1 – Introduction to Research

Introduction

Research is the technical and systematic search for helpful information on a specific topic. It is characterised as an academic activity that entails defining a research topic, developing a hypothesis, gathering and analysing evidence, and arriving at particular results in the form of solutions or general ideas. The primary goal of the research is to identify methodical and systematic answers to issues. A research project is defined by the field in which it is carried out. For different topics, numerous sorts of research can be conducted, such as fundamental research to uncover the essential principles of the research field and applied research to solve an immediate problem. However, these studies take one of two approaches: quantitative or qualitative. The quantitative strategy emphasises the quantity of data gained from the investigation, whereas the qualitative approach emphasises the quality of the data obtained.

1.1 The Importance of Business Research

Corporate research is a systematic and objective process of acquiring, recording, and analysing facts to aid business decision-making. Business research is a subset of social science research. Social science research encompasses studies undertaken by social scientists (mainly in sociology and social psychology), but also in other fields such as social policy, human geography, political science, social anthropology, and education. Sociologists and other social scientists investigate a wide range of topics, from census data on hundreds of thousands of people to an in-depth examination of the life of a single significant individual to monitoring what is occurring on the street today—or what was happening a few hundred years ago.

Social scientists employ a variety of methodologies to describe, investigate, and comprehend social life. Social approaches are broadly classified into two types. Quantitative methods aim to quantify social processes and collect and analyse numerical data. They focus on the relationships between a limited number of qualities over numerous examples. On the other hand, qualitative techniques prioritise personal experiences and interpretation over quantification, are more concerned with understanding the meaning of social phenomena, and concentrate on linkages between a more significant number of qualities across a smaller number of examples. While qualitative and quantitative approaches are incredibly different in many ways, both entail a methodical interplay between theories and facts.

1.1.1 Research Purposes

In layman’s terms, research means “search for Knowledge.”

The art of scientific enquiry is known as research. It is also a systematic design, collection, analysis, and reporting of findings and solutions for a company’s marketing challenge. There is a need for research for the following reasons:

• Identifying and resolving difficulties
• To aid in decision-making
• To create fresh ideas
• To develop alternative strategies

1. To Identify and Solve the Problem: To thoroughly comprehend the problem.

“Why is demand for a product declining?” “How come there is a business fluctuation once every three years?” As described above, identifying a problem is simple. Then, collecting the necessary facts to fix it is simple.

2. To Assist in Decision Making: For example, should we maintain the same advertising budget as last year? Research will answer this question.

3. Determine Alternative Strategies: Should we use a pull or a push strategy to advertise the product?

4. To Create New Concepts: CRM, Horizontal Marketing, MLM, etc.

1.1.2 Marketing Analysis

Marketing research is an essential component of overall company research. Marketing research systematically collects and analyses data linked to the sale and distribution of financial products and services. Market research is an early stage in the marketing process that includes investigating market demand for a new product or existing items and effective distribution methods. Telephone poles and focus group interviews are market research techniques to identify client sentiments, pricing sensitivity, and willingness to employ alternate delivery methods. Marketing research, often known as market research, is a type of business study broadly classified into consumer market research and business-to-business (B2B) market research, also known as industrial marketing research. Consumer marketing research explores individual people’s purchasing behaviours, whereas business-to-business marketing research investigates markets for products supplied by one business to another.

1.2 Research Definition

Different authors and management gurus have characterised research in various ways. A research project is considered to begin with a query or a problem. The goal of research is to uncover solutions by using systematic and scientific approaches. As a result, research is a systematic approach to deliberate exploration. Some possible definitions of research include:

According to Redman and Mory, research systematically discovers new knowledge.

Clifford Woody defines research as “defining and redefining problems; formulating hypotheses or suggesting solutions; collecting, organising, and evaluating data; making deductions and reaching conclusions; and finally, carefully testing the conclusions to determine whether they agree with the formulated hypothesis.”

