RESEARCH METHODS

MODULE 1 NOTES

Unit 1:(10 hours)

Business Research – Meaning, types, process of research- management problem, defining the
research problem, formulating the research Hypothesis, developing the research proposals, research
design formulation, sampling design, planning and collecting the data for research, data analysis and
interpretation. Research Application in business decisions, Features of good research study.

DEFINITION OF RESEARCH:
“Research is the formal structured, systematic application of scientific method to the study of
problems’ (Gay, Mills & Airasian; 2009)

 Research is a structured systematic study which uses scientific method aimed at learning
new facts, testing ideas, and to solve managerial problem.
 It is the systematic collection, analysis and interpretation of data to generate new
knowledge and answer a certain question or solve a problem.
• A systematic Inquiry whose objective is to provide information to solve managerial problems.
• Research provides you with the knowledge and skills needed for the fast-paced decision-
making environment
• Research in common parlance refers to a search for knowledge. Once can also define research
as a scientific and systematic search for pertinent information on a specific topic. In fact,
research is an art of scientific investigation
• According to Clifford Woody research comprises defining and redefining problems,
formulating hypothesis or suggested solutions; collecting, organizing and evaluating data;
making deductions and reaching conclusions; and at last carefully testing the conclusions to
determine whether they fit the formulating hypothesis
• Research is an art of scientific investigation, it is also systematic design, collection, analysis
and reporting the findings and solution for marketing problem of a company

RESEARCH METHODS: All those methods/techniques that are used for conduction of research.
Research methods or techniques, thus, refer to the methods the researchers use in performing research
operations.
• Observations
• Recording data
• Processing data
RESEARCH METHODOLOGY:
It is a systematically way to solve the research problem. It may be understood as a science of studying
how research is done scientifically
Research Methodology: It Involves solving research problem systematically (Blue print)
• Gathering data
• Use of statistical techniques for analysis
• Interpretation
• Drawing Conclusion about the research data
OBJECTIVES OF RESEARCH:
 To know accurately characteristics of particular individual, group or situation
 To discover new facts e.g. Related to employee behaviour
 To verify the old facts. E.g: why people think negatively when they are sad
 To develop new concepts, theories E.G: Motivation theory by a student
 To identify research problem and provide solution E.G: Problem with quality of product
 To define policies and strategies E.G: Flexi time policy
 To know the association between variables E.G: BCOM students scores well in ACCOUNTS
 To assess the problem area in the organization E.G: Employees Performance
 It is a basis for Innovation E.G: New Product design

TYPES OF RESEARCH:
Research is a systematic search for information and new knowledge. It covers topics in every field of
science and perceptions of its scope and activities are unlimited.

RESEARCH APPROACHES:
Quantitative vs. Qualitative:
 Quantitative research is based on the measurement of quantity or amount. It is applicable to
phenomena that can be expressed in terms of quantity. E.G: Number of students who visit
college canteen every day.
 Qualitative research, on the other hand, is concerned with qualitative phenomenon, i.e.,
phenomena relating to or involving quality or kind. For instance, when we are interested in
investigating the reasons for human behaviour (i.e., why people think or do certain things), we
quite often talk of „Motivation Research‟, an important type of qualitative research. This type
of research aims at discovering the underlying motives and desires, using in depth interviews
for the purpose.
 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.
 Qualitative research is especially important in the behavioral sciences where the aim is to
discover the underlying motives of human behaviour. Through such research we can analyze
the various factors which motivate people to behave in a particular manner or which make
people like or dislike a particular thing.
E.G: why people behave differently in different situation.
Differences between Qualitative and Quantitative:
Qualitative Quantitative
To gain understanding of the concepts, To To Quantify data and generalize the
Aim/Purpose provide insight for the problem- individual results- precise measurement and
interpretation of events analysis
Usually a small number as data will be gathered Usually a large number of cases
Sample
through observation representing the population.
Structured techniques or methods such
Data Collection Unstructured or semi structured
as questionnaire
Non statistical – In the form of pictures, words, Statistical data is usually in the forms
Data analysis
or objects of tabulations
Findings are not conclusive as it relies on the Findings are Conclusive and
Outcome
opinions recommendation can be made.

