What is Research?

Research is the careful consideration of study regarding a particular concern

or problem using scientific methods. According to the American sociologist
Earl Robert Babbie, “research is a systematic inquiry to describe, explain,
predict, and control the observed phenomenon. It involves inductive and
deductive methods.”

Inductive methods analyze an observed event, while deductive methods verify

the observed event. Inductive approaches are associated with qualitative
research, and deductive methods are more commonly associated with
quantitative analysis.

Research is conducted with a purpose to:

 Identify potential and new customers

 Understand existing customers
 Set pragmatic goals
 Develop productive market strategies
 Address business challenges
 Put together a business expansion plan
 Identify new business opportunities
What are the characteristics of research?
1. Good research follows a systematic approach to capture accurate data.
Researchers need to practice ethics and a code of conduct while making
observations or drawing conclusions.
2. The analysis is based on logical reasoning and involves both inductive and
deductive methods.
3. Real-time data and knowledge is derived from actual observations in natural
settings.
4. There is an in-depth analysis of all data collected so that there are no
anomalies associated with it.
5. It creates a path for generating new questions. Existing data helps create
more research opportunities.
6. It is analytical and uses all the available data so that there is no ambiguity in
inference.
7. Accuracy is one of the most critical aspects of research. The information
must be accurate and correct. For example, laboratories provide a
controlled environment to collect data. Accuracy is measured in the
instruments used, the calibrations of instruments or tools, and the
experiment’s final result.
What is the purpose of research?
There are three main purposes:

1. Exploratory: As the name suggests, researchers conduct exploratory

studies to explore a group of questions. The answers and analytics may not
offer a conclusion to the perceived problem. It is undertaken to handle new
problem areas that haven’t been explored before. This exploratory process
lays the foundation for more conclusive data collection and analysis.
2. Descriptive: It focuses on expanding knowledge on current issues through
a process of data collection. Descriptive research describe the behavior of a
sample population. Only one variable is required to conduct the study. The
three primary purposes of descriptive studies are describing, explaining,
and validating the findings. For example, a study conducted to know if top-
level management leaders in the 21st century possess the moral right to
receive a considerable sum of money from the company profit.

3. Explanatory: Causal or explanatory research is conducted to understand

the impact of specific changes in existing standard procedures. Running
experiments is the most popular form. For example, a study that is
conducted to understand the effect of rebranding on customer loyalty.
Here is a comparative analysis chart for better understanding:
Exploratory Descriptive Explanatory
Research Research Research
Approach
Unstructured Structured Highly structured
used
Conducted By using
Asking questions Asking questions
through hypotheses.
Early stages ofLater stages ofLater stages of
Time
decision making decision making decision making

It begins by asking the right questions and choosing an appropriate method to

investigate the problem. After collecting answers to your questions, you can
analyze the findings or observations to draw reasonable conclusions.

When it comes to customers and market studies, the more thorough your
questions, the better the analysis. You get essential insights into brand
perception and product needs by thoroughly collecting customer data
through surveys and questionnaires. You can use this data to make smart
decisions about your marketing strategies to position your business
effectively.

To make sense of your study and get insights faster, it helps to use a
research repository as a single source of truth in your organization and
manage your research data in one centralized repository.

Remember, it is only valuable and useful when it is valid, accurate, and

reliable. Incorrect results can lead to customer churn and a decrease in sales.

It is essential to ensure that your data is:

 Valid – founded, logical, rigorous, and impartial.

 Accurate – free of errors and including required details.
 Reliable – other people who investigate in the same way can produce
similar results.
 Timely – current and collected within an appropriate time frame.
 Complete – includes all the data you need to support your business
decisions.
8 tips for conducting accurate research
1. Identify the main trends and issues, opportunities, and problems you
observe. Write a sentence describing each one.
2. Keep track of the frequency with which each of the main findings appears.
3. Make a list of your findings from the most common to the least common.
4. Evaluate a list of the strengths, weaknesses, opportunities, and threats
identified in a SWOT analysis.
5. Prepare conclusions and recommendations about your study.
6. Act on your strategies
7. Look for gaps in the information, and consider doing additional inquiry if
necessary
8. Plan to review the results and consider efficient methods to analyze and
interpret results.
Review your goals before making any conclusions about your study.
Remember how the process you have completed and the data you have
gathered help answer your questions. Ask yourself if what your analysis
revealed facilitates the identification of your conclusions and
recommendations.

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. 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.

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.

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.

BUSINESS RESEARCH: TYPES AND METHODOLOGIES

Business research is a part of the business intelligence process. It is usually
conducted to determine whether a company can succeed in a new region, to
understand their competitors, or to simply select a marketing approach for a
product. This research can be carried out using qualitative research methods
or quantitative research methods.

QUANTITATIVE RESEARCH METHODS

Quantitative research methods are research methods that deal with numbers.
It is a systematic empirical investigation using statistical, mathematical or
computational techniques. Such methods usually start with data collection and
then proceed to statistical analysis using various methods. The following are
some of the research methods used to carry out business research.

