Business research
Lecture 1
Introduction to Business Research
Doszhan R.
Agenda
The meaning and nature of research
Define the purpose of research
Assess the different types of research
Various research approaches
Scientific Research VS Business Research
Generalize the Process of research
Understand the significance of research in business decision-
making
Introduction to Research
What is research?
Research is the process of finding
solutions to a problem after analysis of
the situational factors.
MEANING AND DEFINITION OF RESEARCH
How many customers do I can handle daily?
Which groceries combination is more popular?
What time does the customers hit to maximum at store?
What is the average money a customer spends on a
purchase?
MEANING AND DEFINITION OF RESEARCH
• Research involves a well-developed plan, a systematic approach to developing new
theories of finding solutions to various problems.
• Redman and Mory defined research as ‘a systematized effort to gain new knowledge
• Zina O' Leary defined research as a 'creative and strategic thinking process that involves
constantly assessing, reassessing and making decisions about the best possible means for
obtaining trustworthy information, carrying out appropriate analysis and solutions.
• Clifford Woody defined research as 'a method for the discovery of truth which is really a
method of critical thinking
Research involves
• A clear definition of the problem
• Formulation of hypothesis
• Collection and analysis of data
• Relating the findings to existing theories and earlier formulated
hypothesis.
OBJECTIVES OF RESEARCH
• To Explore
• To Describe
• To Diagnose
• To Establish Causal Relationship
• To identify and find solutions to the problems
• To help making decisions
• To develop new concepts
• To find alternate strategies
CHARACTERISTICS OF RESEARCH
1. Research is directed toward the solution of a problem.
2. Research is purposive i.e. it deals with a well-defined significant problem.
3. Research is based upon observable experience or empirical evidences.
4. A research gathers new knowledge and brings to the unexplored and unexplained phenomenon.
5. Research involves collection of primary data from first hand sources or involves use of existing data for a new purpose.
6. Research activities are carefully detailed and clearly outlined through a research design.
7. Research emphasizes the development of generalizations, principles, or theories that will be helpful in predicting future
occurrences.
8. Research requires a degree of expertise and skill. A research worker is expected to be knowledgeable about carrying out a research.
9. Research strives to be objective and logical, validate the procedures employed the data collected and the conclusions reached.
10. Every process, term and tool used in the research should be carefully documented and reported.
11. The research should target towards the discovery of general principles or theories.
Scientific Research VS Business Research
What is business research?
•Research provides the needed information that guides
managers to make informed decisions to successfully deal
with problems.
•The information provided could be the result of a careful
analysis of data gathered firsthand or of data that are already
available (in the company).
Why is it important for managers to know about research?
•Solve problems
•Decision making tool
•Competition
•Risk
•Investment
What do you see in these pictures?
Marketing…
• is not ADVERTISING
• is not SELLING
• is not PROMOTION
• These ads are selling the product,
but the Smart Car is the result
of marketing from the ground up.
What is Marketing research?
Marketing research is a process of
collecting, analyzing and using
information for marketing decision
making.
Research is central to understanding
effective customer satisfaction and
customer relationship programs.
Why is it needed?
• Each year millions of new products are launched:
Without careful
marketing
research these
products would
fail
Purpose of Marketing research
to reduce the risk of making wrong decisions
Marketing research is carried out to:
• Help firms make right marketing decisions
• Reduce risks.
Every business owner must ask the following
questions to achieve effective marketing
strategies:
• Who are my customers and potential
customers?
• What kind of people are they?
• Where do they live?
• Can and will they buy?
• Am I offering the kinds of goods or services they want at the best
place, at the best time and in the right amounts?
• Are my prices consistent with what buyers view as the product's
value?
• Are my promotional programs working?
• What do customers think of my business?
• How does my business compare with my competitors?
Starbucks’s market research approach includes:
• Tracking cultural trends
• Monitoring social media
• Gathering customer feedback
• In-store product testing
LEGO conducted a study involving 3,500 girls and
their mothers to understand the children’s playing
habits.
As a result of the market research study, LEGO
launched a new toy line, “Friends” to encourage girls to
play with LEGO toys.
Functions of business research
Descriptive, diagnostic and predictive.
