According to Redman and Mory, research is a systematized effort to gain new knowledge

research is a systematic approach to purposeful investigation. Some

1.4.1Exploratory Research

This type of research is carried out at the very beginning when the problem is not clear or is vague. In
exploratory research, all possible reasons which are very obvious are eliminated, thereby directing the
research to proceed further with limited options.

Sales decline in a company may be due to:1. Inefficient service 2. Improper price

Descriptive Research

The main purpose of descriptive research is to describe the state of view as it exists at present.

This type of research tries to describe the characteristics of the respondent in relation to a particular
product. Descriptive research deals with demographic characteristics of the consumer. For example,
trends in the consumption of soft drink with respect to socio-economic characteristics such as age,
family, income, education level etc. Descriptive research deals with specific predictions, for example,
sales of a company's product during the next three years, i.e., forecasting

1.4.3Applied Research

Applied research aims at finding a solution for an immediate problem faced by any business
organization. This research deals with real life situations

Example: "Why have sales decreased during the last quarter"? Market research is an example of applied
research. Applied research has a practical problem-solving emphasis. It brings out many new facts.

1.Use of fibre glass body for cars instead of metal.

2.To develop a new market for the product.

1.4.4Pure/Fundamental Research or Basic Research

Gathering knowledge for knowledge's sake is known as basic research. It is not directly involved with
practical problems. It does not have any commercial potential. There is no intention to apply this
research in practice. Tata Institute of Fundamental Research conducts such studies. Example:Theory of
Relativity (by Einstein).

1.4.5Conceptual Research

This is generally used by philosophers. In this type of research, the researcher should collect the data to
prove or disapprove his hypothesis. The various ideologies or 'isms' are examples of conceptual
research.Did u know? Conceptual Research is related to some abstract idea or theory

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1.4.6Causal Research

Causal research is conducted to determine the cause and effect relationship between the two variables.

Example: Effect of advertisement on sales.

1.4.7Historical Research

The name itself indicates the meaning of the research. Historical study is a study of past records and
data in order to understand the future trends and development of the organisation or market. There is
no direct observation. The research has to depend on the conclusions or inferences drawn in the past.

The main objective of this study is to derive explanation and generalization from the past trends in order
to understand the present and anticipate the future.

1.4.8Ex-post Facto Research

In this type of research, an examination of relationship that exists between independent and dependent
variable is studied. We may call this empirical research. In this method, the researcher has no control
over an independent variable. Ex-post facto literally means "from what is done afterwards". In this
research, a variable "A" is observed. Thereafter, the researcher tries to find a causal variable "B" which
caused "A". It is quite possible that "B" might not have been caused "A". In this type of analysis, there is
no scope for the researcher to manipulate the variable. The researcher can only report "what has
happened" and "what is happening".

1.4.9Action Research

This type of research is undertaken by direct action. Action research is conducted to solve a problem.
For example, test marketing a product is an example of action research. Initially, the geographical
location is identified. A target sample is selected from among the population. Samples are distributed to
selected samples and feedback is obtained from the respondent. This method is most common for
industrial products, where a trial is a must before regular usage of the product.

1.4.10 Evaluation Research

This is an example of applied research. This research is conducted to find out how well a planned
programme is implemented. Therefore, evaluation research deals with evaluating the performance or
assessment of a project. Example: "Rural Employment Programme Evaluation" or "Success of Midday
Meal Programme".

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Research Problem

There is a famous saying that "problem well-defined is half solved". This statement is strikingly true in
market research, because if the problem is not stated properly, the objectives will not be clear. If the
objective is not clearly defined, the data collection becomes meaningless.

Research problem is a condition that causes a researcher to feel anxious, uneasy and confused. It
involves the complete analysis of the problem area involving who, what, where, when and why of the
problem situation.

Research Design

Research design is simply a plan for a study. This is used as a guide in collecting and analyzing the data. It
can be called a blue print to carry out the study. It is like a plan made by an architect to build the house,

 It helps in smooth functioning of various research operations.

3.2Exploratory Research

The major emphasis in exploratory research is on converting broad, vague problem statements into
small, precise sub-problem statements, which is done in order to formulate specific hypothesis. The
hypothesis is a statement that specifies, "how two or more variables are related?"

In the early stages of research, we usually lack from sufficient understanding of the problem to
formulate a specific hypothesis. Further, there are often several tentative explanations.

Example: "Sales are down because our prices are too high",

"our dealers or sales representatives are not doing a good job", "our advertisement is weak" and so on.

In this scenario, very little information is available to point out, what is the actual cause of the problem.
We can say that the major purpose of exploratory research is to identify the problem more specifically.
Therefore, exploratory study is used in the initial stages of research.

Under what circumstances is exploratory study ideal?

