This document provides an overview of business research. It defines business research as the systematic and objective process of generating information to aid in business decision making. This includes problem definition, information collection and analysis, and communicating findings. Business research can be applied to address specific decisions or basic to expand general knowledge. The scientific method involves forming hypotheses and using evidence to objectively reach conclusions. For managers, research helps with strategic planning, problem identification, decision making, and evaluating outcomes. The value of research must exceed its costs for a project to be worthwhile. Key topics include general business, finance, management, and marketing. Technology and globalization are changing how research is conducted.

1. BUS404: Research Methods in Business and
Management
Chapter 1:
The Role of Business Research
Dr. Md. Motaharul Islam
Adjunct Faculty Member, DIU
Mobile: 01711066605
Email: motaharul2014@gmail.com
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2. 1–2
LEARNING OUTCOMES
1. Understand how research contributes to business
success
2. Know how to define business research
3. Understand the difference between basic and applied
business research
4. Understand how research activities can be used to
address business decisions
5. Know when business research should and should not
be conducted
6. Appreciate the way technology and internationalization
are changing business research
After studying this chapter, you should

3. 1–3
Business Research Defined
• Business research is the application of the scientific method in searching for
the truth about business phenomena.
• Redman and Mory define research as a,” Systematized effort to gain new
knowledge”. Some people consider research as a movement, a movement
from the known to the unknown.
• According to Clifford woody, research comprises defining and redefining
problems, formulating hypothesis or suggested solutions collecting,
organising and evaluating data, making deductions and reaching
conclusions; to determine whether they fit the formulating hypothesis.
• Business research is defined as the systematic and objective process of
generating information for aid in making business decisions.
• The process includes:
 idea and theory development
 problem definition
 searching for and collecting information
 analyzing data
 communicating the findings and their implications

4. 1–4
Business Research Defined
• This definition suggests that business research
information is:
 not intuitive or haphazardly gathered
 accurate and objective
 relevant to all aspects of the business
 limited by one’s definition of business
• Not-for-profit organizations and governmental
agencies can use research in much the same
was as managers in for-profit organizations.

5. 1–5
Applied and Basic Business Research
• Applied business research
 conducted to address a specific business decision for
a specific firm or organization.
 Example:
 Should McDonald’s add Italian pasta dinners to its menu?
 Which health insurance plan should a business provide for its
employees?

6. 1–6
Applied and Basic Business Research
• Basic business research (also called pure
research)
 conducted without a specific decision in mind that
usually does not address the needs of a specific
organization.
 Attempts to expand the limits of knowledge in general.
 Not aimed at solving a pragmatic problem.
 Example:
 Do consumers experience cognitive dissonance in low-
involvement situations?
 Does employee tenure with a company influence
productivity?

7. 1–7
The Scientific Method
• Scientific Method
 The way researchers go about using knowledge and
evidence to reach objective conclusions about the
real world.
 The analysis and interpretation of empirical evidence
(facts from observation or experimentation) to confirm
or disprove prior conceptions

8. 1–8
EXHIBIT 1.1 A Summary of the Scientific Method

9. 1–9
Managerial Value of Business Research
• There are only a few business orientations:
 Product-oriented
 Production-oriented
 Marketing-oriented

10. 1–10
EXHIBIT 1.2 Business Orientations

11. 1–11
Managerial Value of Business Research
• The decision-making process associated with
the development and implementation of a
business strategy involves four interrelated
stages:
1. Identifying problems and opportunities
2. Diagnosing and assessing problems or
opportunities
3. Selecting and implementing a course of action
4. Evaluating the course of action

12. 1–12
Evaluating the Course of Actions
• Evaluation Research
 The formal, objective measurement and appraisal of
the extent a given activity, project, or program has
achieved its objectives.
• Performance Monitoring Research
 Research that regularly, sometimes routinely,
provides feedback for evaluation and control of
business activity.

13. 1–13
When is Business Research Needed?
• The determination of the need for research
centers on:
1. Time constraints
2. The availability of data
3. The nature of the decision to be made
4. Benefits versus costs (the value of the research
information in relation to costs)
 Will the payoff or rate of return be worth the investment?
 Will the information improve the quality of the
managerial decision enough to warrant the expenditure?
 Is the expenditure the best use of the available funds?

14. 1–14
EXHIBIT 1.3 Determining When to Conduct Business Research

15. Is sufficient time
available before
a managerial
decision
must be made?
Is the infor-
mation already
on hand
inadequate
for making
the decision?
Is the decision
of considerable
strategic
or tactical
importance?
Does the value
of the research
information
exceed the cost
of conducting
research?
Conducting
Business
Research
Do Not Conduct Business Research
Time Constraints
Availability of Data
Nature of the Decision
Benefits
vs. Costs
Yes Yes
Yes
Yes
No No No No
Determining When to Conduct Business
Research

16. Value
•Decreased certainty
•Increased likelihood
of a correct decision
•Improved business
performance and
resulting higher
profits
Costs
•Research
expenditures
•Delay of business
decision and
possible disclosure
of information to
rivals
•Possible erroneous
research results
Value Should Exceed
Estimated Costs

17. Major Topics for Research in Business
• General Business Conditions and Corporate
Research
• Financial and Accounting Research
• Management and Organizational Behavior
Research
• Sales and Marketing Research
• Information Systems Research
• Corporate Responsibility Research

18. 1–18
Business Research in the 21st Century
• Communication Technologies
 Always “connected”—time, place, and distance are
irrelevant.
 Decreases in information acquisition, storage, access,
and transmission costs.
• Global Business Research
 Business research is increasingly global.
 Must understand the nature of particular markets.
 Cross-validation
 Verify that the empirical findings from one culture also exist
and behave similarly in another culture.

19. THE RESEARCH PROCESS
The research process broadly consists of the following steps and
predominantly follows a sequential order as depicted in figure
• 1. Problem formulation
• 2. Development of an approach to the problem
• 3. Research Design
• 4. Selection of Data collection techniques
• 5. Sampling techniques
• 6. Fieldwork or Data Collection
• 7. Analysis and interpretation
• 8. Report preparation and presentation
• The above mentioned steps may be placed in three groups as follows: First there is
initiating or planning of a study, which comprises the initial four steps in our model:
determining
• (1) problem formulation,
• (2) development of an approach to the problem
• (3) Research design
• (4) selection of data collection techniques
• (5) sampling techniques. 1–19

20. THE RESEARCH PROCESS Contd..
• The above mentioned steps may be placed in three groups as follows: First
there is initiating or planning of a study, which comprises the initial four
steps in our model: determining
• (1) problem formulation,
• (2) development of an approach to the problem
• (3) Research design
• (4) selection of data collection techniques
• (5) sampling techniques.
• Second, there is (6) fieldwork or data collection
• Third, there is (7) analysis and interpretation of the data and
• (8) report preparation and presentation.
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