BUSINESS RESEACH

This course provides students with the tools and approaches to undertake business research and capture the
behavior of observed phenomena or variables using statistical modeling techniques. Business research is vital in
the establishment of quality management decisions. Students will learn to define problems to be addressed,
identify reliable information, and evaluate the validity of models or frameworks used for analysis.

Course Outcomes: At the end of the course, the students are expected to:
CO1: Exhibit mastery of scientific business research concepts;
CO2: Formulate research problems;
CO3: Conduct a literature review;
CO4: Write an introduction and framework of the study, and;
CO5: Craft a research design.

MODULE 1: INTRODUCTION TO BUSINESSS RESEARCH

3 hours

At the end of the session the students will be able to:

1. Review on the research concepts;

2. Define business research;
3. Discuss the business research process, and
4. Write a reflection on the role of business research in industry development

Have you ever wondered what research has done to the world?

Source: Apple Research App

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Activity 1:

Read: Apple Corporation (November 14, 2019). Apple Launches three innovation studies today in the new
research app. Apple Newsroom. Retrieved from https://www.apple.com/newsroom/2019/11/apple-launches-
three-innovative-studies-today-in-the-new-research-app/

What are the significant learnings you gained from the article you have read?

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What is Research?

The common definition of research is a search for knowledge. It can also be defined as the scientific and
systematic search for information on a specific topic.
Many authors defined research as a careful investigation or inquiry for new facts in the branch of knowledge.
Research is a technical academic activity that follows a certain process. It helps discover truth through objective
and systematic methods. The purpose of research are the following:
1. Review or synthesize existing knowledge
2. Investigate existing situations or problems
3. Provide solutions to the problems
4. Explore and analyze more general issues
5. Create new procedures or systems
6. Explain new phenomenon
7. Generate new knowledge.
The ultimate purpose why researches are conducted is to discover answers to questions through the application
of scientific procedures. Researches can vary from different fields and objectives ranges from any of the
following

1. Gain familiarity with a phenomenon or to achieve new insights into it; ( exploratory or formulative
research studies)

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 2. To portray accurately the characteristics of a particular individual, situation or a group (descriptive
research)
3. To determine the frequency with which something occurs or with which it is associated with something
else (diagnostic researches)
4. To test the hypothesis of the causal relationship between variables (hypothesis testing)

Let us review some terms used in the language of research as defined by Copper (2014).

1. Concepts
The concept is a generally accepted collection of meanings or characteristics associated with certain
events, objects, conditions, situations, and behaviors. Classifying and categorizing objects or events that
have common characteristics beyond any single observation creates concepts. We draw concepts from
experience through interviews or constant communication and observations.
2. Constructs
A construct is an image or abstract idea specifically invented for a given research and/or theory-
building purpose. Constructs are created by combining the simpler, more concrete concepts, especially
when the idea or image we intend to convey is not subject to direct observation.
3. Operational Definition
An operational definition refers to terms of specific criteria for testing or measurement whether the
object to be defined is physical or highly abstract. The definition must specify the characteristics and
how they are being observed. The procedure must also be clear that any person can understand.
4. Variable
The term variable is synonymously used as a construct or the object or property being studied. A
variable is a symbol of an event, act, characteristic, trait, or attribute that can be measured and to which
we assign values. They can be dependent (x) or independent (y).
5. Moderating variable
A moderating or interaction variable is a second independent variable that is included because it is
believed to have a significant contributory or contingent effect on the original x-y relationship.
6. Proposition and hypothesis
A proposition as a statement about observable phenomena (concepts) that may be judged as true or
false. When a proposition is formulated for empirical testing, we call it a hypothesis. As a declarative

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 statement about the relationship between two or more variables, a hypothesis is of a tentative and
conjectural nature.
7. Theory
A theory is a set of systematically interrelated concepts, definitions, and propositions that are advanced
to explain and predict phenomena (facts).
8. Models
The term model is used in business research and other fields of business to represent phenomena
through the use of analogy. A model refers to a representation of a system that is constructed to study
some aspect of that system or the system as a whole. Models differ from theories in that a theory’s role
is explanation whereas a model’s role is representation.

