BUSINESS RESERACH METHOD(BRM) UNIT I

BUSINESS RESERACH METHOD(BRM) 

                                              BUSINESS RESEARCH 

UNIT I

BUSINESS RESEARCH

The word research is composed of two syllables, re and search. The dictionary defines the former as a prefix meaning again, anew or over again and the latter as 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.

According to Robert Ross, “research is essentially an investigation, a recording and an analysis of evidence for the purpose of gaining knowledge.” It can generally be defined as a systematic method of finding solutions to problems.

A research need not lead to ideal solution but it may give rise to new problems which may require further research. In other words research is not an end to a problem since every research gives birth to a new question. It is carried on both for discovering new facts and verification of old ones.

Features of Research

 It means the discovery of new knowledge

 Is essentially an investigation

 Is related with the solution of a problem

 It is based on observation or experimental evidences.

 It demands accurate observation or experimentation.

 In research, the researchers try to find out answers for unsolved questions

 It should be carefully recorded and reported

Business Research

Business research refers to systematic collection and analysis of data with the purpose of finding answers to problems facing management. It can be carried out with the objective to explore, to describe or to diagnose a phenomenon. It involves establishing objectives and gathering relevant information to obtain the answer to a business issue and it can be conducted 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.

When deciding whether business research is to be conducted or not, the firm keeps in mind factors like the availability of data, time constraints and the value of the research information to the company. Adequate planning and information-gathering are essential to derive results for business.

Social Research

Social research refers to research conducted by social scientists. It is the scientific investigation conducted in the field of social sciences and also in the behavioral sciences. Social research methods can generally vary along a quantitative/qualitative dimension. While various methods may sometimes be classified as quantitative or qualitative, most methods contain elements of both. Social scientists employ a range of methods in order to analyse a vast breadth of social phenomena; from census survey data derived from millions of individuals, to the in-depth analysis of a single agents' social experiences; from monitoring what is happening on contemporary streets, to the investigation of ancient historical documents.

The social science research is a systematic method of exploring, analyzing and conceptualizing social life in order to expand, correct or verify knowledge whether that knowledge aids in the construction of theory or in the practice of an art.

Educational Research

Educational Research is that activity which is directed towards development of a science of behavior in educational situations. The ultimate aim of this research is to provide knowledge that will permit the educator to achieve his goals by most effective methods. Educational research refers to a variety of methods, in which individuals evaluate different aspects of education including: “student learning, teaching methods, teacher training, and classroom dynamics”.

Educational researchers have come to the consensus that, educational research must be conducted in a rigorous and systematic way although what this implies is often debated. There are a variety of disciplines which are each present to some degree in educational research. These include psychology, sociology, anthropology, and philosophy. The overlap in disciplines creates a broad range from which methodology can be drawn. The findings of educational research also need to be interpreted within the context in which they were discovered as they may not be applicable in every time or place.

Need For Research (Importance of Research)

The main importance of research is to produce knowledge that can be applied outside a research setting. Research also forms the foundation of program development and policies everywhere around the universe. It also solves particular existing problems of concern. Research is important because we are able to learn more about things, people, and events. In doing research, we are able to make smart decisions.

Marketing research is important because it allows consumers and producers to become more familiar with the products, goods, and services around them. Research is important to society because it allows us to discover more and more that might make are lives easier, more comfortable, and safer. It presents more information for investigation. This allows for improvements based on greater information and study. It is very important. Research encourages interdisciplinary approaches to find solution to problems and to make new discoveries. Research is a basic ingredient for development and therefore serves as a means for rapid economic development.

The main importance or uses may be listed as under:

 It provides basis for government policies

 Helps in solving various operational and planning problems of business and industry

 Research helps in problem solving

 Is useful to students, professionals, philosophers, literary men, analysts and intellectuals.

Purpose / Aims / Objectives of Research

1. To find out the truth which is hidden and which has not been discovered so far.

2. Aims at advancing systematic knowledge and formulating basic theories about the forces influencing the relation between groups as well as those acting on personality development and is adjustment with individuals.

3. Try to improve tools of analysis or to test these against the complex human behavior and institutions.

4. To understand social life and thereby to gain a greater measure of control over social behavior.

5. To provide an educational program in the accumulated knowledge of group dynamics, in skills of research, in techniques of training leaders and in social action.

