UNIT – 1

Introduction
Research is an activity that leads us to finding new facts, information, assisting us in verifying the available
knowledge and in making us question things that are difficult to understand as per existing data. To be
successful manager it is important for you to know how to go about making the right decisions by being
knowledgeable about the various steps involved in finding solutions to problematic issues. It may be understood
in following terms also:

• Research is a continuous activity in majority of disciplines and professions.

• It is helpful in critical assessment of the way we work, execute policies, and give instructions in our
professions.
• It is systematic observation of processes to find better ways to do things and to reduce the effort being
put in to achieve an objective and identifying the validity of the targets.
• In fact research is a subconscious activity that we are involved in at all times whether it is the purchase
of daily use articles, a car, an electronic good or planning a holiday.
Usually, Research consists of:

• Asking a question that nobody has asked before;

• Doing the necessary work to find the answer; and
• Communicating the knowledge you have acquired to a larger audience.
Meaning and Definition of Research
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.

The Advanced Learner’s Dictionary of Current English lays down the meaning of research as “a careful
investigation or inquiry specially through search for new facts in any branch of knowledge.”

Redman and Mory define research as a “systematized effort to gain new knowledge.”

In Management Research is defined as an unbiased, structured and sequential method of enquiry, directed
towards a clear implicit or explicit business objective. This enquiry might lead to validating the existing
postulates or arriving at new theories and models.

In order to plan and carry out research, it is necessary to know what we mean by research-in general, as well as
in the specialized fields of business management.
“Research is an Organized and Systematic way of Finding answers to Questions.”
Systematic because there is a definite set of procedures and steps which you will follow. There are certain things
in the research process that are always done in order to get the most accurate results.
Organized in that there is a structure or method in going about doing research. It is a planned procedure, not a
spontaneous one. It is focused and limited to a specific scope.
Finding answers is the end of all research. Whether it is the answer to a hypothesis or even a simple question,
research is successful when we find answers. Sometimes the answer is no, but it is still an answer.
Questions are central to research. If there is no question, then the answer is of no use. Research is focused on
relevant, useful, and important questions. Without a question, research has no focus, drive, or purpose.
The word research is derived from the Latin word meaning to know. It is a systematic and a replicable process,
which identifies and defines problems, within specified boundaries. It employs well-designed method to collect
the data and analyses the results. It disseminates the findings to contribute to generalizeable knowledge.
Definitions: Various social and behavioural scientists have defined the word research in different ways. Some
of the most popular definitions are:
1. “Endeavour to discover facts by scientific study, course of critical investigation”, by Pocket Oxford
Dictionary.
2. “Systematic investigation to establish facts or collect information on the subject”, by Collins Concise
Dictionary.
3. “Research is systematized effort to gain new knowledge”, by Redman and Mory.
4. “Research is the manipulation of things, concepts or symbols for the purpose of generalizing to extend,
correct or verify knowledge, whether that knowledge aids in construction of theory or in the practice of
an art”, by Encyclopedia of Social Sciences.
Meaning of Business Research
Business research may be defined as research activities carried out relating to the different functionaries in the
business and corporate world. Business research is a process of acquiring detailed information of all the areas
of business and using such information in maximizing the sales and profit of the business. Such a study helps
companies determine which product/service is most profitable or in demand. The definition of business
research involves acquiring information and knowledge for professional or commercial purposes such as
determining opportunities and goals for a business. An example of business research is gathering sales
information and writing a detailed report on marketing and sales.
Business research is a systematic inquiry that provides information to guide managerial decisions. In other
words, it is a process of planning, acquiring, analyzing, and disseminating relevant data, information, and
insights to decision makers in ways that mobilize the organization to take appropriate actions that, in turn,
maximize performance.
Characteristics of Research
Well-organized research must possess certain characteristics and features, which are as follows:
1. Solution-Oriented: The problem of research must be clearly defined and stated. The motive of research
must be mentioned in the beginning of the research work. The research should provide a solution of a
business problem.
2. Logical: In research we find out facts about a phenomenon and draw conclusions about it. The inferences
and generalizations thus made must be logical. For example, all illiterate people in the village live longer
than the educated people in the cities leading to the conclusion that illiteracy is the cause of longevity.
This is an example of an illogical research conclusion.
3. Objective: Observing true picture of a phenomenon without being affected by observers own opinion is
termed as ‘objective’. Objectivity means knowing reality. The criterion of objectivity is that all
researchers should arrive at the same conclusion about the phenomenon on which they are pursuing
research.
4. Impartiality: A dishonest researcher may select data items of individuals to conclude his favour. This
brings bias into the research, which affects the objective of the study. Therefore, true research must be
impartial and unbiased.
 5. Accuracy: A research worker needs to gain some expertise in the study he is undertaking. This expertise
results in achieving the accuracy in the solution drawn. The accuracy of conclusions is a sensitive issue
as it may affect the whole decision-making.
6. Systematic: In a research, there should be well-defined steps. Each step should be sequentially linked
with another, so that, the whole research work is an organized structure.
7. Verifiability: the results of a research are subjective to verifications. For building a sound basis for
decision making one verifies the research results by replicating the study. 8. Empirical: A research is an
empirical process and involves data collection. The results are based on observed experience or
empirical evidence. Research rejects assumptions and dogma as methods of established knowledge. It
accepts only what is verified by empirical observations.
Objectives of Research
The purpose of research is to discover answers to questions through the application of scientific procedures.
The main aim of research is to find out the truth which is hidden and which has not been discovered as yet.
Though each research study has its own specific purpose, we may think of research objectives as falling into a
number of following broad groupings:
1. To gain familiarity with a phenomenon or to achieve new insights into it
2. To portray accurately the characteristics of a particular individual, situation or a group
3. To determine the frequency with which something occurs or with which it is associated with something
else
4. To test a hypothesis of a causal relationship between variables

