CHAPTER-1:

INTRODUCTION

In this Chapter, we shall study the basic concept of business research. Before describing the
business research it would be wise to know about the Research and definition of research to
get into insight of the business research. The whole chapter is organized as follows:

 Meaning and objective of Business Research,

 Types of Research,
 Importance of Research in Business Decision Making, and
 Ethics in Business Research

Research: Meaning

Dictionary definition of research is a careful investigation or inquiry specifically through search

for new facts in any branch of knowledge. In simple words, research is an art of scientific
investigation.

Research is defined as human activity based on intellectual application in the investigation of

matter. The primary purpose for applied research is discovering, interpreting, and the
development of methods and systems for the advancement of human knowledge.

“Research refers to the systematic method consisting of enunciating the problem, formulating a
hypothesis, collecting the facts or data, analysing the facts and reaching certain conclusions
either in the form of solution(s) towards the concerned problem or in certain generalizations
for some theoretical formulation.” (Kothari and Garg)

According to Fred Kerlinger, research is an organized enquiry designed and carried out to
provide information for solving problem.

Creswell says that “Research is a process of steps used to collect and analyze information to
increase our understanding of a topic or issue”.

Therefore, research is an original contribution to the existing stock of knowledge making for its
advancement. It is pursuit of truth with the help of study, observation, comparison and
experiment. Research is the search for knowledge through objective and systematic method of
finding solution to a problem.

BUSINESS RESEARCH: MEANING AND OBJECTIVE

Meaning of Business Research:

Business research may be defined as research activities carried out relating to the different
functionaries in the business and corporate world. Business research is a process of acquiring
detailed information of all the areas of business and using such information in maximizing the
sales and profit of the business. Such a study helps companies determine which product/service is
most profitable or in demand. The definition of business research involves acquiring information
and knowledge for professional or commercial purposes such as determining opportunities and
goals for a business. An example of business research is gathering sales information and writing
a detailed report on marketing and sales.

Business research is a systematic inquiry that provides information to guide managerial

decisions. In other words, it is a process of planning, acquiring, analyzing, and disseminating
relevant data, information, and insights to decision makers in ways that mobilize the
organization to take appropriate actions that, in turn, maximize performance.

This entire process by which we attempt to solve problems is called research. Thus,
research involves a series of well-thought-out and carefully executed activities that will enable
the manager to know how organizational problems can be solved, or at least considerably
minimized. Business research is an organized, systematic, data-based, critical, objective,
scientific inquiry or investigation into a specific problem, undertaken with the purpose of finding
answers or solutions to it. Fundamentally, research provides the needed information that guides
managers to make informed decisions to successfully deal with problems.

When you run a business, there are several things you can research on. You research
everything from market shares to sales. Business research helps you make intelligent and
informed decisions and identify the key areas to invest your money in.

For example, an automobile company plans to unveil the latest car model in the market.
For that, they need to develop strategies to explore and monitor customer demand. So, the
company will conduct research to collect information and analyze market trends. This will help
them draw better conclusions and come up with a fine quality car at the right price resulting in a
larger market share.

In business, research is usually primarily conducted to resolve problematic issues in the

areas of accounting, finance, management, and marketing. In Accounting, budget control
systems, practices, and procedures are frequently examined. Inventory costing methods,
accelerated depreciation, time-series behavior of quarterly earnings, transfer pricing, cash
recovery rates, and taxation methods are some of the other areas that are researched.

In Finance, the operations of financial institutions, optimum financial ratios, mergers and
acquisitions, leveraged buyouts, inter corporate financing, yields on mortgages, the behavior of
the stock exchange, etc become the focus of investigation. In Management research may cover
the study of employee attitudes and behaviors, human resources management, the impact of
changing demographics on management practices, production operations management, strategy
formulation, information systems, etc. In Marketing research may address issues relating to
product image, advertising, sales pro- motion, distribution, packaging, pricing, after-sales
service, consumer preferences, new product development, and other marketing aspects.