In the Encyclopaedia of Social Sciences, D. Slesinger and M. Stephenson define research as “the manipulation of things, concepts, or symbols to generalise to extend, correct, or verify information, whether that knowledge aids in the building of theory or the practice of an art.”

1.3 Research Methodology

Human inquiry was primarily centred on introspection until the fifteenth century. Turning inside and using logic to seek the truth was the way to know things. This paradigm had existed for millennia and provided a solid intellectual foundation for comprehending the world. The seeker of information was an essential component of the investigation process. During the 16th and 17th centuries, there was a significant shift. The Scientific Revolution was in full swing. The new scientific technique relied heavily on objectivity. The investigator was a bystander rather than a participant in the investigation. The universe evolved into a mechanical vision. We assumed that we could comprehend the whole by examining the separate components. Experimentation and deduction became the scholar’s instruments. The new paradigm gradually became part of society’s reality framework for the next two centuries.

The research procedure is a step-by-step procedure for writing a research paper. As you move from one phase to the next, you may need to back up, modify, add new material, or even change your topic entirely. What you discover during your investigation will determine this. There are numerous reasons for revising your strategy. For example, you may find that your topic is too broad and needs to be limited, that adequate information resources are unavailable, that what you learn does not support your thesis, or that the project’s scale does not meet the requirements.

The research process has nine steps to be followed while developing a research project. These are their names:

• Define the problem;
• Estimate the cost of research
• Make a list of pertinent information.
• Choosing a Research Design
• Data gathering
• Determine the type of sample
• Calculate the sample size
• Plan the fieldwork
• Data analysis and report preparation

The most difficult steps in the research process are defining the study problem and developing hypotheses.

1.3.1 Problem Formulation

Problem formulation is essential to the research process. A researcher defines problem formulation as transforming a management problem into a research problem. To obtain clarity, the MR management and researcher must communicate clearly to understand each other fully.

The following considerations should be made while formulating the problem:

• Determine the objective.
• Consider numerous environmental conditions.
• Describe the nature of the problem.
• Provide an alternative

1. Determine the objective: The goal can be generic or particular. For example, it could be general, such as “I’d like to know how successful the advertising campaign was.”

The above appears to be an objective statement. In actuality, this is far from the case. There are two methods for precisely determining the objectives. (a) The researcher should explain “what effective means” with the MR manager. Does influential mean awareness, or does it refer to a rise in sales, or does it suggest that it has increased the audience’s understanding or perception of the product? The questions to be asked of the audience vary depending on the situation. (a) Another method for determining objectives is to ask the MR Manager, “What action will be taken, given the specified outcome of the study?”

Example: If the company’s previous advertisement was ineffective based on the research findings, what course of action does the corporation intend to take? (a) Increase the budget for the next ad; (b) Use a new appeal; (c) Alter the media; and (d) Switch to a new agency.

2. Think about the environment: Environmental influences impact the research and decision-making process. As a result, the researcher must assist the client in identifying the critical environmental components.

Assume the corporation wishes to launch a new product, such as iced tea, frozen green peas, or ready-to-eat chapatis.

The following environmental factors must be taken into account:

• Consumer purchasing habits.
• Who are the other market rivals with the same or similar product?
• What is the public’s view of the company’s other products in terms of price and company image?
• Market size and target audience

All of the elements above could impact the decision. As a result, the researcher must collaborate closely with his customers.

3. The nature of the issue: Understanding the nature of the problem allows the researcher to collect relevant data and contribute to developing a suitable solution. Every issue is linked to one or more variables. To better understand the problem, a preliminary investigation is required before beginning data collection. A focus group of customers or sales representatives could be used to conduct an initial study.

If a focus group is conducted with consumers, some of the following questions will assist the researcher in better understanding the problem:

• Has the buyer considered including this company’s product in his mental map?
• The reasons why the client is not purchasing the company’s product.
• What prompted the client to choose the competitor?
• Is the researcher reaching out to the appropriate target audience?