Qualities / Characteristics of A Good Research

 A good research must be systematic

 A good research must be logical

 A good research must be empirical

 A good research must be verifiable

 As far as possible common concepts must be used

 Procedure followed in research must be sufficiently described

 Research procedure should be so described that objective of research can be achieved.

Limitations of Research

 Conclusions in research are based upon data collected. Therefore when the data collected are not valid or adequate, the conclusion will not be conclusive or appropriate.

 Research results in theory

 Activities in a society are influenced by various internal and external factors

Small organizations cannot afford to have research on various issues

 Many people in society depend on customs, traditions, routines and practices for taking decision; instead of going for research.

Research is usually based on sample studies. But in many cases samples are not true representatives. Therefore the research reports based on these samples may not be accurate.

Theory and Concept

Theory is defined as a set of systematically interrelated concepts, definitions and propositions that are advanced to explain and predict a phenomenon. It may also specify causal relationship among variables. A theory is an integrated body of definitions, assumptions, and general propositions covering a given subject matter from which a comprehensive and consistent set of specific and testable principles can be deducted logically. This theory provides a basis for studying consumer behavior and formulating appropriate marketing strategies.

Requisites (Criteria) of Theory

Theory starts out as ideas. The criteria to be met by the set of ideas are:

 They must be logically consistent.

 They must be interrelated.

 The statements must be exhaustive.

 The propositions should be mutually exclusive.

 They must be capable of being tested through research.

Role of Theory in Research

1. Theory narrows the range of facts to be studied

2. Theory provides a conceptual framework for a study

3. Summarizes concisely what is already known about the object of study.

4. Theory states a general uniformity beyond the immediate observations.

5. Theoretical generalization can be used to predict further facts.

General Principles Regarding the Use of Theory in Research

1. Knowledge of the existing theory in one’s area of research is essential for conducting research.

2. Concepts are crucial components of theory and so their clear definitions are essential to the designing of the study.

3. One should view theory as hypothetical proposition and not as conclusive fact.

4. One should pay attention to all odd and puzzling unexpected observations in one’s research and enquire into them. They may be a source for new theoretical approaches.

Methods of Formation of Theory

Deduction: It is one of the important methods employed in theory building. It is a process of drawing generalizations, through a process of reasoning on the basis of certain assumptions which are either self evident or based on observation. By deduction, is meant reasoning or inference from the general to particular or from the universal to the individual.

Eg. All men are mortal (Major Premise)

A is a man (Minor premise)

Therefore A is mortal (Conclusion)

The conclusion follows from the two premises logically. Therefore it is valid. The deduction is the logical conclusion obtained by deducting it from the statements, called premise of the argument. The argument is so constructed that if the premises are true, conclusion must also be true. The logical deduction derives only conclusions from given premises and it cannot affirm the truth of given statements. It serves in connecting different truths and thus logical derivation is not a means to find ultimate truth.

Induction: It is the process of reasoning from a part to the whole, from particular to general or from the individual to the universal. It gives rise to empirical generalizations. It is a passage from observed to unobserved. It involves two processes namely observation and generalization.

Induction may be regarded as a method by means of which material truth of the premises is established. Generating ideas from empirical observation is the process of induction. As a matter of fact, concepts can be generated from experience which justifies the description of particular situations towards theory- building. It is generally observed that experience is regarded as a sum of individual observations held together by the loose tie of association and constantly extended by the idea of inductive inferences.

It is generally stated that knowledge is based on the foundations of particular facts. In empirical sciences, we start from the consideration of a single case, go on to prove many cases.

Consider the following illustration.

“I saw a raven in black colour. Other revens seen by me were also black in colour”.

“All ravens are therefore black”.

Inductive method is classified into two types- enumerative induction and analytical induction.

Retroduction: It is a technique of successive approximation by which, the concepts and assumptions of theories are brought into closer alignment with relevant evidence. At the same time it maintains the logical consistency required of deductive systems.

The purpose of theory is to systematize the data of every experience. The three methods deduction induction and retroduction based on the relationships among the observed data, concepts and theoretical assumptions are adopted for generating theory.

Concept

A concept symbolizes a phenomenon and helps to communicate its finding. For instance labour is a concept. Concepts are logical constructs created from sense impression or complex experiences. It symbolizes the empirical relationship and phenomena which are indicated by facts.

Thus, concepts and facts are not the same. A fact is a logical construct of concepts. The process of conceptualization arises out of abstraction and generalization of sense impression.

