Business Research Methods

Chapter 1

I keep six honest serving men, (they

taught me all I knew), their names are
and
what, and why, and
and where and when,
how,
who.
--Rudyard Kipling

Business Research

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 involves establishing objectives and gathering relevant

information to obtain the answer to a business issue. You can conduct
business research to answer a business-related question, such as: What is
the target market of my product? Business research can also be used to
solve a business-related problem, such as determining how to decrease the
amount of excess inventory on hand. Adequate planning and informationgathering are essential to derive results for your business.

A business research method refers to a set of research techniques that

companies employ to determine whether a specific business endeavor is
worth their time and effort. Additionally, research methods help companies
establish the viability of business success and choose an appropriate
marketing approach for their products and services.

Role and Objective of Business Research

Management Tool
Source of Information
Redefining Perceptions
Risk Management
Shape strategies
Achieve Competitive Advantage
Evaluate Market Trends
Merging Cost
Linking Customers

Role and Objective of Business Research

Helps in decision making

o Identify customer requirements
o Analyze consumer behavior and satisfaction levels
o Find out potential openings
o Choose the target market
o Develop market segmentations
o Deploy marketing and sales activities
o Track market performance
o Manage expenses, pricing and costs
o Forecast external factors affecting the business

To enhance the effectiveness of decision-making, companies also implement

processes for conducting continuous business research.
o

Problems Encountered by Researcher

Uncontrollable variables
Human tendencies
Time and money
Lack of computerization
Insufficient interaction between university research departments
and business establishments
Lack of confidence on the part of business units to give information

Types of Research

General
Classificati
on

Nature of
Study

Purpose
of Study

General Classification
Types of research methods can
two quantitative and qualitative categories.

be

broadly

divided

into

Quantitative research describes, infers, and resolves problems using numbers.

Emphasis is placed on the collection of numerical data, the summary of those
data and the drawing of inferences from the data
Qualitative research, on the other hand, is based on words, feelings, emotions,
sounds and other non-numerical and unquantifiable elements. It has been
noted that information is considered qualitative in nature if it cannot be
analysed by means of mathematical techniques. This characteristic may also
mean that an incident does not take place often enough to allow reliable data
to be collected

Nature of Study
Types of the research methods according to the nature of research can
be divided into two groups: descriptive and analytical. Descriptive
research usually involves surveys and studies that aim to identify the
facts. In other words, descriptive research mainly deals with the
description of the state of affairs as it is at present", and there is no
control over variables in descriptive research.
Analytical research, on the other hand, is fundamentally different in a
way that the researcher has to use facts or information already
available and analyse these in order to make a critical evaluation of the
material.

Purpose of the Study

According to the purpose of the study, types of
research methods can be divided into two categories:
Applied Research and Fundamental Research Applied
Research is also referred to as an action research and
the fundamental research is sometimes called as basic
research .
Similarity between applied and fundamental research
relate to the adoption of a systematic and scientific
procedure to conduct the study .

Basic Research

Attempts to expand the limits of knowledge.

Not directly involved in the solution to a pragmatic problem

Basic research is another type of research, and it is driven purely by

curiosity 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. So, the real
difference between the two types of research is what they will be used
for. Will the research be used to help us understand a real world
problem and solve it, or will the research further our general
information?.

Basic Research Evaluate

Investigation and analysis focused on a better or fuller understanding
of a subject, phenomenon, or a basic law of nature instead of on a
specific practical application of the results.
Example

How many people completed the programme ?

Are the funds being utilized properly .

Applied Research

Conducted when a decision must be made about a specific real-life

problem

Applied research is one type of research that is used to answer a

specific question that has direct applications to the world. This is the
type of research that solves a problem. We will look at an example
later.

Applied Research Examples

Should McDonalds add Italian pasta dinners to its menu?

Business research told McDonalds it should not?
Should Procter & Gamble add a high-priced home teeth bleaching
kit to its product line?
What is causing increased poverty?

Difference between Applied Research and Fundamental (Basic) Research

Difference between applied and fundamental
or basic research is straightforward findings of applied research can be applied to r
elated issues, whereas fundamental studies are used simply to explore certain issues an
d elements.
Moreover, differences between applied and basic research can be divided into three
groups:
1. Differences in purpose. Purpose of applied studies is closely associated with the
solution of specific problems, while the purpose of fundamental studies relate to
creation of new knowledge or expansion of the current knowledge without any
concerns to applicability.
2. Differences in context. In applied studies research objectives are set by clients
or sponsors as a solution to specific problems they are facing. Fundamental studies, on
the other hand, are usually self-initiated in order to expand the levels of knowledge in
certain areas.
3. Differences in methods.Research
validityrepresents an important point to be addressed in all types of studies. Neverthe
less, applied studies are usually more concerned with external validity, whereas interna
l validity can be specified as the main point of concern for fundamental researchers.

Examples of Applied Research

The following are examples for applied research. Notice, each of these
studies aim to resolve a specific and an immediate problem.

A study into the ways of improving the levels of customer retention for
Wall-Mart

An investigation into the ways of improving employee motivation in

Marriot Hotel, Hyde Park

Development of strategies to introduce change in Starbucks global

supply-chain management with the view on cost reduction

A study into the ways of fostering creative deviance amongst employees

without compromising respect for authority.

Applied Research

Fundamental Research

Tries to eliminate the theory by adding to the

basics of a discipline

Aims to solve a problem by adding to the

field of application of a discipline
Often several disciplines work together for
solving the problem

Problems are analysed from the point of one

discipline
Generalisations are preferred
Forecasting approach is implemented

Often researches individual cases without

the aim to generalise
Aims to say how things can be changed

Assumes that other variables do not change

Acknowledges that other variables are

constant by changing

Reports are compiled in a language of technical

language of discipline

Reports are compiled in a common

language