4. Describe the alternatives: During the problem formulation hypothesis, the researcher should develop as many possibilities as possible.

For example, whether to implement sachet packaging to improve sales. The hypothesis will indicate that customer acceptance of the sachet will improve sales by 20%. Test marketing will be conducted before choosing whether to offer sachets. As a result, a hypothesis must be constructed for each choice.

1.3.2 Evaluate the Cost of Research

There are various approaches for determining the worth of research. Some of them are (1) the Bayesian strategy, (2) the simple saving method, (3) the return on investment, (4) the cost-benefit approach, and so on.

For instance, Company ‘X’ wishes to introduce a new product. According to the company’s intuition, the likelihood of product failure is 35%. However, if sufficient study is undertaken and evidence is acquired, the chances of failure can be lowered to 30%. The company has also calculated a loss of $300,000 if the device fails. MR agency has provided the company with a quote. The cost of the research is $75,000.00. “Should the corporation spend this money on research?” asks the inquiry.

Solution:

Loss if no study is conducted = $400,000 x 0.35 = $110,000

Loss from research = 3,000,000 x 0.30 = 90,000

Research information value = 1,05,000 – 90,000 = 15,000

Because the worth of information, 15000, is less than the research expense, 75,000, undertaking a study is not advised.

1.3.3 Preparing a List of Needed Information

Assume that firm ‘X’ wants to launch a new product (Tea powder). The product must be tested before it is released. The corporation must understand the market’s level of competition, price, and quality acceptance. The following is a list of information that is required in this setting.

1. Total demand and corporate sales: What is the industry’s overall demand? What is the competitor’s market share? The statistics shown above will assist management in estimating the market’s total share and its share.

2. Distribution coverage:

• Product availability at various retailers.
• The impact of shelf placement on sales.

3. Market awareness, attitude, and usage: “What percentage of the target population is aware of the firm’s product?” “Are buyers aware of the product?” “What is the customer’s opinion of the product?” “How many customers repurchased the product?”

4. Marketing expenditure: For example, “How much has been spent on marketing?” “How much money was spent on advertising?”

5. Marketing expenditure of competitors: For example, “How much did a competitor spend to market a similar product?”

1.3.4 Decision on Research Design

1. Is the study exploratory or conclusive?

Exploratory study:

“Causes of a decrease in sales of a certain company’s product in a specific territory under a specific salesman,” for example.

The researcher may investigate all possible explanations for why sales are declining.

• Poor product planning
• Higher pricing
• Less discount
• Less availability
• Ineffective advertising/salesmanship
• Poor salesmanship quality
• Less awareness

Not all variables are to blame for the sales fall.

Conclusive research: Reduce the number of options. Only one or two variables are to blame for the sales fall. As a result, narrow your focus and rely on your judgement and experience.

2. Who should be interviewed to obtain data?

If a study is conducted to see if children impact the brand of ready-to-eat cereal (corn flakes) purchased by their parents. The researcher must select if only adults will be investigated or youngsters will also be included. The researcher must determine whether to acquire data through observation or interviewing. “Will it be a personal interview, a telephone interview, or a questionnaire?”

3. Should only a few examples be researched, or should a broad sample be used?

The researcher may believe that some situations are identical or comparable. He may choose to use these cases to develop his initial hypothesis. If suitable examples are unavailable, the researcher may choose a large sample.

4. How do you incorporate experimentation into your research?

If it is an experiment, the question of “Where and when should measurement occur?” must be addressed.

For example, in an advertising copy test, respondents can be questioned first to assess their current awareness and sentiments toward specific businesses. Following that, they will be shown a pilot version of the suggested advertisement copy, and their attitude will be tested again to see if the proposed copy affects them.

If it is a questionnaire, (a) what is its content? (c) What kinds of inquiries should be asked? For example, targeted questions, general questions, and so on. (c) In what order should the questions be asked? (d) Should there be a predetermined set of options, or should it be open-ended? (e) Whether the purpose should be known to the respondents or concealed should be determined beforehand.