Classification of Research

(A) Classification on the Basis of Purpose

1. Basic Research: It is driven by a scientist's curiosity or interest in a scientific question. The main
motivation is to expand man's knowledge, not to create or invent something. There is no obvious
commercial value to the discoveries that result from basic research. Many researchers believe that basic
research lays the foundation for the applied research that follows.

➢ It is also known as pure or fundamental research.

➢ This research is mainly conducted to increase the knowledge base. It is driven purely by interest and a
desire to expand our knowledge.
➢ This type of research tends not to be directly applicable to the real world in a direct way but enhances
our understanding of the world around us.
➢ Pure research can be exploratory, descriptive or explanatory.
➢ Basic research generates new ideas, principles and theories in different fields.
➢ Basic research concentrates on fundamental principles and testing theories.
➢ It is sometimes implicitly said that basic research doesn’t have practical applications. For example,
someone conducting basic research on cheating behavior may design a study examining whether
students from illiterate families cheat more often than students from literate families.
➢ Notice that the research is not done to reduce cheating or help people who cheat or any other “applied”
aspect, but to increase the understanding of cheating behavior.

Examples of Basic Research

◼ Is executive success correlated with a high need for achievement?

◼ Are members of highly cohesive work groups more satisfied than members of less cohesive work
groups?
◼ Do consumers experience cognitive dissonance in low-involvement situations?
 2. Applied Research: It refers to scientific study and research that seeks to solve practical problems.
Applied research is used to find solutions to everyday problems, cure illness, and develop innovative
technologies, rather than to acquire knowledge for knowledge's sake.

Applied research focuses on answering one specific question for a client or sponsor. It's a type of
research method for applying natural sciences to real life to improve the human condition.

➢ Applied research is mainly related with solving practical problems rather than focusing on knowledge
expansion.
➢ It is mainly used to find solutions to problems which occur on a daily basis and develop new innovative
technologies.
➢ The main aim of applied research is to provide better technologies for humans to enhance their standard
of living.
➢ Example: Investigating which treatment approach is the most effective for treating cancer patients while
researching which strategies work best to motivate workers.

