BUSINESS RESEARCH METHODS

Chapter one: An Introduction

 1.1. Meaning of Research

• Research in common parlance refers to a search

for knowledge.
• Once can also define research as a scientific and
systematic search for pertinent information on a
specific topic.
• In fact, research is an art of scientific investigation.
• The advanced learner’s dictionary of current
English lays down the meaning of research as
“a careful investigation or inquiry especially through
search for new facts in any branch of knowledge.”
 Contd..
• Redman and Mory define research as a
“systematized effort to gain new knowledge.”

• Some people consider research as a

movement, a movement from the known to
the unknown. It is actually a voyage of
discovery.

• Research is an academic activity and as such

the term should be used in a technical sense.
 Contd..

• According to Clifford Woody Research comprises

- defining and redefining problems,
- formulating hypothesis or suggested solutions;
- collecting, organizing and evaluating data;
- making deductions and reaching conclusions;
and last carefully testing the conclusions to
determine whether they fit the formulated
hypothesis.
 Contd..

• D. Slesinger and M. Stephenson in the Encyclopedia of

Social Sciences define research as

“the manipulation of things, concepts or symbols for

the purpose of generalizing to extend, correct or verify
knowledge, whether that knowledge aids in
construction of theory or in the practice of an art.”

 In short, the search for knowledge through objective

and systematic method of finding solution to a
problem is research.
 Contd..

• The systematic approach concerning generalization

and the formulation of a theory is also research.
• As such the term ‘research’ refers to the systematic
method consisting of
 enunciating the problem
 formulating a hypothesis
 collecting the facts or data
 analyzing the facts and reaching certain conclusions
either in the form of solutions(s) towards the
concerned problem or in certain generalizations for
some theoretical formulation.
 Contd..

• The word research is composed of two

syllabuses, re and search.

 RE=Is a prefix meaning again, anew or over

again

 SEARCH =Is a verb meaning to examine closely

and carefully, to test and try or to probe.

 Together they form a noun describing a careful,

systematic, patient study and investigation in
some field of knowledge, undertaken to
establish facts or principles.
 1.2. 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 as yet.
• Though each research study has its own specific
purpose, we may think of research objectives as
falling into a number of following broad
groupings:
 Contd..

1. To gain familiarity with a phenomenon or to

achieve new insights into it (studies with this
object in view are termed as exploratory or
formulative research studies);

2. To portray accurately the characteristics of a

particular individual, situation or a group (studies
with this object in view are known as descriptive
research studies);
 Contd..
3. To determine the frequency with which
something occurs or with which it is associated with
something else (studies with this object in view 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).
 1.3. MOTIVATION IN RESEARCH

• What makes people to undertake research? This is a

question of fundamental importance. The possible
motives for doing research may be either one or more of
the following:
 Desire to get a research degree along with its
consequential benefits
 Desire to face the challenge in solving the unsolved
problems, i.e., concern over practical problems initiates
research
 Desire to get intellectual joy of doing some creative work
 Desire to be of service to society
Desire to get respectability.
 1.4. TYPES OF RESEARCH

Research can also be classified from other three

perspectives. However, these perspectives are
not mutually exclusive.
a. The application of the research study;
b. The objectives in undertaking the research and
c. The type of information sought.
 Contd..
• Classification of research based on Application of
the research study
– From this perspective, there are two broad categories of
researches: pure research and applied research.
a. Pure research involves developing and testing
theories and hypothesis that are intellectually
challenging to the researcher but may or may not
have practical application at the present time or in
the future.
• The knowledge produced through pure research is
sought in order to add to the existing body of
knowledge of any branch of knowledge.
 Contd…
b. Applied researches are conducted to solve the
practical problems or concerns such as for policy
formulation, administration, and the enhancement of
understanding of a phenomenon.
• Most of the researches in the social sciences are
applied researches.
• Applied research aims at finding a solution for an
immediate problem facing a society or an
industrial/business organization, whereas fundamental
research is mainly concerned with generalizations and
with the formulation of a theory.
 Contd…
• Classification of researches based on Objectives of the study
a. Descriptive Research
– Its major purpose is description of the state of affairs
as it exists at present.
– In social science and business research it is often
called expost fact research.
– Researcher has no control over the variables, he
can only report what has happened or what is
happening.
– Also includes attempts by researchers to discover
causes even when they can not control the
variables.
 Contd…

