This document provides an overview of business research methods and processes. It discusses key topics including the scientific method, types of research, data collection and analysis techniques. Examples are given of how business research is used in areas such as marketing, finance, and management. Guidelines are provided on when research should be undertaken and how it can help reduce uncertainty and improve decision-making for organizations.

1. Business Research Methods
Business Research Process
Class Discussions
Dr Huei Hsia Holloman

2. Course Highlights
• Introduction to research
methodology
• Research Terminology and the
Scientific Method
• Designing and implementing a
research project
• Ethics in Research
• Types of Research
• Measurements in Research
• Primary and Secondary Data
• Analyzing primary and
secondary data (quantitative
techniques)
• Communicating Research
Results
• Undertaking Research
Project by the course
participants

3. Team Discussions
1. What is Business Research?
2. When?
3. Where?
4. Who?
5. Why?
6. How? Types of BR?

5. 1. What is Business Research? The systematic & objective process of
gathering, recording& analyzing data for business decisions
making (Cooper et al., 2011)
2. Types of BR Methods? Surveys, In-dept
Interviews, Observation, Experiments, Archival and Historical
Data, Qualitative vs. Quantitative Analysis
3. When? In situations of uncertainty & improving the quality of
decision-making to ensure organizations’ continuity
4. Who? Public-Sector Agencies, Consulting Firms, Research
Institutes, NGOs, NPOs, Independent Researchers & Consultants
Team Discussions

6. Where Business Research is Used
General Business Conditions/
Corporate Research
• Short- & Long-Range
Forecasting,
• Business and Industry Trends
• Global Environments
• Inflation and Pricing
• Plant and Warehouse Location
• Acquisitions
Management & Organizational
Behaviour Research
• Total Quality Management
• Morale and Job Satisfaction
• Leadership Style
• Employee Productivity
• Organizational Effectiveness
• Structural ssues
• Absenteeism and turnover
• Organizational Climate

7. Sales and Marketing Research
• Market
Potentials, Share, Segmentation
• Market characteristics
• Sales Analysis
• Establishment of sales quotas
• Distribution channels
• New product concepts
• Test markets
• Advertising research
• Buyer behaviour
• Customer satisfaction
• Website visitation rates
Financial/Accounting Research
• Forecasts of financial interest rate
trends, expected rate of return
• Stock,bond, commodity value
predictions
• Capital formation alternatives
• Mergers & acquisitions
• Risk-return trade-offs
• Portfolio analysis
• Impact of taxes
• Research on financial institutions
• Capital asset pricing models
• Credit risk
• Cost analysis

8. Where Business Research is Used
Information Systems Research
• Knowledge and information needs
assessment
• Computer information system use
and evaluation
• Technical suppot satisfaction
• Database analysis
• Data mining
• Enterprise resource planning
systems
• Customer relationship management
systems
Corporate Responsibility
Research
• Ecological Impact
• Legal Constraints on advertising
and promotion
• Sex, age and racial
discrimination / worker equity
• Social values and ethics

9. Examples: Real-Life Situations Using BR Methods
• A firm wants to produce and market a new product but first wants to ascertain
if there is a potential consumer demand for this product in markets x,y and z
• A multinational firm wants to establish a production facility in another country
after determining its technical and economic feasibility
• A government agency wants to ascertain the satisfaction level of its
employees, the causes for any possible discontent, and propose a scheme for
enhancing this level
• A financial institution wants to invest in commodities and commissions a study
to determine the past trends and forecast future returns in a portfolio of
commodities
• The CEO of a firm wants to undertake a SWOT-Analysis as part of his plan to
redefine his organization’s priorities

10. Basic and Applied Research
Basic Research aims to expand the frontiers of science and knowledge by
verifying or disproving the acceptability of a given theory or attempting to
discover more about a certain concept (non-specificity)
Example: How does $ affect employee performance?
Applied Research focuses on a real-life problem or situation with a view to
helping reach a decision how to deal with it (Specificity)
Example: Should Corporation X adopt a paperless office environment?

11. Science and the Scientific Method
Science has been defined as “the methodological and
systematic approach to acquisition of new knowledge”
(Geoffrey Marcyzk, David DeMatteo, David Festinger, Essentials of
Research Design and Methodology, John Wiley & Sons, 2005, p. 4)
The scientific method, which has evolved since the 13th
century, concerns the set of tools, techniques and
procedures used by basic and applied researchers to
analyze and understand phenomena and prove or
disprove prior conceptions

12. The Essence of the Scientific Method
Characteristics of the Scientific Method
Objectivity
Systematic Analysis
Logical Interpretation of Results
Elements of the
Scientific Method
Empirical Approach
Observations
Questions
Hypotheses
Experiments
Analysis
Conclusion
Replication
Basic
Research
Applied
Research
Scientific
Method
Information or
Ideas for alternative
Courses of action
General Laws

13. The Value of Business Research for Managers – (1)
Reduction of uncertainty and improvement in
the quality of decision-making with several
consequent advantages (e.g.
strategic, operational) and benefits for
organizations
Business Research Methods can be employed
in each of the following four stages:
(1) Identification of problems and/or opportunities
Useful for strategy planning, analysis of internal and
external organizational environment

14. The Value of Business Research for Managers – (2)
(2) Diagnosing and Assessment of problems and/or
opportunities
Its purpose is to gain insight into the underlying
reasons and causes for the situation. If there is a
problem, it asks what happened and why? If there is
an opportunity, it seeks to explore, clarify and refine
the nature of the opportunity and, in the case of
multiple opportunities, seeks to set priorities
(3) Selection and Implementation of Courses of Action
After alternative courses of action have been
determined, selection of the best possible course.

