Why should engineers study Business Research?

COVID-19
1st Case: 17th November, 2019 (Wuhan, Hubei,
China)

Today:

China:

Vaccine Usefulness:
17th November 2019- 16th, January 2023

Vaccine Status?
 Tata Nano

Google Glass

Blackberry
 Gap

• Product/Service Customer Expectations

Product
Price
Promotion
Aesthetics and much more
Unit-I
• Research: –
• Definition, Meaning, Importance types and Qualities of Research ,
applications in functional areas of Business, Emerging trends in
Business research.
• Research & the Scientific Method: Characteristics of scientific method.
• Steps in Research Process Concept of Scientific Enquiry: – Formulation
of Research Problem – Management Question – research Question –
Investigation Question
Questions?

• COVID-19 started from Wuhan Lab?

• COVID-19 is ILI?

• What is the alternative of Xiomi?

• When Indian economy will revamp?

• What will Kohli break Sachin‟s record of 49 centuries in one-day Cricket?

What is research?
Finding answers to the questions.

Systematic search for truth (Wuhan Lab)

New and original information, ideas about the world we live in, are
obtained (Can we make vaccine for RNAs)

Search for knowledge (Stock Market).

Scientific and systematic search for information on a specific topic.

What is research?

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 specially through search for

new facts in any branch of knowledge.”

Definition of research
• a scientific and systematic search for pertinent information on a specific topic

• Redman and Mory “Systematized effort to gain new knowledge”

• According to Clifford Woody research comprises defining and redefining

problems; formulating hypothesis or suggested solutions; collecting,
organising and evaluating data; making deductions and reaching conclusions;
and at last carefully testing the conclusions to determine whether they fit the
formulating hypothesis.
Which of these can be classified as research?
1 Samad prepared a paper on “computer usage in secondary schools” after
reviewing literature on the subject available in his university library.

2 Manoj says that he has researched and completed a document which gives
information about the age of his students, their results, their parents income
and distance of their schools from the District Office.

3 Kim participated in a workshop on curriculum development and prepared

what he calls, a report on the curriculum for Engineers.
None of the above examples can be classified under
the category of research.
Consider the following case which is an example of research

• A general manager of a car producing company was concerned with the complaints
received from the car users that the car they produce have some problems with sound at
the dash board and the rear passenger seat after few thousand kilometers of driving.

•He obtained information from the company workers to identify the various factors
influencing the problem.

•He then formulated the problem and generated guesses (hypotheses).

• He constructed a checklist and obtained requisite information from a representative

sample of cars.

• He analyzed the collected data, interpreted the results in the light of his hypotheses and
reached conclusions.
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.

• 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).

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).
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:
1. Desire to get a research degree along with its consequential benefits;
2. Desire to face the challenge in solving the unsolved problems, i.e., concern over practical problems
initiates research;
3. Desire to get intellectual joy of doing some creative work;
4. Desire to be of service to society;
5. Desire to get respectability
Types of research?

• The basic type of research as follows:

• Descriptive vs. Analytical:

• Applied vs. Fundamental:

• Quantitative vs. Qualitative:

• Conceptual vs. Empirical:

• Some Other Types of Research

Descriptive vs Analytical:
• Descriptive research includes surveys and fact-finding enquiries
of different kinds.
• The major purpose of descriptive research is description of the state of affairs as it exists at
present.
• In social science and business research we quite often use the term Ex post facto research
for descriptive research studies.
• The main characteristic of this method is that the researcher has no control over the
variables; he can only report what has happened or what is happening.
• 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.
• The methods of research utilized in descriptive research are survey methods of all kinds,
including comparative and correlational methods.
• 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
• Investigation starts after the fact has occurred without interference from the
researcher.

