INTRODUCTION TO RESEARCH METHODOLOGY IN BRM (UNIT 1)

 

Meaning of Research:

Research in common parlance refers to a search for knowledge. One can also define research as a scientific and systematic search for pertinent information on a specific topic. In fact, research is an art for scientific investigation. It can also be defined as “a careful investigation or inquiry especially through search for new facts in any branch of knowledge.” It is movement from the known to the unknown. It is actually a voyage of discovery. We all possess the vital instinct in inquisitiveness for, when the unknown confronts us, we wonder and our inquisitiveness makes us probe and attain full and fuller understanding of the unknown. This inquisitiveness is the mother of all knowledge and the method, which man employs for obtaining the knowledge of whatever the unknown, can be termed as research.

According to Clifford Woody research comprises defining and redefining problems, formulating hypothesis or suggested solutions; collecting, organizing and evaluating data; making deductions; and at last carefully testing the conclusions to determine whether they fit the formulated hypothesis. Research is, thus, an original contribution to the existing stock of knowledge making for its advancement. It is the pursuit of truth with the help of study, observation, comparison and experiment. In short, the search for knowledge through objective and systematic method of finding solution to a problem is research. The systematic approach concerning generalization and the formulation of a theory is also research. As such the term ‘research’ refers to the systematic method consisting of enunciating the problem, formulating the hypothesis, collecting the facts or data, analyzing the facts and reaching certain conclusions either in the form of solution(s) towards the concerned problem or in certain generalizations for some theoretical formulation.

 

REASONS TO STUDY THE BUSINESS RESEARCH:

When we think of research, we often think of analyzing scholarly information. However, if you’re involved in any kind of business operation, research will help you gather the necessary data for your industry to be successful. In fact, asking questions and researching answers or recommendations is essential for making major business decisions. This may include industry research, market research, or user research based on your business objective so that your business plan is aligned with the right customers and does a great job executing its goals. Here are six reasons why your company needs research:

 

 

 

1. To Define your objectives

What is the size of your industry? How have sales trended in other industries? What goals does it make sense for your company to set? Perhaps the most important research task is to collect initial data that will help you define your business objectives. Typically survey information is available through secondary sources, but often companies do their own surveys as well to measure satisfaction among customers and ensure that their business plan will meet customer’s needs. Researching all kinds of information about the market and your potential customers will be your best friend when defining business objectives.

2. To Understand your competition

Once you know your target market you can identify and research your competition. Whether you’re a small business or a large successful corporation, markets are often changing and new competition is always a potential threat. Researching your market will help you assess your category, strategize, and make the right decisions for your company to gain an edge above your competition. This research can also help you identify what features your competition lacks so you can add value to your services or brand through real insights.

3. To Test your products or campaigns

Who are your customers and what do they want? Successful companies research every detail regarding users including their interests, experiences with your product or services, and potential ways to incorporate feedback. User research and testing will help you judge whether your product, advertising, packaging, and brand communication effectively influence consumers. This task is excellent for helping your company make informed decisions. Sample surveys will help you test conceived ideas so you can confidently make decisions.

 

4. For Detailed Segmentation-Targeting-Positioning

A proper and thorough Segmentation, Targeting and Positioning is very crucial for a business.  A robust market research on segmentation based on location or demography can do wonders in advancing with the business plan. Next step, it reduces the targeting overhead and narrows down the optimal customer base. Finally, positioning a product in the minds of the customer become a cake walk with the market research.

 

 

5. To Optimize your strategy

In any given industry, there may be up to hundreds of brands on the market targeted toward the same set of customers. This makes a marketer’s job quite challenging, since every brand needs a different positioning and strategy. Both qualitative and quantitative market research will help guide marketers when developing a brand strategy and analyzing how your company compares to the competition. Effective marketing comes from user research - understand what brand features matter most to your target market and build from there.

6. To Keep pace with the industry

All industries change over time, so brands must innovate as the market evolves. In order to secure your brand’s relevancy in the market, your company likely must constantly research updates and trends in the market that will influence whether you “perform or perish.” As new competition arises with updated features, focus your innovation efforts on growth opportunities and respond to customer’s changing needs. Remember, if you don’t adapt to the market, someone else will, so staying ahead of the game is a key to success. Product Life Cycle also keeps changing, and therefore in every life cycle stage, you need to have a different strategy.

7.  Expedite smooth new product introduction:

Whenever a new product is to be introduced many factors like pricing, utility and feasibility are taken into picture. And an accurate market research is to be carried out so that penetration of the product is executed in smooth way. Particularly for new product if market research is not done then be prepared for a rough road ahead. Or in worst case shut down!

8.  Refined end-to-end communication mix:

This is significant to any organization.  A virtuous market research on communication mix can positively clear the loop holes. Plus, it can carry the media mix well and put forward the objectives of a company to end-users in a crystal clear fashion. It is also a great source that can enable advertisements to get designed spot on for grabbing customers.

9. To Solve problems and make decisions

Businesses often face loss or failure. Market research, user research, and research depending on your industry may help you gain insight into what went wrong. Whether brand awareness is decreasing or sales have fallen, analyzing available data can help you determine possible alternatives to your current strategy and overcome your company’s weaknesses. Research is critical not only for identifying problems but also for developing solutions and making decisions regarding the best strategies to carry out.

While scholarly research may help your company make decisions (for instance, many psychological studies evaluate the best colors to catch attention or the best font design), there are many other types of research that can dramatically influence your company such as market research and user research. Asking questions, evaluating sources, interviewing users, and testing designs all fall under the research umbrella. How do you make sure your company is on the right track? Research it!