Qualities of a Good Business Research:

Good business research generates dependable data that are derived by professionally conducted
practices and that can be used reliably for business decision making. But, poor research is
carelessly planned and conducted, resulting in data that a manager can’t use to reduce his or her
decision-making risks. Good business research follows the standards of the scientific method
with the following qualities (characteristics):

1. Purpose clearly defined: The purpose of the business research—the problem involved or
 the decision to be made—should be clearly defined and sharply delineated in terms as
unambiguous as possible. The statement of the decision problem should include its scope,
its limitations, and the precise meanings of all words and terms significant to the
research. Failure of the researcher to do this adequately may raise legitimate doubts in the
minds of research report readers as to whether the researcher has sufficient understanding
of the problem to make a sound proposal attacking it.
2. Research process detailed: The research procedures used should be described in
sufficient detail to permit another researcher to repeat the research. This includes the
steps to acquire participants, informed consent, sampling methods and representativeness,
and data gathering procedures. Omission of significant procedural details makes it
difficult or impossible to estimate the validity and reliability of the data and justifiably
weakens the confidence of the reader in the research itself as well as any
recommendations based on the research.
3. Research design thoroughly planned: The procedural design of the research, and its
choice among competing designs, should be clearly described and carefully planned to
yield results that are as objective as possible. A survey of opinions or recollections ought
not to be used when more reliable evidence is available from documentary sources or by
direct observation. Bibliographic searches should be as thorough and complete as
possible. Experiments should have satisfactory controls, reducing threats to internal
validity and enhancing the probability of external validity (generalizability). Direct
observations should be recorded as soon as possible after the event. Efforts should be
made to minimize the influence of personal bias in selecting and recording data.
4. High ethical standards applied: Researchers often work independently and have
significant latitude in designing and executing projects. A research design that includes
safeguards against causing mental or physical harm to participants and makes data
integrity a first priority should be highly valued. Ethical issues in research reflect
important moral concerns about the practice of responsible behavior in society. Careful
consideration must be given to those research situations in which there is a possibility for
physical or psychological harm, exploitation, invasion of privacy, and/or loss of dignity.
The research need must be weighed against the potential for these adverse effects.
Typically, you can redesign a study, but sometimes you cannot. The researcher should be
prepared for this dilemma.
5. Limitations frankly revealed: The researcher should report, with complete frankness,
flaws in procedural design and estimate their effect on the findings. There are very few
perfect research designs. Some of the imperfections may have little effect on the validity
and reliability of the data; others may invalidate them entirely. A competent researcher
should be sensitive to the effects of imperfect design. The researcher’s experience in
analyzing data should provide a basis for estimating the influence of design flaws. As a
decision maker, you should question the value of research about which no limitations are
reported.
6. Adequate analysis for decision maker’s needs: Analysis of the data should be extensive
enough to reveal its significance, what managers call insights. The methods of analysis
used should be appropriate. The extent to which this criterion is met is frequently a good
measure of the competence of the researcher. Adequate analysis of the data is the most
difficult phase of research for the novice. The validity and reliability of data should be
checked carefully. The data should be classified in ways that assist the researcher in
reaching pertinent conclusions and clearly reveal the findings that have led to those
 conclusions. When statistical methods are used, appropriate descriptive and inferential
techniques should be chosen, the probability of error should be estimated, and the criteria
of statistical significance applied.
7. Findings presented unambiguously: Some evidence of the competence and integrity of
the researcher may be found in the report itself. For example, language that is restrained,
clear, and precise; assertions that are carefully drawn and hedged with appropriate
reservations; and an apparent effort to achieve maximum objectivity tend to leave a
favorable impression of the researcher with the decision maker. Presentation of data
should be comprehensive, reasonably interpreted, easily understood by the decision
maker, and organized so that the decision maker can readily locate critical findings.
8. Conclusions justified: Conclusions should be limited to those for which the data provide
an adequate basis. Researchers are often tempted to broaden the basis of induction by
including personal experiences and their interpretations—data not subject to the controls
under which the research was conducted. Equally undesirable is the all-too- frequent
practice of drawing conclusions from a study of a limited population and applying them
universally. Good researchers always specify the conditions under which their
conclusions seem to be valid.
9. Researcher’s experience reflected: Greater confidence in the research is warranted if the
researcher is experienced, has a good reputation in research, and is a person of integrity.
Were it possible for the reader of a research report to obtain sufficient information about
the researcher, this criterion perhaps would be one of the best bases for judging the
degree of confidence a piece of research warrants and the value of any decision based
upon it. For this reason the research report should contain information about the
qualifications of the researcher.

