Business Research

Chapter-1
An Introduction to Marketing Research

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 What is research-Meaning and Definition
Meaning:

• The word research is composed of two syllables, re and search. The dictionary defines the re meaning
again, a new or over again and the search 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.”

Definition:

• According to Robert Ross, “research is essentially an investigation, a recording and an analysis of

evidence for the purpose of gaining knowledge.”

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Features of Research
• It means the discovery of new knowledge.
• Is essentially an investigation.
• Is related with the solution of a problem.
• It is based on observation or experimental evidences.
• It demands accurate observation or experimentation.
• In research, the researchers try to find out answers for unsolved
questions.
• It should be carefully recorded and reported.

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 Need for Research (Importance of Research)
• To produce knowledge that can be applied outside a research setting.
• It solves particular existing problems of concern.
• It is important because we are able to learn more about things, people, and events.
• In doing research, we are able to make smart decisions.
• It allows consumers and producers to become more familiar with the products, goods, and services.
• It presents more information for investigation.
• It encourages interdisciplinary approaches to find solution to problems and to make new discoveries.
• It is a basic ingredient for development and therefore serves as a means for rapid economic development.
• It provides basis for government policies.
• It helps in solving various operational and planning problems of business and industry.
• It helps in problem solving.
• Is useful to students, professionals, philosophers, literary men, analysts and intellectuals.

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Qualities / Characteristics of a Good Research
• A good research must be systematic
• A good research must be logical
• A good research must be empirical
• A good research must be verifiable
• As far as possible common concepts must be used
• Procedure followed in research must be sufficiently described.

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Marketing research.
Marketing research focuses on understanding-
• the “Customer” (purchasers, consumers, influencers),
• the “Company” (product design, promotion, pricing, placement, service, sales),
and
• “Competitors” (and how their market offerings interact in the market
environment).
• Within this “Company-Customer-Competition” environment, many types of
marketing research can be conducted, much of which is focused on using surveys
for:
• Monitoring customers and markets.
• Measuring awareness, attitudes, and image.
• Tracking product usage behavior.
• Diagnosing immediate business problems.
• Supporting strategy development.

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 Functions of Marketing Research
• Exploratory function of marketing research occurs when researchers have a
limited understanding or no knowledge at all about a marketing situation or a
particular outcome.
• For example, a company may be losing customers or sales may be declining,
but managers are not sure why. Marketing research can be used to explore
some of the possible causes of lost sales or customers. Alternatively, a firm
may be considering offering a new product in a category with which it has
little experience.
• Descriptive function: which refers to the gathering and presentation of
information about a marketing phenomenon or situation.
• For example, marketing research can be used to describe the primary consumer
of a product, such as a Panasonic HDTV or a John Deere tractor. It can be used
to describe the process a customer uses in deciding on a restaurant for dinner,
such as Romano’s Macaroni Grill or Outback Steakhouse.
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• The diagnostic function it is a data analysis techniques are used to
investigate relationships and phenomena within data that have been
gathered through marketing research. The diagnostic function is important
to marketers because it allows marketers to discover interrelationships
with data.
• Example: The analysis may show that females eat at Olive Garden more
frequently than males.
• The predictive function of marketing research allows data to be used to
predict or forecast the results of a marketing decision or consumer action.
• Retailers use predictive research to determine what items a consumer is
likely to purchase together so suggestive selling can be used. Barnes &
Noble utilizes this technique when website customers select a
particular book and the software then suggests other books they might
also want to purchase.

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Sources of Data
• For the study purpose both primary and secondary data are used.
• The primary data collected from sales men of the companies,
customers and dealers dealing in the products of the company.
• The primary data are related to behavior and response of employees,
dealers and customers.
• The secondary data collected from records of the company, retailers
and dealers.
• The secondary data shows the sales of the company product wise.
• The primary and secondary data have been collected to cover every
aspect of the study.

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Primary Data
• Primary data are information collected by a researcher specifically for
a research assignment.
• Primary data are information that a company must gather because no
one has compiled and published the information in a forum
accessible to the public.
• Primary data are original in nature and directly related to the issue or
problem and current data.
• Primary data are the data which the researcher collects through
various methods like interviews, surveys, questionnaires etc.