The descriptive function It consists in the analysis The predictive function
of marketing research and interpretation of of marketing research
consists in collecting, data in order to notice consists in foreseeing
analyzing and presenting correlations between future events
facts, events and cause and effect. and market processes.
market processes.
During 10 year
Characteristics of Marketing Research
• Marketing research is systematic
• Marketing research is objective
• Marketing research is ethical
Basic terms in Business research
Consumer Demand
Interview
Focus
group
Survey Customer
Market
Target market
Goods and services
What is Market?
The group of potential buyers.
Potential consumers make up a market, which is:
People with the Desire and with the Ability to
Buy a specific product.
What is Target Market?
A specific group of consumers at which a company aims its
products and services.
for
What is Demand?
Wants Buying Power
Demand
Who is Consumer?
The person who uses the product.
Who is Customer?
The person who purchases the product.
What is “goods”?
The products which are tangible items that
satisfies human wants and needs.
What is “services”?
The products which are intangible items that
satisfies human wants and needs
What is survey?
A survey is an indirect measuring method whose point is to provide
answers in accordance with instructions contained in a
questionnaire.
What is focus group?
A focus group is a market research method that provide a deep
feedback regarding a product, service, concept, or marketing
campaign.
Business research process
1. Define the Problem
2. Develop Your Research Plan
3. Collect Relevant Data and Information
4. Analyze Data
5. Report Findings
Developing a process of business research is tied to
determining stages of specific tasks and a timetable of their
performance.
Research
problem
?
Step 3
Step 2
Step 1
A Research problem is a question that a researcher wants to answer or a problem
that a researcher wants to solve
Step 1: Define the Problem
This is the most important of the 5 steps
If the problem is incorrectly defined, all
else is wasted effort.
Establish Objectives
Research objectives, when achieved, provide the information necessary to solve the
research problem. Research objectives state what the researchers must do.
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Step 2: Research plan
Step 3: Collect Relevant Data and Information
Copyright © 2010 Pearson Education, Inc. 2-32
Step 4: Analyze Data
• Data analysis involves entering data into computer
files, inspecting data for errors, and running
tabulations and various statistical tests.
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Step 5: Prepare and Present the Final Research Report
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Step 1
Examples of problem formulation
Decision Problems Research Problems
1.Develop package for Evaluate effectiveness of
a new product alternative package design
2. Allocate newspaper Explore clients
space for various topics reading preferences
3. Enter a new market Foreign market research
4. Make interesting Investigate trends and news
content in Instagram
Step 1: Define Business Problems
and Opportunities
Opportunity • You are trying to launch a new product or
service.
Problem • Awareness of your company and its
products or services is low.
Problem
• The market is familiar with your company,
but still is not doing business with you.
Problem
• Your company has a poor image and
reputation.
Problem
• Your goods and services are not reaching
the buying public in a timely manner.
Step 2: Set Objectives, Budget and
Timetables
Step 3: Select Research Types,
Methods and Techniques
Two types of research are available:
• Primary research is original information
gathered for a specific purpose.
• Secondary research is information that
already exists somewhere.
Step 4: Design Research Instruments
The most common research instrument is the questionnaire.
Keep these tips in mind when designing your market
research questionnaire.
• Keep it simple. Include instructions for answering all questions
• Begin the survey with general questions and move toward more specific
questions.
• Design a questionnaire that is graphically pleasing and easy to read.
Step 5: Collect Data
• To obtain clear, unbiased, and reliable
results, collect the data under the direction
of experienced researchers.
• Before beginning data collection, You must
train, educate and supervise your research
staff.
• Untrained staff conducting primary research will
lead to interviewer bias.
Step 6: Organize
and Analyze the Data
Once data has been collected, it needs to be cleaned.
• Cleaning research data involves editing, coding and tabulating
results.
• Start with a simply designed research instrument or
questionnaire.
Step 7: Present and Use Market
Research Findings
Once marketing information is collected and
analyzed, present it in an organized manner to the
decision makers of the business.
• You may want to report your findings in the
market analysis section of your business
plan.
• You may want to familiarize your sales and
marketing departments with the data or
conduct a companywide informational
training seminar using the information.
