Unit 1: Introduction to Business Research

Module 1 RESEARCH AND ITS IMPORTANCE

Prof. OLIVA CABABAT

Writer
Definition of Research

Research is defined as the “careful, diligent, and exhaustive investigation of a specific matter,
having as its aim the advancement of mankind’s knowledge” (Manheim, 1977). What is
definitely implied in this definition, and which is a basic assumption of any research, is that
“knowledge is desirable and is preferable to ignorance”. (Librero, 2009)

Research starts with a problem. The researcher must feel a need, then he collects data of facts,
analyzes these data critically, and finally reaches a decision based on actual evidence. It
involves original work, instead of hearsay or mere excise of personal opinion and involves a
general desire to satisfy a need. (Ariola, 2014)

Fortunately, there are almost as many definitions of research as there are authors writing about
the subject. However, the different definitions formulated by such authors have common
elements.

The word research is derived from the old French word “cerchier” meaning to seek or search.
One seeks exhaustively for three reasons: (1) for more explanations, (2) for verifiable truth, and
(3) to make discoveries. The goal of searching is to become certain of the occurrence or
existence of a certain phenomenon.

The Encyclopedia of the Social Sciences defines research as “the manipulation of thins,
concepts, or symbols for the purpose of generalizing, to extend, correct, or verify knowledge
whether that knowledge aids in the construction of a theory or in the practice of an art”

Merton asserts that “research contributes to the development of theory. It clarifies concepts; it
initiates; it reformulates, and it refocuses theory”.

According to Thomas and Nelson (1996), “research is a careful and systematic meals of solving
problems”.

According to Wiersma (1995), “research is a process, an activity in the search for knowledge
through recognized methods of data collection, analysis, and interpretation”

Good (1972) defines research as a “careful, critical, discipline inquiry, varying in technique and
method according to the nature and conditions of the problem identified, directed toward the
clarification or resolution (or both) of a problem’”

Aquino (1970) defines “research is simply, the systematic search for pertinent information on a
specific topic or problem. After a careful, systematic search for pertinent information or data on
a specific topic or problem, and after the research worker has analyzed and interpreted the
date, he eventually faces another essential task – that of preparing the research report

Research according to Halpin (1996) has been defined as “the process of gathering data or
information to solve a particular or specific problem in a scientific manner (Manual and Medel)

Parel (1973) defines research as “a systematic study or investigation of something for the
purpose of answering questions posed by the researcher” (Cited by Sanchez)

Treece and Treece commented that “research in its broadest sense is an attempt to gain
solutions to problems. More precisely, it is the collection of data in a rigorously controlled
situation for the purpose of prediction or explanation” (Treece and Treece)

According to Calderon and Gonzales (1993) Research is a purposive, systematic and scientific
process of gathering, analyzing, classifying, organizing, presenting, and interpreting data for the
solution of a problem, for prediction, for invention, for the discovery of truth, or for the expansion
or verification of existing knowledge, all for the preservation and improvement of the quality of
human life.
According to Whitney, research is “a scientific approach in terms of accepted mind process
involving all essential steps in problem solving through critical examination of hypothesis to find
tentative corroboration and succeeding search for certainty as a basis of action.

Best defines research as “the systematic and objective analysis and recording of controlled
observations that may lead to the development of generalization, principles, or theories,
resulting in the prediction and possibly the ultimate control of events.

Main Purpose of Research

 The main purpose of research is to serve man. (Good, 1972)

The Main Goals of Research

 The goal of research is the good life;
 To satisfy man’s craving for more understanding;
 To improve his judgment;
 To add to his power;
 To reduce the burden of work;
 To relieve suffering; and
 To increase satisfactions in multitudinous ways.

Specific Purpose and Goals of Research

 To discover new facts about know phenomena
 To find answers to problems which are only partially solved by existing methods
and information
 To discover previously unrecognized substance and elements
 To improve existing techniques and develop new instruments or product
 Discover pathways of action of known substance or elements
 To order related, valid generalizations into systematized science
 To satisfy the researcher’s curiosity
 To provide basis for decision making in business, industry, education, government and
in other undertakings
 To find answers to queries by means of scientific methods.
 To acquire a better and deeper understanding about on phenomenon that can be known
and understood better by research
 To expand or verify existing knowledge
 To improve educational practices for raising the quality of school products
 To improve man with more of the basic needs-more and better food, clothing, shelter,
etc.
 To promote health and prolong life
 To make work, travel, and communication faster, easier and more comfortable.

Characteristics of Good Research

Different authors have different views on how they look at a good research. Here are some:
According to Crawford (as quoted by Aquino):
1. Research is systematic and refined technique of thinking.

2. It employs specialized tools, instruments, and procedures in obtaining adequate solutions to a

problem.

3. It starts with a problem, collects data, analyzes data critically and reach a decision based on
actual evidence.

4. Research involves original work instead of an exercise of a mere opinion.

5. It evolves from a genuine desire to know not only “what” but also “how much” rather than a
desire to prove something.

According to De Leon and Claudio:

1. Produce processible result
2. Produce specific results
3. Produce generalizable result
4. Produce interpretable result
According to Best: a good research..
1. Gathers new data
2. Solves problems
3. Develops sound theories
4. Requires expertise
5. Involves an accurate observation and description
6. Is logical and objective
7. Is carefully recorded and reported

According to Thomas and Nelson (1996): A good research must be:

1. Systematic
2. Logical
3. Empirical
4. Reductive
5. Replicable

According to Paul Leedy: A good research

1. Begins with a question in the mind of the researcher
2. Requires a plan
3. Demands a clear statement of the problem
4. Deals with the main problem through subproblems
5. Seeks direction through appropriate hypothesis
6. Deals with facts and their meaning
7. Is circular

Business Research
Business research is a process of acquiring detailed information of all the areas of business and
using such information in maximizing the sales and profit of the business. Such a study helps
companies determine which product/service is most profitable or in demand.