1.3.5 Select the Sample Types

The first step is carefully choosing “which categories of consumers or stores will be sampled.” Take data from a fast-food restaurant, for example. Defining the term “fast food chain” in this context is vital. It is also necessary to specify the actual geographical location.

The following step is to decide whether to use probability or non-probability sampling. One type of sampling is probability sampling, in which each element has a known chance of being chosen.

1.3.6 Determine the Sample Size

The bigger the error, the smaller the sample size, and vice versa.

The necessary level of accuracy, the amount of time available, and the associated cost all influence the sample size.

The size of the sample frame/universe determines the sample size. For example, a survey on opinions toward shampoo usage concerning a particular brand would involve husbands, wives, or a mix of all of them or a specific section of the population.

1.3.7 Organize the Fieldwork

This includes selecting, training, and evaluating the field sales force to collect data.

• How will the fieldwork be analysed?
• Which style of questionnaire—structured or unstructured – should be used?
• How should you approach the respondents?
• The week, day, and time to meet with the specified respondents must be determined, among other things.

1.3.8  Analyze the Data and Report Preparation

This includes (a) editing, (b) tabulating, (c) coding, and so forth.

• Scan the obtained data to ensure it is complete and all directions are followed. This is known as editing. After they have been edited, these forms must be coded.
• Coding entails assigning numbers to each of the replies to be examined.
• The final phase is known as data tabulation. It involves systematic data arrangement in a tabular format. When analysing the data, statistical tests such as the T-test, Z-test, Chi-square Test, ANOVA, and so on must be completed.

1.4 Types of Research

1.4.1 Exploratory Research

Exploratory research is conducted at the start of a project when the problem is unclear or ambiguous. In exploratory research, all obvious possible reasons are excluded, directing the investigation to proceed with fewer possibilities.

A company’s sales may be declining as a result of the following factors:

• Inefficient service
• Incorrect pricing
• Ineffective sales force
• Ineffective marketing
• Poor quality

Research executives must look into these issues to determine the best paths for future studies. This form of preliminary examination is known as exploratory research. The exploratory survey is carried out through expert surveys, focus groups, case studies, and observation methods.

1.4.2 Descriptive Research

The primary goal of descriptive research is to characterise the current state of mind. To put it simply, it is a fact-finding investigation. Descriptive research can yield definitive insights but does not demonstrate a cause-and-effect relationship. This form of research describes the respondents’ attributes regarding a specific product.

1. Descriptive research focuses on the consumer’s demographic characteristics. Trends in soft drink consumption, for example, about socioeconomic characteristics such as age, family, income, education level, etc. Another example is the time spent watching TV channels, which varies according to age, income level, profession, and viewing time. As a result, the researcher will be interested in the extent to which different categories of respondents consume television. Three categories of players will determine how TV is used:

(i) television manufacturers,

(ii) programme broadcasting agencies, and

(iii) viewers. As a result, research on any of the following topics is possible:

• The manufacturer can introduce features that will make the television more user-friendly. Some of the features include (i) remote control, (ii) child lock, (iii) several models for different income levels, (iv) Internet compatibility, etc., and (v) wall mounting.
• Similarly, broadcasting organisations can create programmes that appeal to various age groups and income levels.
• Finally, TV viewers must be informed of the programmes shown on various channels and able to plan their viewing schedule accordingly.

2. Descriptive research is concerned with particular projections, such as sales of a company’s product over the next three years, i.e. forecasting.

3. Descriptive research is also used to estimate the percentage of the population that behaves in a particular way.

“For instance, why do middle-income people shop at Food World?”

Based on the preceding explanation, a manufacturing company can research to determine the numerous features that can be included in television sets.

Similarly, broadcasting stations can perform studies to determine the utility of television programmes.