• test hypotheses about cause-and-effect relationships or in situations

• 1. One commences with subjects who differ on an independent variable, for example
their years of study in mathematics, and then study how they differ on the dependent
variable, e.g. a mathematics test.
• 2. One commences with subjects who differ on the dependent variable (for example
their performance in a mathematics test) and discover how they differ on a range of
independent variables, e.g. their years of study, their liking for the subject, the amount
of homework they do in mathematics
Applied vs. Fundamental:
• Research can either be applied (or action) research or fundamental (to basic or pure)
research.
• Applied research aims at finding a solution for an immediate problem facing a society or an
industrial/business organisation,
• where as fundamental research is mainly concerned with generalisations and with the
formulation of a theory.
• “Gathering knowledge for knowledge‟s sake is termed „pure‟ or „basic‟research.”
• Research concerning some natural phenomenon or relating to pure mathematics are
examples of fundamental research.
• The central aim of applied research is to discover a solution for some pressing practical
problem, whereas basic research is directed towards finding information that has a broad
base of applications and thus, adds to the already existing organized body of scientific
knowledge.
Quantitative vs. Qualitative:

• Quantitative research is based on the measurement of quantity or amount. It is

applicable to phenomena that can be expressed in terms of quantity.

• Qualitative research, on the other hand, is concerned with qualitative

phenomenon, i.e., phenomena relating to or involving quality or kind. For
instance, when we are interested in investigating the reasons for human
behaviour (i.e., why people think or do certain things),
• Quantitative research is expressed • Qualitative research is expressed in
in numbers and graphs. It is used words. It is used to understand concepts,
to test or confirm theories and thoughts or experiences.
assumptions.
• This type of research enables you to
• This type of research can be used gather in-depth insights on topics that are
to establish generalizable not well understood.
facts about a topic.
• Common quantitative methods • Common qualitative methods include
include experiments, observations interviews with open-ended questions,
recorded as numbers, and surveys observations described in words, and
with closed-ended questions. literature reviews that explore concepts
and theories.
projective techniques
Conceptual vs. Empirical
• Conceptual research is that related to some abstract idea(s) or theory.
• It is generally used by philosophers and thinkers to develop new
concepts or to reinterpret existing ones.
• On the other hand, empirical research relies on experience or
observation alone, often without due regard for system and theory.
• It is data-based research, coming up with conclusions which are
capable of being verified by observation or experiment
• Empirical research is appropriate when proof is sought
that certain variables affect other variables in some way.
• Evidence gathered through experiments or empirical studies is today
considered to be the most powerful support possible for a given
hypothesis.
• Aristotle, Copernicus, Galileo, Newton and Einstein: these famous
philosophers and scientists relied heavily on conceptual research to develop
insight and theories about the way the world works.
• They established concepts to explain common occurrences by observing their
surroundings and compiling, studying and summarizing existing information.
• Plato asked conceptual questions such as "What is justice?" as the basis of
philosophy. The statements, "That action is wrong," or, "Knowledge is
justified true belief," are conceptual claims.
• Empirical research, on the other hand, is based not on theory, but on
experimentation. Using either a quantitative or qualitative methodology,
researchers gather data that can be measured according to a certain
population, place and/or time. They then use this information to make
meaningful, fact-based conclusions.
 Other types
• one-time research or longitudinal research.
• field-setting research or laboratory research
• clinical or diagnostic research
• Historical research is that which utilizes historical
sources like documents, remains, etc.
Qualities of good research

 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 clearly.
 Conclusions justified.
 Researcher‟s experience reflected.
Source: Kothari (2004)
Role of research in management
The Value of Business Research for Managers

Business Research Methods can be employed in each of the following four stages:

(1) Identification of problems and/or opportunities

(2) Diagnosing and Assessment of problems and/or opportunities
(3) Selection and Implementation of Courses of Action
(4) Evaluating the Course of Action
Selected Examples of Real-Life Situations in Which Business Research Methods are Used

A firm wants to produce and market a new product but first wants to ascertain if there is a
potential consumer demand for this product in markets x,y and z

 A multinational firm wants to establish a production facility in another country after

determining its technical and economic feasibility

A government agency wants to ascertain the satisfaction level of its employees, the causes
for any possible discontent, and propose a scheme for enhancing this level

A financial institution wants to invest in stock and commissions a study to determine the
past trends and forecast future returns in a portfolio of stock.