Types of concepts

On the basis of origin, concepts may be classified into two categories:

1) Postulational Concepts: It has meaning only with reference to some deductively postulated theory. Its meaning will be different when it will be used in some other context or theories.

For instance, the concept ‘function’ has one meaning in Economics and another meaning in

Physics.

2) Intuitive Concepts: It has a particular meaning. The meaning is never changed by the people who use it. This type of concept denotes something, which is immediately understood. For example, ‘black’ as a colour, its meaning is abstracted from a wider and empirical context.

Intuitive concepts are divided into two forms (a) those by sensation and (b) those by introspection. Similarly, Postulational concepts are divided into (a)those by imagination and (b)those by intellection. However, for the matter of social science research, such classification does not convey any special significance.

Requisites of a concept

 In every field of study, concepts are used to convey special meaning.

 Concepts should be precise, comprehensive and clear. There should be no misunderstanding about them.

 Concepts must not have multiple meaning. It is possible that different terms may refer to the same phenomenon; and there may be danger of overlapping of meaning.

 Concepts should be well understood. A concept may have a very complex series of references. Ultimately there may be an empirical reference. If one empirical reference is not immediate then the concepts will less well be understood.

How to use concepts

In research, the proper concept has to be carefully chosen and its usage should be explained thoroughly. The meaning of a concept does not remain fixed all the time. The meaning of the concept is modified with the accumulation of knowledge. In course of time, some concepts may become outmoded and irrelevant, and therefore, they are to be discarded.

Theory is a statement of the meaningful relation between concepts. Therefore the first stage in the development of a theory is concept formation. A scientific theory is a statement of a specific type of invariance in the conceptual representation of a phenomenon. Therefore, the choice we make in the representation of phenomenon is a critical step in the development of scientific theory.

Theory implies an explanatory relationship. The development and validity of a theory is dependent on the conceptual apparatus used. Concepts are the medium of scientific explanations.

Conceptual definition and theory formulation are two major requirements of unified process of scientific explanation. Formulation of concepts is therefore a major step of one unified process of complex scientific inquiry towards theory building.

Types of Research

Research may be broadly classified as (1) Fundamental and Applied Research (2)

Descriptive and Analytical Research or (3) Quantitative and Qualitative Research or (4) Conceptual and Empirical Research

Fundamental (or Basic) and Applied Research

Fundamental research is mainly concerned with generalization with the formulation of a theory. It is a research concerning principles or laws or rules. It aims at the achievement of knowledge and truth. Research studies concentrating on some natural phenomenon or relating to pure mathematics are examples of fundamental research. It aims at some theoretical conclusions. It may verify the old theory or establish a new one. It tries to explain the cause and effect relationship in social phenomena. It is essentially positive and not normative. That is, it explains the phenomena as they are and not as they should be.

Applied research is concerned with the solution of particular problems. It aims at finding a solution for an immediate problem facing a society or an industrial organization. It is empirical and practical. It is concerned with applied aspects of life. Research to identify social, economic or political trends that may affect a particular institution or the marketing research are examples of applied research.

Descriptive Research and Analytical Research

Descriptive research includes survey and fact finding enquiries of different kinds. It describes the state of affairs as it exists at present. The researcher has no control over the variables.

He can only report what has happened or what is happening.

In Analytical research one has to use facts or information already available and analyse these to make a critical evaluation of the material.

Quantitative Research and Qualitative Research

Quantitative research is applicable to phenomena that are measurable so that they can be expressed in terms of quantity.

Qualitative research is concerned with qualitative phenomenon. Research designed to find out how people feel or what they think about a particular subject is a qualitative research.

Qualitative research is especially important in the behavioural sciences where the aim is to discover underlying motives of human behaviour.

Conceptual Research and Empirical Research

Conceptual research is that related to some abstract ideas or theory. It is generally used by philosophers and thinkers to develop new concepts or to interpret existing ones.

Empirical research relies on experience or observation alone. It is data based research coming up with conclusions capable of being verified by observation or experiment. It can be experiment research. In empirical research, the researcher has to first set up a hypothesis or guess as to the probable results. He then works out to get enough facts to prove or disprove his hypothesis.

Empirical studies have a great potential for they lead to inductions and deductions. Thus research enables one to develop theories and principles and to arrive at generalizations. As research is based on observations and empirical evidences it improves knowledge and understanding as well as decision making skill and ability.