Business Research Methods1. Definition of Research: Research means searching again and again to acquire

knowledge.

a) Research is an art of scientific investigation for pertinent information on a

specific topic.

b) Research is an academic activity to solve problem.

c) Research pursuit of truth with the help of study, observation, comparison and

experiment.

d) Research is the systematic collection analysis and interpretation of data to

answer a certain question or solve a problem.

2. Objectives of Research: To get answer of research question.

3. Areas of Research:

Social Science: Why people migrating from this country to other country?

Medical Science: Is there any side-effect of Paracitamol Tablet?

Business: Why national sectors of our country facing loss every year?

5. Characteristics of Research: Searching is research but all searching is not research.

Research is an academic activity but all academic activity is not research.

a) It demands a clear statement of the problem. (It must have clear research Que.)

b) It should be systematic and scientific.

c) It must contribute (some new ideas) to the existing stock of knowledge.

(Research has to show something new)

Research question is a question which has no answer discovered yet.

6. Definition of Business Research: Business research is defined as the systematic and

objective process of gathering, recording and analyzing data for aid in making decision in

deferent areas of business viz., production, finance and accounts, marketing and

management etc.

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Aspect of business research is mainly to make business decision.

4 major functional areas of business: a) Production; b) Finance & Accounts; c)

Management and d) Marketing.

7. Characteristics of Business Research:

a) It demands a clear statement of the problem. (It must have clear research Que.)

b) It should be systematic and scientific.

c) It must contribute (some new ideas) to the existing stock of knowledge.

(Research has to show something new)

d) Business Research is mainly undertaking for making busines decision.

e) It is to be conducted in the area of production, finance & accounts, management,

marketing etc.

8. Business Research topics in different areas of business:

a) Production Area: Productivity (input-output ratio) study/research

What is the level of productivity?

What can be done to improve production performance?

b) Finance & Accounts Area:

What is the profitability of the organization? (Profit over Sales, Capital, Fixed Assets

etc.)

c) Management Area:

Why the employee turnover rate is high in our organization?

d) Marketing Area:

Whether the advertisement is effective or not? (Customer remember the Brand,

Information)

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9. Managerial value of business research: The research is required or important in each

and every stages of decision making process.

Why business research is important / valuable to the management?

Manager can make right decision.

It is reduces uncertainty in decision making.

Decision making is a process of 4 different stages:

1. Understanding the issue of decision making.

2. Developing the alternatives.

3. Evaluating the alternatives. ( a. Qualitative factors and b. Quantitative factors)

4. Choosing the best alternatives.

Decision making is a process of choosing the best alternatives.

10. Factors to be considered in business research: There are 4 factors to be considered in

business research.

11. Types of business research:

a) From the viewpoint of objective

i. Pure Research: Research which is conducted either to develop theory or

verify the theory is called pure research. e.g. Abraham Maslow’s Need

Hierarchy Theory, EOQ, Linier Programming, Darwin’s Theory of Evaluation

on Mankind etc.

ii. Applied Research: If the research is undertaken to solve any business

problem is called applied research.

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Data Nature of Decision

Time Cost vs. BenefitYES YES YES YES

Research will not be undertaken

NO NO NO NO

Research will be started

b) From the viewpoint of function

i. Descriptive Research: The research which is undertaken to describe the

situation is called descriptive research.

What is the productivity of the factory?

What is the sales/financial performance? Etc.

ii. Exploratory Research: The research which is undertaken to explore the

underlying causes is called exploratory research.

What are the causes of poor productivity?

iii. Causal Research: The research which is undertaken to find out the cause

and effect relationship among the variables (which can measure the

quantity) and attributes (which can measure the quality) is called causal

research.

Which one is the most responsible cause of poor productivity?

Which one is responsible to what extent?

Research Situation:

1. Situation of complete certainty. [ Descriptive Research

Conducted ]

All data of research are available & easily collectable.

2. Situation of Uncertainty. [ Causal Research Conducted ]

Do not have any data. (Dark Situation)

Do not know from where to collect the data.