• Most ex post facto research projects are used for

descriptive studies in which the researcher seeks
to measure such items as, for example, frequency
of shopping, preferences of people, or similar
data.
• Ex post facto studies also include attempts by
researchers to discover causes even when they
cannot control the variables.
• In analytical research, on the other hand, the
researcher has to use facts or information already
available, and analyze these to make a critical
evaluation of the material.
 Contd…
b. Correlational Research
• Its main emphasis is to discover or establish the
existence of a relationship/association/
interdependence between two or more aspects of
a situation.
• Examples
 What is the relationship between an advertising
campaign and the sale of a product?
 What is the relationship between stressful living
and the incidence of heart attacks?
 What is the relationship between technology
and employment?
 Contd..

c. Explanatory Research
• attempts to clarify why and how there is a
relationship between two aspects of a
situation or phenomenon.
• This type of research attempts to explain, for
example, why stressful living results in heart
attacks; or how the home environment affects
children’s level of academic achievement.
 Contd..

d. Exploratory Research
• Is carried out to investigate the possibilities of
undertaking a particular research study.
• Is also called a ‘feasibility study’ or a ‘pilot study’.
• It is usually carried out when a researcher wants
to explore areas about which s/he has little or no
knowledge.

• Exploratory studies are also conducted to

develop, refine and/or test measurement tools
and procedures.
 Contd..
• Classification of researches based on the type
of information Sought
a. Quantitative Research
– Is based on the measurement of quantity or
amount.
– Is applicable to phenomena that can be expressed
in terms of quantity.
 Contd…
b. Qualitative Research
– Is concerned with qualitative phenomenon,
i.e., phenomena relating to or involving quality
or kind.
– Is especially important in behavioral sciences
where the aim is to discover the underlying
motives of human behavior.
1.5. Research Process
 Contd…

1. Formulating the research problem

• At the very outset the researcher must single out
the problem he wants to study, i.e., he must
decide the general area of interest or aspect of a
subject-matter that he would like to inquire into.

• Initially the problem may be stated in a broad

general way and then the ambiguities, if any,
relating to the problem be resolved.
 Contd…
• The formulation of a general topic into a specific
research problem, thus, constitutes the first step
in a scientific enquiry.

• Essentially two steps are involved in formulating

the research problem, viz., understanding the
problem thoroughly, and rephrasing the same
into meaningful terms from an analytical point
of view.
 Contd..

• The best way of understanding the problem is to

discuss it with one’s own colleagues or with
those having some expertise in the matter.

• In an academic institution the researcher can

seek the help from a guide who is usually an
experienced man and has several research
problems in mind.
 Contd..

• The researcher must at the same time examine all

available literature to get himself acquainted with
the selected problem.
• He may review two types of literature—the
conceptual literature concerning the concepts and
theories, and the empirical literature consisting of
studies made earlier which are similar to the one
proposed.
• The basic outcome of this review will be the
knowledge as to what data and other materials
are available for operational purposes
 Contd..

• After this the researcher rephrases the problem

into analytical or operational terms i.e., to put the
problem in as specific terms as possible.

• This task of formulating, or defining, a research

problem is a step of greatest importance in the
entire research process.

• The problem to be investigated must be defined

unambiguously for that will help discriminating
relevant data from irrelevant ones
 Contd..

• Formulating a research problem is the first and

most important step in the research process.

• Formulation of the problem means defining

the problem precisely.