Good business research has an inherent value only to the extent that it helps management make
better decisions to achieve organizational goals. Interesting information about consumers,
employees, competitors, or the environment might be pleasant to have, but its value is limited if
the information cannot be applied to a critical decision. If a study does not help management
select more effective, more efficient, less risky, or more profitable alternatives than otherwise
would be the case, its use should be questioned. Alternatively, management may have
insufficient resources (time, money, or skill) to conduct an appropriate study or may face a low
level of risk associated with the decision at hand. In these situations, it is valid to avoid business
research and its associated costs in time and money. Business research finds its justification in
the contribution it makes to the decision maker’s task and to the bottom line.

Objective of Business Research:

The ultimate aim of research is to find (search) answer to questions by applying a scientific
research process. Although, there are different research objectives for different research studies,
some general objectives may be mentioned hereunder:

1. To gain familiarity with a phenomenon or to achieve new insights into it (exploratory or

formulative research studies)
2. To describe 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. (studies with this object known as diagnostic research)
 4. To test a hypothesis of a causal relationship between variables. (such studies are known
as hypothesis testing research)

TYPES OF RESEARCH

The essential types of research are as follows:

1. Basic Research:

It is also known as pure or fundamental research.

This research is mainly conducted to increase knowledge base. It is driven purely by
interest and a desire to expand our knowledge.
This type of research tends not to be directly applicable to the real world in a direct way,
but enhances our understanding of the world around us.
Pure research can be exploratory, descriptive or explanatory.
Basic research generates new ideas, principles and theories indifferent fields.
Basic research concentrates on fundamental principles and testing theories.
It is sometimes implicitly said that basic research doesn’t have practical applications. For
example, someone conducting basic research on cheating behavior may design a study
examining whether students from illiterate families cheat more often than students from
literate families.
Notice that the research is not done to reduce cheating or help people who cheat or any
other “applied” aspect, but to increase the understanding of cheating behavior.

2. Applied Research:

Applied research is mainly related with solving practical problems rather than focusing
on knowledge expansion.
It is mainly used to find solutions to problems which occur on a daily basis and develop
new innovative technologies.
The main aim of applied research is to provide better technologies for humans to
enhance their standard of living.
Example: Investigating which treatment approach is the most effective for treatingcancer
patients whereas researching which strategies work best to motivate workers.

3. Quantitative Research:

Quantitative research is generally related with the positivist concept.

It usually involves collecting and converting data into numerical form so that statistical
calculations can be made and conclusions drawn.
Objectivity is very vital in quantitative research.
Therefore, researchers try to avoid their own presence, behavior or attitude affecting the
results (e.g., by changing the circumstances being studied or causing participants to
behave differently).
They also examine their methods and results for any possible bias.
The aim of quantitative research is to develop mathematical models, theories related to
 phenomenon. Quantitative research is mainly used in social sciences.

4. Qualitative Research:

Qualitative research is the approach usually related with the social constructivist concept
which emphasizes the socially constructed nature of reality.
It is about recording, analyzing and attempting to reveal the in debt meaning and
significance of human behavior and experience, including conflicting beliefs, behaviors
and emotions.
The qualitative method tries to answer why and how of decision-making rather than what
and when.
The approach to data collection and analysis is logical but allows for greater flexibility
than in quantitative research.
Data is collected in textual form on the basis of observation and communication with
the participants, e.g. through participant observation, in-depth interviews and focus
groups.
It is not converted into numerical form and is not statistically analyzed.

5. Descriptive Research:

Descriptive research is used to describe characteristics of an observable fact being

studied.
Descriptive studies are structured in such a way that it cannot be changed frequently, so it
can be said that they are rigid in nature.
They cannot identify cause and effect relationship between variables.
Descriptive research answers questions such as who, when, where, what and how.
This type of research describes what exists and may help to reveal new facts and
meaning.
The purpose of descriptive research is to observe, describe and document.

6. Exploratory Research:

Exploratory research is carried out for a problem that has not been clearly defined.
The main aim of this research is to gather initial information which helps to define
problems and recommend hypothesis.
Exploratory research helps to settle on the best research design, data collection method
and selection of subjects.
Exploratory research often relies on secondary research such as reviewing available
literature, or qualitative approaches such as informal discussions with consumers,
employees, management or competitors, and more formal approaches through in- depth
interviews, focus groups, projective methods, case studies or pilot studies.
Exploratory research can mainly be conducted when researchers lack clear idea of the
problem.
The results of exploratory research are not generally useful for decision-making, but they
can provide major insight into a given situation.

