UNIT-2 Business Research

Methods
BMB 203
 Research Design: Concept
• It is the conceptual structure within which research is conducted.
• it constitutes the blueprint for the collection, measurement and analysis of data.
• the design includes an outline of what the researcher will do from
• writing the hypothesis and its operational implications to the final analysis of
• data. More explicitly, the design decisions happen to be in respect of:
 • What is the study about?
 • Why is the study being made?
 • Where will the study be carried out?
 • What type of data is required?
 • Where can the required data be found?
 • What periods of time will the study include?
 • What will be the sample design?
 • What techniques of data collection will be used?
 • How will the data be analyzed?
 • In what style will the report be prepared?
Research Design: Definition
• “A research design is the arrangement of conditions for collection
and analysis of data in a manner that aims to combine relevance to
the research purpose with economy in procedure.”
Research design must, at least, contain—
(a) A clear statement of the research problem;
(b) Procedures and techniques to be used for gathering information;
(c) The population to be studied;
(d) Methods to be used in processing and analyzing data.
Research Design: Need
• Provides a direction to the research
• Gives an idea regarding the type of resources required in terms of
money, human resources, time, and efforts.
• Reduces inaccuracy
• Eliminates bias and errors
• Minimises wastage of time
• Helpful in testing the hypothesis
Features of Good Research Design/Significance
• 1.Research Design should clarify the Particular research problem.
• 2.It Provides guideline for specific method of data collection &
Analysis.
• 3.Research Design should be Flexible, efficient & Economical in
nature.
• 4.Research Design minimizes Biasness of Study.
• 5.Research Design must support reliability and validity of data
1.Research Design should clarify the Particular research problem.

The first feature of research design is that it outlines the research questions and objectives. The research
design should clearly state the research questions and objectives, as they guide the entire research process.

2.It Provides guidelines for specific methods of data collection & Analysis.

The research design helps to determine the appropriate research methodology to use. For example, if the
research question requires quantitative data, a survey may be the appropriate methodology to use. On the
other hand, if the research question requires qualitative data, an interview or focus group discussion may
be the appropriate methodology to use. It should also specify the sample size and sampling method.

3.Research Design should be Flexible, efficient & Economical in nature.

The research design should be flexible enough to consider different aspects of the study. A good research
design should yield reliable results with minimum investment.
• 4.Research Design minimizes Biasness of Study

• A good research design should reduce the biasness while should maximize the reliability of data
being collected and analyzed. A good research design should provide the opportunity as per the
various aspects of research problem. It should minimize the experimental error and should provide
maximum information.

• 5.Research Design must support the reliability and validity of data

• A well-designed research study helps to ensure that the results are valid and reliable. Validity
refers to the extent to which the study measures what it is supposed to measure, while reliability
refers to the extent to which the study produces consistent results over time. A good research
design can help to ensure that the study is valid and reliable.
Types of Research Design
 Research Design

Exploratory Conclusive
Research Research
Design Design

Descriptive Causal

Cross-sectional Longitudinal

Single Cross- Multiple Cross-

sectional sectional
 Exploratory Research Design
• Exploratory research is defined as a research used
• It often takes the form of qualitative data collection
to investigate a problem which is not clearly methods such as interviews or focus groups, but
defined. can also include quantitative methods such as
surveys.
• It is often used when the research topic is new and
• This type of research is used extensively in the
there is little previous work to draw upon. early stages of product development when
companies are trying to understand customer needs
• It is conducted to have a better understanding of
and preferences. It is also used in social sciences to
the existing research problem, but will not help build theory.
provide conclusive results.

• The goal is not to find definitive answers, but rather

to generate new ideas and hypotheses that can
be explored in future studies.
Exploratory Study: Examples

• A cafeteria owner feels that increasing the variety of juices will enable an increase
in customers. However, he is not sure and needs more information. The owner
intends to conduct exploratory research to find out; hence, he decides to do
exploratory research to find out if expanding their juices selection will enable him
to get more customers or if there is a better idea.
Exploratory Study: Characteristics
• They are not structured in nature.

• Open-ended, and is usually easy on the budget of the organization.

• It helps researchers uncover answers to questions such as; what is the problem being
studied? What is the need for this study? What topics should be included in the study?

• It is time-consuming and thus requires patience and persistence on the part of the
researcher.

• It is flexible, and adaptive in nature.

• It generally produces qualitative data.