 

 

THE CONCEPT OF RESEARCH METHODS, RESEARCH DESIGN AND RESEARCH METHODOLOGY

RESEARCH METHODS:

Research methods are generalized and established ways of approaching research questions (e.g., qualitative vs. quantitative methods). Not all methods can be applied to all research questions, so the choice of method is limited by the area of research that you wish to explore.

Qualitative Research

Qualitative Research is primarily exploratory research. It is used to gain an understanding of underlying reasons, opinions, and motivations. It provides insights into the problem or helps to develop ideas or hypotheses for potential quantitative research. Qualitative Research is also used to uncover trends in thoughts and opinions, and dive deeper into the problem. Qualitative data collection methods vary using unstructured or semi-structured techniques. Some common methods include focus groups (group discussions), individual interviews, and participation/observations. The sample size is typically small, and respondents are selected to fulfil a given quota.

Quantitative Research

Quantitative Research is used to quantify the problem by way of generating numerical data or data that can be transformed into usable statistics. It is used to quantify attitudes, opinions, behaviors, and other defined variables – and generalize results from a larger sample population. Quantitative Research uses measurable data to formulate facts and uncover patterns in research. Quantitative data collection methods are much more structured than Qualitative data collection methods. Quantitative data collection methods include various forms of surveys – online surveys, paper surveys, mobile surveys and kiosk surveys, face-to-face interviews, telephone interviews, longitudinal studies, website interceptors, online polls, and systematic observations.

 

RESEARCH DESIGN:

A research design is a systematic approach that a researcher uses to conduct a scientific study. It is the overall synchronization of identified components and data resulting in a plausible outcome.  To conclusively come up with an authentic and accurate result, the research design should follow a strategic methodology, in line with the type of research chosen. To have a better understanding of which research paper topic, to begin with, it is imperative to first identify the types of research.

A research design is therefore a detailed outline of how an investigation will take place. A research design will typically include how data is to be collected, what instruments will be employed, how the instruments will be used and the intended means for analyzing data collected.

Research design is a pre-planned sketch for the explanation of a problem. It is the first step to take and the whole research. Study will conduct on the basis of this research design. It gives us a due that how the further process would be taking place and how would be the research study carry into classification, interpretation and suggestions. This is a guideline for the whole work.

Characteristics of a Good Research Design

Following are some of the main characteristics of research design.

1. Objectivity
2. Precision
3. Reliability
4. Validity
5. Generalization

 

What are the types of Research Design?

There are four types of research designs which are:

1.         Exploratory Research: Just as the word implies, it explores, that is to find out about something by answering the question in “what” or “How” manner. Investigation into a problem or situation which provides insights to the researcher. The research is meant to provide details where a small amount of information exists. It may use a variety of methods such as trial studies, interviews, group discussions, experiments, or other tactics for the purpose of gaining information.

Exploratory research, as the name implies, intends merely to explore the research questions and does not intend to offer final and conclusive solutions to existing problems. This type of research is usually conducted to study a problem that has not been clearly defined yet.

Conducted in order to determine the nature of the problem, exploratory research is not intended to provide conclusive evidence, but helps us to have a better understanding of the problem. When conducting exploratory research, the researcher ought to be willing to change his/her direction as a result of revelation of new data and new insights.[1]

Exploratory research design does not aim to provide the final and conclusive answers to the research questions, but merely explores the research topic with varying levels of depth. It has been noted that “exploratory research is the initial research, which forms the basis of more conclusive research. It can even help in determining the research design, sampling methodology and data collection method”[2]. Exploratory research “tends to tackle new problems on which little or no previous research has been done”[3]. Unstructured interviews are the most popular primary data collection method with exploratory studies.

2. Descriptive Research: This is a more in-depth research, that answered the question what and how. Descriptive research is research used to “describe” a situation, subject, behavior, or phenomenon. It is used to answer questions of who, what, when, where, and how associated with a particular research question or problem. Descriptive studies are often described as studies that are concerned with finding out “what is”.   It attempts to gather quantifiable information that can be used to statistically analyze a target audience or a particular subject. Description research is used to observe and describe a research subject or problem without influencing or manipulating the variables in any way. Hence, these studies are really correlational or observational, and not truly experimental.  This type of research is conclusive in nature, rather than exploratory.  Therefore, descriptive research does not attempt to answer “why” and is not used to discover inferences, make predictions or establish causal relationships.

Descriptive research is used extensively in social science, psychology and educational research. It can provide a rich data set that often brings to light new knowledge or awareness that may have otherwise gone unnoticed or encountered.  It is particularly useful when it is important to gather information with disruption of the subjects or when it is not possible to test and measure large numbers of samples.  It allows researchers to observe natural behaviors without affecting them in any way. Following is a list of research questions or problems that may lend themselves to descriptive research:

Market researchers may want to observe the habits of consumers.

A company may be wanting to evaluate the morale of the staff.

A school district may research whether or not students are more likely to access online textbooks than to use printed copies.

A school district may wish to assess teachers’ attitudes about using technology in the classroom.

An educational software company may want to know what aspects of the software make it more likely to be used by students.

A researcher may wish to study the impact of hands-on activities and laboratory experiments on students’ perceptions of science.

A researcher could be studying whether or not the availability of hiking/biking trails increases the physical activity levels in a neighborhood.

In some types of descriptive research, the researcher does not interact with the subjects.  In other types, the researcher does interact with the subjects and collects information directly from them.  Some descriptive studies may be cross-sectional, whereby the researcher has a one-time interaction with the test subjects.  Other studies may be longitudinal, where the same test subjects are followed over time.  There are three main methods that may be used in descriptive research:

(a)        Observational Method – Used to review and record the actions and behaviors of a group of test subjects in their natural environment. The research typically does not have interaction with the test subject.

(b)       Case Study Method – This is a much more in-depth student of an individual or small group of individuals. It may or may not involve interaction with the test subjects.

