (e.g. Customer Survey)
e) From the viewpoint of nature
i. Research related to problem
 What are the causes of workers inefficiency?
ii. Research related to opportunity / Opportunity Exploration
 Is there any scope to start or open a branch of a
bank in rural area?
iii. Research related to evaluation
 What are your Sales / Productivity / Profitability
Performance?

13. Purpose of research to different personnel:

 Purpose of research of a University Teacher –
o To create knowledge
 Purpose of research of a Consultant –
o To help in decision making
 Purpose of research of a PhD. Researcher –
o Is to make research expert
o To be an expert
 Purpose of research of a Undergraduate Student –
o How to use of research findings.
o Is to give some fundamental knowledge.

14. Research Process: How to do research (Research Methodology)

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 Research is a sequence of performing 6 interrelated activities. This
sequence is called research process and the interrelated activities are known
as research stages.

a. Defining the problem: It is also called problem definition /

identification / formulation. Before research, researcher needs to
understand the research problem / question. If problem is well
defined, that means you have solved the half part of the research.
b. Designing the research: Making a detail plan of doing
research is designing.
c. Designing the sample: You have to decide your sample size or
unit. The sample unit may be a/an branch, enterprise, industry,
county, person/individual/customer etc.
d. Collecting the data: Data collection from sample unit.
(Industry, county, person/customer etc.)
e. Analyzing the data: Analyzing of data by using different
techniques likes Statistical Formula, Statistical Software etc.
f. Writing the research report: How to write a report.

12. Research Method and Research Methodology: Difference between

Research Method & Research Methodology
o Research Method: All available methods of doing research are
known as Research Methods. The term Research Method use in
general.
o Research Methodology: Chronological selection of suitable
method to complete one particular research is called Research
Methodology. The term Research Methodology used in micro sense.
All of research alternatives together are called Research Methodology.

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15. Decision alternatives in the research process: In each and every
stage of research you will find some alternatives.
a. Defining the problem / Problem Formulation: 4 alternatives of
formulating the problem:
i. Literature Review / Study e.g. Study by Articles, Books,
Newspaper, Internet etc.
ii. Case Study (Number of sample unit will be one) e.g. Discussion
with customers.
iii. Pilot Study (Number of sample unit will be more than one)
iv. Experience Survey e.g. Discussion with an expert to get idea.
Specific Research Objectives
b. Designing the research / Research Design:
i. Survey
ii. Observation e.g. In case of establishing a fuel station besides a
road. (Appoint Observer)
iii. Experiment e.g. It can be possible to marketing of toothpaste &
toothbrush in the same packet?
iv. Secondary Data Study Data collected from Office or other
sources.
In case of customer satisfaction research then Survey and
Observation techniques are used as a primary data (By asking
each and every customer/person/individual.
c. Designing the sample / Sample Design:
i. Random Sampling / Probability Sampling
ii. Convenient Sampling / purposive Sampling
10 students selected from out of 50 students randomly then
Random Sampling used, otherwise it will be used Convenient
Sampling.
d. Collecting the data / Data Collection:
i. Direct Interview e.g. Telephonic interview, Questionnaire etc.
ii. Indirect Interview

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 e. Analyzing the data / Data Analysis:
i. Statistical Analysis e.g. Statistical Formula-Trend Analysis,
Correlation, Regression etc.
ii. Econometrics Analysis – Combination of Economics with
Mathematics
f. Writing the research report / Report Writing:
i. Technical Reporting e.g. Confidential Report using different
technical terms.
ii. Popular Reporting e.g. Disclosing to all, elaborately written.