Business Research Defined

Business research is a scientific process of acquiring specific and detailed information in areas of business such
as marketing, finance and accounting, management and production to maximize profitability. This study helps
business institutions to determine the type of products and or service which gives the company higher
profitability. It can also be defined as the acquisition of knowledge for professional growth and
commercialization.

Examples of business researches are marketing research on product distribution and sales. Most big corporations
like Apple conducts business research to determine the mobile demand and the current applications mostly used
by the mobile users. Research outputs may involve innovations in creating new demands or filling up the
demand and supply gaps. Business researches may involve market, financial, brand, product, risk, competitor,
demand, and distribution analyses.

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 Business Research

Market Financial Competitior Distribution Demand Brand Product

Risk Analysis
Analysis Analysis Analysis Analysis Analysis Analysis Analysis

Activity 2.

Browse the internet or cut a business article from a newspaper on current development made by a well-known
multi-national corporation based from a research. Share your readings in class.
What area in business was researched?
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What was the significant findings?
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What innovations were made as an outcomes of research?
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TYPES OF RESEARCHES

There are several types of researches that any researcher can undertake. Below are the types of research given
by Smith (2015) in his book Business Research Methodology.

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1. Applied research, also known as decisional research, use existing knowledge to help find a solution to
the problem or set of problems. Oftentimes applied researches are used in business to make decisions of
situations in marketing, production, and finance.
2. Fundamental research, frequently called basic or pure research, aims to extend the boundaries of
knowledge in a given specialization with no immediate application to current situations. Examples are
pure mathematical researches that aims to develop theorems or algorithms.
3. Futuristic research: is the systematic study of possible future conditions. It covers the analysis of how
conditions may change as a result of the implementation and consequences of policies and actions.
4. Descriptive research includes surveys and fact-finding inquiries of different kinds. It attempts to find
answers on the questions of who, what, when, and sometimes how. The researcher describes or defines
a subject, often by demographic profiling. The main intention of the descriptive researches is to study
current trends. Descriptive researches are also great source of information for the marketing of certain
products or services.
5. Explanatory research: Explanatory research goes beyond description and attempts to explain the
reasons for the phenomenon that descriptive research only observed. The research would use theories or
at least a hypothesis to account for the forces that caused a certain phenomenon to occur.
6. Predictive research: If we can provide a plausible explanation for an event after it has occurred, it is
desirable to be able to predict when and in what situations the event will occur. This research is just as
rooted in theory as an explanation. This research calls for a high order of inference making. In business
research, the prediction is found in studies conducted to evaluate specific courses of action or to forecast
current and future values.
7. Analytical research: The researcher has to use facts or information already available, and analyze these
to make a critical evaluation of the material.
8. Quantitative research: Quantitative research is based on the measurement of quantity or amount. It
applies to phenomena that can be expressed in terms of quantity.
9. Qualitative research: It is concerned with qualitative phenomenon (i.e.) phenomena relating to or
involving quality or kind. This type of research aims at discovering the underlying motives and desires,
using in-depth interviews for the purpose. Other techniques of such research are word association tests,
sentence completion tests, story completion tests, and similar other projective techniques. Attitude or

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 opinion research i.e., research designed to find out how people feel or what they think about a particular
subject or institution is also qualitative research.
10. Conceptual research: Conceptual research is related to some abstract idea(s) or theory. It is generally
used by philosophers and thinkers to develop new concepts or to reinterpret existing ones.
11. Empirical research: It is appropriate when the proof is sought that certain variables affect other variables
in some way. Evidence gathered through experiments or empirical studies is today considered to be the
most powerful support possible for a give hypothesis

