Business Research Methodology unit 1ppt.ppt

research methodology ppt

1. 1
UNIT I
INTRODUCTION
Business Research –Definition and Significance –the
research process –Types of Research –Exploratory
and causal Research –Theoretical and empirical
Research –Cross –Sectional and time –series
Research –Research questions / Problems –
Research objectives –Research hypotheses –
characteristics –Research in an evolutionary
perspective –the role of theory in research.

2. “ Systematized effort to gain knowledge”-
Redman and Mory.
Research is a process of “ manipulation of
things, concepts or symbols for the purpose of
generalizing to extend, correct or verify
knowledge, whether that knowledge aids in the
construction of theory or in the practice of an
art”-Slesinger and Stephenson in Encyclopedia
of Social Sciences
2
Defining Research

3. Researchcomprisesthefollowing:
Definingandredefiningtheproblem
Formulatinghypothesis
Collecting,organizingandevaluatingdata
Makingdeductionsandreachingconclusions
Carefullytestingtheconclusionstodetermine
whethertheyfitthehypothesis
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Defining Research

4. Businessresearchisdefinedas
thesystematicandobjective
processofgeneratinginformation
foraidinmakingbusiness
decisions.
-Includingfinancialresearch,operationalresearch,
Marketingresearch

5. Research information is neither intuitive
nor haphazardly gathered.
Literally, research (re-search) -“search
again”
Business research must be objective
Detached and impersonal rather than
biased
It facilitates the managerial decision
process for all aspects of a business.

6. 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

7. Methodologymeansthesystematicstudyofthe
methods,principles,proceduresandrules
appliedwithinadiscipline
Researchmethodologyisawayto
systematicallysolvetheresearchproblem
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Defining Research Methodology

8. Business research is a systematic enquiry that
provides information to guide managerial
decisions.
It is aprocess ofplanning, acquiring, analyzing
and disseminating relevant data and insights to
decision makers, leading toappropriate actions,
which, in turn, maximize business performance.
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Significance of Business Research

9. Changingapproachtobusiness-fromgutfeeling
andanecdotalevidence–toqualitative-to
quantitative
Relevantwhetherlargecommercialventures,
publicagencies,nonprofits,smallbusinessesor
individualentrepreneurs
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Significance of Business Research

10. Significantinsolvingvariousoperationaland
planningproblemsofbusinessandindustry
Marketresearch(investigationofthestructure
anddevelopmentofmarket)
Importantforformulatingpoliciesforpurchase,
productionandsales
Motivationalresearchstudiesconsumers’motives
intheirpurchasebehavior(Consumerbehavior)
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Significance of Business Research

11. Operations research refers to the application of
mathematical, logical and analytical techniques to
the solution of business problems of optimization
of resource use, cost minimization and profit
maximization.
Aid to Informed decision making
Helps identify problem areas
Aid to forecasting
Helps business budgeting
Tool for efficient production and investment
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Significance of Business Research

12. decision making
Optimal utilization of resources
Basis for innovation
Managers need research to measure and
compare the ROI on various strategies.
Helps in a better understanding of employees,
stockholders and customers
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Significance of Business Research

13. Developments Aiding Business Research
Competition –local, domestic and global
More complex business organisations
Stakeholders demanding greater role
Growth of Internet
Growth of technology and greater computing
power
Advanced Analytical techniques
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Factors Aiding Business Research

14. 1.Purposeshould be clearly defined.
2. Research Process –should be described with
sufficient detail
3. Design (Sampling, questionnaire, observation etc)
should be thoroughly planned so as to yield
objective results.
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15. 4. High ethical standards-from misusing information ,
to forcing respondents to answering questions to
animal rights and human dignity-Dilemma
5. Limitations should be frankly revealed (e-g., flaws in
design) so that the decision maker is made aware.
6. Analysis of data should be adequate and methods of
analysis appropriate. Should check for reliability and
validity, and probability of error
7.Unambiguous presentation.
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16. 1.Purposiveness
2.Rigor
3.Testability
4.Replicability
5.Precision and Confidence
6.Objectivity
7.Generalizability
8.Parsimony

17. 17
PURPOSIVENESS:
Researchshouldbestartedwithadefinite
aimorpurpose.
Rigor:
Rigorconnotescarefulness,scrupulousness,
andthedegreeofexactitudeinresearch
investigation.
Replicability
Itmeansthatitcanbeusedagainifsimilar
circumstancesprevails.