16. Problem Definition:

Definition: The indication of a specific business decision area that will be
clarified by answering some research questions.
Importance: To understand research, research objective
Stages of Problem Definition:
a. Ascertain the decision maker’s objective / desire:
- Decision maker’s objective.
- Managerial goals expressed in a measurable terms.
b. Understand the background of the problem:
- Use four alternatives of problem definition – Literature review, Case
study, Pilot Study, Experimental Study.
- The informal gathering of background information to familiarize
managers or researchers with the decision area.
- Follow Iceberg Principle – The principle indicates that the dangerous
part of many business problems is neither visible nor understood by
managers.
c. Isolating the problems from symptoms.
d. Determine the area of analysis – From whom to collect data, who will
be respondent.
e. Identifying the relevant variables / factors –

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 - Anything that assume different numerical values
- Variable & Attributes - Dependent & Independent variables
f. Finalizing the research objectives.
Nature of problem definition:
a. If it is related to problem then we have to formulate the problem
definition
b. If it is related to opportunity then we have to formulate to know
the objective and then formulate the opportunity.
c. First problem formulation then evaluation.

17. Research Proposal

Definition:
- Research proposal is a written statement of the research plan that
includes a statement explaining the objective of the study and a
detail systematic outline of research methodology.
- Research Proposal is a written statement that explain how the
different stages of research process other than first stage will be
completed.
- Research proposal is also knows as Work plan, Statement of intent,
research outline, draft plan.
- Research proposal is not required for all types. When one wants to
do research for own without having fund from sponsor, just to
publish any article / journal then research proposal is not required.
- Research proposal is required when decision maker invite proposal
from professional. It is also required when researcher want to have
fund from sponsor to complete the research.
- Normally a schedule of costs and deadlines is included in the
research proposal. Research has to think critically regarding all
stages of research process while writing research proposal.
Aspects of Research Proposal:

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 a. Objective of the Research –
- Research Objective is the purpose of the research, expressed in
measurable terms; the definition of what the research should
accomplish.
- One have to complete first step of research process, Problem
Formulation to find out the objective of the research.
- Research proposal is performed after completing the stage –
Problem Formulation and before starting the stage – Research
Design.
- Formal Research starts from the stage – Research Design.
- Researcher can start the research formally after completing
Problem Formulation and getting approval of research proposal (if
required)
b. Outline of research methodology
- Provide short details of the research methods that will be used in
five stages of research process.
Sponsor’s purpose of Research Proposal
a. To see whether the research will be able to cater research
design.
b. To see the sincerity of the researcher.
c. To compare the researcher with other competitors.
d. To understand the justification of providing fund.
Researcher’s purpose of Research Proposal
a. To communicate the research plan
b. To make a guide for future course of action.
c. To estimate cost.
d. To prepare a time schedule.
Techniques of preparing Research Proposal
There is no specific technique of writing research proposal.

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18. Research Design
Introduction:
Research Design is the second stage of research process. This stage is also
the initial stage of formal research process.
Research Design is a master plan specifying the methods and procedures for
collecting and analyzing the needed information.
Research Design is a framework or blue print that plans the action for the
research project.

Survey Method
Survey is a method of collecting primary data by asking questions to the
respondent.
Classification of Survey Method
a. From the viewpoint of Questionnaire:
- Questionnaire preparation is very important. After preparing the
questionnaire, it is tested by using some statistical tools and
techniques which is called valid test.
- Questionnaire can also be prepared with the combination of both
structured and unstructured questionnaire.
I. Survey through structured questionnaire:
- If the survey is conducted through structured questionnaire then it
is called survey through structured questionnaire.
- It is also called close ended questionnaire.
- If the questions in the questionnaire are given with multiple answers
to choose, then the questions are called structured questions.
II. Survey through unstructured questionnaire
- If the survey is conducted through unstructured questionnaire then
it is called survey through unstructured questionnaire.
- It is also called open ended questionnaire.