TYPES OF RESEARCH:

1. Descriptive Research: Researcher wants to know something about a group of people, and then
descriptive research can be used. Descriptive research is to describe the characteristics of
population I. e targeted respondents. The major purpose of descriptive research is description
of the state of affairs as it exists at present.
 Describes the characteristics of the respondent in relation to a particular product. Deals
with demographic characteristics of the consumer.
 Used to find the association between two or more variables.
 Example: Degree of viewing TV Channels, its variation with age, income level, profession
of respondent as well as time of viewing.
 Ex-Post Facto Research: the research examines the relationship between the dependent
variable and independent variable but the researcher will not have control over the
Independent variable
 E.G: Purchase Decision depends upon the Income of Individual, Here Income is
independent variable but researcher will not have control on INCOME of
Respondents/Customers
2. Exploratory Research (Formulative Research): Exploratory research studies are also
termed as formulative research studies. The main purpose of such studies is that of
formulating a problem for more precise investigation or of developing the working hypotheses
 The major emphasis in such studies is on the discovery of ideas and insights
 Often relies on secondary research such as reviewing available literature and/or data, or
qualitative approaches such as informal discussions with consumers, employees,
management or competitors and more formal approaches through in-depth interviews,
focus groups, case studies or pilot studies.
 Carried out at the very beginning when the problem is not clear or is vague.
 In depth understanding of the topic.
 Example: Exploring the reasons for sales decline of a product in a company.
3. Applied Research: Applied research aims at finding a solution for an immediate problem
facing a society or an industrial/business organization
 Undertaken to find solutions for real-life problem requiring an action or policy decision.
 It may incidentally contribute to the development of theoretical knowledge.
 Research aimed at certain conclusions (say, a solution) facing a concrete social or business
problem is an example of applied research.
 Thus, the central aim of applied research is to discover a solution for some pressing
practical problem
 Applied research is used to solve a specific, practical problem of an individual or group.
The study and research is used in business, medicine and education in order to find
solutions that may cure diseases, solve scientific problems or develop technology.
 Example: To develop a new product which will solve the problem of common man?
4. Pure/Fundamental or Basic Research: fundamental research is mainly concerned with
generalizations and with the formulation of a theory. “Gathering knowledge for knowledge‟s
sake is termed „pure‟ or „basic‟ research.” Research concerning some natural phenomenon or
relating to pure mathematics are examples of fundamental research. Similarly, research studies,
concerning human behaviour carried on with a view to make generalizations about human
behaviour, are also examples of fundamental research
 Undertaken for the sake of knowledge
 Not directly involved with practical problems.
 Example : Theory of Relativity (by Einstein)
5. Conceptual Research: Conceptual research is that related to some abstract idea(s) or concepts.
It is generally used by philosophers and thinkers to develop new concepts or to reinterpret
existing ones. Conceptual research focuses on the concept or theory that explains or describes
the phenomenon being studied. E.G. What causes disease? How to prevent it?
6. Empirical research (Experimental Research): data collection is done through observation
and experimentation. On the other hand, empirical research relies on experiment or
observation alone. It is data-based research, coming up with conclusions which are capable of
being verified by observation or experiment. We can also call it as experimental type of
research. In such a research it is necessary to get at facts firsthand, at their source, and actively
to go about doing certain things to stimulate the production of desired information.
 Experimental research (Manipulate the variable) changes in one variable and then study its
effect on the variable E.G: Change the color of the product, assess the impact on sales.
7. Causal Research (Explanatory): Research attempt to reveal a cause and effect relationship
between two variables. E.G: Impact of training method on training effectiveness.
 Conducted to determine the cause and effect relationship between the two variables.
 Way of seeing how actions now will affect a business in the future.
 Example: A clothing company selling blue denim jeans, causal research can measure the
impact of the company changing the product design to the color white. The company
bosses will be able to decide whether changing the color would be profitable.
8. Historical Research: Inquiry into the past events, where researcher describes and interprets
those events. Historical research is that which utilizes historical sources like documents,
reports, etc. Historical research is a process of searching information using scientific method
and systematically examine an event which had occurred in past.
 Historical study is a study of past records and data in order to understand the future trends
and development of the organization or market. E.G: Sales Trend at Big Bazaar.
 There is no direct observation involved in this research, based on past data itself, research
will be carry out.
 Research has to depend on the conclusions or inferences drawn in the past.
 Main objective is to derive explanation and generalization from the past trends in order to
understand the present and anticipate the future.
 Example: Investors in the share market study the past records or prices of shares which
he/she intends to buy. Studying the share prices of a particular company enables the
investor to take decision whether to invest in the shares of a company.
9. Action Research: the researcher is a practitioner; hence action research is being undertaken by
a researcher to improve upon his own practices at workplace.
 Research is undertaken by direct action.
 Action Research is conducted to solve a problem.
 Example: Test marketing a product is an example of action research. Initially, the geographical
location is identified. A target sample is selected from among the population. Samples are
distributed to selected samples and feedback is obtained from the respondent.
 Example: School Teacher conducts research to find out the reasons for poor performance in the
test.
PROCESS OF RESEARCH:

1. Formulating the research problem: Formulating the Problem – Problem formulation is the key
to research process. For a researcher, the problem formulation means converting the management
problem to a research problem.

> Example: Management Problem: Want to increase the sale of product A. Research Problem:
What is the current standing of the product A?
 If the problem is not stated properly, the objectives will not be clear. If the objective is not
clearly defined, the data collection becomes meaningless.
2. Extensive literature survey: It involves a comprehensive review of published and unpublished
work for the secondary source of data. The researcher should undertake extensive literature survey
connected with the problem. For this purpose, the abstracting and indexing journals and published or
unpublished bibliographies are the first place to go to. Academic journals, conference proceedings,
government reports, books etc., must be tapped depending on the nature of the problem. In this
process, it should be remembered that one source will lead to another. The earlier studies, if any,
which are similar to the study in hand, should be carefully studied. A good library will be a great help
to the researcher at this stage.
> Identify the problem of the study
> Monitor the repetition of work
> Helps in avoiding mistakes
3. Development of working hypotheses: A prediction about the relationship between two or more
variables. After extensive literature survey, researcher should state in clear terms the working
hypothesis or hypotheses. Working hypothesis is tentative assumption made in order to draw out and
test its logical or empirical consequences. A hypothesis is a tentative assumption regarding the
solution to the problem under study. The kind of data to be collected, the tools of analysis are
influenced by the hypothesis. The hypothesis is a predictive statement which is made in the light of the
available facts relating to the problem under study.
How does one go about developing working hypotheses? The answer is by using the following
approach:
(a) Discussions with colleagues and experts about the problem, its origin and the objectives in seeking
a solution;
(b) Examination of data and records, if available, concerning the problem for possible trends,
peculiarities and other clues;
(c) Review of similar studies in the area or of the studies on similar problems; and
(d) To secure greater insight into the practical aspects of the problem.

4. Preparing the research design: The research problem having been formulated in clear cut terms,
the researcher will be required to prepare a research design, i.e., he will have to state the conceptual
structure within which research would be conducted.
> Types of research should be selected and sample unit should be determined.
Determining sample design: All the items under consideration in any field of inquiry constitute a
„universe‟ or „population‟.
 Samples can be either probability samples or non-probability samples.
 With probability samples each element has a known probability of being included in the
sample but the non-probability samples do not allow the researcher to determine this
probability.
 Probability samples are those based on simple random sampling, systematic sampling,
stratified sampling, cluster/area sampling. Whereas non-probability samples are those based on
convenience sampling, judgment sampling and quota sampling techniques.
Sampling Design – Include a decision on the sampling unit, the sample size and the sampling method.
 Sampling unit is the most elementary unit which would be a part of the study e.g. in a survey
on newspaper readership pattern, a single household comprising of all the members of the
household can be regarded as a sampling unit.
 The size of the sample depends on factors like the availability of time and funds to the
researcher, the ability of the researcher, the size of the population and the nature of the
population.
 Method of drawing a sample – Probability method of sampling involves giving every member
a known and unbiased chance of being a part of the sample. In non-probability method, an
element of bias is involved. The probability of a unit being a part of the sample is not known.