Examples of Applied Research

◼ Should McDonalds add Italian pasta dinners to its menu?

◼ Business research told McDonald’s it should not.
◼ Should Procter & Gamble add a high-priced home tooth bleaching kit to its product line?
◼ Research showed Crest White strips would sell well at a retail price of $44.

There are three types of applied research:

i) Evaluation research. This type of research focuses on analysing existing information about the
phenomenon to generate objective research outcomes. A study into the ways of reducing supply-chain
costs can be mentioned as an example for evaluation research.
ii) Research and Development. It is a type of applied research that focuses on the development of new
products and services to satisfy the needs and wants of the target customer segment. This type of
applied research is the least relevant to a business dissertation.
iii) Action research. This type of study aims to tackle specific business problems. For example, research into
the ways of restoring Starbucks brand image in the UK after the tax scandal can be classified as action
research.

Key Differences between Basic and Applied Research

a) Basic Research can be explained as research that tries to expand the already existing scientific
knowledge base. On the contrary, applied research is used to mean the scientific study that is helpful in
solving real-life problems.
b) While basic research is purely theoretical, applied research has a practical approach.
c) The applicability of basic research is greater than the applied research, in the sense that the former is
universally applicable whereas the latter can be applied only to the specific problem, for which it was
carried out.
d) The primary concern of basic research is to develop scientific knowledge and predictions. On the other
hand, applied research stresses the development of technology and technique with the help of basic
science.
e) The fundamental goal of the basic research is to add some knowledge to the already existing one.
Conversely, applied research is directed towards finding a solution to the problem under consideration.

(B) Classification on the Basis of Objectives

1. Exploratory Research: Exploration has been the human kind‘s passion since the time immemorial.
Looking out for new things, new destinations, new food, and new cultures has been the basis of most
tourist and travel journeys. In the subjective terms, exploratory research is conducted to find a solution
for a problem that has not been studied more clearly, intended to establish priorities, develop
operational definitions and improve the final research design. Exploratory research helps determine the
best research design, data-collection method and selection of subjects. For such research, a researcher
starts with a general idea and uses this research as a medium to identify issues that can be the hub for
future research. An important aspect here is that the researcher should be willing to change his/her
direction subject to the revelation of new data or insight. Such research is usually carried out when the
problem is at a beginning stage. It is often referred to as the grounded theory approach or interpretive
research as it is used to answer questions like what, why and how.

Exploratory research could be used for any of the following purposes:

➢ Formulate a problem or define a problem more precisely.

➢ Identify alternative courses of action.
➢ Develop hypotheses.
➢ Isolate key variables and relationships for further examination.
➢ Gain insights for developing an approach to the problem.
➢ Establish priorities for further research.

Example: a fast food outlet owner feels that increasing the variety of snacks will enable increase in sales,
however he is not sure and needs more information. Thus the owner starts studying local competition,
talks to the existing customers, friends etc to find out what are their views about the current menu and
what else do they wish to be included in the menu and also assess whether he would be able to generate
higher revenues.

2. Descriptive Research: This attempts to explain a situation, problem, phenomenon, service or

programme, or provides information viz. living condition of a community, or describes attitudes towards
an issue but this is done systematically. It is used to answer questions of who, what, when, where, and
how associated with a particular research question or problem. This type of research makes an attempt
to collect any information that can be expressed in quantifiable terms that can be used to statistically
analyze a target audience or a particular subject. Descriptive research is used to observe and describe a
research subject or problem without influencing or manipulating the variables in any way. Thus, such
studies are usually correlation or observational. This type of research is conclusive in nature, rather than
inquisitive. E.g. explaining details of budget allocation changes to departmental heads in a meeting to
assure clarity and understanding for reasons to bring in a change.