3. Situation of Absolute Ambiguity [ Exploratory Research Conducted

]

Neither completely certain nor absolute ambiguity.

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c) From the viewpoint of data

i. Qualitative Research

ii. Quantitative Research

d) From the viewpoint of research place

i. Desk Research (e.g. Financial Performance)

ii. Field Research (e.g. Customer Survey)

e) From the viewpoint of nature

i. Research related to problem

What are the causes of workers inefficiency?

ii. Research related to opportunity / Opportunity Exploration

Is there any scope to start or open a branch of a bank in rural

area?

iii. Research related to evaluation

What are your Sales / Productivity / Profitability Performance?

13. Purpose of research to different personnel:

Purpose of research of a University Teacher –

o To create knowledge

Purpose of research of a Consultant –

o To help in decision making

Purpose of research of a PhD. Researcher –

o Is to make research expert

o To be an expert

Purpose of research of a Undergraduate Student –

o How to use of research findings.

o Is to give some fundamental knowledge.

14. Research Process: How to do research (Research Methodology)

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Research is a sequence of performing 6 interrelated activities. This sequence is

called research process and the interrelated activities are known as research stages.

a. Defining the problem: It is also called problem definition / identification /

formulation. Before research, researcher needs to understand the research

problem / question. If problem is well defined, that means you have solved the half

part of the research.

b. Designing the research: Making a detail plan of doing research is designing.

c. Designing the sample: You have to decide your sample size or unit. The sample

unit may be a/an branch, enterprise, industry, county, person/individual/customer

etc.

d. Collecting the data: Data collection from sample unit. (Industry, county,

person/customer etc.)

e. Analyzing the data: Analyzing of data by using different techniques likes

Statistical Formula, Statistical Software etc.

f. Writing the research report: How to write a report.

12. Research Method and Research Methodology: Difference between Research Method

& Research Methodology

o Research Method: All available methods of doing research are known as Research

Methods. The term Research Method use in general.

o Research Methodology: Chronological selection of suitable method to complete

one particular research is called Research Methodology. The term Research

Methodology used in micro sense.

All of research alternatives together are called Research Methodology.

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15. Decision alternatives in the research process: In each and every stage of research

you will find some alternatives.

a. Defining the problem / Problem Formulation: 4 alternatives of formulating the

problem:

i. Literature Review / Study e.g. Study by Articles, Books, Newspaper,

Internet etc.

ii. Case Study (Number of sample unit will be one) e.g. Discussion with

customers.

iii. Pilot Study (Number of sample unit will be more than one)

iv. Experience Survey e.g. Discussion with an expert to get idea.

Specific Research Objectives

b. Designing the research / Research Design:

i. Survey

ii. Observation e.g. In case of establishing a fuel station besides a road.

(Appoint Observer)

iii. Experiment e.g. It can be possible to marketing of toothpaste & toothbrush in the

same packet?

iv. Secondary Data Study Data collected from Office or other sources.

In case of customer satisfaction research then Survey and Observation

techniques are used as a primary data (By asking each and every

customer/person/individual.

c. Designing the sample / Sample Design:

i. Random Sampling / Probability Sampling

ii. Convenient Sampling / purposive Sampling

10 students selected from out of 50 students randomly then Random

Sampling used, otherwise it will be used Convenient Sampling.

d. Collecting the data / Data Collection:

i. Direct Interview e.g. Telephonic interview, Questionnaire etc.

ii. Indirect Interview

e. Analyzing the data / Data Analysis:

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i. Statistical Analysis e.g. Statistical Formula-Trend Analysis, Correlation,

Regression etc.

ii. Econometrics Analysis – Combination of Economics with Mathematics

f. Writing the research report / Report Writing:

i. Technical Reporting e.g. Confidential Report using different technical terms.

ii. Popular Reporting e.g. Disclosing to all, elaborately written.

16. Problem Definition:

Definition: The indication of a specific business decision area that will be clarified by

answering some research questions.

