Business Research Methods Unit - 1

“Search for Knowledge” Research refers to “Search for Knowledge” Research is 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”.

Research is the process of gathering the information needed to answer certain questions and thereby helping in solving problems faced by an individual, firm, organization or society.

Definition of Research Redman and Mory define research as a, “Systematized effort to gain new knowledge”. According to Clifford Woody research comprises Defining and redefining problems, Formulating hypothesis or suggested solution; Collecting, organizing and evaluating data; Making deductions and reaching conclusion; and at last Carefully testing the conclusions To determine whether they fit the formulating hypothesis.

Research is required because of the following reasons To Identify and finding solutions to the problem (why demand for product decline, fluctuations) Helps in Making decisions (should we maintain same advertising budget) To develop new concepts (CSR, CRM) To find alternate strategies (should we follow pull strategy or push strategy)

Objectives of Research Promotes better decision making Research is the basis for Innovation Research identifies the problem area Research helps in forecasting, which is very useful for managers Research helps in formulation of policies and strategies Research helps in the development of new products or in modifying existing products Helps to understand the competitive environment It helps in the optimal utilization of resources It helps in identifying marketing opportunities and constraints It helps in evaluating marketing plans

Significance of Research To those students who are to write a master’s or Ph.D. thesis, research may mean a careerism or a way to attain a high position in the social structure; To help the mankind in solving the problems faced from time to time, and make life more comfortable and entertaining. (eg. Mobile Communications & e-ticketing) To philosophers and thinkers, research may mean the outlet for new ideas and insights; To literary men and women, research may mean the development of new styles and creative work. To analysts and intellectuals, research may mean the generalizations of new theories.

Motivation of Research To get a degree Face the challenge Intellectual joy of doing some creative work Directions by government Desire to get respectability Service to society Employment conditions Curiosity about new things Social thinking

Fundamental (Basic or Pure) Types of Research Types of research Descriptive Ex post facto Analytical Applied or Action Fundamental (Basic or Pure) Quantitative Qualitative Conceptual Empirical Historical Cross-sectional Longitudinal Time Series

Research Process

Criteria of Good Research Purpose of research – should be clearly defined Common concepts be used. The research procedure used – described in sufficient detail to permit another researcher to repeat the research for further advancement, keeping the continuity of what has been attained. The procedural design of the research should be clearly planned to yield results.

Criteria of Good Research 5. The researcher should report with complete frankness, flaws (error or defect) in procedural design and estimate their effects upon the findings. 6. The analysis of data should be sufficiently adequate to reveal its significance and the methods of analysis used should be appropriate. 7. The validity and reliability of the data should be checked carefully. 8. Conclusions should be confined to those justified by the data of the research . 9. Greater confidence in research is warranted .

Qualities of Good Research Good research is SYSTEMATIC – Structured with specified steps. Good research is LOGICAL – guided by rules logical process of induction (reasoning from a Part to whole) and deduction (Premise i.e. basis to conclusion) Good research is EMPIRICAL – research related basically to one or more aspects of a real situation. Good research is REPLICABLE (Imitate or reproduce) – research results to be verified by replicating the study & building a sound basis for decisions

Hypothesis A hypothesis is a tentative statement or an assumption or prediction of a relationship between one or more factors and the problem under study that can be tested. Hypotheses can take various forms, depending on the question being asked and the type of study being conducted. A key feature of all hypotheses is that each must make a prediction.

Characteristics of good hypothesis Hypothesis should be simple Hypothesis should be specific Hypothesis should be stated in advance

The first step in hypothesis testing is to specify the null hypothesis (H0) and the alternative hypothesis (H1). The next step is to select a significance level. Typically the 0.05 or the 0.01 level is used. The third step is to calculate a statistic analogous to the parameters specified by the null hypothesis. If the null hypothesis were defined by the parameter μ1- μ2, then the statistic M1 - M2 would be computed.

4. The fourth step is to calculate the probability vale (often called the p value). The p value is the probability of obtaining a statistic as different or more different from the parameter specified in the null hypothesis as the statistic computed from the data. 5. The probability value computed in Step 4 is compared with the significance level chosen in Step 2. If the probability is less than or equal to the significance level, then the null hypothesis is rejected; if the probability is greater than the significance level then the null hypothesis is not rejected.

