business research kimdy

7/30/2019 Business Research Kimdy

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DY, Kim G.

9:00-10:30 am (MW)

BA109N

November 14, 2012

BUSINESS RESEARCH

I. Definition of Business Research:

The success of a business lies on the good decision making of a company.

And to be able to make good decisions, a company relies on the use of business

research. Research is a discerning pursuit of truth. Literally, research (research)

means to search again. The term connotes patient study and scientific

investigation wherein the researcher takes another, more careful look at the data

to discover all that is known about the subject. (Zikmund, Babin, Carr & Griffin,

2012) Through research, questions regarding key strategies, tactics and

operations of a business are answered.

Business research seeks to predict and explain phenomena that, taken

together, constitute the ever-changing business environment. Thus business

research is a truth seeking function that gathers, analyzes, interprets, and

reports information so that business decision makers become more effective.

(Hair, Celsi, Money, Samouel & Page, 2011) Within an organization, business

research may be referred to as a marketing research, organizational research, a

director of financial or economic research, or one of many other titles. Although

business researchers are often specialized, the term business research

encompasses all of these functional specialties. (Zikmund et al., 2012) Business

research is intended to find out things about business in a systematic way. In

short, it is the application of the scientific method in searching for the truth


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about business phenomena. The research information should also be (1)

scientific; not intuitive or haphazardly gathered (2) objective (3) impersonal.Managers can use business research in all stages of decision-making

process to define problems, identify opportunities, to diagnose casual factors and

to clarify alternatives. Research is also used to evaluate current programs and

courses of action, to explain what went wrong with managerial efforts in the past

and to forecast future conditions. (Coldwell & Herbst, 2004). For managers, the

purpose of business research is to provide knowledge regarding the

organization, the market, the economy, or another area of uncertainty.

One useful way to describe research is based on the specificity of its

purpose. Applied business research is conducted to address a specific business

decision for a specific firm or organization. Basic business research (sometimes

referred to as pure research) is conducted without a specific decision in mind,

and it usually does not address the needs of a specific organization. It attempts to

expand the limits of knowledge in general, and as such it is not aimed at solving a

particular pragmatic problem. Basic research can be used to test the validity of a

general business theory (one that applies to all businesses) or to learn more

about a particular business phenomenon.

II. Importance of Business Research:

Business research is an essential tool for management in virtually all

problem-solving and decision-making activities. By providing the necessary

information on which to base business decisions, research can decrease the risk

of making a wrong decision in each area.


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Business research can help managers plan strategies by determining thenature of situations or by identifying the existence of problems or

opportunities present in the organization.

Business research may be used as a scanning activity to provide informationabout what is occurring within an organization or in its environment.

Business research has a descriptive function, which deals with the collectionand presentation of data

Business research has a diagnostic function, which explains a data with aview to finding specific solutions to particular business issues.

Business research also has a predictive function, which forecast futuredevelopment so as to take advantage to opportunities as they arise.

Business research also provides feedback and make evaluations and performcorrective actions

Business research is used to study key competitions in the market. Business research enable the company to hire researchers and consultants

more effectively

Business research helps its users weigh the risks and benefits of theirinvestment.

III. Major Steps in Business Research:

Like any other research, a business research applies the concept of the

scientific method. And thus, business research often follows a general pattern.

1. Defining the research objectivesDefining the goals to be achieved or the exploration of the possibilities of

entering a new market. The research objectives cannot be developed until


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managers and researchers have agreed on the actual business problem that

will be addressed by the research. Thus, they set out to discover this problem

through a series of interviews and through a document called a research

proposal.

2. Planning a research design

A research design is a master plan that specifies the methods and procedures for

collecting and analyzing the needed information. A research design

provides a framework or plan of action for the research. Objectives of the study

determined during the early stages of research are included in the design to

ensure that the information collected is appropriate for solving the problem. The

researcher also must determine the sources of information, the design technique

(survey or experiment, for example), the sampling methodology, and the

schedule and cost of the research.

3. Planning a sample

The sampling stage is a distinct phase of the research process. Sampling involves

any procedure that draws conclusions based on measurements of a portion of

the population. In other words, a sample is a subset from a larger population. If

certain statistical procedures are followed, a researcher need not select every

item in a population because the results of a good sample should have the same

characteristics as the population as a whole.

4. Collecting the data

The data gathering stage begins once the sampling plan has been formalized.

Data gathering is the process of gathering or collecting information. Data may be

gathered by human observers or interviewers, or they may be recorded by

machines as in the case of scanner data and Web-based surveys.


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5. Analyzing the data

Data analysis is the application of reasoning to understand the data that have

been gathered. In its simplest form, analysis may involve determining consistent

patterns and summarizing the relevant details revealed in the investigation. The

appropriate analytical technique for data analysis will be determined by

managements information requirements, the characteristics of the research

design, and the nature of the data gathered. Statistical analysis may range from

portraying a simple frequency distribution to more complex multivariate

analyses approaches, such as multiple regression. Later chapters will discuss

three general categories of statistical analysis: univariate analysis, bivariate

analysis, and multivariate analysis.

6. Formulating the conclusions and preparing the report

The conclusions and report preparation stage consists of interpreting the

research results, describing the implications, and drawing the appropriate

conclusions for managerial decisions. These conclusions should fulfill the

deliverables promised in the research proposal. In addition, its important that

the researcher consider the varying abilities of people to understand the

research results.

IV. Common Types in Business Research:

Business research can be classified on the basis of either technique or

purpose. Experiments, surveys, and observational studies are just a few common

research techniques. Classifying research by its purpose, such as the situations

described above, shows how the nature of a decision situation influences the

research methodology. The three types of business research are:


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1. Exploratory Research

- It is conducted to clarify ambiguous situations or discover potential business.

It is not intended to provide conclusive evidence from which to determine a

particular course of action. Usually exploratory research is a first step, conducted

with the expectation that additional research will be needed to provide more

conclusive evidence. It is often used to guide and refine these subsequent

research efforts opportunities. It is particularly useful in new product

development.

2. Descriptive Research

- It is to describe characteristics of objects, people, groups, organizations, or

environments. In other words, descriptive research tries to paint a picture of a

given situation by addressing who, what, when, where, and how questions.

Descriptive studies are conducted after the researcher has gained a firm grasp of

the situation being studied. Descriptive research often helps describe market

segments.

3. Causal Research

- It seeks to identify cause and-effect relationships. When something causes an

effect, it means it brings it about or makes it happen. The effect is the outcome.

- The different types of research are often building blocksexploratory research

builds the foundation for descriptive research, which usually establishes the

basis for causal research. Thus, before causal studies are undertaken,

researchers typically have a good understanding of the phenomena being

studied. Because of this, the researcher can make an educated prediction about

the cause-and-effect relationships that will be tested. Although greater

knowledge of the situation is a good thing, it doesnt come without a price. Causal


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research designs can take a long time to implement. Also, they often involve

intricate designs that can be very expensive. Even though managers may often

want the assurance that causal inferences can bring, they are not always willing

to spend the time and money it takes to get them.

REFERENCES:

Coldwell, D., Herbst, F. (2004). Business Research. Cape Town: Juta and

Company Ltd,.

Hair, J. F., Celsi, M. W., Money, A. H., Samouel P., Page M. J. (2011). Essentials of

Business Research Methods. New York: M.E. Sharpe, Inc.

Zikmund, W. G., Babin, B. J., Carr, J. C., Griffin, M. (2012). Business Research

Methods. Ohio: Cengage Learning.

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