Business Research Methods

1. Quantitative Research Methods- This method deals with number and process the data using statistical,
mathematical or computational techniques. It starts with data collection then followed by statistical
analysis. Under this method, researchers can do any of the following data gathering techniques
a. Survey- one of the most widely used methods to gather data and use it to understand the market
and make a sound decision. Researchers may use questionnaires, online polls, or online surveys.
An Example is when a company wants to gather customer feedback on the quality, quantity of
product or service, service delivery time and the customer care. These are gathered through
questionnaire or online polls.
b. Correlational Research
The correlational method is conducted to understand the relationship between two or more
variables to understand patterns, relationships and trends. Generally, a conclusion can not be
made based only on correlational researches.
An example is a relationship between leadership style and organizational performance, or mental
health to job performance and the like.
c. Causal- Comparative Research
Causal-comparative research is based on comparison or a cause and effect relationship between
two variables. It is also known as Quasi-experimental research. There is one dependent and
independent variables. The manipulation is not done but changes on the relationships are
observed on the variables or groups under the influence of the same changes.

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 An example of this is the effect of advertisement on sales or the effect of training on performance
etc.
d. Experimental research
Experimental research is based on theory. This method is useful in business as it may lead to
understanding behavioral traits of consumers leading to sales and income.
An example study was conducted to understand if colors affect the consumers’ hunger. A set of
the audience was then exposed to particular colors while eating and the result shows that red or
yellow increases hunger. This explained why fast food chains like Mc Donalds, KFC, Jollibee,and
other restaurants dominantly used colors red and yellow on brands, packaging, and interior
designs.
e. Online Research or Literature search
Online Research or Literature search is the oldest method available which remained to be
economical. The online search aims to gather information from online libraries, published annual
reports etc. This is more preferred by individual who wants to know information about a product
or a company usually done in marketing. In this method, care needs to be undertaken to validate
online sources.

2. Qualitative Research Methods- Qualitative Research involves obtaining data through open-ended
conversation. This method enables researchers to get in-depth information on what the market thinks.
There are various types of qualitative research methods. These include but not limited to the following:
a. Interviews
Interviews are more or less similar to surveys, however, the participants will answer open-ended
questions. The length of the conversation depends on the response to a certain topic giving the
researchers detailed information about the perception or opinion of a certain topic. An interview
with an expert is also very useful in company decisions.
For example, an interview with online buyers helps online sellers understand the attitude of
online buyers and will improve their e-marketing.
b. Focus Groups

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 Focus groups are selected individuals who are interviewed to understand opinions and
behaviors. Usually, a group of 4 to 8 persons are preferred to equally represent the targeted
market or participants to discuss a certain issue, product, or service. This method enables a
researcher to get varied opinions than in an interview or case study.
For example a focus group discussion is conducted by a cellular phone manufacturer to
understand the dimension of the screen size, features, and colors preferred by the target market.
With this, a company can make a wise decision on the production line.
c. Ethnographic research
Ethnographic researches are rarely used in business researches because of it is costly and time
consuming but the results are precise. Researchers need to adapt to the natural environment and
observe the target market to collect data. This method is best used to understand cultures,
traditions, and challenges of a particular target market.
Example researches are those related to production and financing of certain commodities,
challenges experience in transportation and delivery etc. of a certain country or region. Here, the
researcher need to live with the target market to understand their way of life and the challenges
they faced every day.
d. Case Study Research
A case study research is one of the most popular researches in business. This is done to assess
customer satisfaction, company profitability, personnel management and production of product
or service delivery. It documents the challenges faced by a particular company or industry. Case
studies are provided by businesses to new customers to showcase their capabilities and
understand their weaknesses.
For example a company case study is conducted to a family owned business in Malaybalay City.
This will help understand the sustainability of the family owned business. The study can
showcase the strengths and opportunities of the business and formulate strategies to outweigh
its weaknesses and threats. The case study can provide possible solution to a certain problem
identified and recommend some actions.
e. Website visitor profiling/ research

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 This method is also known as website intercept surveys. This is new to the business sector. It is
an innovative approach to collect feedback from the visitors of the company’s website. Especially
during pandemic, e-business becomes a trend. Therefore, it is important to gain sufficient
understanding of the website visitors or potential customers. The aim of the research is to
evaluate the visitors’ online experience.
For example, a prospective customer is looking for a particular product in the company website.
He will be directed to a site and an intercept survey will start noting his intent and path. Once
the customers’ transaction is complete, an on page survey will pop up to rate the website.