 Exploratory Research Design: Data collection methods

Primary research methods Secondary research methods

• Expert Opinion Survey • Literature review
• In-depth Interview • Online research
• Focus Groups
• Observation
Primary research methods
• Primary research is information gathered directly
2) In-depth Interview
from the subject. It can be through a group of
people or even an individual. Such research can be When a small group of respondents is intensively
carried out directly by the researcher himself or can interviewed individually to measure their perception
employ a third party to conduct it on their behalf. about a particular event, concept, idea or situation, it
is called 'Depth Interview. In-depth interviews allow
researchers to intensely recognize the attitudes and
1) Expert opinion survey: Expert surveys allow perceptions of the respondents over a given issue.
researchers to gain information from specialists in
a field to understand, or to gather large amounts of
Data/content. For example, a depth interview can be conducted to
explore the reviews of participants of an
organizational training program about the Quality of
For example, if a researcher wants to survey the content, delivery method, its usefulness, or any
public’s stance and awareness on environmental changes required.
issues, the researcher can create a preliminary expert
survey for a selected group of environmental
authorities.
Primary research methods
3) Focus groups: In this method, a group of people is 4) Observations: Observation research is done to
chosen and allowed to express their insights on the observe a person and draw the finding from their
topic that is being studied. The focus group typically reaction to certain parameters. In such a research,
involves six to ten individuals who have some there is no direct interaction with the subject.
knowledge of or experience with the topic. The group
discussion is led by a moderator who guides
participants through a series of open-ended questions. For example: An FMCG company wants to know how
The information gathered can provide important clues it’s consumer react to the new shape of their product.
to human attitudes and values as they relate to the The researcher observes the customer’s first reaction
topic. and collects the data, which is then used to draw
inferences from the collective information.
For example: A focus group helps a researcher
identify the opinions of consumers if they were to buy
a phone. Such research can help the researcher
understand what the consumer value when buying a
phone. It may be screen size, brand value or even the
dimensions. Based on this the organization can
understand what are consumer buying attitudes,
consumer opinions, etc.
• Secondary research methods
Secondary research is gathering information from previously published primary research. In such a research
researchers gather information from sources likes research articles, case studies, magazines, newspapers, books,
etc.

1) Literature Review: Literature research is one of the most inexpensive method used for formulating a
hypothesis. There is a tremendous amount of information available in libraries, online sources, or even
commercial databases. Sources can include research articles, books, magazines, documents from
government agencies, Annual reports, published statistics from research organizations and so on.

2) Online research: In today’s world, this is one of the fastest way to gather information on any topic. A lot of
data is readily available on the internet and the researcher can download it whenever he/she needs it. An
important aspect to be noted for such a research is the genuineness and authenticity of the source websites
that the researcher is gathering the information from.
 Exploratory Research
Advantages Disadvantages

• The researcher has a lot of flexibility and can • It provides qualitative data so
adapt to changes as the research progresses. Interpretation of such information can be
• It is usually low cost. judgmental and biased.
• It helps lay the foundation of a research, • It is usually inconclusive.
which can lead to further research.
• Most of the times, it involves a smaller
• It enables the researcher understand at an
early stage, if the topic is worth investing the sample, hence the results cannot be
time and resources and if it is worth pursuing. accurately interpreted for a generalized
• It can assist other researchers to find out population.
possible causes for the problem, which can be • In case of secondary research method,
further studied in detail to find out, which of
them is the most likely cause for the problem.
there is a chance of that data being old and
is not updated.
 Conclusive Research
• As the term suggests, conclusive research is • Conclusive studies tend to be deductive in nature
and research objectives in these types of studies are
meant to provide information that is useful in
achieved via testing hypotheses.
reaching conclusions or decision-making. Conclusive research can be sub-divided into two
major categories:
• The conclusive research design is used to obtain 1) Descriptive or statistical research, and
information that can be used to reach conclusions 2) Causal research/Explanatory/Experimental
research
or make decisions. The data collected in this
research design is generally quantitative in nature.
this research relies on the use of highly structured
techniques, such as surveys with closed-ended
questions, in order to prove or disprove a
hypothesis.
Conclusive Vs. Exploratory
Descriptive Research • For example, understanding Gen Z
consumers, the hours they spend
browsing the internet per week. All this
information helps the organization
• Instead of focusing on the “why,” research to make informed business
decisions.
descriptive research addresses
questions like “what,” “when,” and • To measure satisfaction levels among
employees across different
“where”.”
• To explore how frequently and for what
• descriptive research describes the purposes different age groups use social
media.
characteristics of the problem,
phenomenon, situation, or group under • To describe how often consumers use
apps like Zepto, Blinkit, or Big basket, and
study. at what times of day
• For Example: Market researchers want • To measure consumer awareness, brand
to observe consumer behavior, Sales recognition, and trust levels for various Q-
commerce brands.
trends
 Types of Descriptive Research
• Cross-Sectional Study: A cross-sectional • Longitudinal Study: A longitudinal study is a

study is a type of research design in which you research conducted over an extended period of

collect data from many individuals at a single time. It is mostly used in medical research and
time. In cross-sectional research, you other areas like psychology or sociology. For
observe variables without influencing them. example: Marketers may conduct a

• Researchers in economics, psychology, longitudinal study to check the “Impact of

medicine, epidemiology, and the other social Customer Relationship Management

sciences all make use of cross-sectional (CRM) on Customer Retention and
studies in their work. For example, Health Loyalty”
Behaviors and Lifestyle Choices among
University Students.
Advantage of Cross Sectional
• Because you only collect data at a single point in time, cross-sectional studies are
relatively cheap and less time-consuming than other types of research.