• Formulation of problem is essential because

when the problem is formulated, an
appropriate technique can easily be applied to
generate alternative solutions.
• In other words, a problem defined is half
solved.
 Contd…
• Formulation of a problem involves the following
steps:
1. Statement of the problem in a general way
2. Understanding the nature of the problem
3. Surveying the available literature
4. Developing the idea through discussion
5. Rephrasing the research problem into a
working proposition.
 Contd…
2. Extensive literature survey:
• The researcher should undertake extensive
literature survey connected with the problem
• Literature review has three functions:
• Bringing clarity and focus to the research
problem
• Improving the methodology
• Broadening the researcher knowledge in
the research area.
 Contd..

3. Development of Working Hypothesis

• After extensive literature survey, researcher
should state in clear terms the working
hypothesis.
• Working hypotheses is tentative assumption
made in order to draw out and test its logical
or empirical consequences.
• Hypotheses should be very specific and
limited to the piece of research in hand
because it has to be tested.
 Contd..

• The role of hypotheses is to guide the

researcher by delineating the area of research
and keep him on the right track.

• It sharpens his thinking and focuses attention

on the more important facets of the problem.

• It also indicates the type of data and the type

of methods of data analysis to be used.
 Contd..

4. Preparing the Research Design

• Research design is defined as a blueprint or
detailed plan for how a research study is to be
completed, operationalizing variables so they
can be measured, selecting a sample of
interest to study, collecting data to be used as
a basis for testing hypothesis and analyzing
the results.
• It is the complete scheme or programme of
the research.
 Contd..

• A research design should include the

following:
a) The logistical arrangements that you
purpose to undertake
b) The measurement procedures
c) The sampling strategy
d) The frame of analysis
e) Time frame
 Contd…
5. Determining Sampling Design
All the items under consideration in any field of
inquiry constitute a universe or population.
• A complete enumeration of all the items in the
population is known as a census inquiry.
• Because of the difficulty, relative inaccuracy
and biasness related to census study
determining sample, few elements from the
population, becomes mandatory.
 Contd..
• In such cases, the researcher must decide the
way of selecting a sample or what is popularly
known as the sample design.

• In other words, a sample design is a definite

plan determined before any data are actually
collected for obtaining a sample from a given
population.
 Contd..

• Samples can be either probability samples or

non-probability samples.

• With probability samples each element has

probability of being included in the sample but
in the non-probability samples do not allow the
researcher to determine this probability.
 Contd..

• Probability samplings are those based on

simple random sampling, systematic sampling,
stratified sampling, cluster/area sampling
whereas non-probability samples are those
based on convenience sampling, judgment
sampling and quota sampling techniques.
 Contd..

6. Collecting the data

• There are several ways of collecting the
appropriate data which differ considerably in
context of money (costs), time and other
resources at the disposal of the researcher.
• Primary data can be collected either through
experiments or through survey.
 Contd..

• In the case of a survey, data can be collected

by any one of the following specific ways:
1. Observation
2. Interview
3. Questionnaire
4. Schedule
 Contd..

• The researcher should select one of these

methods of collecting data taking in to
consideration
a) The nature of investigation
b) Objective and scope of the inquiry
c) Financial resources
d) Available time
e) The desired degree of accuracy.
 Contd…

7. Execution of the project

The researcher should see, during this phase
that the project is executed in a systematic
manner and in time.
 Contd..

8. Analysis of Data
• The analysis of data requires a number of
closely related operations such as:
a) Establishment of categories,
b) Coding,
c) Tabulation and
d) Drawing statistical inferences.
 Contd…
9. Hypothesis Testing
• After analyzing the data, the researcher is in a
position to test the hypothesis, if any, he/she had
formulated earlier.
• Do the facts support the hypotheses or they
happen to be contrary?
• Various tests, such as Chi square test, t-test, F-test may be
applied
 Contd…
10. Generalization and Interpretation
• If a hypotheses is tested and accepted, it may
be possible for the researcher to arrive at
generalization, i.e., to build a theory.