7. Historical Research:
 It is defined as the type of research that examines past events or combinations of eventsto
arrive at an account of what has happened in the past.
Historical research is carried out to discover the unknown; answer questions, recognize
the relationship that the past has to the present; record and assess activities of individuals,
agencies, or institutions; and assist in understanding the culture in which we live.
Historical research can exhibit patterns that occurred in the past and over time which can
facilitate us to see where we came from and what kinds of solutions we have usedin the
past.
We usually will notice that what we do today is expressly rooted in the past. Historical
research involves the process of collecting and reading the research material collected,
and writing the document from the data collected.

8. Experimental Research:

It is commonly used in sciences such as sociology and psychology, physics, chemistry,

biology, medicine, etc.
It is a collection of research designs which use manipulation and controlled testing to
understand fundamental processes.
Usually, one or more variables are manipulated to establish their effect on a dependent
variable.
Experimental Research is mainly used when: there is time priority in a causal
relationship (cause precedes effect) or there is uniformity in a causal relationship (a cause
will always lead to the same effect) or the magnitude of the correlation is great.
Experimental research is important to society as it helps us to improve our daily lives.
(Note: Researchers use various research methods to collect relevant data so that business
enterprises can make wiser decisions. There are two main types of methods to carry out business
research.
Quantitative Business Research
It is a method of analyzing the largest group that meets your target goals. It uses
mathematical techniques and data to explain the important stats about your business and
market. Usually, this data uses multiple-choice questionnaires that can help you be
profitable with your sales. For instance, quantitative research can answer questions such
as;
Are your customers aware of the services or products you offer?
How many people are interested in buying your products or services?
Who are your best customers and what are their buying habits?
How long the visitor stays on your website, and which is their exit page?
The result of quantitative business research is in the numerical form, such as;
40% of customers rate the new product as “attractive”
70% of prospective customers use the Internet to book their hotel room
6 out of 10 customers will buy a new food product after trying the free in-store sample
The quantitative research methods include various surveys such as postal, telephone, online,
and face-to-face.
Qualitative Business Research
This business research focuses on attitudes, intentions, and beliefs. Qualitative research includes
questions such as “Why”? or “How?”.
The aim of this research is to gain insights into customers’ distinct behaviors and response to a
new product. This research is beneficial for your new products and marketing initiatives to test
reactions and rectify your approach.
You can collect qualitative data using common methods such as case studies, focus groups, and
interviews. This data is often valuable but can be time-consuming and expensive to collect,
especially for a small business or a startup.)

IMPORTANCE OF RESEARCH IN BUSINESS DECISION MAKING

Business research helps businesses understand their customers’ buying patterns, preferences and
pain points, gain deeper insights into the contenders, current market trends, and demographics.
Using effective strategies to understand the demand and supply of the market, businesses can
always stay ahead of the competition. Using business research, they can reduce costs and design
solutions that aim at the market demand and their target audience.

In business chances of failures are less with business research as it gives an idea of the target
customers and the perfect time to launch a product. In addition, with a deep understanding of
brand value, businesses can constantly innovate to meet customer requirements. This is essential
to grow market share and revenue. The SWOT analysis in business research is crucial to make an
informed decision and making the business a huge success.
Research is the building block of any business. It acts as a catalyst to thrive in the market. So,
never underestimate the value of market research and leverage its benefits to give an extra edge
to your business.

Besides the above the following are the importance of Business Research:

1. A research problem refers to a complexity which a researcher or a scientific community or an

industry or a government organization or a society experiences. It may be a theoretical or a
practical situation. It calls for a systematic understanding and possible solution.

2. Research on existing theories and concepts help us recognize their range and applications.

3. It is the bank of knowledge and provides strategy for solving problems.

4. It is important in industry and business for higher profits, output, efficiency and to improve
the quality of products.

5. Mathematical and logical research on business and industry reduces the problems in them.

6. It leads to the identification and categorization of new materials, new living things, new stars,
etc.

7. Inventions can be done through research 8. Social research helps find answers to social
problems. They explain social phenomena and try to find solution to social problems.

ETHICS IN BUSINESS RESEARCH

Ethics in business research refers to a code of conduct or expected societal norm of behavior
while conducting research. Ethical conduct applies to the organization and the members that
sponsor the research, the researchers who undertake the research, and the respondents who
provide them with the necessary data. The observance of ethics begins with the person
instituting the research, who should do so in good faith, pay attention to what the results indicate,
and surrendering the ego, pursue organizational rather than self-interests. Ethical conduct should
also be reflected in the behavior of the researchers who conduct the investigation, the
participants who provide the data, the analysts who provide the results, and the entire research
team that presents the interpretation of the results and suggests alternative solutions.