(c )       Survey Method – Researchers interact with individual test subjects by collecting information through the use of surveys or interviews.

The data collected from descriptive research may be quantitative, qualitative or both.  The quantitative data is typically presented in the form of descriptive statistics that provide basic information such as the mean, median, and mode of a data set.  Quantitative date may also be tabulated along a continuum in numerical form, such as scores on a test.  It can also be used to describe categories of information or patterns of interactions.  Such quantitative data is typically represented in tables, graphs, and charts which makes it user-friendly and easy to interpret.  Qualitative data, such as the type of narrative data collected in a case study, may be organized into patterns that emerge or it may be classified in some way, but requires more detailed analysis.

 

3. Explanatory Research: This seeks to explain the subject matter being researched and tries to answer the question what, how and why. Explanatory Research is the conducted for a problem which was not well researched before, demands priorities, generates operational definitions and provides a better-researched model. It is actually a type of research design which focuses on explaining the aspects of your study in a detailed manner. The researcher starts with a general idea and uses research as a tool which could lead to the subjects that would be dealt in the incoming future. It is meant to provide details where a small amount of information exists for a certain product in mind of that researcher. For starting your research, you need to create a research outline or speech outline to pitch your research idea to your professor or a boss or in a board meeting.

Explanatory Research is conducted in order to help us find the problem that was not studied before in-depth. The Explanatory research is not used to give us some conclusive evidence but helps us in understanding the problem more efficiently. When conducting the research, the researcher should be able to adapt himself/herself to the new data and the new insight that he discovers as he/she studies the subject.

 

4. Evaluation Research: This is quite extensive as it measures the effectiveness of a program. Evaluation research is used to determine the impact of a social intervention. A social intervention is an action taken within a social context designed to produce an intended result. Evaluation research thus analyzes the impact of a particular program on a certain social problem the program is trying to solve.

Weiss defines evaluation as “the systematic assessment of the operation and/or the outcomes of a program or policy, compared to a set of explicit or implicit standards, as a means of contributing to the improvement of the program or policy” (1998, p. 4). In her previous book, Weiss (1972) defines evaluation research as “an elastic word that stretches to cover judgments of many kinds”

The focus of evaluation research is on evaluating an event and to make judgment about its usefulness. This type of research is probably not truly quantitative due to the elements of value judgment made by the researcher.

 

With a clear understating of the types of research designs, a design research can be drawn. Just like the way an architect chooses a layout from its many designs to fit a specific landscape, the same way a research design is picked from the many designs to fit the type of research being carried out.

 

WHAT IS A RESEARCH METHODOLOGY

 

The process used to collect information and data for the purpose of making business decisions. The methodology may include publication research, interviews, surveys and other research techniques, and could include both present and historical information.

The methodology is the general research strategy that outlines the way in which research is to be undertaken and, among other things, identifies the methods to be used in it. These methods, described in the methodology, define the means or modes of data collection or, sometimes, how a specific result is to be calculated. Methodology does not define specific methods, even though much attention is given to the nature and kinds of processes to be followed in a particular procedure or to attain an objective.

Research methodology is a systematic way to solve a problem. It is a science of studying how research is to be carried out. Essentially, the procedures by which researchers go about their work of describing, explaining and predicting phenomena are called research methodology. It is also defined as the study of methods by which knowledge is gained. Its aim is to give the work plan of research.

 

II. RESEARCH METHODS AND RESEARCH METHODOLOGY

Is there any difference between research methods and research methodology?

Research methods are the various procedures, schemes and algorithms used in research. All the methods used by a researcher during a research study are termed as research methods. They are essentially planned, scientific and value-neutral. They include theoretical procedures, experimental studies, numerical schemes, statistical approaches, etc. Research methods help us collect samples, data and find a solution to a problem. Particularly, scientific research methods call for explanations based on collected facts, measurements and observations and not on reasoning alone. They accept only those explanations which can be verified by experiments.

Research methodology is a systematic way to solve a problem. It is a science of studying how research is to be carried out. Essentially, the procedures by which researchers go about their work of describing, explaining and predicting phenomena are called research methodology. It is also defined as the study of methods by which knowledge is gained. Its aim is to give the work plan of research.

More precisely, research methods help us get a solution to a problem. On the other hand, research methodology is concerned with the explanation of the following:

(1)   Why is a particular research study undertaken?

(2)    How did one formulate a research problem?

(3)    What types of data were collected?

(4)    What particular method has been used?

(5)    Why was a particular technique of analysis of data used?

The study of research methods gives training to apply them to a problem. The study of research methodology provides us the necessary training in choosing methods, materials, scientific tools and training in techniques relevant for the problem chosen.

 

A. Importance of Research Methodology in Research Study

It is necessary for a researcher to design a methodology for the problem chosen. One should note that even if the method considered in two problems are same the methodology may be different. It is important for the researcher to know not only the research methods necessary for the research under taken but also the methodology. For example, a researcher not only needs to know how to calculate mean, variance and distribution function for a set of data, how to find a solution of a physical system described by mathematical model, how to determine the roots of algebraic equations and how to apply a particular method but also need to know:

(i)                 which is a suitable method for the chosen problem?,

(ii)               what is the order of accuracy of the result of a method?,

(iii)             what is the efficiency of the method?

and so on. Consideration of these aspects constitute a research methodology.

 

 

 

PLANNING AND STRATEGY FOR BUSINESS RESEARCH:

 

 

PLANNING DRIVES BUSINESS RESEARCH:

Managers have access to information other than that generated by business research. Understanding the relationship between business research and these other information sources- decision support system and business intelligence- is critical for understanding how information drives decisions relating to organization mission, goals, strategies and tactics.