Importance: To understand research, research objective

Stages of Problem Definition:

a. Ascertain the decision maker’s objective / desire:

- Decision maker’s objective.

- Managerial goals expressed in a measurable terms.

b. Understand the background of the problem:

- Use four alternatives of problem definition – Literature review, Case study, Pilot

Study, Experimental Study.

- The informal gathering of background information to familiarize managers or

researchers with the decision area.

- Follow Iceberg Principle – The principle indicates that the dangerous part of

many business problems is neither visible nor understood by managers.

c. Isolating the problems from symptoms.

d. Determine the area of analysis – From whom to collect data, who will be

respondent.

e. Identifying the relevant variables / factors –

- Anything that assume different numerical values

- Variable & Attributes - Dependent & Independent variables

f. Finalizing the research objectives.

Nature of problem definition:

a. If it is related to problem then we have to formulate the problem definition

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b. If it is related to opportunity then we have to formulate to know the objective

and then formulate the opportunity.

c. First problem formulation then evaluation.

17. Research Proposal

Definition:

- Research proposal is a written statement of the research plan that includes a

statement explaining the objective of the study and a detail systematic outline of

research methodology.

- Research Proposal is a written statement that explain how the different stages of

research process other than first stage will be completed.

- Research proposal is also knows as Work plan, Statement of intent, research

outline, draft plan.

- Research proposal is not required for all types. When one wants to do research

for own without having fund from sponsor, just to publish any article / journal

then research proposal is not required.

- Research proposal is required when decision maker invite proposal from

professional. It is also required when researcher want to have fund from

sponsor to complete the research.

- Normally a schedule of costs and deadlines is included in the research proposal.

Research has to think critically regarding all stages of research process while

writing research proposal.

Aspects of Research Proposal:

a. Objective of the Research –

- Research Objective is the purpose of the research, expressed in measurable

terms; the definition of what the research should accomplish.

- One have to complete first step of research process, Problem Formulation to find

out the objective of the research.

- Research proposal is performed after completing the stage – Problem

Formulation and before starting the stage – Research Design.

- Formal Research starts from the stage – Research Design.

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- Researcher can start the research formally after completing Problem

Formulation and getting approval of research proposal (if required)

b. Outline of research methodology

- Provide short details of the research methods that will be used in five stages of

research process.

Sponsor’s purpose of Research Proposal

a. To see whether the research will be able to cater research design.

b. To see the sincerity of the researcher.

c. To compare the researcher with other competitors.

d. To understand the justification of providing fund.

Researcher’s purpose of Research Proposal

a. To communicate the research plan

b. To make a guide for future course of action.

c. To estimate cost.

d. To prepare a time schedule.

Techniques of preparing Research Proposal

There is no specific technique of writing research proposal.

18. Research Design

Introduction:

Research Design is the second stage of research process. This stage is also the initial stage

of formal research process.

Research Design is a master plan specifying the methods and procedures for collecting and

analyzing the needed information.

Research Design is a framework or blue print that plans the action for the research project.

Survey Method

Survey is a method of collecting primary data by asking questions to the respondent.

Classification of Survey Method

a. From the viewpoint of Questionnaire:

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- Questionnaire preparation is very important. After preparing the questionnaire,

it is tested by using some statistical tools and techniques which is called valid

test.

- Questionnaire can also be prepared with the combination of both structured and

unstructured questionnaire.

I. Survey through structured questionnaire:

- If the survey is conducted through structured questionnaire then it is called

survey through structured questionnaire.

- It is also called close ended questionnaire.

- If the questions in the questionnaire are given with multiple answers to choose,

then the questions are called structured questions.

II. Survey through unstructured questionnaire

- If the survey is conducted through unstructured questionnaire then it is called

survey through unstructured questionnaire.

- It is also called open ended questionnaire.

- If the questions in the questionnaire are given without multiple answers to

choose, then the questions are called unstructured questions.