Thus, ethical behavior pervades each step of the research process—data collection, data analysis,
reporting, and dissemination of information on the Internet, if such an activity is undertaken.
How the subjects are treated and how confidential information is safeguarded are
all guided by business ethics. The American Psychological Association has established certain
guidelines for conducting research, to ensure that organizational research is conducted in an
ethical manner and the interests of all concerned are safeguarded.

As in other aspects of business, all parties in research should exhibit ethical behavior. Ethics are
norms or standards of behavior that guide moral choices about our behavior and our
relationships with others. The goal of ethics in research is to ensure that no one is harmed or
suffers adverse consequences from research activities. This objective is usually achieved.
However, unethical activities are pervasive and include violating nondisclosure agreements,
breaking participant confidentiality, misrepresenting results, deceiving people, using invoicing
irregularities, avoiding legal liability, and more.

The recognition of ethics as a problem for economic organizations is repeatedly revealed in

surveys. Despite an increase in awareness of formal ethics programs and the presence of
written ethical codes of conduct there is a reporting of ethical misconduct. There is no single
approach to ethics. Advocating strict adherence to a set of laws is difficult because of the
unforeseen constraint put on researchers. Alternatively, relying on each individual’s personal
sense of morality is equally problematic.

Consider the clash between those who believe death is deliverance from a life of suffering and
those who value life to the point of preserving it in definitely through mechanical means. Each
value system claims superior knowledge of moral correctness. Clearly, a middle ground
between being completely code governed or relying on ethical relativism is necessary. The
foundation for that middle ground is an emerging consensus on ethical standards for researchers.
Codes and regulations guide researchers and sponsors. Review boards and peer groups help
researchers examine their research proposals for ethical dilemmas.

Many design-based ethical problems can be eliminated by careful planning and constant
vigilance. In the end, responsible research anticipates ethical dilemmas and attempts to adjust the
design, procedures, and protocols during the planning process rather than treating them as an
afterthought. Ethical research requires personal integrity from the researcher, the project
manager, and the research sponsor. Integrity in research is vital.
(Research Design)

A research design is a systematic plan to study a scientific problem. The design of a study
defines the study type (descriptive, correlation, semi-experimental, experimental, review, meta-
analytic) and sub-type (e.g., descriptive - longitudinal case study), research question, hypotheses,
independent and dependent variables, experimental design, and, if applicable, data collection
methods and a statistical analysis plan. Research design is the framework that has been created to
seek answers to research questions.

Need and Importance of Research Design

Research design carries an important influence on the reliability of the results attained. It
therefore provides a solid base for the whole research. It is needed due to the fact that it
allows for the smooth working of the many research operations. This makes the research as
effective as possible by providing maximum information with minimum spending of effort,
money and time. For building of a car, we must have a suitable blueprint made by an expert
designer. In a similar fashion, we require a suitable design or plan just before data collection and
analysis of the research project. Planning of design must be carried out cautiously as even a small
mistake might mess up the purpose of the entire project. The design helps the investigator to
organize his ideas, which helps to recognize and fix his faults, if any.

Experimental Research Design

A blueprint of the procedure that enables the researcher to maintain control over all factors that
may affect the result of an experiment. In doing this, the researcher attempts to determine or
predict what may occur. Experimental research is often used where there is time priority in a
causal relationship (cause precedes effect), there is consistency in a causal relationship (a cause
will always lead to the same effect) and the magnitude of the correlation is great. The classic
experimental design specifies an experimental group and a control group. The independent
variable is administered to the experimental group and not to the control group, and both groups
are measured on the same dependent variable. Subsequent experimental designs have used more
groups and more measurements over longer periods. True experiments must have control,
randomization and manipulation.

