Introduction to Research Methods

-By Ashay and Bhushan

Business research is defined as the systematic and objective process of generating information for aid in making business decisions.

Business Research Defined

Business Research

• Research information is neither intuitive nor haphazardly gathered.

• Literally, research (re-search) -“search again” • Business research must be objective oriented• Detached and impersonal rather than biased• It facilitates managerial decision process for

all aspects of a business by providing information.

"The secret of success is to know something nobody else knows. "

Aristotle Onassis

Basic research

Applied research

Business Research Types

Basic Research or Pure Research

• Attempts to expand the limits/boundaries of knowledge.

• Conducted to verify the acceptability of a given theory.

• Not directly involved in the solution to a pragmatic problem.

• Basic research findings generally cannot be immediately implemented.

Basic Research Examples

• Are members of highly cohesive work groups more satisfied than members of less cohesive work groups?

• How accepting are the people of a particular country toward a new product?

Applied Research

• Conducted when a decision must be made about a specific real-life problem.

• Research undertaken to answer questions about specific problems or to make decision about a particular course of action or policy.

Applied Research Examples

An organization contemplating a paperless office and a networking system for the company’s personal computers may conduct research to learn the amount of time its employees spend at personal computers in an average week.

Applied Research Examples

• Should the ‘Mainland China Restaurant’ adds Italian pasta dinners to its menu?

• Applied research told ‘Mainland China’ it should not.

Scientific Method

* The procedures and techniques utilized by basic and applied researchers do not differ substantially.

* Both employ the scientific method to answer the questions at hand.

Scientific Method

The scientific method refers to techniques and procedures that help the researcher to know and understand business phenomena.

Scientific Method

Scientific method is a systematic analysis and interpretation of empirical evidence (facts from observation or experimentation to confirm or disprove prior conceptions.)

Stages of the Research Process

Problem Discoveryand Definition

ResearchDesign

Sampling

DataGathering

Data Processingand Analysis

Conclusions andReport

Discovery andDefinition

and so on

Where does Statistics fit in?

• StatisticsStatistics is the science of collecting, organizing, is the science of collecting, organizing,analyzing, interpreting, and presenting data.analyzing, interpreting, and presenting data.

• A A statisticstatistic is a single measure (number) used to is a single measure (number) used to summarize a sample data set. For example, the summarize a sample data set. For example, the average height of students in this class.average height of students in this class.

McGraw-Hill/Irwin

Uses of Statistics

• Overview of Statistics Overview of Statistics

StatisticsStatistics

Describing Describing DataData

Making InferencesMaking Inferencesfrom Samplesfrom Samples

VisualVisualDisplaysDisplays

NumericalNumericalSummariesSummaries

EstimatingEstimatingParametersParameters

TestingTestingHypothesesHypotheses

Research @ work

• Identifying problems and opportunities• Diagnosis and assessment• Selecting and implementing a course of action• Evaluating the course of action

Four Stages of Decision-making Process

Research @ work

• Evaluation research is the formal, objective measurement and appraisal of the extent to which a given activity, project, or program has achieved its objectives.

Evaluation Research

Research @ work

• Research that regularly provides feedback for evaluation and control of business activity

• Indicates things are or are not going as planned• Research may be required to explain why

something “went wrong”.

Performance-Monitoring Research

Determining When to Conduct Business Research

• Time constraints• Availability of data• Nature of the decision• Benefits versus costs

Is sufficient time available before

a managerial decision

must be made?

Is the infor-mation already

on handinadequate for making

the decision?

Is the decision of considerable

strategicor tactical

importance?

Does the value of the research

informationexceed the cost of conducting

research?

ConductBusinessResearch

Do Not Conduct Business Research

Time ConstraintsAvailability of

Data Nature of the DecisionBenefits vs. Costs

Yes YesYesYes

No No No No

Determining When to Conduct Business Research

Value

•Decreased uncertainty

•Increased likelihood of a correct decision

•Improved business performance and resulting higher profits

Costs•Research expenditures

•Delay of business decision and possible disclosure of information to rivals

•Possible erroneous research results

Value Should Exceed Estimated Costs

Major Topics for Research in Business

• General Business Conditions and Corporate Research• Financial and Accounting Research• Management and Organizational Behavior Research• Sales and Marketing Research• Information Systems Research• Corporate Responsibility Research

Business Research in the 21st Century

• Increased globalization• Growth of the Internet and other information

technologies

Global Business Research

• General information about country - economic conditions and political climate

• Cultural and consumer factors• Market and competitive conditions - demand

estimation

Communicating Research Results:Presentation and Report Writing

Report parts

Prefatory parts Main body of the report Appended parts

Communicating Research Results: Report Writing

Prefatory parts

Title page

Letter oftransmittal

Letter ofauthorization

Table of contents

Objectives

Results

Conclusions

Recommendations

Summary

Main body of the report

IntroductionWhat? Why?Who?

Where? When?

MethodologyHow?

Area 1

Area 2

Final area

Results Limitations

Conclusions and recommendations

Appended parts

Data collectionforms

Detailedcalculations

General tables

Bibliography

Writing and Presenting Reports

• Descriptive title. Descriptive title. • Date Date

• Author(s)Author(s)• Page number.Page number.• Wide margins.Wide margins.• Typeface and point size.Typeface and point size.• Bullets and subheadings.Bullets and subheadings.• Bold face, italics, color.Bold face, italics, color.

Make it AttractiveMake it Attractive

Writing and Presenting Reports• Tables and GraphsTables and Graphs

• Embed in the narrative Embed in the narrative near the paragraph in near the paragraph in which they are which they are interpreted.interpreted.

• Number and title each table Number and title each table above the table, each graph above the table, each graph below the graphbelow the graph

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