Example: Regarding the programmes, the following hypotheses might be advanced:

• The programmes on numerous networks provide viewers with amusement.
• Viewers believe television benefits children’s education, particularly fiction and cartoon programmes.

1.4.3 Applied Research

Applied research aims to identify a solution to an immediate problem that any corporate organisation is facing. This study is based on real-life scenarios.

“Why have sales declined in the last quarter,” for example. An excellent example of applied research is market research. The emphasis of applied research is on practical problem solutions. It reveals a plethora of new facts.

• Cars with fibre glass bodies rather than metal bodies.
• Create a new market for the goods.

1.4.4 Fundamental/pure research or basic research

Primary research is the gathering of knowledge for the sake of knowledge. It is not immediately concerned with practical issues, has no commercial value, and has no plans to put this research into practice. The Tata Institute of Fundamental Research carries out such research.

Example: Relativity Theory (by Einstein).

1.4.5 Conceptual Research

Philosophers frequently use this term. In conceptual research, the researcher collects data to prove or disprove his hypothesis. Numerous ideologies or ‘isms’ illustrate conceptual research.

1.4.6 Causal Research

Causal research is carried out to ascertain the cause-and-effect relationship between two variables.

Example: The impact of advertising on sales.

1.4.7 Historical Research

The term alone hints at the significance of the study. A historical study examines records and data to comprehend future trends and developments in an organisation or market. Nothing can be seen directly; the research must be based on previous conclusions or judgments.

For example, in the stock market, an investor researches the past performance or price of the shares he or she intends to purchase. Studying a company’s share prices allows the investor to decide whether or not to invest in the company’s shares.

Crime branch police/CBI officers investigate the historical records or histories of criminals and terrorists to reach judgments.

The primary goal of this research is to develop explanations and generalisations from previous trends to comprehend the present and predict the future.

However, there are several drawbacks to historical research:

• Information about reliability and adequacy is subjective and open to interpretation.
• The accuracy of event measurement is questionable.
• Record verification is challenging.

1.4.8 Ex-post Facto Analysis

A study of the link that exists between the independent and dependent variables is investigated in this form of research. This is referred to as empirical research. The researcher has no control over an independent variable in this method. Ex-post facto means “from what is done after the fact.” A variable “A” is observed in this study. The researcher then attempts to identify a causal variable “B” that caused “A.” It is possible that “B” was not produced by “A.” There is no way for the researcher to change the variable in this form of study. Only “what has happened” and “what is happening” can be reported by the researcher.

1.4.9 Action Research

This form of study is carried out by direct action. Action research is carried out to solve a problem. Test marketing a product, for example, is an example of action research. First, the geographical position is determined. A target sample is drawn from the population. Samples are given to randomly selected samples, and respondents provide feedback. This method is most commonly used for industrial products when a trial is required before regular use.

1.4.10 Evaluation Research 

This is an illustration of applied research. This study is carried out to determine how well a planned programme is carried out. As a result, evaluation research is concerned with assessing or evaluating the performance of a project.

“Rural Employment Program Evaluation” or “Success of Midday Meal Program” are two examples.

1.4.11 Library Research

This is done to collect secondary data. It includes taking notes from previous data or reviewing previous reports. This is a convenient method that saves both manpower and time.

REVIEW QUESTIONS: 

1. Under what circumstances would you consider conducting causal research within your organization?
2. While action research aims to address specific problems, why are other types of research also conducted?
3. What kind of research approach would you use to understand why middle-income groups prefer a particular retail store for their purchases?
4. When faced with a practical problem, which type of research would you choose to undertake?
5. In cases where the problem is unclear and all possible reasons have been eliminated, what type of research would be most appropriate, and why?
6. How does research assist managers in identifying consumption patterns?
7. Do you believe market research aids marketers in recognizing brand loyalty and reinforcing it? Explain your reasoning.
8. Despite authenticated records’ availability, why is the verification process a significant challenge?
9. Is there a distinction between pure research and ex-post facto research? Justify your answer with relevant explanations.