18. Testability
Researchshouldbebasedontestable
assumptions/hypothesesdevelopedafteracareful
studyoftheproblemsinvolved.Thescientific
researchshouldenablethetestingoflogically
developedhypothesestoseewhetherornotthe
datacollectedsupportthehypothesesdeveloped.
Precision
Precisionreferstotheclosenessofthe
findingsto“reality”basedonasample.Itreflects
thedegreeofaccuracyandexactitudeoftheresults
ofthesample.

19. ◦Confidencereferstotheprobabilitythatour
estimationsarecorrect.
◦Thatis,itisnotmerelyenoughtobe
precise,butitisalsoimportantthatwecan
confidentlyclaimthat95%ofthetimeour
resultswouldbetrueandthereisonlya
5%chanceofourbeingwrong.
◦Thisisalsoknownasconfidencelevel.

20. 20
Objectivity:
The conclusions drawn through the
interpretation of the results of data analysis
should be objective; that is, they should be
based on the facts of the findings derived
from actual data, and not on our subjective
or emotional values.
Generalizability:
It refers to the scope of applicability of
the research findings in one organization
setting to other settings.

21. 21
Parsimony:
Simplicity in explaining the phenomenon or
problems that occur, and in generating
solutions for the problems, is always
preferred to complex research frameworks
that consider an unmanageable number of
factors.

22. Step 1: Problem Definition
Step 2: Development of an Approach to the Problem
Step 3: Research Design Formulation
Step 4: Fieldwork or Data Collection
Step 5: Data Preparation and Analysis
Step 6: Report Preparation and Presentation

23. Stages
in the
Research
Process
Determine Research Design
Analyze and Interpret the Data
Design Sample and Collect Data
Formulate Problem
Design Data Collection
Method and Forms
Prepare the Research Report

26. Descriptive
Analytical
Applied
Fundamental
Quantitative
Qualitative
Conceptual
Empirical
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Types of Research

27. Overview of Research Design
Exploratory
•“discovery”
Descriptive
•“relationships”
Causal
•“cause-and-effect”

28. When a researcher wants to deal with new issue
or try to begin a new research is called
exploratory research.
•Undertaken with the aim of clarifying
ambiguous problems general problems usually
known but not sufficiently understood the
purpose is to get more information, not to
uncover specific courses of action (subsequent
research)
•Experience surveys, analysis of secondary
data, case studies, pilot studies
Exploratory Research

29. Describe what is going on or exists
Estimate how groups of consumers might behave
Examine relationships between two or more
variables
Predict
Two Basic Types
1.Longitudinal
2.Cross-Sectional

30. Aresearchproblem,ingeneral,referstosome
difficultywhicharesearcherexperiencesinthe
contextofeitheratheoreticalorpracticalsituation
andwantstoobtainasolutionforthesame
•Undertakenwiththeaimofidentifyingcauseand
effectrelationshipsamongstvariables
•Oftendifficulttodeterminebecauseoftheinfluence
ofothervariables(concommitantVariationandthe
presenceofotherhiddenvariables)
Causal Research

31. Helps us determine if one or more IVs (treatment,
predictors) causes or affects one or more DVs
(outcome variables)
Most demanding design—strongest conclusion
Requires the highest degree of understanding of the
problem

32. Exploratory
Research
Causal
Research
Descriptive
Research
•Formulate problems more precisely
•Develop Hypotheses
•Establish priorities for research
•Eliminate impractical ideas
•Clarify concepts
•Literature search
•Experience survey
•Analysis of select cases
•Interviews
•Ethnographies
•Focus groups
•Etc.
•Describe segment characteristics
•Estimate proportion of people
who behave in a certain way
•Make specific predictions
•Longitudinal study
•Panels
•Sample Survey
•Provide evidence regarding causal
relationships
•Rule out all other explanations
•Laboratory experiment
•Field experiment
Uses Types

33. 33
Descriptive Research
ExploratoryResearch
Causal Research
Relationship Among Research
Designs

34. Descriptive Research:
•Description of the state of affairs as it exists at
present.
•It includes surveys and fact findings enquiries
of different kinds.
•Ex post facto research -researcher has no
control over variables
•Example: frequency of shopping, preference of
people, etc.