The following are the circumstances in which exploratory study would be ideally suited:

1.To gain an insight into the problem

2.To generate new product ideas

3.To list all possibilities. Among the several possibilities, we need to prioritize the possibilities which
seem likely

4.To develop hypothesis occasionally

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The following are the circumstances in which exploratory study would be ideally suited:

1.To gain an insight into the problem

2.To generate new product ideas

3.Focus Group: Another widely used technique in exploratory research is the focus group. In a focus
group, a small number of individuals are brought together to study and talk about some topic of
interest. The discussion is co-ordinated by a moderator. The group usually is of 8-12 persons. While
selecting these persons, care has to be taken to see that they should have a common background and
have similar experiences in buying. This is required because there should not be a conflict among the
group members on the common issues that are being discussed. During the discussion, future buying
attitudes, present buying opinion, etc., are gathered.

4.Case Studies

Qualitative Research

Qualitative research is used to gain insight into people's attitudes, behaviours, value systems, concerns,
motivations, aspirations, culture or life-styles. It's used to inform business decisions, policy formation,
communication and research. Focus groups, in-depth interviews, content analysis and semiotics are
among the many formal approaches that are used, but qualitative research also involves the analysis of
any unstructured material, including customer feedback forms, reports or media clips.

Qualitative research is used to help us understand how people feel and why they feel as they do. It is
concerned with collecting in-depth information asking questions such as why do you say that?. Samples
tend to be smaller compared with quantitative projects that include much larger samples. Depth
interviews or group discussions are two common methods used for collecting qualitative information.

3.3Descriptive Research Design

it can describe the characteristics of a group such as – customers, organisations, markets, etc.
Descriptive research provides "association between two variables" like income and place of shopping,
age and preferences. Descriptive inform us about the proportions of high and low income customers in a
particular territory. What descriptive research cannot indicate is that it cannot establish a cause and
effect relationship between the characteristics of interest

1.Longitudinal Study: These are the studies in which an event or occurrence is measured again and
again over a period of time. This is also known as 'Time Series Study'. Through longitudinal study, the
researcher comes to know how the market changes over time.

Longitudinal studies involve panels. Panel once constituted will have certain elements. These elements
may be individuals, stores, dealers, etc. The periodicity of the study may be monthly or quarterly etc.

2.Cross-sectional Study: Cross-sectional study is one of the most important types of descriptive
research, it can be done in two ways:

(a)Field study: This includes a depth study. Field study involves an in-depth study of a problem, such as
reaction of young men and women towards a product.

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 Example: Reaction of Indian men towards branded ready-to-wear suit. Field study is carried out in real
world environment settings. Test marketing is an example of field study.

(b)Field survey: Large samples are a feature of the study. The biggest limitations of this survey are cost
and time. Also, if the respondent is cautious, then he might answer the questions in a different manner.
Finally, field survey requires good knowledge like constructing a questionnaire, sampling techniques
used, etc.

3.6Experimentation

Experimentation Research is also known as causal research. Descriptive research, will suggest the
relationship if any between the variable, but it will not establish cause and effect relationship between
the variable. Example: The data collected may show that the no. of people who own a car and their
income has risen over a period of time.

3.6.1Experimental Designs

The various experimental designs are as follows: 3. Factorial design

1. After only design 4. Latin square design

2. Before-after design 5. Ex-post facto design

Factorial Design

Factorial design permits the researcher to test two or more variables at the same time. Factorial design helps to
determine the effect of each of the variables and also measure the interacting effect of the several variables.

Example: A departmental store wants to study the impact of price reduction for a product. Given that, there is
also promotion (POP) being carried out in the stores (a) near the entrance
(b) at usual place, at the same time. Now assume that there are two price levels namely regular price A1 and
reduced price A2. Let there be three types of POP namely B 1, B2, & B3. There are 3 × 2 = 6 combinations possible.
The combinations possible are B 1A1, B1A2, B2A1, B2A2, B3A1, B3A2. Which of these combinations is best suited is what
the researcher is interested. Suppose there are 60 departmental stores of the chain divided into groups of 10
stores. Now, randomly assign the above combination to each of these 10 stores as follows
Combinations Sales
B1A1 S1
B1A2 S2
B2A1 S3
B2A2 S4
B3A1 S5
B3A2 S6

S1 TO S6 represents the sales resulting out of each variable. The data gathered will provide details on product
sales on account of two independent variables.

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Latin Square Design

Researcher chooses 3 shelf arrangements in three stores. He would like to observe the sales generated
in each stores at different period. Researcher must make sure that one type of shelf arrangement is
used in each store only once.

In Latin square design, only one variable is tested. As an example of Latin square design assume that a
super market chain is interested in the effect of in store promotion on sales. Suppose there are three
promotions considered as follows:

1. No promotion 3. Window display

2. Free sample with demonstration

Which of the 3 will be effective? The out come may be affected by the size of the stores and the time
period. If we choose 3 stores and 3 time periods, the total number of combination is 33 = 9. The
arrangement is as follows:

Time period Store

1 2 3

1 B C A

2 A B C

3 A B C

Latin square is concerned with effectiveness of each kind of promotion on sales.