The sample design to be used must be decided by the researcher taking into consideration the nature of
the inquiry and other related factors.
5. Collecting the data:
 Data Collection – The search for answers to research questions is called data collection. The
sources of data may be classified as a) primary data b) secondary data.
1) Primary data can be collected either through experiment or through survey. If the researcher
conducts an experiment, he observes some quantitative measurements, or the data, with the help of
which he examines the truth contained in his hypothesis. But in the case of a survey, few data
collection techniques are Questionnaire, Interview, Survey and Observation.

2) Secondary data: The secondary data has been collected from different books and company files and
website. The secondary data has been collected by an individual from different sources.
- Text book
- Internet
- Magazines
The researcher should select one of these methods of collecting the data taking into consideration the
nature of investigation, objective and scope of the inquiry, financial resources, available time and the
desired degree of accuracy.

6. Analysis of data: After the data have been collected, the researcher turns to the task of analyzing
them. The analysis of data requires a number of closely related operations such as establishment of
categories, the application of these categories to raw data through coding, tabulation and then drawing
statistical inferences.
 Data Analysis –
Editing – The data collected should be scanned to make sure that it is complete and that all the
instructions are followed. This process is called editing.
Coding – Coding means assigning numbers to each of the answers, so that they can be tabulated and
analyzed easily.
Tabulation – The process of orderly arrangement of data in a tabular form.
Statistical Analysis – In the last stage, the tabulated data is analyzed using various statistical
techniques like averages, percentages, trend analysis, co-relation and regression techniques etc.
Hypothesis-testing: After analyzing the data as stated above, the researcher is in a position to test the
hypotheses, if any, he had formulated earlier. Do the facts support the hypotheses or they happen to be
contrary? This is the usual question which should be answered while testing hypotheses.
Various tests, such as Chi square test, t-test, F-test, have been developed by statisticians for the
purpose. The hypotheses may be tested through the use of one or more of such tests, depending upon
the nature and object of research inquiry. Hypothesis-testing will result in either accepting the
hypothesis or in rejecting it. If the researcher had no hypotheses to start with, generalizations
established on the basis of data may be stated as hypotheses to be tested by subsequent researches in
times to come.

7. Data Interpretation and Report: If a hypothesis is tested and upheld several times, it may be
possible for the researcher to arrive at generalization, i.e., to build a theory. As a matter of fact, the real
value of research lies in its ability to arrive at certain generalizations. If the researcher had no
hypothesis to start with, he might seek to explain his findings on the basis of some theory. It is known
as interpretation. The process of interpretation may quite often trigger off new questions which in turn
may lead to further researches.
Preparation of the report or the thesis: Finally, the researcher has to prepare the report of what has
been done by him. Writing of report must be done with great care keeping in view the following:
1. The layout of the report should be as follows: (i) the preliminary pages; (ii) the main text, and (iii)
the end matter.

Case Study – A STUDY ON CUSTOMER SATISFACTION IN A PUBLIC SECTOR BANK

A bank is interested in knowing the level of satisfaction of its customers. For this purpose it decided to
conduct a survey and designed a framework for conducting the same. It included the research
objectives and the methodology for carrying out the survey.
Problem – What is the current level of customer satisfaction in a public sector bank at branch XYZ?
Research objectives:
The study is being conducted to find out the satisfaction level of customers on the following counts:
I. The work efficiency of the bank
II. The customer care service in the bank
III. The value added services provided by the bank
Population:
All the customers of the public sector bank at branch XYZ
Sampling Design:
Sampling Unit: The existing customers of the bank (customer database)
Sample Size: 200 respondents
Sampling Technique: Systematic sampling technique i.e. probability sampling technique
Sources of data:
Secondary data on the meaning and methods of conducting customer satisfaction is studied through
books and earlier researches done on customer satisfaction. Information about the working of the
bank, the value added services being provided and customer care facilities and its customers is taken
from the bank records.
Primary data will be collected through questionnaires.

DEFINING THE RESEARCH PROBLEM:

A research problem, in general, refers to some difficulty which a researcher experiences in the context
of either a theoretical or practical situation and wants to obtain a solution for the same.