MNC wants to find out the trends in retail and wholesale sector
Fields Where Research is Often Used

1. General Business Conditions

• Business and Industry Trends

• Global Environments
• Inflation and Pricing
• Plant and Warehouse Location
• Total Quality Management
2. HR Research

• Morale and Job Satisfaction

• Leadership Style
• Employee Productivity
• Organizational Effectiveness
• Structural issues
• Absenteeism and turnover
• Organizational Climate
3. Financial and Accounting Research

• Forecasts of financial interest rate trends,

• Stock,bond and commodity value predictions
• Capital formation alternatives
• Mergers and acquisitions
• Risk-return trade-offs
• Portfolio analysis
• Impact of taxes
• Research on financial institutions
• Expected rate of return
• Capital asset pricing models
• Credit risk
• Cost analysis
4 Information Systems Research
• Knowledge and information needs assessment
• Computer information system use and evaluation
• Technical suppot satisfaction
• Database analysis
• Data mining
• Enterprise resource planning systems
• Customer relationship management systems
5 Marketing Research

Marketing Research

PROBLEM IDENTIFICATION RESEARCH PROBLEM – SOLVING RESEARCH

1. MARKET POTENTIAL RESEARCH

2. MARKET SHARE RESEARCH 1. PRODUCT RESEARCH
3. IMAGE RESEARCH 2. PRICING RESEARCH
4. MARKET CHARACTERISTICS RESEARCH 3. DISTRIBUTION RESEARCH
5. SALES ANALYSIS RESEARCH 4. PROMOTION RESEARCH
6. FORECASTING RESEARCH 5. SEGMENTATION RESEARCH
7. BUSINESS TRENDS RESEARCH

Source: Malhotra & Dash (2015)

Research Methods versus Methodology
• Research methods may be understood as all those methods/techniques that are used for
conduction of research.

• Research methods or techniques - All those methods which are used by the researcher
during the course of studying his research problem are termed as research methods.

• Since the object of research, particularly the applied research, is to arrive at a solution
for a given problem, the available data and the unknown aspects of the problem have
to be related to each other to make a solution possible.
• Research methods can be put into the following three groups:

1. In the first group we include those methods which are concerned with the collection of data.

2.The second group consists of those statistical techniques which are used for establishing
relationships between the data and the unknowns;

3.The third group consists of those methods which are used to evaluate the accuracy of the
results obtained.
• Research methods falling in the above stated last two groups are generally taken as the
analytical tools of research.
 Research methodology

• Research methodology is a way to systematically solve the research

problem. It may be understood as a science of studying how research is
done scientifically.

• Study the various steps that are generally adopted by a researcher in

studying his research problem along with the logic behind them.

• It is necessary for the researcher to know not only the research

methods/techniques but also the methodology.
• From what has been stated above, we can say that research methodology has many dimensions and research
methods do constitute a part of the research methodology. The scope of research methodology is wider than that
of research methods.

• Thus, when we talk of research methodology we not only talk of the research methods but also consider the
logic behind the methods we use in the context of our research study and explain why we are using a
particular method or technique and why we are not using others so that research results are capable of being
evaluated either by the researcher himself or by others.

• Why a research study has been undertaken, how the research problem has been defined, in what way and why
the hypothesis has been formulated, what data have been collected and what particular method has been
adopted, why particular technique of analyzing data has been used and a host of similar other questions are
usually answered when we talk of research methodology concerning a research problem or study.
Source: Kothari (2004)
Steps in Research Process
 1. Problem Definition

2. Development of an approach to the problem

3. Research Design Formulation

4. Data Collection

5. Data Analysis

6. Report Preparation and Presentation

Source: Adapted from Malhotra & Dash (2015)
 The Business Research Process
Step One: Problem Definition

The most important step in the marketing

research process is defining the problem.
1. Problem Definition

The very first step in business research process is defining the problem.
Problem definition involves discussion with the decision makers,
interviews with industry experts, analysis of secondary data and some
qualitative research. Once the problem is defined precisely, the research
can be designed and conducted properly.

Example – “To find out the exterior paint potential of small scale
industries of Haryana state.”
Process of Defining the Problem
Discussion with Interviews with Industry
Secondary Data Analysis Qualitative Research
Decision Makers Experts

Environmental context of the problem

Step 1 Problem Definition

Step 2 Approach to the Problem

Theoretical Research Specification of Information

Hypotheses Analytical Model
foundations Questions needed

Step 3 Research Design

 Approach to the Problem
Step Two: Development of an Approach to the Problem
2. Development of an Approach to the Problem

It includes an objective or theoretical framework, research questions,

hypotheses and identifying the information needed. This process is guided by
discussions with management, industry experts, analysis of secondary data,
and qualitative research.
Theoretical foundations

Research should be based on objective evidences and supported by theory.