Descriptive research is conducted for the following reasons:

➢ To describe the characteristics of relevant groups, such as consumers, salespeople,

organizations, or market areas. For example, we could develop a profile of the “heavy users”
(frequent shoppers) of prestigious department stores like Saks Fifth Avenue and Neiman Marcus.
➢ To estimate the percentage of units in a specified population exhibiting a certain behavior. For
example, we might be interested in estimating the percentage of heavy users of prestigious
department stores who also patronize discount department stores.
➢ To determine the perceptions of product characteristics. For example, how do households
perceive the various department stores in terms of salient factors of the choice criteria?
➢ To determine the degree to which marketing variables are associated. For example, to what
extent is shopping at department stores related to eating out?
➢ To make specific predictions. For example, what will be the retail sales of Neiman Marcus
(specific store) for fashion clothing (specific product category) in the Dallas area (specific region)?
Advantages:
• The people individual studied are unaware so they act naturally or as they usually do in everyday
situation;
• It is less expensive and time consuming than quantitative experiments;
• Collects a large amount of notes for detailed studying;
• As it is used to describe and not make any conclusions it is to start the research with it;

Disadvantages
• Descriptive research requires more skills.
• Does not identify cause behind a phenomenon
• Response rate is low in this research.
• Results of this research can change over the period of time.

3. Causal Research
Causal research is used to obtain evidence of cause-and-effect (causal) relationships. These studies
establish the why and the how of a phenomenon. Causal research explores the effect of one thing on
another and more specifically, the effect of one variable on another. They are highly structured and
require a rigid sequential approach to sampling, data collection and data analysis. The design of the
study takes on a critical significance here. To establish a reliable and testable relationship between two
or more constructs or variables, the other influencing variables must be controlled so that their impact
on the effect can be eliminated or minimized. For example, to study the impact of flexible work policies
on turnover intentions, the other intervening variables, of age, marital status, organizational
commitment and job autonomy would need to be controlled.

Causal research is appropriate for the following purposes:

➢ To understand which variables are the cause (independent variables) and which variables are the
effect (dependent variables) of a phenomenon
➢ To determine the nature of the relationship between the causal variables and the effect to be
predicted

Examples of Causal Research

➢ To assess the impacts of foreign direct investment on the levels of economic growth in Taiwan
➢ To analyse the effects of re-branding initiatives on the levels of customer loyalty
➢ To identify the nature of the impact of work process re-engineering on the levels of employee
motivation

Advantages of Causal Research

➢ Causal studies may play an instrumental role in terms of identifying reasons behind a wide range of
processes, as well as, assessing the impacts of changes on existing norms, processes etc.
➢ Causal studies usually offer the advantages of replication if the necessity arises
➢ This type of study is associated with greater levels of internal validity due to the systematic selection
of subjects
 Disadvantages of Causal Research
➢ Coincidences in events may be perceived as cause-and-effect relationships. For example,
Punxatawney Phil was able to forecast the duration of winter for five consecutive years,
nevertheless, it is just a rodent without intellect and forecasting powers, i.e. it was a coincidence.
➢ It can be difficult to reach appropriate conclusions based on causal research findings. This is due to
the impact of a wide range of factors and variables in the social environment. In other words, while
casualty can be inferred, it cannot be proved with a high level of certainty.
➢ It certain cases, while correlation between two variables can be effectively established; identifying
which variable is a cause and which one is the impact can be a difficult task to accomplish.

(C) Classification on the Basis of Objectives

Qualitative Research: Qualitative research involves collecting and analyzing non-numerical data (e.g.,
text, video, or audio) to understand concepts, opinions, or experiences. It can be used to gather in-depth
insights into a problem or generate new ideas for research.

Qualitative research is the opposite of quantitative research, which involves collecting and analyzing
numerical data for statistical analysis.

Qualitative research is commonly used in the humanities and social sciences, in subjects such as
anthropology, sociology, education, health sciences, history, etc.

Qualitative researchers aim to gather an in-depth understanding of human behaviour and the reasons
that govern such behaviour. The qualitative method investigates the why and how of decision-making,
not just what, where, and when.