We can, thus, state the components of a research problem as under:

(i) There must be an individual or a group which has some difficulty or the problem.
(ii) There must be some objective(s) to be attained at. If one wants nothing, one cannot have a
problem.
(iii) There must be alternative means (or the courses of action) for obtaining the objective(s) one
wishes to attain. This means that there must be at least two means available to a researcher for if he
has no choice of means, he cannot have a problem.
(iv) There must remain some doubt in the mind of a researcher with regard to the selection of
alternatives. This means that research must answer the question concerning the relative efficiency of
the possible alternatives.
While formulating the problem, clearly define:
 Who is the focus?
 What is the subject matter of research?
 To which geographical territory/area the problem refers to?
 To which period does the study pertains to?
 Example: Why does the upper-middle class of Bangalore shop at Lifestyle during the Diwali
season?

PROCESS/TECHNIQUES INVOLVED IN DEFINING THE PROBLEM:

1. Statement of the problem in a general way: broad general way, the researchers mush have in
depth knowledge about the concept, researcher may undertake some sort of preliminary survey,
called as pilot survey, then problem can be defined
2. Understand the nature of the problem: understand its origin and nature clearly, best way to
understand is to discuss with experts and define the problem.
 Discussions with Decision Makers- The Decision Makers needs to understand the capabilities
and limitations of research. Research provides information relevant to management decisions,
but it cannot provide solutions because solutions require managerial judgment.
 Eg. McDonalds, when losing market share to Subway, discussed with decision makers to
introduce new menu varieties or reduce price to increase sales.
 Interviews with Industry Experts-Interviews with industry experts, individuals
knowledgeable about the firm and the industry, may help formulate the marketing research
problem. These experts may be found both inside and outside the firm.
3. Management Decision Problem (MDP)/Management Problem– The problem confronting
the decision maker. It asks what the decision maker needs to do.
Example: Decision problem: Sales reductions for a specific product group
4. Marketing Research Problem/Research Problem – A problem that entails determining what
information is needed and how it can be obtained in the most feasible way.
Example: Research problem: Introduction of a new product because sales are below the target
(Revise the target, withdraw the product?) Management needs to make a decision about
something (a problem) for example "Should we launch a new product?" "Would it be
profitable" and "bring in new customers".
Research Problem is the information that the market research needs to provide in order to solve
the problem.

Sl No Basis of Management Decision Research Problem

comparison problem
1 Nature Ask what decision makers Ask what information is needed and
need to do how can the information be obtained
2 Orientation Action Oriented Information Oriented
3 Focus Focuses on Symptoms Focuses on underlying causes
4 Common errors Problem definition is too broad Problem definition is too narrow
5 Example Advertisement Conduct an investigation to
determine suitable media for Ad
DEVELOPING THE RESEARCH PROPOSAL:
A written proposal is often required when a study is being suggested. This is especially true if an
outside research supplier will be contracted to conduct the research. The written proposal ensures that
the parties concur on the project‟s purpose, the proposed methods of investigation, the extent of
analysis, and the timing of each phase as well as of delivery of results. Budgets are spelled out, as are
other responsibilities and obligations. The proposal may serve the purpose of a legally binding
contract.
A research proposal also may be oral, wherein all aspects of the research are discussed but not codified
in writing. This is more likely when a manager directs his or her own research or the research activities
of subordinates.
 Research Proposal – A research proposal is a brief summary outlining the research objectives,
the proposed methodology of research, benefits of study along with a detailed bibliography.
The research proposal is like a road map to the researcher showing where he has to start and
where to go and how to get there.

STEPS INVOLVED IN PREPARING BUSINESS RESEARCH PLAN/PROPOSAL:

A Research proposal is an outline, a draft plan of the research work proposed by the researcher. A
research proposal is also termed as synopsis. It contains a statement of the problem, the proposed
methodology, the benefits of the research and the resources required to conduct the research. It also
informs the decision maker, the time taken to complete the investigation and also the cost to be
incurred.
Contents of Research Proposal
1. Purpose of proposed research:
a. Goals and objectives to be stated.
b. Scope of the study (what will be included and what will not be included).
c. Limitations if any due to time and money constraints, etc.
d. What questions will the investigation answer?
2. Type of study:
a. Is the study exploratory, descriptive or causal?
b. Explain how secondary data will be used?
c. Describe the method of gathering primary data.
3. Target population/group to be defined: From whom is the data collected.

4. Sample size – Sample size is to be determined. At research proposal stage, this will be approximate,
since the response rate and accuracy required cannot be predicted. If accuracy required is more, one
has to choose bigger sample size and vice versa. This would mean more cost and time.

