Business Research
Understanding Business Research
Business Research is an objective and systematic process of collecting, compiling, and analyzing data with the purpose of assisting in business decision-making. The first and most important step in this direction is 'Problem definition'. A problem, underlying a statement of purpose, is defined and research is undertaken to provide solution. The second step is data collection. Depending on the type of data required, formal or informal methods of data collection may be used. The third step is analyzing and interpreting data.
Formal Data Collection Methods - these are used when the data is pre- defined. Various methods for formal data collection are -
Through Fieldwork - The data is collected from a group of population known as sample. Such data is statistically generalized to predict population behavior. Methods employed may be interviews, focus groups, surveys and questionnaires. This is a time-consuming and expensive method but the data obtained are relevant, specific, and first hand. Correct statistical analysis of such data enables researcher to make accurate predictions and judgments.
Scientific Experimentation - Field data may not work for certain researches where controlled variables are required. For such data, scientifically planned controlled environment researches are taken up. Investigator provides controlled variables to subjects and pre-structured data is obtained by their responses.
Through Electronic Access - In today's era of information technology, the fastest and most convenient method of collecting business data is through the use of computer. Internet gives easy access to a wealth of information. It is a cost-effective tool to get access to millions of reports, journals, magazines, and private and public database.
Manual Searching Of Published Literature - Public and institutional libraries are storehouse of age-old literature. They may provide useful background or supplementary information for business research. Manual sources are books, reference books, magazines, journals, handbooks, encyclopedias, research reports, dictionaries, directories, and almanacs.
Informal Data Collection Methods - Data may be required informally when the investigator needs expansion of his current knowledge on a specific topic and the data are undefined.
Such data can be accessed through -
Previous Company Records - Looking into old files and folders may give an insight into the company's functioning over a given length of time. It may be required to access long term or short term progress of company.
Views And Opinions Of Others - Talking to others working in the same field may generate new and broadened flow of ideas. Experience and expertise of seniors may provide cues to unexplored sources of information. Talking to target audience may provide sense of their expectations.
Data collected thus is analyzed using pre validated statistical tools. For data interpretation Top-Down Approach or Bottom-Up Approach may be used. In Top-Down Approach, market is analyzed and data is validated for the specific business unit. In Bottom-Up Approach, a specific business unit or sector is analyzed and data is generalized for the market. Correct interpretation is the backbone of business research.