Advantages
• It enables more complex aspects of a person's experience to be studied
• Fewer restrictions or assumptions are placed on the data to be collected.
• Not everything can be quantified, or quantified easily, Individuals can be studied in more depth
• Good for exploratory research and hypothesis generation
• The participants are able to provide data in their own words and in their own way

Disadvantages
• It is more difficult to determine the validity and reliability of linguistic data
• There is more subjectivity involved in analysing the data.
• “Data overload” – open-ended questions can sometimes create lots of data, which can take along
time to analyse!
• Time consuming

Quantitative Research: It refers to the systematic empirical investigation of any phenomena via statistical,
mathematical or computational techniques. The objective of quantitative research is to develop and
employ mathematical models, theories and/or hypotheses pertaining to phenomena

Quantitative research is generally made using scientific methods, which can include:
• The generation of models, theories and hypotheses
• The development of instruments and methods for measurement
• Experimental control and manipulation of variables
• Collection of empirical data
• Modelling and analysis of data
• Evaluation of results
Advantages
• Quantitative research allows the researcher to measure and analyse data.
• The researcher is more objective about the findings of the research.
• Quantitative research can be used to test hypotheses in experiments because of its ability to measure
data using statistics.
Disadvantages
• The main disadvantage of quantitative research is the context of the study or experiment is ignored.
• Quantitative research does not study things in a natural setting or discuss the meaning things have for
different people.
• A large sample of the population must be studied for more accurate results

Application of Research in Various Functions of Management:

Most work in business organizations, in whatever sector or ownership will require research activities. The
objective of the research is to provide information to solve managerial problems.

Fields Where Business Research is Often Used:

General Business Conditions Management and Organizational Behaviour:

• Short- & Long-Range Forecasting, • Total Quality Management

• Business and Industry Trends • Morale and Job Satisfaction
• Global Environments • Leadership Style
• Inflation and Pricing • Employee Productivity
• Plant and Warehouse Location • Organizational Effectiveness
• Acquisitions • Structural issues
• Absenteeism and turnover
• Organizational Climate

Financial and Accounting Sales and Marketing

➢ Forecasts of financial interest rate trends, • Market Potentials

➢ Stock, bond and commodity value predictions • Market Share
➢ Capital formation alternatives • Market segmentation
➢ Mergers and acquisitions • Market characteristics
➢ Risk-return trade-offs • Sales Analysis
➢ Portfolio analysis • Establishment of sales quotas
➢ Impact of taxes • Distribution channels
➢ Research on financial institutions • New product concepts
➢ Expected rate of return • Test markets
➢ Capital asset pricing models • Advertising research
➢ Credit risk • Buyer behaviour
➢ Cost analysis • Customer satisfaction
• Website visitation rates
Information Systems Corporate Responsibility Research

• Knowledge and information needs • Ecological Impact

assessment • Legal Constraints on advertising and
• Computer information system use and promotion
evaluation • Sex, age and racial discrimination / worker
• Technical suppot satisfaction equity
• Database analysis • Social values and ethics
 • Data mining
• Enterprise resource planning systems
• Customer relationship management systems

Selected Examples of Real-Life Situations

➢ A firm wants to produce and market a new product but first wants to ascertain if there is a potential
consumer demand for this product in markets x,y and z
➢ a multinational firm wants to establish a production facility in another country after determining its
technical and economic feasibility
➢ A government agency wants to ascertain the satisfaction level of its employees, the causes for any
possible discontent, and propose a scheme for enhancing this level
➢ A financial institution wants to invest in commodities and commissions a study to determine the past
trends and forecast future returns in a portfolio of commodities
➢ The CEO of a firm wants to undertake a SWOT-Analysis as part of his plan to redefine his organization’s
priorities

Research Process
Business research, no matter what the objective and thrust behind it, essentially needs to follow a sequential
and structured path. The stages might overlap and sometimes be bypassed or eliminated in some research
studies. While conducting research, information is gathered through a sound and scientific research process.
The process of research is cyclic in nature and is interlinked at every stage. The followings are steps of research
process

 Problem Definition
 Development of an Approach to the Problem
 Research Design Formulation
 Data Collection
 Data Preparation and Analysis
 Report Preparation and Preseantation
Step 1: Problem Definition
The first step in any research project is to define the problem. In defining the problem, the researcher should
take into account the purpose of the study, the relevant background information, the information needed, and
how it will be used in decision making. Problem definition involves discussion with the decision makers,
interviews with industry experts, analysis of secondary data, and, perhaps, some qualitative research, such as
focus groups. Once the problem has been precisely defined, the research can be designed and conducted
properly.