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 - If the questions in the questionnaire are given without multiple
answers to choose, then the questions are called unstructured
questions.
III. Survey through disguised questionnaire:
- If the survey is conducted through disguised questionnaire then it is
called survey through disguised questionnaire.
- If the questions in the questionnaire are indirect questions, then the
questions are called disguised questions.
IV. Survey through undisguised questionnaire:
- If the survey is conducted through undisguised questionnaire then it
is called survey through undisguised questionnaire.
- If the questions in the questionnaire are direct questions, then the
questions are called undisguised questions.
Examples - What is monthly salary? (direct question). What is your monthly
expenditure? (Indirect question).
b. From the viewpoint of Time Frame / Temporal classification of Survey
V. Cross sectional survey:
- The survey which is conducted at a single point of time among
different group of respondents to cross check the information is
called cross sectional survey.
- Example is Survey on performance of university. To conduct this
survey, researcher may need to include students, teachers,
employees, employers of universities to collect required data.
Another example is Job satisfaction. This survey will include
employee, employer.
VI. Longitudinal survey
- The survey which is conducted at two different points in time to
understand the change over time is called Longitudinal survey.
- Example is survey on newly launched product. A company
developed a product and want to see the demand level on

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 customers. For this purpose, the company conducted survey
immediately after launching the product. Then the company
conducted another survey in next month. These two survey will help
the company to know the demand of the product among customers.
VII. Panel Survey
- Panel survey is one kind of longitudinal survey but it is conducted
among the same panel of respondents.
- Example is survey on effectiveness of training module. The
researcher conducted the survey among trainees regarding the
effectiveness of training module before the training start. The
researcher conducted the survey again on same trainees after the
completion of training. These two survey will help the research to
understand the effectiveness of training module. Here respondents
are same in both surveys.
c. From the viewpoint of Communication
I. Human interactive survey
- If the researcher interacts with the respondent then it is called
Human Interactive Survey.
- Types are Direct Interaction, Telephonic / Indirect Interaction.
II. Non-interactive survey
- If the researcher does not interact with the respondent, then it is
called non-interactive survey.
- Types are Mail Survey (questionnaire will be sent to respondents
through mail), Survey through Print Media (Yes / No vote in
Newspapers), Survey through Electronic Media (Yes / No vote in
Television).

Observation Method

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Observation is one kind of survey based on collecting primary data. In this
method, data is not collected by asking questions to the respondents
directly. Rather data is collected by observation.
Contents of observation
Seven types of information can be collected by using observation method.
These seven types are known as seven consents of information.
a. Physical Action – Workers movement in the factory, Physical
movement of passengers in the airport and in the airline.
b. Verbal Behavior – Workers behavior with each other in
workplace, Conversation among employees in office, Medium of
teaching
c. Expressive Behavior – Facial expression of customers in a
restaurant before serving foods and after serving foods to
observe the customer satisfaction.
d. Location Information – Collect information regarding the location
of a factory considering distance between factory and office,
workers residence.
e. Temporal / Time pattern – How long the worker / officer taking to
complete a job.
f. Physical Objects – Infrastructural facilities of universities to
compare between private and public universities.
g. Pictorial records – Collect different documents to understand the
difference such as brochure of different universities, illustration
in books.
Types of observation
a. Visible Observation
- The situation in which the observer’s presence is known to the
subject is called visible observation.
- While entering in a shopping mall, observer may request the
customer to sign in the visitor during the time of entrance.
b. Hidden Observation

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 - The situation in which the observer’s presence is not known to the
subject is called Hidden Observation.
Disadvantage / Limitation of Observation Method
Many information can not be collected by using observation method.
Information related to cognitive phenomenon – satisfaction, Perception,
Expectation, Preference, Intention, Attitude.

Experimental Research
Definition
Experimental research is a research in which one variable is manipulated to
see the influence of this manipulation on the other variables.
For example, a product is marketed with a price. After one month, price is
decreased. Sales data will be collected for different prices. Then comparison
is made regarding sales with different price.
Steps in experimentation
a. Identification of dependent and independent variables.
b. Identification of extraneous variables.
c. Control over extraneous variables.
d. Manipulation of independent variables.
e. Measurement of dependent variables.
Extraneous variables
In addition to selected independent variable, a number of variables may
affect the dependent variable, thereby distorting the experiment, these are
called extraneous variables.
For example, Price is Independent variable, Demand is dependent variables.
Advertisement, Quality, Packaging can affect the dependent variables –
Demand. Thus Advertisement, Quality, Packaging are extraneous variables.