Cross - Sectional Research Design

The cross-sectional design can only measure differences between or from among a variety of
people, subjects, or phenomena rather than a process of change. As such, researchers using this
design can only employ a relatively passive approach to making causal inferences based on
findings.
Quantitative versus Qualitative Research Design

Quantitative Research Design Qualitative Research Design

 The aim is to classify features, count  The aim is a complete, detailed
them, and construct statistical models description
in
an attempt to explain what is observed
  The researcher knows clearly in  The researcher may only know roughly
advance what he/she is looking for in advance what he/she is looking for
 Recommended during latter phases of  Recommended during earlier phases of
research projects research projects
 All aspects of the study are carefully  The design emerges as the study unfolds
designed before data is collected
 The researcher uses tools such as  The researcher is the data gathering
questionnaires or equipment to collect instrument
numerical data
 Data are in the form of numbers and  Data are in the form of words, pictures
statistics or objects
 Objective – seeks precise measurement  Subjective – individuals‘ interpretation
and analysis of target concepts, e.g. of
uses events is important, e.g. uses participant
surveys, questionnaires etc. observation, in-depth interviews etc.
 Quantitative data are more efficient, able  Qualitative data are more rich, time
to test hypotheses, but may miss consuming, and less able to be
contextual detail generalized

Descriptive Research Design

It help to provide answers to the questions of who, what, when, where, and how associated with a
particular research problem; a descriptive study cannot conclusively ascertain answers to why.
Descriptive research is used to obtain information concerning the current status of the
phenomena and to describe "what exists" with respect to variables or conditions in a situation.
Research design in case of descriptive and diagnostic research studies
Descriptive research studies are those studies which are concerned with describing the
characteristics of a particular individual, or of a group, whereas diagnostic research studies
determine the frequency with which something occur or its association with something else. The
studies concerning whether certain variables are associated are examples of diagnostic research
studies. As against this, studies concerned with specific predictions, with narration of facts and
characteristics concerning individual, group or situation are all examples of descriptive research
studies. Most of the social research comes under this category. In descriptive as well as in
diagnostic studies, the researcher must be able to define clearly, what he wants to measure and
must find adequate methods for measuring it along with a clear cut definition of ‘population’ he
wants to study. Since the aim is to obtain complete and accurate information in the said studies,
the procedure to be used must be carefully planned. The research design must make enough
provision for protection against bias and must maximize reliability, with due concern for the
economical completion of the research study. The design in such studies must be rigid and not
flexible and must focus attention on the following:
 Formulating the objective of the study (what the study is about and why is it being made?)
 Designing the methods of data collection (what techniques of gathering data will be adopted?)
 Selecting the sample (how much material will be needed?)
 Collecting the data (where can the required data be found and with what time period
should the data be related?)
 Processing and analysing the data.
 Reporting the findings.

Longitudinal Research Design

It follows the same sample over time and makes repeated observations. For example, with
longitudinal surveys, the same group of people is interviewed at regular intervals, enabling
researchers to track changes over time and to relate them to variables that might explain why the
changes occur. Longitudinal research designs describe patterns of change and help establish the
direction and magnitude of causal relationships. Measurements are taken on each variable over
two or more distinct time periods. This allows the researcher to measure change in variables over
time. It is a type of observational study sometimes referred to as a panel study.

Causal Research Design

Causality studies may be thought of as understanding a phenomenon in terms of conditional
statements in the form, “If X, then Y.” This type of research is used to measure what impact a
specific change will have on existing norms and assumptions. Most social scientists seek causal
explanations that reflect tests of hypotheses. Causal effect (nomothetic perspective) occurs when
variation in one phenomenon, an independent variable, leads to or results, on average, in
variation in another phenomenon, the dependent variable.
Conditions necessary for determining causality
• Empirical association: a valid conclusion is based on finding an association between the
independent variable and the dependent variable.
• Appropriate time order: to conclude that causation was involved, one must see that cases
were exposed to variation in the independent variable before variation in the dependent variable.
• Non-spuriousness: a relationship between two variables that is not due to variation in a
third variable.

Exploratory Research Design

It is conducted about a research problem when there are few or no earlier studies to refer to or
rely upon to predict an outcome. The focus is on gaining insights and familiarity for later
investigation or undertaken when research problems are in a preliminary stage of investigation.
These designs are often used to establish an understanding of how best to proceed in studying an
issue or what methodology would effectively apply to gathering information about the issue.