 

GOALS

A local bakery would have different goal than a national brand bakery, but each likely has goals related to sales (membership), market share, return on investment, profitability, customer acquisition, customer satisfaction, customer retention, employee productivity, machine efficiency, maximization of stock price (or owner’s equity), and so on- whether codified in a written plan or detailed only in an entrepreneur’s brain. To assist in making increasingly complex decisions on goals, strategies and tactics, managers turn first to information drawn from the decision support system, combined with that generated by business intelligence on competitive and environmental activity.

DECISION SUPPORT

The need to complete one or many exchanges with its prospective customers drives every organization. No matter how we define an exchange- a purchase, a vote, attendance at a function, a donation to a cause- each exchange, along with the strategic and tactical activities designed to complete it, generates numerous elements of data. If organized for retrieval, collectively these data elements constitute a Decision Support System (DSS). During the last two and one half decades, advances in computer technology made it possible to share this collected transactional data among an organization’s decision makers, over an intranet or an extranet.

An Intranet is a private network that is contained within an enterprise (not available to the public at large). While an intranet typically includes connections to the outside internet, its main purpose is to share company information and computing resources among internal audiences. An extranet is a private network that uses the internet protocols and the public telecommunication systems to share an organization’s information, data or operations with external suppliers, vendors or customers. An extranet can be viewed as the external portion of a company’s intranet. Through both intranets and extranets parties can access proprietary relational databases containing managerial decision-related information. Today, sophisticated managers have developed DSSs where data can be accessed in real time (as transactions are completed). Catalogue managers (for example, casual clothing firm Lands’ End) know exactly what tactics generate a transaction from a particular individual within their prospect and customer databases, as well just how profitable each customer is to the company and an estimate of that customer’s lifetime value to the company. Such managers have a distinct advantage in strategic and tactical planning over those without real-time access to transactional data.

BUSINESS INTELLIGENCE

As no decision exists in a vacuum, the decision maker must have a broad knowledge of the firm’s environment. A business intelligence system (BIS) is designed to provide the manager with ongoing information about events and trends in the technological, economic, political and legal, demographic, cultural, social, and, most critically, competitive arenas. Such information is compiled from a variety of sources.

It is often data from a DSS or BIS that stimulate the question, ‘Should we do business research’? For example in the case of a restaurant whose friendliness quotient is changing, it might be customer comments collected by the wait staff.

STRATEGY

Knowing that it costs less to retain a customer than to capture a new one most managers place a high value on keeping their customers buying repeatedly. This explains why customer satisfaction, customer loyalty and customer assessment studies represent a significant portion of business research studies. For example, Microsoft, recently completed a major corporate restructuring. It decided to tie its 600 manager’s compensation not to sales and profits but to levels of customer satisfaction as measured by periodic customer satisfaction surveys.

Strategy is defined as the general approach an organization will follow to achieve its goals. In an earlier example, a restaurant was receiving comments that the friendly atmosphere was changing. This perception may have the result of a change in strategy. Perhaps the restaurant decided to switch from an atmosphere where patrons were encouraged to linger over their meals (occupying a table for a long period of time, not adding incremental revenue with each individual course) to a new strategy of turning each table over in a shorter time frame by changing food preparation and the menu.

A firm usually implements more than one strategy at a time. With regard to training, one organization might train its data warehouse employees with mostly classroom activities, while another will use on-the-job training. Another strategy might describe how an organization handles maintenance on its machines- rigorous periodic maintenance versus only when a machine breaks down. A strategy might describe how an organization can best position its particular goods and services to fulfill customer needs. For example, Ralston Purina might position a dog food for active, small-breed puppies versus overweight, adult large-breed dogs. Yet another strategy might define the general approach to establishing brand equity- or the value of the organization’s offerings- as Haagen-Dazs did when it established its super premium ice-cream strategy.

The discovery of opportunities and problems and the resulting strategies is often the task of the BIS in combination with business research.

TACTICS

Business research also contributes significantly to the design and selection of tactics, those specific, timed activities that execute a strategy. Haagen-Dazs designs it super premium ice cream to be rich-tasting and creamy in texture with 19 grams of fat per serving (product tactics) and brings it out in dozens of flavors with names like “Peanut Butter Fudge Chunk”, “Bananas Foster”, and “Vanilla Fudge Brownie” (product tactics), packaged primarily in pint containers with the signature gold and burgundy colors (packaging tactic). It distributes prepackaged Haagen-Dazs through freezer cases in grocery stores (distribution tactics) or hand-packed drums (packaging tactic) through its own or franchised stores- 700 cafes in 54 countries, with 240 shops in the United States- as well as on cruise ships and through other restaurants (distribution tactics).

In our earlier example our restaurant manager might have changed the menu ( a product tactic) so that entrees could be prepared faster (production tactic) and delivered to a table more quickly. The manager might also have instituted a new sales program (a promotion tactic), one that discouraged the wait staff from making small talk with patrons and rewarded efficiency. Business research is often used to help a manager decide which of the several tactic is likely to successfully execute the desired strategy.

All of the above examples demonstrate the purposed of business research:

• To identify and define opportunities and problems.
• To define, monitor, and refine strategies.
• To define, monitor, and refine tactics.
• To improve our understanding of the various field of management.

 

EMERGING HIERARCY OF INFORMATION-BASED DECISION MAKERS

While not all organizations use business research to help make planning decisions, increasingly the successful ones do.