• Cross-sectional studies allow you to collect data from a large pool of subjects and
compare differences between groups.

• Cross-sectional studies capture a specific moment in time. National censuses, for

instance, provide a snapshot of conditions in that country at that time.
Types of Cross-Sectional Study
• Single cross-sectional design: Only one sample of respondents is drawn
from the target population & information is obtained from this sample only
once.

• Multi cross-sectional design: A design in which there are two or more

samples of respondents, & information from each sample is obtained only
once.
Types of Longitudinal Research
 Types of Longitudinal Research
1) Trend Study: Researcher examines changes in trends over 3) Panel Study: in a panel study the same individuals are

used in throughout the study. This allows the researcher to

time; the same people do not necessarily participate in the
examine the exact changes that have taken place over time.
survey more than once. Researchers conducting trend
There are two types of panel.
surveys are interested in how people’s inclinations change
a) Continuous panel or True Panel: A fixed sample of
over time, i.e., trends. Example: Gallup opinion poll
respondents who are measured repeatedly over time with

2) Cohort study: A cohort is a group of people that share respect to the same variables.

similar characteristics. For example, children born in 2008 b) Discontinuous panel or Omnibus Panel: A fixed sample

belong to a single cohort since they share a common of respondents who are measured repeatedly over time but

characteristic. on variables that change from measurement to

measurement.
Cross-Sectional Vs. Longitudinal
Causal/Experimental/Explanatory Research
• Causal research, also known as explanatory research or Experimental research, is a methodology to
determine the cause underlying a given behavior and to find the cause-and-effect relationship between
different variables. It seeks to determine how the dependent variable changes with variations in the
independent variable.

• In research, when two variables have a causal relationship (or a cause-and-effect relationship), it means
that a change in one variable (known as the independent variable) causes a change in the other (the
dependent variable).

• Some examples:

• How does rebranding of a product influence intent to purchase?

• How would expansion to a new market segment affect projected sales?

• What would be the impact of a price increase or decrease on customer loyalty?

Causal Research: Objectives
• 1. Understanding which variables are the cause, and which variables
are the effect.

• 2. Determining the nature of the relationship between the causal

variables and the effect predicted.
Concept of Causation and Correlation
 Concept of Causation and Correlation
• Causation: Causation indicates that one event is the result of the occurrence of
the other event; i.e. there is a causal relationship between the two events. This is
also referred to as cause and effect.

• Correlation is a statistical measure (expressed as a number) that describes the size

and direction of a relationship between two or more variables. A correlation
between variables, however, does not automatically mean that the change in one
variable is the cause of the change in the values of the other variable.
Establishing Causation
• The use of a controlled study is the most effective way of establishing causality between
variables. In a controlled study, the sample or population is split into two, with both
groups being comparable in almost every way. The two groups then receive different
treatments, and the outcomes of each group are assessed.

• For example, Starbucks implemented a mobile app with a rewards-based loyalty

program, allowing customers to earn points (Stars) for every purchase, which could be
redeemed for free drinks and food in the USA only. Starbucks saw a significant increase in
repeat purchases and overall customer engagement in the USA.
Establishing Causation
Important concepts relating to Research
design
• 1. Dependent and independent variables
• 2. Extraneous variable
• 3. Control
• 4. Confounding relationship
• 5. Research hypothesis
• 6. Experimental and non-experimental hypothesis-testing research
• 7. Experimental and control groups
• 8. Treatments
• 9. Experiment
• 10. Experimental unit(s)
• 11. Concomitant Variable
 Important concepts relating to Research design
• Independent variables: • Extraneous variable:
• Variables that are manipulated (i.e. the levels of • Independent variables that are not related to the
these variables are changed by the purpose of the study, but may
• researcher) and whose effects are measured and
• affect the dependent variable are termed as
compared. These variables may
extraneous variables.
• include price levels, package designs and
advertising themes. • Suppose in an experimental research study, the
yield of particular variety depends on the type of
• Dependent variables: seeds and fertilizers used. But the weather is also a
• The variables that measure the effect of the factor that affects the productivity of crop. But
independent variables on the test units. since it is not the purpose of the study undertaken
• These variables may include sales, profits and by the researcher, it will be termed as extraneous
market shares. variables.
• For instance, if we say that height depends upon • The effect of an extraneous variable on dependent
age, then height is a dependent variable is called “Experimental
• variable and age is an independent variable. • error”. Note that the extraneous variables are
always Independent.
Extraneous Variable
 Important concepts relating to Research design