III. Survey through disguised questionnaire:

- If the survey is conducted through disguised questionnaire then it is called

survey through disguised questionnaire.

- If the questions in the questionnaire are indirect questions, then the questions

are called disguised questions.

IV. Survey through undisguised questionnaire:

- If the survey is conducted through undisguised questionnaire then it is called

survey through undisguised questionnaire.

- If the questions in the questionnaire are direct questions, then the questions are

called undisguised questions.

Examples - What is monthly salary? (direct question). What is your monthly expenditure?

(Indirect question).

b. From the viewpoint of Time Frame / Temporal classification of Survey

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V. Cross sectional survey:

- The survey which is conducted at a single point of time among different group of

respondents to cross check the information is called cross sectional survey.

- Example is Survey on performance of university. To conduct this survey,

researcher may need to include students, teachers, employees, employers of

universities to collect required data. Another example is Job satisfaction. This

survey will include employee, employer.

VI. Longitudinal survey

- The survey which is conducted at two different points in time to understand the

change over time is called Longitudinal survey.

- Example is survey on newly launched product. A company developed a product

and want to see the demand level on customers. For this purpose, the company

conducted survey immediately after launching the product. Then the company

conducted another survey in next month. These two survey will help the

company to know the demand of the product among customers.

VII. Panel Survey

- Panel survey is one kind of longitudinal survey but it is conducted among the

same panel of respondents.

- Example is survey on effectiveness of training module. The researcher conducted

the survey among trainees regarding the effectiveness of training module before

the training start. The researcher conducted the survey again on same trainees

after the completion of training. These two survey will help the research to

understand the effectiveness of training module. Here respondents are same in

both surveys.

c. From the viewpoint of Communication

I. Human interactive survey

- If the researcher interacts with the respondent then it is called Human

Interactive Survey.

- Types are Direct Interaction, Telephonic / Indirect Interaction.

II. Non-interactive survey

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- If the researcher does not interact with the respondent, then it is called non-

interactive survey.

- Types are Mail Survey (questionnaire will be sent to respondents through mail),

Survey through Print Media (Yes / No vote in Newspapers), Survey through

Electronic Media (Yes / No vote in Television).

Observation Method

Observation is one kind of survey based on collecting primary data. In this method, data is

not collected by asking questions to the respondents directly. Rather data is collected by

observation.

Contents of observation

Seven types of information can be collected by using observation method. These seven

types are known as seven consents of information.

a. Physical Action – Workers movement in the factory, Physical movement of

passengers in the airport and in the airline.

b. Verbal Behavior – Workers behavior with each other in workplace,

Conversation among employees in office, Medium of teaching

c. Expressive Behavior – Facial expression of customers in a restaurant before

serving foods and after serving foods to observe the customer satisfaction.

d. Location Information – Collect information regarding the location of a factory

considering distance between factory and office, workers residence.

e. Temporal / Time pattern – How long the worker / officer taking to complete

a job.

f. Physical Objects – Infrastructural facilities of universities to compare

between private and public universities.

g. Pictorial records – Collect different documents to understand the difference

such as brochure of different universities, illustration in books.

Types of observation

a. Visible Observation

- The situation in which the observer’s presence is known to the subject is called

visible observation.

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- While entering in a shopping mall, observer may request the customer to sign in

the visitor during the time of entrance.

b. Hidden Observation

- The situation in which the observer’s presence is not known to the subject is

called Hidden Observation.

Disadvantage / Limitation of Observation Method

Many information can not be collected by using observation method. Information related to

cognitive phenomenon – satisfaction, Perception, Expectation, Preference, Intention,

Attitude.

Experimental Research

Definition

Experimental research is a research in which one variable is manipulated to see the

influence of this manipulation on the other variables.

For example, a product is marketed with a price. After one month, price is decreased. Sales

data will be collected for different prices. Then comparison is made regarding sales with

different price.

Steps in experimentation

a. Identification of dependent and independent variables.

b. Identification of extraneous variables.

c. Control over extraneous variables.

d. Manipulation of independent variables.

e. Measurement of dependent variables.