Evaluating Business Research

Business researches have advantages and disadvantages. Some of these are listed below.

Advantages Disadvantages
•Identify Strengths, Weaknesses, Costly
Opportunities and threats
•Identify problems and make wise Timely
decisions
•Understand customers’ needs and Mostly based on assumptions
wants
•Risk management May lead to inaccurate information
because of biased population or small
focus group.
•Planned financial outcomes and Quickly become obsolete because of
investment fast changing needs and preferences
of the market.
•Cope up with competition
•Cost minimization
• innovation
• maintain goodwill/ good
reputation

“ all progress is born of inquiry. Doubt is often better than overconfidence, for it leads to inquiry and inquiry
leads to invention” – Hudson Maxim.

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The Business Research Process

The Business Research Process

Source: Copper, D. (2004) Exhibit 1

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Activity 2.

Share your experiences when you first conducted an academic research. How would you expect this semester
to be different?

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Performance Assessment Output No. 1

Read an article of any local of Multi National Corporation implementing business development as an outcome
of research. In 500 words and written in Times new Roman, font size 12, double spaced, write a reflection on
the role of business research in industry development.

In the absence of the internet connection and other facilities, use the space below for your answer.

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Rubric to grade the Reflection paper (40 points)
Sophisticated (10pts) Very Competent (8 pts) Fairly Competent (6 pts) Not yet Competent (5pts)
Accuracy Paper represents the author’s Paper represents the Paper represents the Paper misrepresents the
(Grasp of ideas. Evidence or conclusions author’s ideas. author’s ideas. author’s ideas.
readings) accurately, fairly and Conclusions are shown Conclusions are shown but Conclusions are not
eloquently shown. Student are not sufficient shown.
shows a firm understanding
of the implication of the read
article.
Argument Paper fully meets the Fully meets the Paper does not address Paper does not address
(depth of requirements of the requirements but does some development in some development in
analysis) assignment. Student explores not exceed. Makes business research. Does business research
implications of the chosen connections but There not connect to real
article and connects the article are no implications cited problems in business and
read to the discussion made. there are no implications
of the article read
Clarity Words used are consistently Words used are mostly Imprecise or ambiguous Consistently imprecise or
precise and unambiguous. precise and wording. Confusing ambiguous wording.
Sentences are clear and unambiguous. Sentences sentence structure, no Writing is not
correctly structured. All are clear and correctly author’s citation understood.
authors are properly cited and structured. Lacks authors
effectively framed in the citation
sentence.
Presentation Paper is clean, correctly Paper is clean, correctly Paper is clean, correctly Paper is sloppy or
formatted with no broken formatted with no formatted with no broken incorrectly formatted, not
sentences. No spelling or broken sentences. There sentences. There are written in full sentences
grammatical errors. are few misspelled number of misspelled and there are numerous
words or grammatical words or grammatical misspelled words or
errors. errors. grammatical errors.

Takeaways:

 Corporations take advantage in conducting researches for innovation to gain competitive

advantage.
 The Research and Development Department takes charge in introducing product or
service innovations.
 Information is power in marketing and market research is very dynamic to expand or
retain the market share,
 Data gathering in business researches can be very challenging.
 Most of the corporations in the Philippines are not collaborating with State Universities
and Colleges for business researches.
 The researcher should find a creative way to gather primary and secondary data without
violating data privacy law.

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