Survey Research

Survey research is one of the most widely used methods to gather data
especially for conducting business research. Surveys involve asking
various survey questions to a set of audiences through various types
like online polls, online surveys, questionnaires, etc. Nowadays, most of the
major corporations use this method to gather data and use it to understand
the market and make appropriate business decisions. Various types of
surveys like cross-sectional surveys which are needed to collect data from a
set of audience at a given point of time or longitudinal surveys which are
needed to collect data from a set of audience across various time duration in
order understand changes in the respondents’ behavior are used to conduct
survey research. With the advancement in technology, now surveys can be
sent online through email or social media.

For example: A company wants to know the NPS score for their website i.e.
how satisfied are people who are visiting their website. An increase in traffic to
their website or the audience spending more time on a website can result in
higher rankings on search engines which will enable the company to get more
leads as well as increase its visibility. Hence, the company can ask people
who visit their website with a few questions through an online survey to
understand their opinions or gain feedback and hence make appropriate
changes to the website to increase satisfaction.

Correlational Research

Correlational research is conducted to understand the relationship between

two entities and what impact each one of them has on the other. Using
mathematical analysis methods, correlational research enables the
researcher to correlate two or more variables. Such research can help
understand patterns, relationships, trends, etc. Manipulation of one variable is
possible to get the desired results as well. Generally, a conclusion cannot be
drawn only on the basis of correlational research.

For example: A research can be conducted to understand the relationship

between colors and gender-based audiences. Using such research and
identifying the target audience, a company can choose the production of
particular color products to be released in the market. This can enable the
company to understand the supply and demand requirements of its products.

Causal-Comparative Research
Causal-Comparative research is a method based on the comparison. It is
used to deduce the cause-effect relationship between variables. Sometimes
also known as quasi-experimental research, it involves establishing an
independent variable and analyzing the effects on the dependent variable. In
such research, manipulation is not done; however, changes are observed on
the variables or groups under the influence of the same changes. Drawing
conclusions through such research is a little tricky as independent and
dependent variables will always exist in a group, hence all other parameters
have to be taken into consideration before drawing any inferences from the
research.

For example: A research can be conducted to analyze the effect of good

educational facilities in rural areas. Such a study can be done to analyze the
changes in the group of people from the rural areas when they are provided
with good educational facilities and before that.

Another example can be to analyze the effect of having dams and how it will
affect the farmers or production of crops in that area.

Experimental Research

Experimental research is based on trying to prove a theory. Such research

may be useful in business research as it can let the product company know
some behavioral traits of its consumers, which can lead to more revenue. In
this method, an experiment is carried out on a set of audiences to observe
and later analyze their behavior when impacted with certain parameters.

For example: Experimental research was conducted recently to understand if

particular colors have an effect on its consumers’ hunger. A set of the
audience was then exposed to those particular colors while they were eating
and the subjects were observed. It was seen that certain colors like red or
yellow increase hunger. Hence, such research was a boon to the hospitality
industry. You can see many food chains like Mcdonalds, KFC, etc. using such
colors in their interiors, brands, as well as packaging.

Another example of inferences drawn from experimental research, which is

used widely by most bars/pubs across the world is that loud music  in the
workplace or anywhere makes a person drink more in less time. This was
proven through experimental research and was a key finding for many
business owners across the globe.

Online Research / Literature Research

Literature research is one of the oldest methods available. It is very

economical and a lot of information can be gathered using such
research. Online research or literature research involves gathering information
from existing documents and studies which can be available at Libraries,
annual reports, etc. Nowadays, with the advancement in technology, such
research has become even more simple and accessible to everyone. An
individual can directly research online for any information that is needed,
which will give him in-depth information about the topic or the organization.
Such research is used mostly by marketing and salespeople in the business
sector to understand the market or their customers. Such research is carried
out using existing information that is available from various sources, although
care has to be taken to validate the sources from where the information is
going to be collected.

For example: A salesperson has heard a particular firm is looking for some
solution which their company provides. Hence, the salesperson will first
search for a decision maker from the company, investigate what department
he is from and understand what the target company is looking for and what
are they into. Using this research he can cater his solution to be spot on when
he pitches it to this client. He can also reach out to the customer directly by
finding a mean to communicate with him by researching online.’

QUALITATIVE RESEARCH METHODS

Qualitative research is a method that has a high importance in business
research. Qualitative research involves obtaining data through open-ended
conversational means of communication. Such research enables the
researcher to not only understand what the audience thinks but also why he
thinks it. In such research, in-depth information can be gathered from the
subjects depending on their responses. There are various types of qualitative
research methods such as interviews, focus groups, ethnographic research,
content analysis, case study research that are widely used. Such methods are
of very high importance in business research as it enables the researcher to
understand the consumer. What motivates the consumer to buy and what
does not is what will lead to higher sales and that is the prime objective for
any business.