Extraneous variables

In addition to selected independent variable, a number of variables may affect the

dependent variable, thereby distorting the experiment, these are called extraneous

variables.

For example, Price is Independent variable, Demand is dependent variables.

Advertisement, Quality, Packaging can affect the dependent variables – Demand. Thus

Advertisement, Quality, Packaging are extraneous variables.

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Secondary Data Study

Definition

The data that have been previously collected fro some projects other than the one at hand

then this data is called secondary data. The survey that is conducted through this

secondary data is called secondary data survey.

Advantages

a. Cost can be minimized.

b. Time can be saved.

c. Research can be done easily by eliminating the task associated with primary data

collection.

Disadvantages

a. Time period may not be relevant.

b. Measurement unit may not be appropriate.

Data Conversion Technique

Data conversion is the process changing the original data to a format suitable to achieve

research objectives.

Sampling

Sampling is a technique to select sample from the population and decide the sample size. Sampling is also used in our day to day lives.

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Sampling

Probability Sampling

Non –Probability Sampling

Unrestricted Probability Sampling

Restricted Probability Sampling

Stratified Cluster Sampling

Multistage Sampling

Sequential Sampling

1) Probability Sampling: In probability sampling, samples are selected randomly from the population and it is free from biasness. It is also known as Random Sampling. Probability Sampling is of two types –

a) Restricted Sampling: In this sampling, restriction is applied while selecting sample from population. The purpose of this sampling is to have representation of all kind of samples from population. For example, selecting students from population who are fluent in English. Restricted Sampling can be divided into following types –

i. Stratified Sampling: Under this sampling, the population is first divided into groups and these groups are called strata. The purpose of this grouping is to achiever greater degree of homogeneity within the group. The grouping is also known as stratification. After stratification, samples will be selected randomly from each and every stratum. For example, a population can be divided into following groups – fair complexion male group, dark complexion male group, fair complexion female group, dark complexion female group. After this stratification, samples can be selected randomly from each and every stratum.

ii. Cluster Sampling: Like as stratified sampling, the population is to be divided into some groups but the objective of the grouping is to get greater degree of heterogeneity within the group. This grouping is called clustering. After clustering, a few clusters will be selected randomly. This is called Cluster Sampling. In case of cluster sampling, one cluster is considered as sample unit instead of one item sample unit. For example –

Population is 3000, Sample size is 300, Cluster is 1000 (each cluster consists of 3 member of rich, poor & medium),Selected cluster will be 100

Difference between Stratified Sampling & Cluster Samplinga. In Stratified sampling, grouping is created to achieve greater degree of

homogeneity. In Cluster sampling, grouping is created to achieve greater degree of heterogeneity.

b. In Stratified sampling, sample is selected randomly from each and every stratum / group.In Cluster sampling, clusters are selected randomly instead of one item sample unit.

c. Stratified sampling is convenient for large group of population. Cluster sampling is convenient for relatively small group of population and has control over population.

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iii. Multistage Sampling: Under multistage sampling, the population is divided into primary sample units. Out of primary sample units, a few will be selected randomly. Selected primary sample units will be divided into secondary sample units. Out of secondary sample units, a few will be selected randomly. Selected secondary sample units will be divided into tertiary sample units. Out tertiary sample units, a few will be selected randomly. In this way, samples will be selected stage by stage under multistage sampling. It is used to narrow down the population. For example: Socio economic condition of the students of Bangladesh.Step 1 – Divide the students in 64 units, for 64 districts. Then select the sample units randomly. Step 2 – Then divide the sample units into some segments and select samples randomly from the segments. Step 3 – Then divide the sample units into some segments and select samples randomly from the segments.This process is going on as per requirement of the researcher.

iv. Sequential Sampling: Under this sampling, sample size is not determined in advance. The sample is drawn repeatedly so as to make decision as to accept or reject. It is used in quality control research of the product. For example: Medicine production in a pharmaceutical company. After developing a new medicine, the company goes for testing in following manner – sample unit is selected from batch, then it is tested. If the test is not positive then another batch will be produced and randomly selected sample units will be tested. This process is going on until the production reaches the expected quality.

b) Unrestricted Sampling: In this sampling, no restriction is applied while selecting sample from population. It is also known as Pure Probability Sampling.