Step 2: Development of an Approach to the Problem

Development of an approach to the problem includes formulating an objective or theoretical framework,
analytical models, research questions, and hypotheses and identifying the information needed. This process is
guided by discussions with management and industry experts, analysis of secondary data, qualitative research,
and pragmatic considerations.

Step 3: Research Design Formulation

A research design is a framework or blueprint for conducting the marketing research project. It details the
procedures necessary for obtaining the required information, and its purpose is to design a study that will test
the hypotheses of interest, determine possible answers to the research questions, and provide the
information needed for decision making. Conducting exploratory
research, precisely defining the variables, and designing appropriate scales to measure them are also a part of
the research design. The issue of how the data should be obtained from the respondents (for example, by
conducting a survey or an experiment) must be addressed. It is alsonecessary to design a questionnaire and a
sampling plan to select respondents for the study. More formally, formulating the research design involves
the following steps:
➢ Definition of the information needed
➢ Secondary data analysis
➢ Qualitative research
➢ Methods of collecting quantitative data (survey, observation, and experimentation)
➢ Measurement and scaling procedures
➢ Questionnaire design
➢ Sampling process and sample size
➢ Plan of data analysis

Step 4: Fieldwork or Data Collection

Data collection involves a field force or staff that operates either in the field, as in the case of personal
interviewing (in-home, mall intercept, or computer-assisted personal interviewing), from an office by telephone
(telephone or computer-assisted telephone interviewing), through mail (traditional mail and mail panel surveys
with prerecruited households), or electronically (e-mail or Internet). Proper selection, training, supervision, and
evaluation of the field force help minimize data-collection errors.

Step 5: Data Preparation and Analysis

Data preparation includes the editing, coding, transcription, and verification of data. Each questionnaire or
observation form is inspected or edited and, if necessary, corrected. Number or letter codes are assigned to
represent each response to each question in the questionnaire. The data from the questionnaires are
transcribed or keypunched onto magnetic tape or disks, or input directly into the computer. The data are
analyzed to derive information related to the components of the marketing research problem and, thus, to
provide input into the management decision problem.

Step 6: Report Preparation and Presentation

The entire project should be documented in a written report that addresses the specific research questions
identified; describes the approach, the research design, data collection, and data analysis procedures adopted,
and presents the results and the major findings. The findings should be presented in a comprehensible format
so that management can readily use them in the decision-making process. In addition, an oral presentation
should be made to management using tables, figures, and graphs to enhance clarity and impact.

Research Problem Formulation

Research Problem
A research problem is a statement about an area of concern, a condition to be improved, a difficulty to be
eliminated, or a troubling question that exists in scholarly literature, in theory, or in practice that points to the
need for meaningful understanding and deliberate investigation. In some social science disciplines the research
problem is typically posed in the form of a question. A research problem does not state how to do something,
offer a vague or broad proposition, or present a value question.

The purpose of a problem statement is to:

1. Introduce the reader to the importance of the topic being studied. The reader is oriented to the
significance of the study and the research questions or hypotheses to follow.
2. Places the problem into a particular context that defines the parameters of what is to be investigated.
3. Provides the framework for reporting the results and indicates what is probably necessary to conduct
the study and explain how the findings will present this information.
The first and the most important step of the research process is to identify the path of enquiry in the form of a
research problem. It is like the onset of a journey, in this instance the research journey, and the identification
of the problem gives an indication of the expected result being sought.

A research problem can be defined as a gap or uncertainty in the decision makers’ existing body of knowledge
which inhibits efficient decision making. The gap could be academic & theoretical (basic) or real time and action
oriented (applied).