Following are a few methods that are widely used in today’s world by most
businesses.

Interviews

Interviews are somewhat similar to surveys, like sometimes they may have
the same questions used. The difference is that the respondent can answer
these open ended questions at a length and the direction of the conversation
or the questions being asked can be changed depending on the response of
the subject. Such a method usually gives the researcher, detailed information
about the perspective or opinions from its subject. Carrying out interviews with
subject matter experts can also give important information critical to some
businesses.

For example: An interview was conducted by a telecom manufacturer, with a

group of women to understand why do they have less number of female
customers. After interviewing them, the researcher understood that there were
less feminine colors in some of the models, hence females preferred not
purchasing them. Such information can be critical to a business such as a
telecom manufacturer and hence it can be used to increase its market share
by targeting women customers by launching some feminine colors in the
market.

Another example would be to interview a subject matter expert in social media

marketing. Such an interview can enable a researcher to understand why
certain types of social media advertising strategies work for a company and
why some of them don’t.

Focus Groups

Focus groups are a set of individuals selected specifically to understand their

opinions and behaviors. It is usually a small set of a group that is selected
keeping in mind, the parameters for their target market audience to discuss a
particular product or service. Such a method enables a researcher with a
larger sample than the interview or a case study while taking advantage of
conversational communication.

Nowadays, focus groups can be sent online surveys as well to collect data

and answer why, what and how questions. Such a method is very crucial to
test new concepts or products before they are launched in the market.

For example: A research is conducted with a focus group to understand what

dimension of screen size is preferred most by the current target market. Such
a method can enable a researcher to dig deeper if the target market focused
more on screen size, features or colors of the phone. Using this data, a
company can make wise decisions to its product line and secure a higher
market share.

Ethnographic Research

Ethnographic research is one of the most challenging research but can give
extremely precise results. Such research is used quite rarely, as it is time-
consuming and can be expensive as well. It involves the researcher to adapt
to the natural environment and observe its target audience to collect data.
Such a method is generally used to understand cultures, challenges or other
things that can occur in that particular setting.

For example: The worldly renowned show “Undercover boss” would be an apt
example of how ethnographic research can be used in businesses. In this
show, the senior management of a large organization works in his own
company as a regular employee to understand what improvements can be
done, what is the culture in the organization and to identify hard-working
employees and to reward them. It can be seen that the researcher had to
spend a good amount of time in the natural setting of the employees and
adapt to their ways and processes. While observing in this setting, the
researcher could find out the information he needed first hand without loss of
any information or any bias and to improve certain things that would impact
his business.
Case Study Research

Case study research is one of the most important in business research. It is

also used as marketing collateral by most businesses to land up more clients.
Case study research is conducted to assess customer satisfaction, document
the challenges that were faced and the solutions that the firm gave them.
Using these inferences are made to point out the benefits that the customer
enjoyed for choosing their specific firm. Such research is widely used in other
fields like education, social sciences, and similar. Case studies are provided
by businesses to new clients to showcase their capabilities and hence such
research plays a crucial role in the business sector.

For example: A services company has provided a testing solution to one of its
clients. A case study research is conducted to find out what were the
challenges faced during the project, what was the scope of their work, what
objective was to be achieved and what solutions were given to tackle the
challenges. The study can end with the benefits that the company provided
through their solutions, like reduced time to test batches, easy implementation
or integration of the system, or even cost reduction. Such a study showcases
the capability of the company and hence it can be stated as empirical
evidence to the new prospect.

Website Visitor Profiling Research

Website intercept surveys or website visitor profiling/research is something

new that has come up and is quite helpful in the business sector. It is an
innovative approach to collect direct feedback from your website visitors using
surveys. In recent times a lot of business generation happens online and
hence it is important to understand the visitors of your website as they are
your potential customers. Collecting feedback is critical to any business as
without understanding a customer, no business can be successful. A
company has to keep its customers satisfied and try to make them loyal
customers in order to stay on top.

A website intercept survey is an online survey that allows you to target visitors
to understand their intent and collect feedback to evaluate the customers’
online experience. Information like visitor intention, behavior path, satisfaction
of overall website, can be collected using this.

Depending on what information a company is looking for, multiple forms of

website intercept surveys can be used to gather responses. Some of the
popular ones are Pop-ups or also called Modal boxes and on-page surveys.

For example: A prospective customer is looking for a particular product that a

company is selling. Once he is directed to the website, an intercept survey will
start noting his intent, and path. Once the transaction has been made a pop-
up or an on-page survey is provided to the customer to rate the website. Such
research enables the researcher to put this data to good use and hence
understand the customers’ intent, his path and improve any parts of the
 website depending on the responses, which in turn would lead to satisfied
customers and hence, higher revenues and 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, i.e. understand the
strengths, weaknesses, opportunities, and threats. With the help of this
information, wise decisions can be made to ensure business success.
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.