In the top tier, organizations see research as the fundamental first step in any venture. They go beyond the tried and true methodologies and use creative combinations of research techniques to gain deep insights to aid in their sophisticated decision making. Some even develop their own proprietary methodologies. These firms may partner with a small group of outside research suppliers that have the expertise to use innovative combinations of research methods to address management dilemmas. These visionary managers can be found in research firms, service firms, non profit organizations, and product and service manufacturers and distributors. Minute Maid, the manufacturers that brings us fresh and frozen juice-based products, fosters decision making at this level.  Its vice president of consumer and marketing knowledge is a member of the firm’s highest strategic planning team. Implementation and activation of research are the critical stages for decision makers in this tier.

In the second tier of the hierarchy are those decision makers those rely periodically on research information. They usually turn to business research primarily when they perceive the risk of a particular strategy or tactic to be too great to proceed without it. This tier is occupied by many large, medium and small organizations of all types. Some of the firms newly arrived to this tier are in transition from the base tier. They have realized that failing to collect information prior to decision making or failing to extract insight from information that has been collected in their DSS puts them at a distinct competitive disadvantage.

Finally, the base tier comprises those managers who primarily use instinct and intuition rather than formal business research to facilitate their decisions. These firms may not have sophisticated DSS or BISs. They believe themselves to be so close to customers and distribution partners, as well to employees and other stakeholders, that they rarely need business research. When they do collect information, they use a limited amount of qualitative research, often in the form of an informal group discussion or a small number of individual interviews, to confirm their ideas. Especially in the business to business arena, they often rely on feedback filtered by members of the sales force. Following guidelines for adequate sampling or other procedures of scientific enquiry is not fundamental to this group. Larger firms that occupy this tier are influenced as much by organizational culture as by resources. Many small companies find themselves in this tier not because of an unwillingness to use business research but based on a perception that any more formalized research is too expensive to employ and that their resources won’t accommodate this mode of decision making.

 

 

 

 

 

 

 

 

 

PARAMETERS OF GOOD RESEARCH

Academic Research is defined as a process of collecting, analyzing and interpreting information to answer questions or solve a problem. But to qualify as good research, the process must have certain characteristics and properties: it must, as far as possible, be controlled, rigorous, systematic, valid and verifiable, empirical and critical. The data generated by good research is dependable that have been derived by professionally conducted practices that can be used reliably for decision making. In contrast poor research is carelessly planned and conducted, resulting in data that a manager can’t use to reduce his or her decision-making risks. Good research follows the standards of the scientific method: systematic, empirically based procedures for generating replicable research. Following are some of the defining characteristics of a good scientifically conducted research:

1. Purpose Clearly Defined- The purpose of the business research- the problem involved or the decisions to be made- should be clearly defined and sharply delineated in terms as unambiguous as possible. Getting this in writing is valuable even in instances where the same person serves as researcher and decision maker. The statement of the decision problem should include its scope, its limitations, and the precise meanings of all words and terms significant to the research. Failure of the researcher to do this adequately may raise legitimate doubts in the minds of research report readers as to whether the researcher has sufficient understanding of the problem to make a sound proposal attacking it. This characteristic is comparable to developing a strategic plan for achieving an objective before developing a tactical plan or an action map.
2. Research Process Detailed-  The procedures used should be described in sufficient detail to permit another researcher to repeat the research. Except when secrecy is imposed, research reports should reveal with candor the sources of data and the means by which they were obtained. Omission of significant procedural details makes it difficult or impossible to estimate the validity and reliability of the data and justifiably weakens the confidence of the reader in the research itself as well as any recommendations based on the research. This characteristic is comparable to developing a tactical plan.
3. Research Design thoroughly planned-        The procedural design of the research should be carefully planned to yield results that are as objective as possible. When a sampling of the population is involved, the report should include evidence concerning the degree of representativeness of the sample. A survey of opinions and recollections ought not to be used when more reliable evidence is available from documentary sources or by direct observation. Bibliographic searches should be as thorough and complete as possible. Experiments should have satisfactory controls. Direct observations should be recorded in writing as soon as possible after the events. Efforts should be made to minimize the influence of personal bias in selecting and recording data. This characteristic is comparable to developing detailed actions plans for each tactic.
4. High ethical standards applied-       Researchers often work independently and have significant latitude in designing and executing research projects. A research design that includes safeguards against causing mental and physical harm to participants and makes data integrity a first priority should be highly valued. Ethical issues in research reflect important moral concerns about the practice of responsible behavior in society.

Researchers often find themselves precariously balancing the rights of their subjects against the scientific dictates of their chosen method. When this occurs, they have a responsibility to guard the welfare of the participants in the studies and also the organizations to which they belong, their clients, their colleagues, and themselves. Careful considerations must be given to those research situations in which there is a possibility of physical or psychological harm, exploitation, invasion of privacy, and/or loss of dignity. The research need must be weighed against the potential for adverse effects. Typically you can redesign a study, but sometimes you cannot. The researchers should be prepared for this dilemma.