Problem Identification Process

The problem recognition process invariably starts with the decision maker and some difficulty or decision
dilemma that he/she might be facing. This is an action oriented problem that addresses the question of what
the decision maker should do. Sometimes, this might be related to actual and immediate difficulties faced by
the manager (applied research) or gaps experienced in the existing body of knowledge (basic research). The
broad decision problem has to be narrowed down to information oriented problem which focuses on the data
or information required to arrive at any meaningful conclusion.

DECISION PROBLEM RESEARCH PROBLEM

1. What should be done to increase the customer 1. What is the awareness and purchase intention of
base of organic products in the domestic market? health conscious consumers for organic products?
2. How to reduce turnover rates in the BPO sector? 2. What is the impact of shift duties on work
exhaustion and turnover intentions of the BPO
employees?
3. How to improve the delivery process of Widex
3. How does Widex/ industry leader manage its
hearing aids in India?
supply chain in India/Asia?
4. Should the company continue with its existing
security services vendor or look at an alternative?
 4. What is the satisfaction level of the company with
the existing vendor? Are there any gaps? Can they be
5. Can the Housing and real estate growth be
effectively handled by the vendor?
accelerated?
5. What is the current investment in Real Estate and
Housing? Can the demand in the sector be forecasted
for the next six months?

6. Whom should ICICI choose as its next Managing

director- Mr ABC or Mrs. XYZ?
6a. what has been the Leadership initiatives and
performance record of ABC viz. XYZ?
6b. Can a leading aggressive private sector bank
accept a woman as its leader?

 Management decision problem: the issue/decision that needs to be resolved through research
 Discussion with experts: to get the right perspective on the issue, discussion/dialogue is held with
subject/industry expert.
 Review of literature: the most valuable source of framing the research question is to review the past
work done on related topic(s).
 Qualitative surveys: primary exploratory loosely structured surveys to attain the environmental context
 Research problem: the four steps might lead to multiple directions/research problems the researcher
can take.
 The researcher has to identify the alternative he/she will undertake
 Theoretical model building (optional)
 Statement of research objectives

Elements of a Research Problem

➢ Unit of analysis: The researcher must specify in the problem statement the individual(s) from whom the
research information is to be collected and on whom the research results are applicable. This could be
the entire organization, departments, groups or individuals.
➢ Research variables: The research problem also requires identification of the key variables under the
particular study. To carry out an investigation, it becomes imperative to convert the concepts and
constructs to be studied into empirically testable and observable variables. A variable is generally a
symbol to which we assign numerals or values.

Research Hypotheses
A hypothesis is any assumption/presupposition that the researcher makes about the probable direction of the
results that might be obtained on the completion of the research process. A hypothesis (H) is an unproven
statement or proposition about a factor or phenomenon that is of interest to the researcher. It may, for
example, be a tentative statement about relationships between two or more variables as stipulated by the
theoretical framework or the analytical model. Often, a hypothesis is a possible answer to the research
question.

The following hypotheses were formulated about the research question on store loyalty:
H1: Customers who are store loyal are less knowledgeable about the shopping environment.
H2: Store-loyal customers are more risk-averse than non-loyal customers.

Scientific Method
The analysis and interpretation of empirical evidence (facts from observation or experimentation) to confirm
or disprove prior conceptions.

The scientific method is a process for experimentation that is used to explore observations and answer
questions.

Steps in Scientific Method

Example: Freezing Water

1. Define Purpose: I want to know if water freezes faster on its own or with sugar added to it.

2. Construct Hypothesis: The null hypothesis is that there will be no difference in how long it takes the
water to freeze, whether or not it has sugar added to it. The alternative hypothesis is that there will be
a statistically significant difference in freezing time between the two scenarios.

3. Test Hypothesis and Collect Data: Fill two identical containers with the same amount of room
temperature water. Add a measured amount of sugar to one of the containers. Place the two containers
into the freezer. At regular intervals of 15 minutes, open the freezer and observe the status of the water
in each container. Continue until both have completely frozen. Write down the time it took for each
container of water to reach a fully frozen level.