• Control:
• One important characteristic of a good
research design is to minimize the
influence or effect of extraneous
variable(s). The technical term ‘control’
is used when we design the study
minimizing the effects of extraneous
independent variables. In experimental
researches, the term ‘control’ is used to
refer to restrain experimental conditions.
Important concepts relating to Research design
Important concepts relating to Research design
• Research hypothesis:
• When a prediction or a hypothesized
relationship is to be tested by scientific
methods, it is termed as research
hypothesis. The research hypothesis is a
predictive statement that relates an
independent variable to a dependent
variable. Usually a research hypothesis
must contain, at least, one independent
and one dependent variable.
 Important concepts relating to Research design
• Experimental and non-experimental
hypothesis-testing research:

• Research in which the independent

variable is manipulated is termed
‘experimental hypothesis-testing
research’, and research in which an
independent variable is not
manipulated is called ‘non-
experimental hypothesis-testing
research’.
Important concepts relating to Research design
• Treatments:
• Experiments can be of two types’ viz.,
• The different conditions under which
experimental and control groups are put are Absolute Experiment and Comparative
usually referred to as ‘treatments’ Experiment.
• Experiment:
• If we want to determine the impact of a fertilizer
• The process of examining the truth of a
statistical hypothesis, relating to some research on the yield of a crop, it is a case of absolute
problem, is known as an experiment. experiment; but if we want to determine the
• For example, we can experiment to examine
impact of one fertilizer as compared to the
the usefulness of a certain newly developed
drug. impact of some other fertilizer, our experiment
then will be termed as a comparative experiment.
Important concepts relating to Research design
• Experimental and control groups:
• In an experimental hypothesis-testing research
when a group is exposed to usual conditions, it is
termed a ‘control group’, but when the group is
exposed to some novel or special condition, it is
termed an ‘experimental group’.
• For Example: Group A is having a regular study
programmes, and Group B is having special studies
programmes. The Group A can be called a control
group and the Group B an experimental group. If
both groups A and B are exposed to special studies
programmes, then both groups would be termed
‘experimental groups.
Important concepts relating to Research design
Experimental Unit
• Experimental unit(s):
• Experimental units in research refer to
the individuals, objects, or entities on
which the experimental treatments or
interventions are applied.
• They are the entities that are subjected
to different experimental conditions or
receive different levels of the
independent variable(s) in order to
observe the effects and measure the
outcomes.
Important concepts relating to Research design
• Concomitant variation
Example:
• Concomitant variation is the method in which • Variables:
a quantitative change in the effect is associated • Independent Variable: Exercise (measured in
with quantitative changes in a given factor. hours per week)
Cause and effect occur together & vary
together. • Dependent Variable: Weight Loss (measured in
pounds)
• Evidence pertaining to concomitant variation
can be obtained in a qualitative or quantitative • If a study finds that individuals who engage in
manner. higher levels of exercise tend to experience
greater weight loss, it demonstrates concomitant
• For example, if a brand's advertising
variation between exercise and weight loss. In
expenditures have been cut in half and the
this case, the two variables are changing
brands sales fell, we may suspect that the
reduced advertising support caused sales to together, suggesting a relationship between them.
fall.
Controlling Extraneous Variables
• Randomization
• Matching
• Use experimental designs
• Statistical Control
Controlling Extraneous Variables

• Randomization:
• In this approach, treatments are
randomly assigned to the
experimental groups. It is assumed
that the extraneous factors are present
equally in all the groups. This
technique is only workable when the
sample size is very large.
Controlling Extraneous Variables
• Matching • 4) Statistical Control:
• Different confounding variables like gender, • There may be situations, when all the
age, income etc. could be distributed above mentioned methods to control the
equally amongst the group. It sometimes extraneous variables do not show any
does become difficult to extend matching significant outcome. It brings the entire
within all the groups.
research into question as then causal
inferences are difficult to make. Another
• The use experimental designs: method that may work to bring down the
effect of extraneous variables is the
• In certain studies, the experimental designs
method of statistical control. Among the
may play a crucial role in reducing or
completely removing the role and impact of various statistical tools and techniques,
the extraneous variables. Analysis of Covariance ( ANCOVA)
helps in reducing the impact of the
extraneous factors on the study.