Secondary Data Study

Definition

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The data that have been previously collected fro some projects other than
the one at hand then this data is called secondary data. The survey that is
conducted through this secondary data is called secondary data survey.
Advantages
a. Cost can be minimized.
b. Time can be saved.
c. Research can be done easily by eliminating the task associated with
primary data collection.
Disadvantages
a. Time period may not be relevant.
b. Measurement unit may not be appropriate.
Data Conversion Technique
Data conversion is the process changing the original data to a format
suitable to achieve research objectives.

Sampling
Sampling is a technique to select sample from the population and decide the sample size.
Sampling is also used in our day to day lives.

Sampling

Probability Non –Probability

Sampling Sampling

Restricted Probability Unrestricted

Sampling Probability Sampling

Stratified Cluster Multistage Sequential

Sampling Sampling Sampling

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1) Probability Sampling: In probability sampling, samples are selected randomly from the
population and it is free from biasness. It is also known as Random Sampling. Probability
Sampling is of two types –

a) Restricted Sampling: In this sampling, restriction is applied while selecting

sample from population. The purpose of this sampling is to have representation of all
kind of samples from population. For example, selecting students from population who
are fluent in English. Restricted Sampling can be divided into following types –

i. Stratified Sampling: Under this sampling, the population is first divided into groups
and these groups are called strata. The purpose of this grouping is to achiever greater
degree of homogeneity within the group. The grouping is also known as stratification.
After stratification, samples will be selected randomly from each and every stratum.
For example, a population can be divided into following groups – fair complexion
male group, dark complexion male group, fair complexion female group, dark
complexion female group. After this stratification, samples can be selected randomly
from each and every stratum.

ii. Cluster Sampling: Like as stratified sampling, the population is to be divided into
some groups but the objective of the grouping is to get greater degree of
heterogeneity within the group. This grouping is called clustering. After clustering, a
few clusters will be selected randomly. This is called Cluster Sampling. In case of
cluster sampling, one cluster is considered as sample unit instead of one item sample
unit. For example –

Population is 3000,
Sample size is 300,
Cluster is 1000 (each cluster consists of 3 member of rich, poor & medium),
Selected cluster will be 100

Difference between Stratified Sampling & Cluster Sampling

a. In Stratified sampling, grouping is created to achieve greater degree of
homogeneity.
In Cluster sampling, grouping is created to achieve greater degree of
heterogeneity.
b. In Stratified sampling, sample is selected randomly from each and every stratum /
group.
In Cluster sampling, clusters are selected randomly instead of one item sample
unit.
c. Stratified sampling is convenient for large group of population.
Cluster sampling is convenient for relatively small group of population and has
control over population.

iii. Multistage Sampling: Under multistage sampling, the population is divided into
primary sample units. Out of primary sample units, a few will be selected randomly.
Selected primary sample units will be divided into secondary sample units. Out of

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 secondary sample units, a few will be selected randomly. Selected secondary sample
units will be divided into tertiary sample units. Out tertiary sample units, a few will
be selected randomly. In this way, samples will be selected stage by stage under
multistage sampling. It is used to narrow down the population.
For example: Socio economic condition of the students of Bangladesh.
Step 1 – Divide the students in 64 units, for 64 districts. Then select the sample units
randomly.
Step 2 – Then divide the sample units into some segments and select samples
randomly from the segments.
Step 3 – Then divide the sample units into some segments and select samples
randomly from the segments.
This process is going on as per requirement of the researcher.

iv. Sequential Sampling: Under this sampling, sample size is not determined in
advance. The sample is drawn repeatedly so as to make decision as to accept or
reject. It is used in quality control research of the product.
For example: Medicine production in a pharmaceutical company. After developing a
new medicine, the company goes for testing in following manner – sample unit is
selected from batch, then it is tested. If the test is not positive then another batch will
be produced and randomly selected sample units will be tested. This process is going
on until the production reaches the expected quality.

b) Unrestricted Sampling: In this sampling, no restriction is applied while selecting

sample from population. It is also known as Pure Probability Sampling.