4. Analyze Data: Look at the time it took for each container of water to freeze. Did the water with sugar
added take a significantly longer or shorter amount of time to freeze?
 5. Draw Conclusion: Based on the results of your experiment, come to a conclusion as to whether water
with sugar freezes faster, slower, or at the same rate as water without sugar added.

6. Communicate Results: Report your findings in the form of a written report as an oral presentation.

Characteristics of Scientific Method

• Empirical: The scientific method is empirical. That is, it relies on direct observation of the world and
disdains hypotheses that run counter to observable fact.

• Replicable: Scientific experiments are replicable. That is, if another person duplicates the experiment,
he or she will get the same results.

• Provisional: Results obtained through the scientific method are provisional; they are (or ought to be)
open to question and debate. If new data arise that contradict a theory, that theory must be modified.

• Objective: The scientific method is objective. It relies on facts and on the world as it is, rather than on
beliefs, wishes or desires.

• Systematic: Strictly speaking, the scientific method is systematic; that is, it relies on carefully planned
studies rather than on random or haphazard observation.

Research Proposal

A research proposal is a formal document that presents the research objectives, the design of achieving these
objectives and the expected outcomes/deliverables of the study.

A research proposal is the official layout of the planned research activity for management. It describes the
research problem, the approach, the research design, data collection methods, data analysis methods, and
reporting methods.

Important Elements of Research Proposal

1. Executive Summary. The proposal should begin with a summary of the major points from each of the
other sections, presenting an overview of the entire proposal.

2. Background. The background to the problem, including the environmental context, should be discussed.

3. Problem Definition/Objectives of the Research. Normally, a statement of the problem, including the
specific components, should be presented. If this statement has not been developed (as in the case of
problem identification research), the objectives of the marketing research project should be clearly
specified.

4. Approach to the Problem. At a minimum, a review of the relevant academic and trade literature should
be presented, along with some kind of analytical model. If research questions and hypotheses have been
identified, then these should be included in the proposal.

5. Research Design. The research design adopted, whether exploratory, descriptive, or causal, should be
specified. Information should be provided on the following components: (1) kind of information to be
obtained, (2) method of administering the questionnaire (mail, telephone, personal or electronic
 interviews), (3) scaling techniques, (4) nature of the questionnaire (type of questions asked, length,
average interviewing time), and (5) sampling plan and sample size.

6. Fieldwork/Data Collection. The proposal should discuss how the data will be collected and who will
collect it. If the fieldwork is to be subcontracted to another supplier, this should be stated. Control
mechanisms to ensure the quality of data collected should be described.

7. Data Analysis. The kind of data analysis that will be conducted (simple cross-tabulations, univariate
analysis, multivariate analysis) and how the results will be interpreted should be described.

8. Reporting. The proposal should specify whether intermediate reports will be presented and at what
stages, what will be the form of the final report, and whether a formal presentation of the results will
be made.

9. Cost and Time. The cost of the project and a time schedule, broken down by phases, should be
presented. ACPM or PERT chart might be included. In large projects, a payment schedule is also worked
out in advance.

10. Appendices. Any statistical or other information that is of interest only to a few people should be
contained in appendices.

Evaluating Research Proposals

• Evaluation involves assessing the soundness and merit of the research plan.

• The evaluators look for evidence of clarity and quality of thought – which reflects on the likely quality of
the research to be conducted.

• Planning the research and writing the proposal is often the most difficult part of the research process.

Criteria for Evaluation

A. Is the investigator interested in the problem?

B. Is there a genuine lack of knowledge related to the problem?
C. Is the research needed by other people?
D. Are the objectives:
1. appropriate to the problem?
2. Attainable?
3. Observable or measurable?
4. Sufficiently specific?
E. Does the investigator have sufficient resources?
F. Does the proposal recognize appropriate constraints?
G. Is the research likely to be productive?
H. Is the expected value of the research greater than its cost?
I. Are results likely to be widely applicable?