5. Limitations Frankly Revealed-        The researcher should report, with complete frankness, flaws in procedural design and estimate their effect on the findings. There are very few perfect research designs. Some of the imperfections may have little effect on the validity and reliability of the data; others may invalidate them entirely. A competent researcher should be sensitive to the effects of imperfect design. The researchers experience in analyzing data should provide a basis for estimating the influence of design flaws. As a decision maker, you should question the value of research where no limitations are reported.
6. Analysis Adequate for Decision Maker’s Needs-   Analysis of the data should be extensive enough to reveal it’s significance, what managers call “insights”. The methods of analysis used should be appropriate. The extent to which this criteria is met is frequently a good measure of the competence of the researcher. Adequate analysis of the data is the most difficult phase of the research for the novice. The validity and reliability of the data should be checked carefully. The data should be classified in ways that assist the researcher in reaching pertinent conclusions and clearly reveal the findings that have led to those conclusions. When statistical methods are used, the probability of errors should be estimated and the criteria of statistical significance applied.
7. Findings Presented Unambiguously-          Some evidence of the competence and integrity of the researcher may be found in the report itself. For example, language that is restrained, clear, and precise; assertions that are carefully drawn and hedged with appropriate reservations and an apparent effort to achieve maximum objectivity tend to leave a favorable impression of the researcher with the decision maker. Generalizations that outrun the evidence on which they are based, exaggerations and unnecessary verbiage tend to leave an unfavorable impression. Such reports are not valuable to managers wading through the minefields of organizational decision making. Presentation of data should be comprehensive, easily understood by the decision maker, and organized so that the decision maker can readily locate critical findings.
8. Conclusions Justified-           Conclusions should be limited to those for which the data provide an adequate basis. Researchers are often tempted to broaden the basis of induction by including personal experiences and their interpretations- data not subject to the controls under which the research data were gathered. Equally undesirable is the all too frequent practice of drawing conclusions from a study of a limited population and applying them universally. Researchers may also be tempted to rely too heavily on data collected in a prior study and use it in the interpretation of a new study. Such practice sometimes occurs among research specialists who confine their work to clients in a small industry. These actions tend to decrease the objectivity of the research and weaken readers’ confidence in the findings. Good researchers always specify the conditions under which their conclusions seem to be valid.
9. Researcher’s experience reflected-  Greater confidence in the research is warranted if the researcher is experienced, has good reputation in research, and is a person of integrity. Were it possible for the reader of a research report to obtain sufficient information about the researcher, this criterion perhaps would be one of the best bases for judging the degree of confidence a piece of research warrants and the value of any decision based upon it. For this reason the research report should contain information about the qualifications of the researcher.

Good business research has an inherent value only to the extent that it helps management make better decisions that help achieve organizational goals. Interesting information about consumers, employees, competitors, or the environment might be pleasant to have, but its value is limited if the information cannot be applied to a critical decision. If a study does not help management select more effective, more efficient, less risky, or more profitable alternatives than otherwise would be the case, its use should be questioned. Alternatively, management may have insufficient resources (time, money and skill) to conduct an appropriate study or may face a low level of risk associated with the decision at hand. In these situations, it is valid to avoid business research and its associated costs in time and money. Business research finds its justification in the contribution it makes to the decision maker’s task and to the bottom line.

 

 

 

 

Working of Research Industry:

The picture of the research industry is one of extremes. Very large suppliers account for the largest portion of the sales in the industry, but smaller firms and one-person shops dominate when you look at the number of research firms. The exhibit above provides an overview of the suppliers within the research industry.

INTERNAL RESEARCH SUPPLIERS:                      

Not all decision makers rely on research to make decisions. Those firms that do are likely to have an internal research department or an individual who coordinates research initiatives. The structure and scope of these operations are as diverse as the management dilemmas that they research. They range from one- person operations where the individual primarily coordinates the hiring of external research suppliers, to small-staffed operations that do some survey or qualitative studies, to large-staffed divisions that more closely approximate the structures of research companies.

Historically, in the 1960s, as business research entered a new era of quantification and respectability, the number of firms with internal research departments grew. The research function gained acceptance as a formal part of the organization. When the decade of the 1970s arrived, researchers were often assigned to a particular functional area (for example, marketing or human resources) and reported directly to the executive in charge of that area. The researchers’ influence at the strategic level was constrained by the rather narrow definition of their role- order takers who reacted to the demand for research projects and reports. This perception of a researcher’s role as having limited strategic contribution continued through the 1990s. The results of one Advertising Research Foundation (ARF) study in 1999 indicated that “according to the CEOs surveyed, the accuracy and actionability of the information provided by research was thought to be low.

In a 2001 quantitative study conducted with the aid of the Cambridge Group, ARF sought to identify ways to redefine the research function, thereby making it more relevant to senior management.  The opinions of CEOs, senior-level managers, and researchers at over 100 Fortune 500 companies were solicited to discover the core competencies possessed by an ideal management decision support function and to learn which decisions and activities were most important for research support.  While results from executive revealed generally positive ratings for research a gap still existed between researchers and senior-level managers and CEOs on their perceptions of the researchers’ role. Based on the executive’s responses, research began to expand into such areas as providing actionable insights, reducing risks in marketplace actions and improving return on investment. This evolution of the research industry is consistent with scholar and consultant Philip Kotler’s contention that as costs rise, CEOs and board members demand greater accountability for decisions and expenditures.

For budget, equipment, facilities, and expertise reasons, the trend in the industry is clearly not to staff large internal research departments. In poor economic times many firms eliminate their internal research operations altogether, feeling that such services are expendable or are readily available from external suppliers. In some ways the growth in prominence of the role of information technology manager or officer (the person who manages the DSS and BIS functions) has forced the researcher to an even more subordinate staff role. While both information technology management and research are critical, in most organizations the two functions have little directly to do with one another.

 

EXTERNAL RESEARCH:

Research Firms

• Full Service Firms -  Full-service researchers include some of the largest research firms in the world and some of the smallest. Full-service firms are often involved in research planning for their clients from the moment of discovery of management dilemma or, at the very least, from the definition of the management question. Such firms usually have expertise in both qualitative and quantitative technologies methodologies, and they often have at their disposal multifaceted facilities capable of serving a wide variety of research designs, including both field work and laboratory operations. Some are capable of working in worldwide venues, while others offer their services to only one industry or one geographic region. While these firms may have one or more areas of noteworthy expertise, they are truly multidimensional in terms of both research planning and execution. In a research environment where clients increasingly demand managerial insights, not just research reporting, these firms are often a combination of research and consulting operations. NFO World Group is an example of a full-service research firm. It describes itself as “marketing minds who specialize in research”. Taylor Nelson Sofres Intersearch is another full-service firm. It describes its approach as, “We combine category knowledge with research expertise in our cross-functional research teams”.
• Custom Researchers-            Such phrases as “ad hoc research” or “custom-designed research” are often used to describe custom-full service research firms. A custom researcher crafts a research design unique to the decision maker’s dilemma. In essence, such research firms start each project from ground zero. This does not mean, however, that they fail to apply lessons learned from previous projects. What is implied is that such firms do not assume that a given methodology is appropriate for each client’s research, even if the research to be done is in an arena in which the research firm has considerable expertise, for example, customer satisfaction or copy testing or product evaluation or employee motivation research. While a custom researcher might not always be a full-service research firm, by definition, a full-service researcher would always fit into the custom research category. Taylor Nelson Sofres (TNS) Intersearch describes its custom research operations this way: “(Our Custom Research Capability) allows us to design approaches that truly meet (the client’s) needs if proprietary research solutions do not.”
• Proprietary Methodology Researchers-     A proprietary methodology is a research program or technique that is owned by a single firm. It may be a slight twist on an established methodology or may be a method developed by that firm. Firms often brand these methodologies to establish distinction in the minds of prospective clients, as AC Nielsen did with its Homescan syndicated panel. Proprietary methodologies often grow from significant expertise in a given methodology or a given industry and develop over many years and thousands of client projects.

With the development of its customer engagement methodology, The Gallup organization has reinvented itself using the proprietary research model, moving from public opinion pollster and custom researcher to research based consulting firm. While Gallup is capable of doing and is still doing custom research, it captures a significant portion of its revenue from management consulting based on proprietary methodologies. One of its proprietary methodologies is called Q12. This survey methodology uses 12 questions to measure customer engagement. Gallup uses these same questions with all clients, so Q12 serves as a benchmark diagnostic for its subsequent consulting work. Gallup has copyrighted its questions and the survey instrument that incorporates them to guarantee that its intellectual property remains protected. Having a proprietary research methodology allows Gallup to charge its client significant premiums for its research and consulting services. Without proprietary methodologies, all research firms essentially offer the same research services- although we accept that some perform such services with far more skill and expertise than others.

 

• Specialty Research Firms:   specialty researchers represent the largest number of research firms and tend to dominate the small research firms operated by a single researcher or a very small staff. These firms may establish a specialty in one or several different arenas:

Ø  Methodology-             The firms (methodology specialists) may conduct only one type of research (for example, survey research, customer satisfaction research, ad copy testing, packaging evaluation, focus groups, retail mystery shopping, or retail design research).

Ø  Process Specialists-    The firms usually contribute to only a portion of the research process (for example, sample recruiting, telephone interviewing, or fielding a web survey).

Ø  Industry Specialists-  The firms become experts in one or a few industries (for example, pharmaceutical research or entertainment research or telecommunications research).

Ø  Participants Groups-            the firms become experts in a particular participant group (for example, Latino-Americans, or children, or doctors, or country club golfers).

Ø  Geographic Region-  The firms may operate in only region of a country- as is true of many mystery shopping firms- or a single country or group of countries.

 

One large group in this specialty research category includes firms that conduct focus groups. These firms not only offer the trained moderators who manage the small- group discussions, many of whom hold a Ph.D in psychology, but also provide the sample screening procedures, the specially designed facilities, and the technical communications equipment for making this qualitative research as insightful as possible. Specialty researchers may also perform a subset of a methodology specialty. For example, numerous firms offer focus group moderators but not the focus group facilities. Others provide the recruiting of focus group participants and the facilities but not the moderators.

Firms doing observation studies constitute another subset of specialty researchers. These researchers are often found studying retail shoppers, tracing their footsteps or recording the amount of time a shopper spends reading labels or interacting with displays.

Envirosell and Design Forum both do observation studies: Envirosell research is designed to make retail environments and processes more productive; Design Forum uses research to create the external and internal environments that establish and reinforce the retailer’s image. Ethnography is a type of study that combines observation and communication studies. The Context-Based Research Group describes itself as “an ethnographic research and consulting firm.” It combines the background and skills of cultural anthropologists with the communications and business experts to serve a diverse client base, including retailers, software manufacturers, food manufacturers, hotels, pharmaceutical companies, and even proponents of social causes.

Firms providing Web page optimization research and Web performance metrics are an emerging group of methodology specialists. Such firms as Yahoo!, NetIQ (with webTrends), and NetConversions are examples of methodology specialists in metrics related to web content development.

One of Briain’s fastest growing research firms, MORInsight, is a specialist in employee research. It claims, “MORInsight contains contains benchmarking data from over 200 employee surveys covering a wide range of subjects from job satisfaction to employee engagement and advocacy.” Mercer HR Consulting, with offices in more than 41 countries, also specializes in employee research. Mercer claims, ‘ Advancements in quantifications and measurement now make it possible to enhance this process by linking what employees say to what they actually do – and measuring the impact on business performance.” IBM’s operations research specialists were able to design and introduce a new web-based procurement auction process for Mars Incorporated that paid for itself in increased costs savings in just one year and wins accolades from suppliers for “increased efficiency, transparency, and fairness.”

Collectively, specialty researchers often assist other research firms to complete projects. One large group in the process specialist category is sampling specialists. These firms provide the screening and recruiting of probability samples for a wide range of survey studies, as well as studies employing in-depth interviews, laboratory and in-home product testing, laboratory experiments, home ethnographies, and so on. Survey Sampling Inc. is one of the largest suppliers of samples for telephone, mail, and online surveys and also offers specialty samples for industrial and health care research. Greenfield Online specializes in assisting research firms by providing online samples that fulfill a variety of characteristics. Greenfield claims to have compiled the largest panel of opt-in participants in the online community. It has also partnered with Microsoft to build recruited online samples drawn from MSN.com membership.