2) Non Probability Sampling: In non probability sampling, samples are selected according
to researcher’s choice by applying own judgment. It is also known as Purposive Sampling,
Convenient Sampling.

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 Data Collection

Data collection:
1) Data Measurement
2) Scale
3) Scaling
4) Questionnaire design

 Data Measurement
Data measurement is a process of assigning number to the object. For example, a class consists
of 40 students. 40 are the number assigned which is data measurement.

Data measurement consists of two phenomenons –

1) Physical Object – The phenomenon which can be measured by using definite
yardstick is called Physical Object. For example, weight of box, area of a class
room.
2) Abstract Concept – The phenomenon which can’t be measured by using
definite yardstick is called Abstract Concept. For Example: behavior of
customer. It is also known as cognitive phenomenon.

 Scale
Scale is the technique of measuring abstract concept. Scale is a set of numbers which is used for
measurement. Scale is of four (04) types –

1) Nominal Scale: If the number of a scale is used to identify the object then the scale is called
Nominal Scale. Example, to identify players in a football team, a number is assigned to each
player.
2) Ordinal Scale: If the number of a scale is used to show the order, then it is called Ordinal
Scale. Example, Roll number assigned to students in a class to show the order of merit.
3) Interval Scale: If the numbers of a scale is used to show the order as well as interval, then it is
called Interval Scale. Example, Grading scale, CGPA of students, performance scale of
teachers by students.
4) Ratio Scale: If the numbers of a scale is used to understand the significant difference among
the object, then the scale is called Ratio Scale. Example, mark students with a number such as
1
/4, 2/4, 3/4.

 Scaling
Scaling is a technique of using scale. For example: measuring satisfaction on 100
people on the following scale –

Highly Satisfied Moderately Satisfied Poorly Satisfied Not Satisfied

(4) (3) (2) (1)
5 5 30 60

This table shows that 5 persons are highly satisfied, 5 persons are moderately satisfied, 30
persons are poorly satisfied and 60 persons are not satisfied.

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Therefore, total point is ((4*5) + (3*5) + (30*2) + (60*1)) =155 and average is (155/100) =1.55
This indicates that the peoples are Poorly Satisfied.

• Questionnaire Design

Qualities of good questionnaire are –

1. The language of the questions should be concise.

2. The language should be clear and straight forward.
3. Phrases and expressions which are understood by only few people and are not in common use
should be avoided.
4. If the questionnaire is been mailed then technical words should be avoided.
5. The questions should be so sequenced that the respondent should be kept motivated to
answer.
6. The amount of writing required on the questionnaire should be kept to the minimum.
7. It is always better to add a few questions that will serve as checks on the accuracy and
consistency of the answer.

 Data Analysis
There are 2 ways of data analysis
1) Statistical analysis
2) Economical analysis

Several methods of statistical analysis are

1) Average calculation
2) Dispersion calculation
3) Correlation calculation
4) Regression calculation
5) Time series analysis
6) Index series analysis

Average Calculation:
Average is a common statistical tool. After collecting data you have to average
data. In each and every research we commonly do average method.

Example: for calculating the average sales of a year we have to collect the sales of 12 months.
Then add the sales of 12 months and then divide it by 12.

FOR REST OF THE ALALYSIS SEE THE ATTACH PDF FILES.

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Time series analysis
The series which is related to time.

Year Production(in
thousand)
2001 20
2002 30
2003 20
2004 50
2005 40
2006 60
2007 70
2008 80

From a time series we can understand 4 types of movement

1) Long term movement or TREND
2) Seasonal movement
3) Cyclic movement
4) Irregular movement

To find out long term movement or trend there are 4 methods

1) Graphical methods
2) Semi-average methods
3) Moving average methods
4) Least square methods

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