15. The Value of Business Research for Managers – (3)
An important consideration is the quality of
forecasting which is an essential tool of research
(4) Evaluating the Course of Action
Business Research Methods are used after a course
of action has been implemented in order to
determine whether activities have been properly
implemented and have accomplished what they
intended to do

16. The Value of Business Research for Managers – (4)
Evaluation Research – It is the formal objective
measurement and evaluation of the extent which an
activity, project or programme has achieved its goal, and
the factors which influence performance (e.g. audits). It is
also the formal objective measurement and evaluation of
the extent to which on-going activities, projects or
programmes are meeting their goals (performance-
monitoring research)
Examples of performance-monitoring research:
(1) Are railway passengers satisfied with the level of
service the railway company is providing? If not, then
research may need to be undertaken to ascertain the
reasons for customer dissatisfaction and propose
corrective measures

17. The Value of Business Research for Managers – (5)
(2) What are the trends in retail and wholesale sector?
Can research suggest new ways to improve efficiency
in purchase transactions?

18. When Should Business Research be Undertaken?
Is sufficient time
available?
Is information
inadequate?
High importance
of decision?
Research benefits
greater than costs?
Yes
Yes
Yes
Undertake Business Research
NO Do not
undertake Business Research

19. Value & Costs of Undertaking Business Research
VALUE
Decreased Uncertainty
Higher Likelihood of
Correct Decisions
Better Business
performance
Higher Profits
Better Reputation
COSTS
Research Costs
Delay in Making
Business Decisions
Disclosure of
Information to Rivals
Possibility of Error

20. The Building Blocks of Research
Measurements of phenomena
(e.g. sales statistics of a department store)
DATA
Determination of relationship amongst data with a
view to facilitating understanding of the phenomena,
their relationships and decision-making
(e.g. past and predicted future sales trends)
INFORMATION
KNOWLEDGE
Blend of information, experience and in-sights that
provides a framework that can be thoughtfully evaluated
when assessing new information or evaluating
relevant situations

21. Demands on Data & Information
• Relevance to the problem or situation at hand
• Must be available in a timely manner to the right person
(manager or decision-maker)
• Completeness
• Accuracy
• Accessibility
• Affordability
• Integrateability into a broader global information or decision-
support system

22. Global Information Support Systems
A Global Information System may be defined as “ an
organized collection of computer hardware,
communication equipment, software, data, and
personnel designed to capture, store, update,
manipulate, analyze, and immediately display
information about worldwide business activities”
A Global Information System is a tool for providing past,
current and projected information on internal operations
and external activity. It organizes and integrates data
from production, operations, marketing, finance,
accounting and other business functions
(Zikmund, p. 22)

23. Decision-Support System
• A computer-based system that helps decision makers
confront problems through direct interaction with
databases and analytical software programs
• The purpose of a decision support system is to store
data and transform them into organized information that
is easily accessible to decision-makers
• Decision-Support Systems are integrated in Global
Information Systems. They are aimed usually for
assisting managers and decision-makers in specific
organizational business units (e.g.
divisions, departments and functional areas) by providing
organized and adaptable information

24. Databases & Software
• Databases are collections of raw data which
have been arranged in a logical manner and
which can be stored and processed
electronically
• Software are programmes that allow complex
operations to be undertaken on data and which
give information for managers and decision-
makers
• Data Warehousing & Data Mining

25. Data and Information Sources for Business
Researchers – (1)
 Internal Records
Example: Data about costs, shipments, inventory, sales, and other aspects
of regular operations which are collected from various functional areas of an
organization
 Proprietary Business Research
Example: New data and information from projects which are undertaken ad
hoc to study specific company problems
 Business intelligence Systems
Example: Information about nonrecurring developments in the external
business environment stemming from a network of sources and regular
procedures

26. Data and Information Sources for Business Researchers
– (2)
 On-Line Databases
Examples: PROQUEST, INFOTRAC, DIALOG, LEXIS-
NEXIS, Dow Jones News Retrieval Services, CompuStat
 Internet
Examples: World Wide Web search engines (Google,
Yahoo, Altavista, Lycos, Excite etc.)
 All Other Sources
Examples: Research Institutions, Libraries, Books,
Journals, Periodicals,
Newspapers, Chambers of Commerce and Industry

27. Business Research in the International Context
Business Research is being increasingly applied in an
international context in the wake of globalization and the
consequent freedom of movement of the resources of
labour, capital and information of businesses and
corporations:
• Overseas market potential
• Joint ventures and relocating production lines overseas
• Framework considerations for investment and trade (e.g.
culture, legal environment, security, physical
infrastructure, availability and quality of human
resources, logistics, political stability, trade and
investment incentives)

28. Data and Information Sources for Business
Researchers (Pakistan)
• Federal and provincial ministries of commerce, industries and production
• Federal, provincial and city Chambers of Commerce and Industry
• State Bank of Pakistan, Pakistan Banking Council, local and foreign banking
institutions
• Stock Exchanges
• National Investment Board
• Export Promotion Bureau
• Manufacturers, Traders and Exporters Associations
• Research Institutes (e.g. Pakistan Institute of Development Economics)
• Newspapers and Magazines (e.g. Business Recorder, Pakistan and Gulf
Economist)
• Business and Trade Directories
• Internet (e.g.: www.forexpk.com)

29. Business Recorder
(www.brecorder.com)