  6. If the outcome is statistically significant, then the null hypothesis is rejected in favor of the alternative hypothesis. If the rejected null hypothesis were that μ1- μ2 = 0, then the alternative hypothesis would be that μ1≠ μ2. If M1 were greater than M2 then the researcher would naturally conclude that μ1 ≥ μ2.   7. The final step is to describe the result and the statistical conclusion in an understandable way. Be sure to present the descriptive statistics as well as whether the effect was significant or not.

Problems in research In research process the first and foremost step is selection and defining a research problem. A researcher must find the problem and formulate it so that it becomes susceptible to a research.

Components of a research problem There must be an individual or a group which has some difficulty or a problem. There must be some objective to be attained at. There must be alternative means for obtaining the objective one wish to attain. There must remain some doubt in the mind of a researcher with regard to the selection of alternatives. There must be some environments to which the difficulty pertains.

Selecting the problem Controversial subject should be chosen. Narrow and vague problems must be avoided The subject selected for research must be familiar and feasible The importance of the subject, qualifications, training of the researcher and cost involved are the other criteria's which must be considered. The selection of a problem must be preceded by a preliminary study

Necessity of defining a problem A proper definition of research problem will enable the researcher to be on the track. Questions like: What are data to be collected? What characteristics of data are relevant and need to be studied? What relations are to be explored. What techniques are to be used for the purpose?

RESEARCH OBJECTIVES The research objectives define the type and extent of information needed to achieve the research objectives. General objective: states what researchers expect to achieve by the study in general terms. Specific objectives: smaller, logically connected parts of general objective. They are the specific aspects of the topic that we want to study within the framework of our study

ROLE OF THEORY IN RESEARCH Prediction of Behaviour Other Roles Understanding Relationships

Prediction of Behaviour A theory enables to predict the behaviour or characteristics of one phenomenon from the knowledge of another phenomenon. Accomplishing the first goal allows the theorist to predict the behaviour or characteristics of one phenomenon from the knowledge of another phenomenon’s characteristics.

Understanding the relationship It refers to gain an understanding of the relationship among various phenomenons. A theory is a coherent set of general prepositions, used as principles of explanation of the apparent relationships of certain observed phenomena.

Suggests a problem of a study Gives a hypothesis to be tested Other roles Suggests a problem of a study Gives a hypothesis to be tested Provides simple explanation about the observed relations regarding their relation to phenomenon. Helps in being consistent with already founded body of knowledge and the observed relations Provides a conceptual model for delimiting the scope of the study. Helps in the selection of variables for delimiting the scope of the study. Makes research findings intelligence.

Preposition and Hypothesis Concepts Components of theory Constructs Variables Preposition and Hypothesis Definition

Concepts: To understand and communicate information about objects and events, there must be a common ground on which to do it. Concepts serve this purpose. A concept is generally accepted collection of meanings or characteristics associated with certain events, objects, conditions, situations and behaviours. Classifying and categorising objects or events that have common characteristics beyond any single observation creates concepts.

Examples: Aggression, Love, Intelligence & Life satisfaction Constructs: A construct is a theoretical dimension that has been or potentially could be operationalized by one or more variables. The term ‘concept’ and ‘construct’ are often used in place of one another. Concept is usually regarded as the more general of the terms. Concepts refers to Broad concepts or topics of study. Examples: Aggression, Love, Intelligence & Life satisfaction Researchers define constructs both “conceptually” and “operationally”.

Conceptual definition Provides meaning to one construct in abstract or theoretical terms (what does it mean). But we have to make our abstract concepts concrete so we can study them. Operational Definition Defines a construct by specifying the procedures used to measure a construct (How to measure it). i.e the assignment of numerals to object s, events”.

Examples: Height (Participant or subject variable ) Variables: A variable is a symbol of an event, act, characteristics, triat or attribute that can be measured, and to which we assign a categorical values. For purpose of data entry and analysis, we assign numerical value to a variable based on their variable’s properities. Any characteristics that varies is called as variable. (it must have atleast two values).   Examples: Height (Participant or subject variable ) Age (Participant or subject variable ) Stress (Response variable)

A hypothesis is a tentative statement and conjectural nature. Prepositions and Hypothesis A Preposition is a statement about observable phenomena (concepts) that may be judged as true or false. When a preposition is formulated for empirical testing, people call it hypothesis. A hypothesis is a tentative statement and conjectural nature.