35. Analytical Research:
The researcher has to use facts or
information already available and analyze
these to make a critical evaluation of the
material.
Applied Research:
It aims at finding a solution for an immediate
problem facing a society or an industrial
business organization.

36. Fundamentalresearch:
Itismainlyconcernedwithgeneralizationsand
withformulationoftheory.“Gatheringknowledgefor
knowledge’ssakeistermedaspureorbasic
research.
QuantitativeResearch:
Itisbasedonthemeasurementofquantityor
amount.Itisapplicabletophenomenathatcanbe
expressedintermsofquantity
QualitativeResearch:
Itisconcernedwithqualitativephenomenoni.e
phenomenarelatingtoqualityorkind.

37. Theoretical(Conceptual)Research:
Itisrelatedtosomeabstractideasortheory.It
isgenerallyusedbyphilosophersandthinkersto
developnewconceptsortoreinterpretexistingones.
Empiricalresearch:Itreliesonexperienceor
observationalone,oftenwithoutdueregardfor
systemandtheory.Itisdatabasedresearchcoming
withconclusionswhicharecapableofbeingverified
byobservationorexperiment.Itcanalsocalledas
experimentaltypeofresearch.
Theoretical and Empirical Research

38. Field setting research or laboratory research or simulation
research
Environment in which research is carried out.
One time research:
◦Confined to single time period
Longitudinal research
◦Research carried on several time periods
Clinical or diagnostic research
◦Case study method or in-depth approaches to reach the basic
causal relations.
Historical research
◦Study events or ideas of past
Conclusion oriented research
Decision oriented research
◦Ex-Operations research
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39. Cross sectional / one shot:
Data are gathered just once, perhaps over a
period of days over weeks or months, in order to
answer a research question.
Ex: data collected from shopping mal from June to
Dec to study their concern in market.
Time series analysis:
Series of successive observations of the given
phenomenon over a period of time are referred
to as time series.
Cross Sectional and Time Series
Research

40. Time Series are the result of the effects of following
factors:
1.Secular or long term trend –changes are
gradual but extend throughout the entire period
of year
2.Short time Oscillations –changes taking place
in the short period of time like:
(i)Cyclical fluctuations
(ii)Seasonal fluctuations
(iii)Irregular fluctuations.
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Cross Sectional and Time Series
Research

41. Research Questions/Problems
Itreferstosomedifficultyorproblemwhicha
researcherexperienceinthecontextofeithera
theoreticalorpracticalsituationandwantstoobtaina
answerorsolutionforthesame
Conditions:
1.Individual(oragrouporanorganization)
2.Atleasttwocoursesofaction–definedbyoneor
morevaluesofthecontrolledvariables.
3.Atleasttwopossibleoutcomes–Researcherwants
4.Courseofactionprovideschanceofobtainingthe
objective.
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42. Research Questions/Problems
Components:
1.Individual or group that has some problem or
difficulty
2.Attaining objective
3.Alternative means for obtaining objective (at
least two means)
4.Doubt in selection of alternative means
5.Some environment to which the difficulty
pertains
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43. Research Questions/Problems
Techniques involved in defining Research Questions/
Problems:
1.Statement of Research Questions/ Problems
2.Understanding the nature
3.Surveying the available literature
4.Developing ideas through discussions
5.Rephrasing the Research questions/ Problems
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44. Points to be observed for defining the Research
Questions/ Problems
1.Rephrasing the Research questions/ Problems
2.Technical terms with special meaning
3.Basic assumptions or postulates
4.Criteria for the selection of the problem
5.Suitability of time period and sources of data available
6.The scope of investigation or the limits
Research Questions/Problems

45. 1. To gain familiarity with a certain phenomenon or
gain new insights (Exploratory research)
2. To portray accurately the characteristics of a
particular individual, group or situation.
(Descriptive)
3. To see the frequency with which some
phenomenon is associated with something else
(Diagnostic)
4. Hypothesis of causal relationship between
variables (Hypothesis-testing)
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Objectives of Research

46. Selecting the research problem:
1. Subjects on which the research is carried on amply
should not be normally chosen as there will not be
new dimension to reveal
2. Too narrow or too vague problems should be
avoided
3. The researcher should be familiar with the subject
chosen for research. The researcher should have
enough knowledge, qualification and training in the
selected problem area.

