Business research

1. BUSINESS RESEARCH
BY,
MD Shariful KHAN

2. INTRODUCTION
• Business research is the application of the scientific method in searching for
truth about business phenomena.
• It is the process of acquiring detailed information concerning different areas
of business and using such information in maximizing sales and profit of a
business. Such a study helps companies determine which product is most
profitable or in demand.

3. • Business research can be done for any issue related to business. In general, when
people speak about business research it means conducting research to know where
the money can be spent to increase sales, profits or market share. Such research is
critical to make wise and informed decisions. For example: A mobile company wants
to launch a new model in the market. But it is not aware of what are the dimensions
of a mobile that are in most demand

4. 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 yet. Though each research study has its
own specific purpose, we may think of research objectives as falling into the
following broad categories:
• 1. To gain familiarity with a phenomenon or to achieve new insights into it (studies
with such objectives are termed as exploratory research studies); 2. To portray
accurately the characteristics of a particular individual, situation or a group (studies
with such objectives are known as descriptive research studies); 3. To determine the
frequency with which something occurs or with which it is associated with
something else (studies with such objectives are known as diagnostic research
studies); 4. To test a hypothesis of a causal relationship between variables (such
studies are known as hypothesis-testing research studies)

5. WHEN SHOULD BUSINESS RESEARCH BE
CONDUCTED?
Managers determine whether research should be conducted based on: (1) time constraints, (2) availability of
data, (3) the nature of the decision to be made, and (4) the benefit of the research information versus its cost.
(Go to the book of Zikmund et al. for further details.)

6. RESEARCH APPROACHES
There are two basic approaches to research, viz., quantitative approach and the qualitative
approach. The former involves the generation of data in quantitative form which can be
subjected to rigorous quantitative analysis. This approach can be further sub-classified into
inferential, experimental, and simulation.
The purpose of inferential approach to research is to form a database from which to infer characteristics or
relationships of population. This usually means survey research where a sample of population is studied
(questioned or observed) to determine its characteristics, and it is then inferred that the population has the
same characteristics.

7. EXPERIMENTAL APPROACH
Experimental approach is characterized by much greater control over the research
environment and in this case some variables are manipulated to observe their effect on
other variables.

8. SIMULATION APPROACH
• Simulation approach involves the construction of an artificial environment within
which relevant information and data can be generated. In the context of business
and social sciences applications, the term ‘simulation’ refers to the operation of a
numerical model that represents the structure of a dynamic process. Simulation
approach can also be useful in building models for understanding future conditions.

9. QUALITATIVE APPROACH
• Qualitative approach to research is concerned with subjective assessment of
attitudes, opinions and behavior. Research in such a situation is a function of
researcher’s insights and impressions. Such an approach to research generates
results either in non-quantitative form or in the form which are not subjected to
rigorous quantitative analysis. Generally, the techniques of focus group interviews,
projective techniques and depth interviews are used.

10. DIFFERENCE BETWEEN BASIC AND
APPLIED BUSINESS RESEARCH
• Basic or pure research seeks to increase scientific knowledge or developing theories
and concepts. Applied research is aimed at using basic research for solving
problems or developing new processes, products, or techniques. It is directed
toward a specific managerial decision in a particular organization. Both are
important, but applied research is more often the topic in this course.

11. QUALITIES OF A 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 rejects 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..