A hypothesis is a tentative statement and conjectural nature. Prepositions and Hypothesis A Preposition is a statement about observable phenomena (concepts) that may be judged as true or false. When a preposition is formulated for empirical testing, people call it hypothesis. A hypothesis is a tentative statement and conjectural nature.

Hypothesis Hypothesis is defined as a tentative statement or assumption of an event. A hypothesis is a prediction of a relationship between one or more factors and the problem under study that can be tested. Hypotheses can take various forms, depending on the question being asked and the type of study being conducted. A key feature of all hypotheses is that each must make a prediction. These predictions are then tested by gathering and analyzing data, and the hypotheses can either be supported or refuted on the basis of the data.

CHARACTERISTICS OF A GOOD HYPOTHESIS   Hypothesis should be simple Hypothesis should be specific Hypothesis should be stated in advance. Hypothesis should be clear and precise. Hypothesis should be capable of being tested. Hypothesis should state relationship between variables, if it happens to be a relational hypothesis. Hypothesis should be consistent with most known facts i.e., it must be consistent with a substantial body of established facts. Hypothesis should be amenable to testing within a reasonable time. Hypothesis must explain the facts that give rise to the need for explanation.

STEPS IN HYPOTHESIS TESTING

Specify the level if significance (or the α value) Is this probability equal or smaller than α value in case of one – tailed test and α/2 in case of two – tailed test. Reject H0 Accept H0 State H0 as well as HA Specify the level if significance (or the α value) Decide the correct sampling distribution Sample a random sample(s) and workout an appropriate value from sample data Calculate the probability that sample result would diverge as widely as it has from expectations, if H0 were true. Thereby run the risk of committing Type I error Thereby run the risk of committing Type II error

STEPS IN HYPOTHESIS TESTING   The basic logic of hypothesis testing is to prove or disprove the research question.  By only allowing an error of 5% or 1% and making correct decisions based on statistical principles, the researcher can conclude that the result must be real if chance alone could produce the same result only 5% of the time or less. There are five steps in testing hypothesis.

Step -1  The first step in hypothesis testing is to specify the null hypothesis (H0) and the alternative hypothesis (HA). If one hypothesis is true, the other is false. Alternatively, if one hypothesis is false or rejected, then the other is true or accepted. These two hypotheses are Null Hypothesis Alternate hypothesis The null hypothesis would most likely be that there is no difference between methods (H0: μ1 - μ2 = 0). The alternative hypothesis would be H1: μ1 ≠ μ2. If the research concerned the correlation between grades and SAT scores, the null hypothesis would most likely be that there is no correlation (H0: ρ= 0). The alternative hypothesis would be H1: ρ ≠ 0.

Step - 2  The next step is to select a significant level. Typically the 0.05 or the 0.01 level is used. Step – 3 The third step is to calculate a statistic analogous to the parameters specified by the null hypothesis. If the null hypothesis were defined by the parameter μ1- μ2, then the statistic M1 - M2 would be computed.

Step – 4 The fourth step is to calculate the probability value (often called the p value). The p value is the probability of obtaining a statistic as different or more different from the parameter specified in the null hypothesis as the statistic computed from the data. The calculations are made assuming that the null hypothesis is true.

Step - 5 The probability value computed in Step 4 is compared with the significance level chosen in Step 2. If the probability is less than or equal to the significance level, then the null hypothesis is rejected; if the probability is greater than the significance level then the null hypothesis is not rejected. When the null hypothesis is rejected, the outcome is said to be “statistically significant" when the null hypothesis is not rejected then the outcome is said be "not statistically significant."

Step - 6 If the outcome is statistically significant, then the null hypothesis is rejected in favour of the alternative hypothesis. If the rejected null hypothesis were that μ1- μ2 = 0, then the alternative hypothesis would be that μ1≠ μ2. If M1 were greater than M2 then the researcher would naturally conclude that μ1 ≥ μ2.   Step - 7 The final step is to describe the result and the statistical conclusion in an understandable way. Be sure to present the descriptive statistics as well as whether the effect was significant or not.