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Advantages of primary data:
• The primary data are original and relevant to the topic of the research
study so the degree of accuracy is very high.
• Primary data is that it can be collected from a number of ways like
interviews, telephone surveys, focus groups etc.
• It can be also collected across the national borders through emails and
posts.
• It can include a large population and wide geographical coverage.
• It is current and it can better give a realistic view to the researcher about
the topic under consideration.
• Reliability of primary data is very high because these are collected by the
concerned and reliable party.

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Disadvantages of primary data:
• For collection of primary data where interview is to be conducted the
coverage is limited and for wider coverage a more number of
researchers are required.
• A lot of time and efforts are required for data collection
• It has design problems like how to design the surveys.
• The questions must be simple to understand and respond.
• Some respondents do not give timely responses.

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 Secondary Data
• Secondary data are the data collected by a party not related to the research study
but collected these data for some other purpose and at different time in the past.
• If the researcher uses these data then these become secondary data for the current
users.
• These may be available in written, typed or in electronic forms.
• A variety of secondary information sources is available to the researcher gathering
data on an industry, potential product applications and the market place.
• Secondary data is also used to gain initial insight into the research problem.
• Secondary data is classified in terms of its source – either internal or external.
• Internal, or in-house data, is secondary information acquired within the organization where
research is being carried out.
• External secondary data is obtained from outside sources. There are various advantages and
disadvantages of using secondary data.

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Advantages of Secondary Data:
• The primary advantage of secondary data is that it is cheaper and
faster to access.
• Secondly, it provides a way to access the work of the best scholars all
over the world.
• Thirdly, secondary data gives a frame of mind to the researcher that
in which direction he/she should go for the specific research.
• Fourthly secondary data save time, efforts and money and add to the
value of the research study.

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Disadvantages of Secondary data
• The data collected by the third party may not be a reliable party so
the reliability and accuracy of data go down.
• Data collected in one location may not be suitable for the other one
due variable environmental factor.
• With the passage of time the data becomes obsolete and very old.
• Secondary data collected can distort the results of the research.
• For using secondary data a special care is required to amend or
modify for use.
• Secondary data can also raise issues of authenticity and copyright.

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Types of Research
Fundamental (or Basic) and Applied Research
Fundamental research is a research concerning principles or laws or rules.
• It aims at the achievement of knowledge and truth.
• Research studies concentrating on some natural phenomenon or relating to pure mathematics
are examples of fundamental research.
• It aims at some theoretical conclusions.
• It may verify the old theory or establish a new one.
• It tries to explain the cause and effect relationship in social phenomena.
• It explains the phenomena as they are and not as they should be.
Applied research is concerned with the solution of particular problems.
• It aims at finding a solution for an immediate problem facing a society or an industrial
organization.
• It is empirical and practical.
• It is concerned with applied aspects of life.
• Research to identify social, economic or political trends that may affect a particular institution or
the marketing research are examples of applied research.
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Descriptive Research and Analytical Research
Descriptive research includes survey and fact finding enquiries of different kinds.
• It describes the state of affairs as it exists at present.
• The researcher has no control over the variables.
• He can only report what has happened or what is happening.
Analytical research one has to use facts or information already available and
analyze these to make a critical evaluation of the material.
Quantitative Research and Qualitative Research
Quantitative research is applicable to phenomena (occurrences) that are
measurable so that they can be expressed in terms of quantity.
Qualitative research is concerned with qualitative phenomenon (occurrences).
• Research designed to find out how people feel or what they think about a particular
subject is a qualitative research.
• Qualitative research is especially important in the behavioral sciences where the aim is to
discover underlying motives of human behavior.

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Conceptual Research and Empirical Research
Conceptual research is that related to some abstract ideas or theory. It
is generally used by philosophers and thinkers to develop new concepts
or to interpret existing ones.
Empirical research relies on experience or observation alone. It is data
based research
• Coming up with conclusions capable of being verified by observation or
experiment.
• It can be experiment research.
• In empirical research, the researcher has to first set up a hypothesis or guess
as to the probable results. He then works out to get enough facts to prove or
disprove his hypothesis.

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