Research design in case of Exploratory Research Studies

The major emphasis in such studies is on the discovery of ideas and insights. Generally, the
following three methods in the context of research design for such studies are as follows:
(a) The survey of concerning literature: It happens to be the most simple and fruitful method of
formulating precisely the research problem or developing hypothesis. Hypotheses stated by
earlier workers may be reviewed and their usefulness be evaluated as a basis for further research.
It may also be considered whether the already stated hypotheses suggest new hypothesis. In this
way the researcher should review and build upon the work already done by others, but in cases
where hypotheses have not yet been formulated, his task is to review the available material for
deriving the relevant hypotheses from it. Besides, the bibliographical survey of studies, already
made in one’s area of interest may as well as made by the researcher for precisely formulating
the problem. He should also make an attempt to apply concepts and theories developed in
 different research contexts to the area in which he is himself working. Sometimes the works of
creative writers also provide a fertile ground for hypothesis formulation and as such may be
looked into by the researcher.
(b) The Experience survey: It means the survey of people who have had practical experience
with the problem to be studied. The object of such a survey is to obtain insight into the
relationships between variables and new ideas relating to the research problem. For such a survey
people who are competent and can contribute new ideas may be carefully selected as respondents
to ensure a representation of different types of experience. The respondents so selected may then
be interviewed by the investigator. The researcher must prepare an interview schedule for the
systematic questioning of informants. But the interview must ensure flexibility in the sense that
the respondents should be allowed to raise issues and questions which the investigator has not
previously considered. Generally, the experience collecting interview is likely to be long and
may last for few hours. Hence, it is often considered desirable to send a copy of the questions to
be discussed to the respondents well in advance. This will also give an opportunity to the
respondents for doing some advance thinking over the various issues involved so that, at the time
of interview, they may be able to contribute effectively. Thus, an experience survey may enable
the researcher to define the problem more concisely and help in the formulation of the research
hypothesis. This survey may as well provide information about the practical possibilities for
doing different types of research.
(c) The analysis of ‘insight-stimulating’ examples: It is also a fruitful method for suggesting
hypotheses for research. It is particularly suitable in areas where there is little experience to serve
as a guide. This method consists of the intensive study of selected instances of the phenomenon
in which one is interested. For this purpose the existing records, if any, may be examined, the
unstructured interviewing may take place, or some other approach may be adopted. Attitude of
the investigator, the intensity of the study and the ability of the researcher to draw together
diverse information into a unified interpretation are the main features which make this method an
appropriate procedure for evoking insights.
Thus, in an exploratory of formulative research study which merely leads to insights or
hypotheses, whatever method or research design outlined above is adopted, the only thing
essential is that it must continue to remain flexible so that many different facets of a problem
may be considered as and when they arise and come to the notice of the researcher.

THE RESEARCH PROCESS

Several authors have attempted to enumerate the steps involved in the research process,
however, inconclusive. Nevertheless, the research process broadly consists of the following steps
and predominantly follows a sequential order as depicted in figure 1.1.

1. Problem formulation

2. Development of an approach to the problem

3. Research Design

4. Selection of Data collection techniques

5. Sampling techniques
 6. Fieldwork or Data Collection

7. Analysis and interpretation

8. Report preparation and presentation

PROBLEM IDENTIFICATION

The starting point of any research is to formulate the problem and mention the objectives
before specifying any variables or measures. This involved defining the problem in clear terms.
Problem definition involves stating the general problem and identifying the specific components
of the research problem. Components of the research problem include (1) the decision maker and
the objectives (2) the environment of the problem (3) alternative courses of action (4) a set of
consequences that relate to courses of action and the occurrence of events not under the control of
the decision maker and (5) a state of doubt as to which course of action is best. Here, the first two
components of the research problem are discussed whereas others are not well within the scope,
though, not beyond.
Problem formulation is perceived as most important of all the other steps, because of the fact
that a clearly and accurately identified problem would lead to effective conduct of the other steps
involved in the research process. Moreover, this is the most challenging task as the result
yields information that directly addresses the management issue, though, the end result is for the
management to understand the information fully and take action based on it. From this we
understand, that the correctness of the result depends on how well the research takes on, at the
starting point.
Problem formulation refers to translating the management problem into a research problem. It
involves stating the general problem and identifying the specific components of research problem.
This step and the findings that emerge would help define the management decision problem and
research problem.