¤ Objective evidence is an unbiased evidence which is supported by empirical findings. It is

gathered after compilation of relevant findings from secondary sources.

¤ A conceptual scheme based on foundational statements, and axioms* is known as theory.

An appropriate theory is identified by reviewing academic literature contained in books,
journals and internet.

axioms*- the statements which are assumed to be true.

Hypothesis

A hypothesis (from Greek ὑπόθεσις; plural hypotheses) is a proposed

explanation for an observable phenomenon. The term derives from
the Greek, ὑποτιθέναι – hypotithenai meaning "to put under" or "to
suppose."

An unproven statement or proposition about a factor or phenomenon that

is of interest to the researcher is known as a hypothesis. Hypothesis plays
a crucial role in suggesting variables to be included in the research design.
Analytical Models

An explicit specification of a set of variables and their interrelationships

designed to represent some real system or process in a whole or in part is
known as an analytical model.

There are a number of forms of an analytical model but some important

types are as:-

• Verbal
• Graphical
• Mathematical
Verbal – An analytical model that provides a written representations of the
relationships between variables is known as verbal model.

exp. – A customer first becomes aware of a product. That person develops

an understanding about the product by evaluating the product in terms of
factors comprising the choice criteria. Based on the evaluation, he forms a
degree of preference for the product. If preference is strong enough then
the customer buys the product.
Graphical – an analytical model which provides a visual picture of the
relationships between variables is known as graphical model.

exp. –

awareness

comprehension

conviction

action
Mathematical – an analytical model describing the relationships between
variables in equation forms is known as mathematical model.
n
exp. - X=F0 + ∑ Fi.Yi
i=1

X-degree of preference
F0, Fi – model parameters
Yi – product purchase factors that constitute the choice criteria
Research Questions

These are the refined statements of the specific components of the problem.

Exp. – if we have to find out the utilization of AXIS Debt cards then the questions
will be like –

Whether the customer holds an AXIS BANK Debit card?

Whether the customer uses AXIS BANK Debit card?
The number of times the AXIS BANK Debit card was used in a specified period
of time.
Specification of the information Needed

A researcher can determine what information is needed in the research

project by focusing on each component of the problem and the analytical
framework and models, research questions, and hypothesis.
3. Research Design Formulation

A research design is a blueprint for conducting a marketing research project. It

details the procedures necessary for obtaining the required information. Formulating
the research design involves the following steps :-

1. Definition of the information needed,

2. Secondary Data analysis,
3. Qualitative research,
4. Methods of collecting quantitative data (survey etc.),
5. Measurement and scaling procedures,
6. Questionnaire design,
7. Sampling process and sample size,
8. Plan of data analysis.
4. Data Collection

Data collection involves a field force or staff that operates in the field, as in
the case of personal interviewing(in – home, mall-intercepts, computer
assisted personal interviewing), from an office by telephone, through mail or
electronically
5. Data Analysis

Data analysis includes the editing, coding, verification and analysis of data. Each
questionnaire or observation form is inspected or edited and, if necessary,
corrected. Number or letter codes are assigned to represent each response to each
question in the questionnaire.

The data from the questionnaire are keypunched onto magnetic tape or disks, or
input directly into the computer. The data are analyzed to drive information related to
the components of the marketing research problem and ,thus. To provide input into
the management decision problem.

Example – The exterior paint potential of small scale industries of Haryana state is
50 Crore Indian Rupees(INR).
6. Report Preparation and Presentation

The entire project should be documented in a written report that addresses the
specific research questions identified; describes the approach, the research
design, data collection, and data analysis procedures adopted; and presents the
result and the major findings.

The findings should be presented in a comprehensible format so that

management can readily use them in the decision-making process. In addition, an
oral presentation should be made to management using tables, figures and
graphs to enhance clarity and impact.
References

Kothari, C. R. (2004). Research methodology: Methods and techniques. New Age

International.

Malhotra Naresh, K., & Dash, S. (2015). Marketing Research, an Applied Orientation,
7e. Pearson India.