2) Non Probability Sampling: In non probability sampling, samples are selected according to researcher’s choice by applying own judgment. It is also known as Purposive Sampling, Convenient Sampling.

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Data Collection

Data collection:1) Data Measurement 2) Scale3) Scaling4) Questionnaire design

Data MeasurementData measurement is a process of assigning number to the object. For example, a class consists of 40 students. 40 are the number assigned which is data measurement.

Data measurement consists of two phenomenons – 1) Physical Object – The phenomenon which can be measured by using definite yardstick is called

Physical Object. For example, weight of box, area of a class room. 2) Abstract Concept – The phenomenon which can’t be measured by using definite yardstick is

called Abstract Concept. For Example: behavior of customer. It is also known as cognitive phenomenon.

ScaleScale is the technique of measuring abstract concept. Scale is a set of numbers which is used for measurement. Scale is of four (04) types –

1) Nominal Scale: If the number of a scale is used to identify the object then the scale is called Nominal Scale. Example, to identify players in a football team, a number is assigned to each player.

2) Ordinal Scale: If the number of a scale is used to show the order, then it is called Ordinal Scale. Example, Roll number assigned to students in a class to show the order of merit.

3) Interval Scale: If the numbers of a scale is used to show the order as well as interval, then it is called Interval Scale. Example, Grading scale, CGPA of students, performance scale of teachers by students.

4) Ratio Scale: If the numbers of a scale is used to understand the significant difference among the object, then the scale is called Ratio Scale. Example, mark students with a number such as 1/4, 2/4, 3/4.

ScalingScaling is a technique of using scale. For example: measuring satisfaction on 100

people on the following scale –

Highly Satisfied (4)

Moderately Satisfied (3)

Poorly Satisfied (2)

Not Satisfied (1)

5 5 30 60

This table shows that 5 persons are highly satisfied, 5 persons are moderately satisfied, 30 persons are poorly satisfied and 60 persons are not satisfied.

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Therefore, total point is ((4*5) + (3*5) + (30*2) + (60*1)) =155 and average is (155/100) =1.55 This indicates that the peoples are Poorly Satisfied.

Questionnaire Design

Qualities of good questionnaire are –

1. The language of the questions should be concise. 2. The language should be clear and straight forward. 3. Phrases and expressions which are understood by only few people and are not in common use

should be avoided. 4. If the questionnaire is been mailed then technical words should be avoided. 5. The questions should be so sequenced that the respondent should be kept motivated to

answer. 6. The amount of writing required on the questionnaire should be kept to the minimum. 7. It is always better to add a few questions that will serve as checks on the accuracy and

consistency of the answer.

Data Analysis

There are 2 ways of data analysis1) Statistical analysis2) Economical analysis

Several methods of statistical analysis are1) Average calculation2) Dispersion calculation3) Correlation calculation4) Regression calculation 5) Time series analysis6) Index series analysis

Average Calculation:Average is a common statistical tool. After collecting data you have to average

data. In each and every research we commonly do average method.

Example: for calculating the average sales of a year we have to collect the sales of 12 months. Then add the sales of 12 months and then divide it by 12.

FOR REST OF THE ALALYSIS SEE THE ATTACH PDF FILES.

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Time series analysisThe series which is related to time.

Year Production(in thousand)

2001 202002 302003 202004 502005 402006 602007 702008 80

From a time series we can understand 4 types of movement1) Long term movement or TREND2) Seasonal movement3) Cyclic movement4) Irregular movement

To find out long term movement or trend there are 4 methods

1) Graphical methods2) Semi-average methods3) Moving average methods4) Least square methods

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