5. Sample design – Is the sample probabilistic or non probabilistic? If probabilistic, what kind of
sample? Is it random sampling or systematic random sampling?

6. Data Collection – Will questionnaire be used? If yes, is it structured or unstructured. Is the study
descriptive or causal or exploratory?

Will the questionnaire be filled in presence of researcher or to be filled by respondent at their home
without the presence of interviewer? If the data collection is by mail questionnaire, what incentive is
being given in order to ensure response. Data collection may include qualitative phase and could
involve focus group, depth interview etc.

7. Research instrument – Questionnaire or any other tool used to collect data and suitable scales used
as tools to analyze the data.

8. Benefits: what benefits researcher will get, funding agents will get and organization will get.
Description / explanation of cost-benefit analysis. How the value of information is going to help the
decision makers.
9. Estimation of the cost of the project – Total cost of the project (proposed budget) and likely payoff.
Also how long will it take to complete the project.
9. Profile of the research firm – Background of the firm, overview and skill of the researcher such as
qualification, experience etc.
Presentation should include the methodology used by the research firm and all the above contents. It
should be designed in such way, to answer all the possible doubts of the clients about the research.
Researcher should also convince the client about the validity and reliability of the research to be
undertaken and its methodology.

SAMPLE – RESEARCH PROPOSAL:

A leading private sector bank has recently issued a platinum card to its card holders, who have
membership with the bank for more than 15 years and have sound credit history. In addition to the
facilities available on the existing credit card, platinum card provides additional facilities such as free
health check up, free membership to golf club, cash back of 20% of any purchase, 20% discount in any
5 star hotel and host of other facilities.
Now company wants to understand the customer behavior and usage pattern of this card. M/S XYZ is
appointed as a research agent to conduct the research. M/S XYZ submits the research proposal.
A study on customer usage pattern of platinum card
1. Purpose: It is proposed to collect information regarding attitude, behavior and other
demographic information of platinum card holders. Management of the bank has a host of
questions regarding the popularity of the card and usage pattern. Towards this management
wants answers to the following questions:
i. Is the card being used by the existing card holder to whom it has been issued?
ii. How do the card holders view the facilities provided under this card?
iii. How often the card holders use this card?
iv. For what privileges the card has been used?
v. What other benefits do the card holders expect from this card?
2. Type of study: The study to be done will be in two stages:
i. Exploratory
ii. Descriptive
It will be exploratory with respect to
a) Shortcomings of the card
b) Annual fee to be charged
c) Privileges provided under this card
It will be descriptive with respect to
a) Usage pattern
 b) Awareness of privileges
c) How often it is used
3. Target population: Current platinum card holders of the bank.
4. Sample size: To be chosen based on the level of accuracy required.
5. Sample design: Probability sampling will be adopted for the study. Respondents will be drawn from
among the platinum card holders, based on random sampling technique.
6. Data collection: A structured, non-disguised questionnaire to be administered by skilled field force.
A gift is proposed to encourage participation by the respondent.
7. Research instrument/techniques: Scales will be used to measure attitude and behavioral
components of respondents. Suitable statistical techniques to be used to analyze the data.
8. Benefits:
i. Profile of platinum card holders will be known.
ii. Knowing the profile, customers can be segmented and appropriate promotion strategy can be
developed for each segment.
iii. Usage pattern can be tracked.
iv. Any new privileges to be introduced will be known.
9. Cost estimation of the project:

10. Profile of the research firm: Research will be conducted by M/S XYZ. The company is located in
Mumbai. The company has experience in conducting MR studies for many multinational and
public sector enterprises. Mr. X the chief of marketing research coordinator is an engineer from IIT
with PG from IIM-C. He has over 20 years of experience and has conducted several studies in
various sectors like retailing, banking, insurance, consumer goods.