• If the researcher had no hypotheses to start

with, she/he might seek to explain his findings
on the basis of some theory
 Contd…

11. Preparation of the Research Report

• Finally, the researcher has to prepare the
report of what has been done by him
following the appropriate formats and
appropriate language.
 1.6. Criteria of Good Research

• Whatever may be the types of research works

and studies, one thing that is important is that
they all meet on the common ground of
scientific method employed by them.

• One expects scientific research to satisfy the

following criteria:
 Contd…

Purpose clearly defined.

Research process detailed.
Research design thoroughly planned.
High ethical standards applied.
Limitations frankly revealed.
Adequate analysis for decision maker’s needs.
Findings presented unambiguously.
Conclusions justified.
Researcher’s experience reflected.
 Contd..

• In other words, we can state the qualities of a

good research as under:
 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
does reject the use of guessing and intuition in
arriving at conclusions.
 Contd…

• 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
 Contd..

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.

Good research is replicable: This characteristic

allows research results to be verified by
replicating the study and thereby building a
sound basis for decisions.
 1.7. Research Method and Methodology
Research Method Research Methodology
• Research Method implies the • Research methodology signifies
methods employed by the way to efficiently solving research
researcher to conduct research. problems.
• Research method pertains to all • Research Methodology, as its name
those methods, which a researcher suggest is the study of methods, so
employs to undertake research as to solve the research problem.
process, to solve the given problem. • It is the science of learning the way
• The techniques and procedure, that research should be performed
are applied during the course of systematically.
studying research problem are • It refers to the rigorous analysis of
known as the research method. the methods applied in the stream
• It encompasses both qualitative and of research, to ensure that the
quantitative method of performing conclusions drawn are valid,
research operations, such as survey, reliable and credible too.
case study, interview, questionnaire, • It also clarifies the reason for using
observation, etc. a particular method or technique,
and not other.
 Contd..
Methods Methodology
• Are defined as the methods or • Provides an explanation and 
techniques that are used to gather rationale behind the methods
evidence and conduct research. employed in said research.

• Involves the acquisition of knowledge

• Involves conducting surveys,
surrounding various techniques used
interviews, experiments, etc. to conduct research such as surveys,
interviews, experiments, etc.
• The main objective is to discover
solutions to research problems. • The main objective is to use the
correct procedures to discover
• Narrow scope of practice (i.e., solutions to research problems.
consists of various research
strategies, methods, techniques, • Much wider scope of practice, which
tools, etc.) includes the research methods.
 Chapter 2
Formulating Research Problem and Hypothesis

2.1.Meaning of the research problem

• In research, the first and foremost step happens
to be that of selecting and properly defining a
research problem.

• A research problem refers to some difficulty which

a researcher experiences in the context of either a
theoretical or practical situation and wants to
obtain a solution for the same.
 Contd..

• Usually we say that a research problem does

exist if the following conditions are met:
1. There must be an individual or a group which
has some difficulty or the problem.
2. There must be some objective(s) to be
attained. If one wants nothing, one cannot
have a problem.
3. There must be an alternative means( or the
course of action) for obtaining the objective(s)
one wishes to attain.
 Contd…

4. There must remain some doubt in the mind of

a researcher with regard to the selection of
alternatives.
5. There must be some environment(s) to which
the difficulty pertains.
 2.2. Selecting the problem
• The identification of a research problem is an
important phase of the entire research
process.
• Therefore, a considerable care must be taken
while selecting a research problem.
• It requires a great deal of time, energy, and
logical thinking.