Research problem cannot exist in isolation as it is an outcome of management decision

problem. The management decision problem may be, for example, to know whether keeping
Saturday a working day would increase productivity. The associated research problem for the
above example may be the impact of keeping Saturday a working day on employee morale. The
task of the researcher is to investigate on employee morale. Hence, it is understood that the
researcher is perhaps, a scientific means, to solve the management problem the decision maker
faces.
ROLE OF INFORMATION IN PROBLEM FORMULATION

Problem formulation starts with a sound information seeking process by the researcher. The
decision maker is the provider of information pertaining to the problem at the beginning of the
research process (problem formulation) as well as the user of the information that germinates at the
end of the research process. Given the importance of accurate problem formulation, the research
should take enough care to ensure that information seeking process should be well within the
ethical boundaries of a true research. The researcher may use different types of information at the
problem formulation stage. They are:
 1. Subjective information termed as those based on the decision maker‟s past experiences,
expertise, assumptions, feelings or judgments without any systematic gathering of facts.
Suchinformation is usually readily available.
2. Secondary information are those collected and interpreted at least once for some specific
situation other than the current one. Availability of this type of information is normally high.
3. Primary information refers to first hand information derived through a formalized research
process for a specific, current problem situation.
In order to have better understanding on problem formulation, the researcher may tend to
categories the information collected into four types. The categorization of the information is done
based on the quality and complexity of the information collected. They are:
1. Facts are some piece of information with very high quality information and a higher degree
of accuracy and reliability. They could be absolutely observable and verifiable. They are
not complicated and are easy to understand and use.
2. Estimates are information whose degree of quality is based on the representativeness of the
fact sources and the statistical procedures used to create them. They are more complex
than facts due to the statistical procedures involved in deriving them and the likelihood of
errors.
3. Predictions are lower quality information due to perceived risk and uncertainty of future
conditions. They have greater complexity and are difficult to understand and use for
decision-making as they are forecasted estimates or projections into the future.
APPROACHES TO THE PROBLEM

The outputs of the approach development process should include the following components: (i)
Objective/theoretical framework (ii) analytical model (iii) Research questions (iv) hypothesis.
Each of these components is discussed below:

(i) Objective/theoretical framework:

Every research should have a theoretical framework and objective evidence. The theoretical
framework is a conceptual scheme containing:
a set of concepts and definitions,
a set of statements that describes the situations on which the theory can be applied ,
a set of relational statements divided into: axioms and theorems
The theoretical evidence is very much imperative in research as it leads to identification of
variables that should be investigated. They also lead to formulating the operational definition of
the marketing problem. An operational definition is a set of procedures that describe the activities
one should perform in order to establish empirically the existence or degree of existence of a
concept.
Operationalising the concept gives more understanding on the meanings of the concepts
specified and explication of the testing procedures that provide criteria for the empirical
application of the concepts. Operational definition would specify a procedure that involves say, for
example, a weighing machine that measures the weight of a person or an object.

(ii) Analytical model:

An analytical model could be referred to as a likeness of something. It consists of
symbols referred to a set of variables and their interrelationships represented in logical
arrangements designed to represent, in whole or in part, some real system or process. It is a
representation of reality making explicit the significant relationships among theaspects. It enables
the formulation of empirically testable propositions regarding the nature of these relationships. An
empirical model refers to research that uses data derived from actual observation or
experimentation.

(iii) Research Questions:

Research questions are refined statements of the specific components of the problem. It
refers to a statement that ascertains the phenomenon to be studied. The research questions should
be raised in an unambiguous manner and hence, would help the researcher in becoming
resourceful in identifying the components of the problem. The formulation of the questions should
be strongly guided by the problem definition, theoretical framework and the analytical model. The
knowledge gained by the researcher from his/her interaction with the decision maker should be
borne in mind as they sometimes form thebasis of research questions.
The researcher should exercise extreme caution while formulation research questions as
they are the forerunner for developing hypothesis. Any flaw in the research questions may lead to
flawed hypothesis. The following questions may be asked while developing research questions:
a) Do I know the area of investigation and its literature?

b) What are the research questions pertinent to the area of investigation?

c) What are the areas that are not explored by the previous researchers?

d) Would my study lead to greater understanding on the area of study?

e) Are enough number of literatures available in this topic area?

f) Is my study a new one thus contributing to the society or has it been done before?

(iv) Hypothesis:
Hypothesis could be termed as tentative answers to a research problem. The structure
of a hypothesis involves conjectural statements relating to two or more variables. They are
deduced from theories, directly from observation, intuitively, or from a combination of these.
Hypothesis deduced from any of the means would have four common characteristics. They should
be clear, value-free, specific and amenable toempirical testing.
Hypothesis could be viewed as statements that indicate the direction of the relationship or
recognition of differences in groups. However, the researcher may not be able to frame hypotheses
in all situations. It may be because that a particular investigation does not warrant a hypothesis or
sufficient information may not be available to develop thehypotheses.