47. Theresourcesneedstosolvetheproblemin
termsoftime,money,efforts,andmanpower
requirementshouldbetakenintoaccount
beforeembarkingonaproblem.
4.Thesubjectofresearchshouldbefamiliar
andfeasiblesothatrelatedresearch
materialorsourcesofresearchcanbe
obtainedeasily.
5.Theselectionofaproblemmustbe
precededbyapreliminarystudy.

48. Technique involved in defining a
problem:
Statement of a problem in a general way.
Understanding the nature of the problem
Surveying the available literature
Developing the ideas through
discussions
Rephrasing the research problem.
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49. Definition
Ahypothesiscanbedefinedasalogically
conjecturedrelationshipbetweentwoormore
variablesexpressedintheformofatestable
statement.Relationshipsareassumedonthebasisof
thenetworkofassociationsestablishedinthe
theoreticalframework.Formulatingsuchtestable
statementiscalledhypothesisdevelopment.
Thehypothesiscanbegroupedonthefollowing
basis;
Research Hypothesis

50. Statement of hypotheses :
Hypothesiscanbeexpressedeitheraspropositionsorintheform
ofIf-thenstatements.
Example:
Agedcustomerswillbeinclinedtotakeinsurancepolicy
Ifcustomersareaged,thentheywillbeinclinedtotakeinsurance
policy
Types:
DirectionalandNondirectionalHypotheses
Thehypothesiswhichindicatesthetypeordirectionof
relationshipbetweenvariablesiscalledasdirectional
hypothesis.Inspecifyingtherelationshipbetweenvariablesthe
termssuchaspositive,negative,morethan,lessthanandthe
likeareusedinthesehypotheses.
Eg.,Highincomeconsumersspendmoreonconsumerdurables.
Research Hypothesis

51. Non-directionalhypotheses-relationshipbutdoesnotoffer
indicationofthedirectionoftherelationship.
Eg.,Educationoftherespondentdoesnothavean
influenceontheimportancegiventotheinformationsource
Nullandalternativehypotheses
•Nullhypotheses-thereisnosignificantrelationship
betweenthevariables.
•Nullhypothesesalsostate-nodifferencebetweenwhatwe
mightfindinthepopulationcharacteristicsandthesample
thatisbeingstudied.
•Alternativehypothesesstatesthatthereissignificant
relationshipbetweenthevariables
Research Hypothesis -Types

52. Hypothesistesting:MeaningandApproaches
Thepurposeofhypothesistestingisto
determinetheaccuracyofthehypothesesframed
duetothefactthatthedataiscollectedfromsample
andnotfromtheentirepopulation
Therearetwoapproachestohypothesistesting;
classicalorsampling–theoryandtheBayesian
approach
Research Hypothesis -Characteristics

53. Classicalapproachismostlyusedinresearch
application.Thisapproachrepresentsanobjective
viewofprobabilityandthedecision-makingismade
totallyonananalysisofavailablesamplingdata
Bayesianstatisticsalsousesamplingdatafor
decisionbutgobeyondthemandconsidersallother
availableinformation.Theadditionalinformation
consistsofsubjectiveprobabilityestimatesstatedin
termsofdegreesofbelief.
Research Hypothesis -Characteristics

54. Statistical testing procedure
The sequence for testing a hypothesis is discussed
below;
1.State the null hypothesis
2.Choose the statistical test
3.Select the desired level of significance
4.Compare the calculated difference value
5.Obtain the critical test value
6.Interpret the test

55. State Ho or Ha
Specify the level of significance
Decide the correct sampling distribution
Sample a random sample and workout an appropriate value from
sample data
Calculate the probability that sample result would diverge as widely as it
has from expectations, if Ho were true
Is this probability equal to or smaller than αvalue in case of one tailed
test and α/2 in case of two tailed test
Accept HoReject Ho