 

• SYNDICATED DATA PROVIDERS        :

            When managers want comparative performance and opinion data, pitting themselves against their competitors in sales, market share, share of voice, image as a corporate citizen or employer, or salary and benefit levels, they turn to researchers that are syndicated data providers. For a substantial fee, often millions of dollars per year, managers subscribe to receive the periodic data as well as the interpretation of these data. A syndicated data provider tracks the change of one or more measures over time, usually in a given industry. For example, a syndicated data provider might track product movements through various retail outlets and wholesale environment. The tracking of sales performance measures during promotional events like coupon drops, distribution of product samples, special events (like the appearance of a celebrity at a charity event), and advertising is often the key to successful strategic planning. These research firms are also responsible for providing decision makers with measures of price elasticity. In consumer packaged goods, the first research company to provide scanner-based tracking through grocery outlets was Information Resources Inc.

Each syndicated data provider determines the frequency of data collection and reporting based on the needs of the members in the syndicate. While some studies provide data monthly or weekly, not all such studies are done as frequently as sales tracking studies. Some syndicated data are collected several times per year during designated collection periods. One example is the tracking of media consumption. Nielson Media Research is well known for its People Meter research that mechanically records and then reveals the viewing habits of a panel of television watchers. Data are collected four times per year during so called ‘sweep weeks’. These are times when the TV networks often substitute special programming for their regular shows to increase viewership. Advertising rates for the whole season of advertising slots are determined by a show’s audience size and composition during a sweep week. Arbitron collects similar data on radio listening habits. Typically the firm subscribing to the syndicate has full access to its data and the composite data, but not to an individual competitor’s data.

(a group of people or companies that join together in order to share the cost of a business operation, such as the buying and publishing of newspaper stories, photographs, etc; to sell television programmes, newspaper articles, etc. to companies around the world)

 

• OMNIBUS RESEARCHERS-        Sometimes the decision makers needs the answer to one or a few questions to make a quick tactical decision, such as when it faces a crisis caused by a product recall or the indictment of a company executive for fraud. Within the world of survey research, several research firms provide such a service, some even with a 24 to 48 hour turnaround. An omnibus researcher fields research studies, often by survey, at regular, predetermined intervals. An omnibus study combines one or a few questions from several decision makers who need information from the same population. Typically, the manager pays by the number of questions. Many omnibus studies are still done by phone, but as online participants increasingly mirror the general population, an increasing number are being offered via the internet. NOP world uses a representative sample of 1,000 adults for its Telebus study. NOP contacts participants during the weekend and provides the decision maker with feedback on Monday morning. For a firm facing a public relations crisis, the quick turnaround is invaluable, and the data are available at a fraction of the cost of a custom-designed study. NOP does omnibus studies with automotive drivers, parents, youth, and other population segments in Great Britain, using telephone and online surveys as-well-as face to face interviews. Medical Marketing Research Inc. conducts omnibus studies with physicians in all the medical specialties, while TNS offers the PhoneBus survey, interviewing 1,000 to 2,000 participants, twice per week, with results within four days.

Lightspeed Research Online Omnibus conducts research with a sample size of 2,000 on Adults with a turnaround of 8 days, with each client called upon to ask not more than 5 questions with overall survey size 15-20 questions at a cost of $750 per question.

Similarly Synovate TeenNation Online Omnibus conducts survey with a sample size of 500 on 12-to-17-year olds with a turnaround time of one week at a cost of $1500 per questions.

COMMUNICATION AGENCIES:

It is difficult for an advertising agency to recommend advertising in a particular medium (for example television) or on a particular program without fully understanding the demographics and lifestyles of the viewing audiences of each show. This explains why advertising, public relations, sales promotion, and direct marketing agencies are heavy users of syndicated research data, especially from media industry suppliers. It is even more difficult to develop a creative strategy without research on target audience knowledge, motivations, attitudes and behavior. Agencies are also voracious consumers and providers of custom and proprietary research. Within communication agency circles, there is some debate on whether a research division within an agency can maintain the objectivity needed to do custom research or whether, with conflicting demands from numerous clients, an internal research operation can be efficient and timely, so clients sometimes request that the research needed by these communication specialists be done by an external supplier.

Some agencies do extensive basic research to identify influences on ad recall and ad-wear-out, on ad-placement effectiveness, on the effectiveness of various creative approaches ( for example, celebrity endorser versus animated product as spokesperson), on the effectiveness of communication strategies ( for example, humor, violence, or sexuality in advertising), on the ROI for various media buys, and on the comparative effectiveness of different action stimulants (such as coupons versus samples), to name a few. For direct marketing agencies every single client’s project is actually an experiment, with the offer, the action stimulants, the creative strategy, or even the mailing envelope modified in split-sample tests. All agencies do extensive copy testing as a development tool in building a campaign and effectiveness testing with post placement recall, knowledge, and behavior measures. Such measures combine custom research with syndicated research to explain why a campaign was a success.

 

CONSULTANTS:

Business consultants offer a wide range of services at the strategic and tactical levels. All are involved in doing extensive secondary data research for their clients. Such consultants may also be major influencers in research design, of both custom research and the selection of proprietary models. Even when they don’t do the actual data collection themselves, they are often involved in the interpretation of results. Depending on the size of the firm, some consultancies conduct both qualitative studies (notably focus groups and expert interviews) and quantitative studies (usually through surveys) on knowledge, attitudes, opinions, and motivations as they seek new opportunities or solutions to their client’s problems.

 

 

TRADE ASSOCIATIONS:

Generally trade associations have as their purpose to promote, educate, and lobby for the interests of their members. While many commission pure research that advances trade interests, not all conduct or supply research services.