RESEARCH APPLICATION IN BUSINESS DECISION:

 Businesses conduct research for many reasons, such as gathering crucial information about
consumers and business customers.
 The key function of management is take decisions and without help of the research and
analysis of present situation and future forecasting, decisions may not be effective. So research
helps to take right decisions.
 Based on research, management can make intelligent and well informed decisions.
 Businesses use research to ascertain the success of their advertising. For instance, a dairy
manufacturer may want to find out what percentage of the people saw its latest TV
commercial.
 A business can make well-informed decisions due to research. In the research process, the
business will be able to acquire details about key business areas, analyze it, create a
 strategy and distribute business information. Reports, presented to the top management,
often contain details on consumer and employee preferences and all the available channels for
sales, marketing, finance and production. Management makes use of these details to determine
the best strategy.
 Regarding the staff, a correctly carried out research can uncover important details on their
satisfaction quotient, the difficulties experienced by them and how the problems related to
relationships at the workplace could be handled. An analysis into the results would allow the
management to bring about changes for the all round effective functioning of the organization
and its employees.
 The workers can be trained and coached in line with the needs. This would help personal as
well as professional development improving overall organizational performance.
 Research is important for managerial decision making. All strategic business areas are
analyzed and evaluated; then techniques for more efficient procedures are created. Through
proper research, the organization will be able to pick the most effective, productive and
profitable one.
 Research could possibly be applied to marketing, production, finance, IT and Human
resources.
 Research can answer questions for various problems, from getting a grip on industry trends,
identifying new products to produce and deliver to the market, or deciding on which site to
locate an outlet, to better understanding what it needs to fulfill customer demands. Research
can also help evaluate if a product is accepted in the market. Research aids expansion into new
markets.
 Research helps in testing the potential success of new products. Businesses have to
understand what kinds of products consumers would like before they market them.
 New Knowledge: The fascination and desire for new knowledge, new facts for business
cycles, environment analysis and technological up gradation are the primary reasons of
research.
 Research assists the company to find the right supplier at the right price and at the right time.
An appropriate supplier choice makes it possible for the company to obtain or acquire top
quality raw materials which result into production of good quality items which are consumed
by the end user.
CRITERIA OF GOOD RESEARCH:
1. Good research is systematic: It means that research is structured with specified steps to be
taken in a specified sequence in accordance with the well defined set of rules. Systematic
characteristic of the research does not rule out creative thinking but it certainly does reject the
use of guessing and intuition in arriving at conclusions.
2. Good research is logical: This implies that research is guided by the rules of logical reasoning
and the logical process of induction and deduction are of great value in carrying out research.
Induction is the process of reasoning from a part to the whole whereas deduction is the process
of reasoning from some premise to a conclusion which follows from that very premise. In fact,
logical reasoning makes research more meaningful in the context of decision making.
3. Good research is empirical: It implies that research is related basically to one or more aspects
of a real situation and deals with concrete data that provides a basis for external validity to
research results.
4. Good research is replicable: This characteristic allows research results to be verified by
replicating the study and thereby building a sound basis for decisions.
Other Criteria are:
5. Purpose clearly defined – The purpose of the business research-the problem involved or the
decision to be made-should be clearly defined and sharply delineated in terms as unambiguous
as possible. The statement of the decision problem should include its scope, its limitations, and
the precise meanings of all words and terms significant to the research.
6. Research process detailed – The research procedures used should be described in sufficient
detail to permit another researcher to repeat the research. Except when secrecy is imposed,
research reports should reveal the sources of data and the means by which they were obtained.
7. Research design thoroughly planned – The procedural design of the research should be
carefully planned to yield results that are as objective as possible. A survey of opinions or
recollections ought not to be used when more reliable evidence is available from documentary
sources or by direct observation.
8. High ethical standards applied – Ethical issues in research reflect important moral concerns
about the practice of responsible behavior in society. A research design that includes
safeguards against causing mental or physical harm to participants and makes data integrity a
first priority should be highly valued.
9. Limitations frankly revealed – The researcher should report, with complete frankness, flaws
in procedural design and estimate their effect on the findings.
10. Analysis adequate for decision maker’s needs- Analysis of the data should be extensive
enough to reveal its significance, what managers call “insights”. The methods of analysis used
should be appropriate.
11. Findings presented unambiguously – Language that is restrained, clear, and precise;
assertions that are carefully drawn and hedged with appropriate reservations; and an apparent
effort to achieve maximum objectivity tend to leave a favorable impression of the researcher
with the decision maker.
12. Conclusions justified – Conclusions should be limited to those for which the data provide an
adequate basis. Good researchers always specify the conditions under which their conclusions
seem to be valid.