Business Research Methods

Research for Business Decisions

 What is Research ?
 a systematic search for information

 collection and analysis of data to aid

decision making in business

 intellectual investigation

 scientific method of gathering information

Reducing the uncertainty element

Scientific method of minimizing

elements of uncertainty that result
from lack of information while
taking business decisions.

By doing so it reduces the danger of

making a wrong choice between
alternative courses of action.
 Scientific Method
Scientific vs nonscientific method:

objectivity, accuracy, rigor, continuity

empirical testability through observation,
experiments and experience

Traits of scientific method:

Validity & Reliability
Deductive & Inductive Reasoning
 Oliver Wendell Holmes [1809 – 1894]

There are one-story intellects, two-story intellects, and

three-story intellects with skylights.

All fact collectors with no aim beyond their facts are

one-story men.

Two-story men compare, reason and generalize, using labors

of the fact collectors as well as their own.

Three-story men idealize, imagine, and predict. Their best

illuminations come from above through the skylight.
 Visible Trends
 Research is becoming more insight-seeking
 more multi-disciplinary
 Extensively used in BPM & BPR & Equity
Research
 Predictive Analytics is rapidly growing
 Research process is integrating with
decision making in businesses
 The Research Process
1. Problem formulation

2. Research Design

3. Design of Data Collection Methods & Forms

4. Design of Sample & Collection of Data

5. Analysis, Interpretation & Reporting

 The Research Report
Contents
1. Executive Summary

2. Background

3. Objectives

4. Methodology

5. Findings

6. Conclusion
 Formulating the Problem
 Ascertain decision maker’s objectives
 Understand the background of the
problem
 Isolate and identify the problem rather
than its symptoms
 Determine the unit of analysis
 Determine the relevant variables
 State the research questions
[hypotheses] and research objectives
 Problem Formulation
 Business Decision Problem

 Research Problem

 Research Question

 List of Information Required

 Objective Setting: broad & specific

 Hypothesis formulation
Shopping List 1
 1 ½ lbs. hamburger
 2 loaves wonder bread
 Bunch of carrots
 1 can Rumford’s baking
powder
 Maxwell House coffee
(drip ground)
 2 can Del Monte peaches
 5 lbs. potatoes
Shopping List 2
 1 ½ lbs. hamburger
 2 loaves wonder bread
 Bunch of carrots
 1 can Rumford’s baking
powder
 Nescafe instant coffee
 2 can Del Monte peaches
 5 lbs. potatoes
 List 1 List 2
Maxwell House Nescafe
Findings

Lazy
4% 48%

Fails to plan household

purchases and schedules well 12% 48%

Thrifty 16% 4%

Not a good wife

0% 16%
 Sample Output

Ariel Concentrate - Chennai

35
30
Ad Cut-through
25 Branded Cut-through
20 Message Cut-through
15 Ad Spend
10 Share of Mind
Market Share
5
0
Week
 Share of Mind

Share of Mind

30

25

20 Ariel
Henko
15
Surf Ultra
10 Tide
5

0
Week
 Positioning Share
Driving Variable for Ariel

Positioning Share

35
30
25 Share of Mind
Stain Removal
20
Shining Clothes
15
High Tech
10 VFM
5
0
Week
 in a lighter vein…
A market researcher drafted by the Army was at the firing range.
At the range, he was given some instruction, a rifle, and 50 rounds
of ammo. He fired 10 shots at the target. The report came from
the target area that all attempts had completely missed the target.
He fired 10 more, with the same result.

The researcher looked at his weapon, and then at the target. He

looked at the weapon again, and then at the target again. He then
put his finger over the end of the rifle barrel and squeezed the
trigger with his other hand. The end of his finger was blown off,
whereupon he yelled toward the target area: "It's leaving here just
fine, the trouble must be at your end!"