56. Research in evolutionary perspective
Preliminary information gathering
Experience and intuition
Critical variable are examined
Associations identified theoretically
woven with justification
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57. New Directions in Research
Research is constantly evolving
◦New information may answer some question, but it
usually raises still more questions
◦New questions may require new techniques
Although the logic of research is unchanged
◦Science is an interconnected discipline
Ideas and findings from one area affect other areas
Good scientific theories explain findings in several
interconnected fields

58. Evolution of Research Questions
Answering one question raises other
questions
◦e.g., establishing that genetics plays a role in
schizophrenia leads to the question of “How?”
Cleverly addressing practical problems
◦e.g., high-risk paradigms for longitudinal studies
Using advanced technology
◦e.g., brain scan techniques, computer modeling, etc.

59. New Statistical Methods:
Analysis of Variance
Meta-Analysis
Multidimensional Scaling
Path Analysis
Taxometric Search Procedures
Neuro-imaging
Impact of Other Disciplines

60. Multidisciplinary Research
Field Studies
Impact of Computers
Connectionist Models
Science
An interaction between empiricism and rationalism
◦We observe nature and try to organize our understanding of it
with our theories
◦We test the theories empirically, modifying or discarding those
theories that fail these tests
All scientists use the same logic
◦Science is defined by its way of thinking, not by its technology and
achievements

61. THEORY:
Inageneralsense,anymoreorlessformalized
conceptualizationoftherelationshipbetweenvariables.Any
generalizedexplanatoryprinciple.
Whatmakesagoodtheory:
1.Falsifiability-Thetheorymustmakesufficientlyprecise
predictionsthatwecanatleastimagineevidencethatwould
contradictthetheory
2.Parsimony–simplicity
Role of Theory in Research

62. 3. Generativity -A good theory doesn’t just explain results
that have been found, but it also generates predictions that
can be tested
Research is promoted by the offering of a good theory.
4. Precision –the theory makes precise predictions.
Ambiguity is bad for a theory
5. Good track record –the theory holds up to research
results. Studies have tested the hypotheses and have
provided support.
Role of Theory in Research

63. Theory guides research
Organizes ideas
All research has a purpose
Paradigms
Sociology, history, and political science, especially.
A model or framework for observation and understanding,
which shapes both what we see and how we understand
it.
The Aspects of theory:
Theories can be categorized by:
The direction of reasoning
The level of explanation
Role of Theory in Research

64. Direction of Reasoning:
Inductive vs. deductive reasoning
Deductive reasoning –reasoning from the general to the
particular
Process of concluding that something must be true because it
is a special case of a general principle that is known to be
true
All children like ice-cream [general principle]
Tommy is a child [particular case]
Tommy will like ice-cream [deduction]
Role of Theory in Research

65. •Inductive reasoning –reasoning from the particular to the
general Process of reasoning that a general principle is
true because the special cases you've seen are true
Example:
“Dr. Boughner is strange”
“Dr. Boughner lives in Tulsa”
“People who live in Tulsa are strange”
Applying these types of reasoning to theory construction.
•Deductive approach –build a theory by starting with an
abstract, logical idea. Based on the theory, perform
research to test the theory
Role of Theory in Research

66. •Inductive approach –build a theory by first looking at the results of many
research projects and offering a theory that can be used to explain the
data.
Level of explanation:
Levels of explanation are different throughout science
E.g., chemistry vs. physics vs. psychology vs. sociology
Theory can be used at various levels of explanation
In the social sciences, three levels of explanation for theory
•Micro-level theory –seeks to explain behavior at the level of the individual
or family environment
•Macro-level theory –seeks to explain behavior at the level of large groups
of people.
Role of Theory in Research

67. Meso-level theory –seeks to explain the interactions of
micro-level organisms.
Somewhat between micro and macro.
Scientific Method in Research:
1.Process must be objective to reduce bias in
methods and interpretation of results.
2.Process must be systematic. [ involve standard
procedurees]
3.Enquiry should be conducted through a process of
system, observation that can be verified by
experience
Role of Theory in Research