• The following points may be observed by a

researcher in selecting a research problem or
a subject for research:
 Contd…

 Subject which is overdone should not be normally

chosen, for it will be a difficult task to throw any
new light in such a case.
 Controversial subject should not become the
choice of an average researcher.
 Too narrow or too vague problems should be
avoided.
 The subject selected for research should be
familiar and feasible so that the related research
material or sources of research are within one’s
reach.
 Contd…

 The importance of the subject, the qualifications

and the training of a researcher, the costs
involved, the time factor are few other criteria
that must also be considered in selecting a
problem.
In other words, before the final selection of a
problem is done, a researcher must ask himself the
following questions:
(a) Whether he is well equipped in terms of his
background to carry out the research?
(b) Whether the study falls within the budget he can
afford?
 Contd…
(c) Whether the necessary cooperation can be
obtained from those who must participate in
research as subjects?
• If the answers to all these questions are in the
affirmative, one may become sure so far as the
practicability of the study is concerned.
 Contd..
 The selection of a problem must be preceded by
a preliminary study.
• This may not be necessary when the problem
requires the conduct of a research closely similar
to one that has already been done.
• But when the field of inquiry is relatively new
and does not have available a set of well
developed techniques, a brief feasibility study
must always be undertaken.
 Contd..
• In general, When selecting a research problem/topic
there is a number of considerations to keep in mind.
These considerations are:
Interest
Magnitude-(scope)
Measurement of concepts-Do not use concepts in
your research problem that you are not sure how
to measure.
Level of expertise-Make sure you have an adequate
level of expertise for the task you are proposing.
Relevance
Availability of data
Ethical issues
 Contd…

• Formulation of a problem involves the following

steps/techniques involved in defining a problem:
Statement of the problem in a general way
Understanding the nature of the problem
Surveying the available literature
Developing the idea through discussion
Rephrasing the research problem into a working
proposition.
 Contd…
• In addition to what has been stated above, the
following points must also be noted while
defining a research problem:
1.Technical terms and words or phrases should be
clearly defined.
2.Basic assumptions or postulates (if any) relating
to the research problem should be clearly stated.
3.A straight forward statement of the value of the
investigation (i.e., the criteria for the selection of
the problem) should be provided.
 Contd…

4. The suitability of the time period and the

sources of the data available must also be
considered .
5. The scope of the investigation or the limits
within which the problem is to be studied
must be mentioned explicitly.
2.3. Importance of formulating a research problem

 It determines the research destine. It indicates a

way for the researcher. Without it a clear and
economical plan is impossible.

 Research problem is like the foundation of a

building. The research problem serves as the
foundation of a research study: if it is well
formulated, one can expect a good study to
follow.
 Contd..

 The way you formulate your research problem

determines almost every step that follows:
• The type of study design that can be used
• The type of sampling strategy that can be
employed
• The research instrument that can be used; and
• The type of analysis that can be undertaken.
 The quality of the research report (output of the
research undertakings) is dependent on the
quality of the problem formulation.
 2.4. Hypothesis Formulation
The meaning of Hypotheses
• The word Hypothesis is composed of two words,
‘hypo’ and ‘thesis’.
• Hypo means under or below and thesis means a
reasoned theory or rational view point. Thus
hypothesis would mean a theory which is not
fully reasoned.
• Hypothesis is a set of suggested tentative
solution of a research problem.
 Contd…

• Hypothesis is a tentative statement about

something, the validity of which is usually
unknown.

• A hypothesis is a proposition, condition, or

principle which is assumed perhaps without
belief.
 2.5.Importance of Hypotheses

a) It places clear and specific goals before the

researcher.
• These clear and specific goals provide the
investigator with a basis for selecting
samples and research procedures to meet
these goals.
b) It sensitizes the individual facts and
conditions that might otherwise be
overlooked.
 Contd…
c) It provides direction to research
• It defines what relevant and what is
irrelevant. Thus it prevents the review of
irrelevant literature and the collection of
useless or excess data.
• It not only prevents wastage in the collection
of data, but also ensures the collection of the
data necessary to answer the question posed
in the statement of the problem.
 Contd…

d) It serves as a framework for drawing

conclusions.
• It makes possible the interpretation of data in
the light of the tentative proposition.
• It provides the outline for setting conclusions
in a meaningful way.
e) It prevents blind research.
• It prevents indiscriminate gathering of data
which may later turnout to be irrelevant.
 2.6. Characteristics of Good Hypotheses