Business research can be done for anything and everything. In general, when people speak
about business research it means asking research questions to know where the money can be
spent to increase sales, profits or market share. Such research is critical to make wise and
informed decisions.

Business research is a field of practical study in which a company obtains data and analyzes
the same to manage the company better. Executives and managers who use business research
methods can better understand their company, the position it holds in the market, and how to
improve that position.

Business research is a systematic and objective inquiry that provides information to guide
managerial decisions, which are arrived at through a process of planning, acquiring, analyzing,
and disseminating relevant data to decision-makers in ways that mobilize the organization to
take appropriate actions to maximize business performance.

Business research examines all aspects of a business environment.

It asks questions about competitors, market structure, government regulations, economic

trends, technological advances, changing patterns of the business world, and numerous other
factors that make up the business environment.

The emphasis of business research is on shifting decision-makers from intuitive information

gathering to systematic and objective investigation.

Like other researches, business research is also accomplished through exploration, description,
explanation, and prediction.

Business research is of much recent origin and is mostly supported by business organizations,
while the public domain has sponsored much environmental research, some of it for hundreds
of years. The development of scientific methods in business research lags behind similar
evolution in the physical sciences.
Business research is an important management activity that helps companies determine which
products will be most profitable for companies to produce. In simple words, it can be stated as
the acquisition of information or knowledge for professional or commercial purpose to determine
opportunities and goals for a business.

For example:
A mobile company wants to launch a new model in the market. But they are not aware of what
are the dimensions of a mobile that are in most demand. Hence, the company conducts a
business research using various methods to gather information and the same is then evaluated
and conclusions are drawn, as to what dimensions are most in-demand. This will enable the
researcher to make wise decisions to position his phone at the right price in the market and
hence acquire a larger market share.

Advantages of Business research

 Business research helps to identify opportunities and threats.
 It helps identify problems and using this information, wise decisions can be made to
tackle the issue appropriately.
 It helps to understand customers better and hence can be useful to communicate better
with the customers or stakeholders.
 Risks and uncertainties can be minimized by conducting business research in advance.
 Financial outcomes and investments that will be needed can be planned effectively
using business research.
 Such research can help track competition in the business sector.
 Business research can enable a company to make wise decisions as to where to spend
and how much.
 Business research can enable a company to stay up-to-date with the market and its
trends and appropriate innovations can be made to stay ahead in the game.
 Business research helps to measure reputation

Disadvantages of Business research

 Business research can be a high-cost affair
 Most of the time, business research is based on assumptions
 Business research can be time-consuming
 Business research can sometimes give you inaccurate information, because of a biased
population or a small focus group.
 Business research results can quickly become obsolete because of the fast-changing
markets

Importance of Business research

Business research is one of the most effective ways to understand customers, the market and
competitors. Such research helps companies to understand the demand and supply of the
market. Using such research will help businesses reduce costs, and create solutions or
products that are targeted to the demand in the market and the correct audience.

In-house business research can enable senior management to build an effective team or train or
mentor when needed. Business research enables the company to track its competitors and
hence can give you the upper hand to stay ahead of them. Failures can be avoided by
conducting such research as it can give the researcher an idea if the time is right to launch its
product/solution and also if the audience is right. It will help understand the brand value and
measure customer satisfaction which is essential to continuously innovate and meet customer
demands. This will help the company grow its revenue and market share. Business research
also helps recruit ideal candidates for various roles in the company. By conducting such
research a company can carry out a SWOT analysis; understand the strengths, weaknesses,
opportunities, and threats. With the help of this information, wise decisions can be made to
ensure business success.

Business research helps businesses understand their customers’ buying patterns, preferences
and pain points, gain deeper insights into the contenders, current market trends, and
demographics. Using effective strategies to understand the demand and supply of the market,
businesses can always stay ahead of the competition.

Business research is the first step that any business owner needs to set up his business, to
survive or to excel in the market. The main reason why such research is of utmost importance is
that it helps businesses to grow in terms of revenue, market share and brand value.
For additional information you can watch the video by clicking the link below:
https://www.youtube.com/watch?time_continue=22&v=PtCLzys2wFQ&feature=emb_logo
https://www.youtube.com/watch?v=Y1u-ngsyH60

References:
Ariola, Mariano; Research and Statistics with Thesis and Dissertation Writing, Unlimited Books
Library Services and Publishing Inc., 2014

Amante, Atienza, Mendoza; Essentials of Research Methodology, Cacho Hermanos, Inc., 2008

Calderon, Gonzales; Methods of Research and Thesis Writing, National Bookstore, reprint 2017
Librero, Felix; How to Write a Thesis Proposal Some Practical Guidelines, College of Agriculture
Publication Office University of the Philippines Los Banos

Adi Bhat, Business Research. Retrieve from https://www.questionpro.com/blog/business-

research/

https://www.iedunote.com/business-research

https://venture-lab.org/2019/business-research-types-benefits-and-its-importance/

Self - Assessment Questions

1. What is the process of gathering data or information to solve a particular or specific problem
in a scientific manner?
2. Who defines research as “a systematic study or investigation of something for the purpose of
answering questions posed by the researcher?
3. It is a process of acquiring detailed information of all the areas of business and using such
information in maximizing the sales and profit of the business.
4. Who defines research as simply, the systematic search for pertinent information on a specific
topic or problem?
5. He defines research as a “careful, critical, discipline inquiry, varying in technique and method
according to the nature and conditions of the problem identified, directed toward the clarification
or resolution (or both) of a problem’”.
6-10 Why business research must be conducted?