• There are a number of considerations to

keep in mind, as they are important, for valid
verification, when constructing hypotheses.
a) A hypothesis should be simple, specific, and
conceptual clear.
b) A hypothesis should be capable of verification.
c) A hypothesis should be related to the body of
knowledge.
 Contd..

d) A hypothesis should be operationalisable.

• That is, it can be expressed in terms that can
be measured. If it can not be measured, it
can not be tested and hence no conclusions
can be drawn.
 2.7. Types of Hypotheses

• Theoretically there should be only one type of

hypothesis, that is the research hypotheses-the
basis for your investigation.
• However, because of the convention in scientific
inquiries and because of the wording used in the
construction of a hypothesis, hypothesis can be
classified in to several types.
• Broadly, there are two categories of hypothesis:
• Research Hypothesis
• Null Hypothesis
Contd…
 Contd…

• The formulation of alternate hypothesis is a

convention in scientific inquiries. Its main
function is to explicitly specify the relationship
that will be considered as true in case the
research hypothesis proves to be wrong.

• Again, as convention a null hypotheses or

hypotheses of no difference is formulated as
an alternate hypotheses.
 Contd..
• There may be some confusion between null and
research hypothesis as the null hypothesis is
classified under research hypothesis as well.

• Any hypothesis including null hypothesis can

become the basis of an inquiry. When a null
hypothesis becomes the basis of an
investigation, it becomes a research hypothesis.
 Contd..
• Null Hypothesis -indicates that there is no
difference in the proportion of the population. It
is usually written as Ho.

• A hypothesis in which a researcher stipulates that

there will be a difference but does not specify its
magnitude is called a hypothesis of difference.
 Contd..
• The researcher might have enough knowledge
about the topic in hand to speculate almost the
exact prevalence of the situation in quantitative
units. Such type of hypothesis is called a
hypothesis of point –prevalence.

• A hypothesis that speculates the extent of a

relationship in terms of the effect of different
independent variable on the dependent variable
is known as hypothesis of association.
 Contd..

• Based on the following example we can

differentiate the types of hypotheses
• Suppose you want to study the smoking pattern
in a community in relation to gender
differentials. The following hypotheses could be
constructed.
a. There is no significance difference in the
proportion of male and female smokers in the
study population.
b. A greater proportion of females than males are
smokers in the study population.
 Contd..

c. Sixty percent of females and thirty percent of

males in the study population are smokers.
e. There are twice as many female smokers as
male smokers in the study population.
 Procedures for Hypotheses Testing
• To test hypothesis means to tell (on the basis of
the data that the researcher has collected)
whether or not the hypothesis seems to be valid.

• Procedures in hypothesis testing refers to all those

steps that we undertake for making a choice
between the two actions i.e., rejection and
acceptance of a null hypothesis.
 Contd…

• The various steps involved in hypothesis

testing are stated below:
1) Making a formal statement
2) Selecting a significance level
3) Deciding the distribution to use
4) Computing an appropriate value
5) Calculation of the probability
6) Comparing the probability
7) Making the decision
 Errors in Hypothesis Testing

• When a hypothesis is tested, there are four

possible outcomes:
a) The hypothesis is true but our test leads to its
rejection.
b) The hypothesis is false but our test leads to its
acceptance.
c) The hypothesis is true and our test leads to its
acceptance.
d) The hypothesis is false and our test leads to its
rejection.
 Contd…
• Of these four possibilities, the first two lead to an
erroneous decision. The first possibility leads to a
Type I error and the second possibility leads to a
Type II error.