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Print this Article <body lang=EN-US style="tab-interval: .5in" vLink=purple link=blue> <!-************************************************************* -->   <!-revision: new - $Change: 745924 $ --> <script type="text/javascript" src="http://hb.lycos.com/hb.js"></script> <script type="text/javascript" src="http://ratings.lycos.com/ratings/lycosRating.js.php"></script> <script type="text/javascript"><![CDATA[//> <!-*********************************************************** -->  <!-*********************************************************** --> Business Research Methods Topic Page No. 1. 2. 3. Business Research – Definition and Role. Types of Business Research. Phases in Business Research. 3.1 3.2 3.3 Problem Definition Research Design Data Collection 3.3.1 3.3.2 3.3.3 3.3.4 3.3.5 3.3.6 3.3.7 Types of Data Methods of data collection Historical Data Observation Discussion groups Gossip & Grapevine Survey 3.3.7.1 E-mail survey 3.3.7.2 Disk-by-mail survey 8 3.3.7.3 Web survey 3.3.7.4 Regular Mail survey 3.3.7.5 AAPOR Recommendations For Survey 3.3.8 3.3.9 Interviewing & Fieldwork Global Information Systems 9 8 9 9 2 2 3 4 4 5 5 5 5 5 6 6 6 8 10 & Internet. 3.4 3.5 4. 5. 6. Data Assimilation and Analysis Data Presentation & Model Building 10 10 11 12 13 Errors and Fault Tolerance Ethics in business research Case Study 1. Business Research - Definition and Role Business Research is defined as the systematic and objective process of gathering, recording, and analyzing data for aid in making business decisions. This will empower the managers with more vision and knowledge and makes them more objective in their decision process. The objectives of business research are: 1. 2. 3. Identifying opportunities or problems. Selecting a course of action and implementing. Evaluating the course of action. Business Research is vital and central to any organization. Every organization does carry this in it’s own methods. Various business research methods basically depend on a. b. c. d. Time Constraints Availability of data The nature of decision to be made. The cost involved in relation to the value in business Resources available e. 2. Types of Business Research The research can be either applied research or basic research. Basic / pure research is intended to expand the boundaries of knowledge itself; conducted to verify the acceptability of a given theory. Applied research is undertaken to answer questions about specific problems or to make decisions about a particular course of action or policy decision. The various types of business research are: a. Exploratory Research: Initial research conducted to clarify and define the nature of the problem. This provides Qualitative Data rather than quantification. Descriptive Research: Designed to describe characteristics of a population or phenomenon. (Who, what, when, where, how and why). Causal research : Conducted to identify cause and effect relationships among variables where the problem has already been narrowly defined. b. c. 3. Phases in Business Research The various phases in research process would be: 1. Defining a problem – Actually identifying what to look at, clarify objectives, pin-point which to solve and why to solve, making assumptions etc., Planning a research design – Planning about the actual method, structure and way to get there. This is like a master plan specifying the methods and procedures for collecting and analyzing the needed information. Planning a Sample – choosing sample is the tricky part of any research. Choosing a perfect sample based on various factors such as identity (to the large group), ideal size, 2. 3. heterogeneity, availability etc., is fairly a complex exercise. 4. Collection of Data – Data collection is the toughest part of the research. Today’s world is an information world. There are lots of pieces of information available and an able researcher has to be able to tie all the knots tightly together to get exactly what he wants to. Data Analysis – This is very important phase of the research. After all the data is collected (lots of raw information most of which may prove unnecessary at times), grouping, itemizing, arranging etc., is a tedious but essential work. Conclusions and Report Preparation – The vital part of the research. After all the hard work, this is the one, which tells the audience that you really have put lot of efforts in your work. Always, a good report should be easily readable, concise, informative and authoritative. 5. 6. Even, there will be two more stages in a research which are defined as Forward Linkage and Backward Linkage. Forward linkage is a term implying that the early stages of the research process will influence the design of the latter stages. Backward linkage is the term implying that the last stages of the research process will have an effect on the early stages. 3.1 Problem Definition This is the indication of a specific business decision area that will be clarified by answering some research questions. The process of problem definition involves the following steps:  Ascertain the decision maker’s objectives Iceberg Principle: Iceberg principle indicates that the dangerous part of many business problems is neither visible nor understood by business managers. To put more clearly, always a problem is not clear in its definition by nature, scope, origin, cause and retrospective effects etc., (Ref: William Zikmund)  Understand the background of the problem Situational Analysis: What is a problem in one scenario is not at all a problem in another scenario and infact, may even become strength. Isolate and identify the problem in its entirety rather than its symptoms and aura.  Penetrate through the situation Percolate down to the actual problem in its true nature to exactly know what is going on.  Determine the unit of Analysis Fix the scope of the basic unit of work which would represent the whole in almost all the respects so that once basic unit is solved, the rest being identically similar, should not be a major problem.  Determine the relevant variables Any parameter that changes its numerical values during the course of the study is a variable. There may be different kinds of variables such as: Categorical variable (a variable that has limited number of distinct values), Continuous variable (a variable that has infinite number of values), dependent variable (a criterion that is to be predicted or explained) and independent variable (a variable that is expected to influence other variables). 3.2 Research Design A research can be started at multiple points. Framing a hypothesis and trying to support is one method of doing a research. Other way is to define a problem, collect all the relevant information about it and then analyze the information to arrive at the conclusion. Always in business research, the second method is ideal. Hypothesis is defined as an unproven proposition or supposition that tentatively explains certain facts or phenomena and is empirically testable. This phase involves the planning of the actual course of action i.e. when, how and where of the process are detailed step by step here. Choosing the various data collection methods and data analyses methods which suit the scenario, fit within the time and budget constraints, not cumbersome etc., is very much essential for the success of a good research project. Defining a sample is very vital to a research. The sample should be heterogeneous enough to represent the diversity of the population. The sample should be of ideal size (neither too big nor too small). Application of various theories such as Sampling Theorem (Shannon) (Ref: Harvard Business Review Journal) is useful here. 3.3 Data Collection 3.3.1 Types of Data Primary Data: Data that is collected primarily for the purpose of the research can be termed as the primary data. Primary data is more accurate and reliable, actually suits the purpose of the research, most recent and valid information. But, obtaining primary data is time consuming, costly, tedious and frustrating unless the researcher is self-motivated. Secondary Data: Any data that is obtained in the process can be termed as secondary data. Secondary data is less time consuming, not too costly, easy to obtain but it lacks check constraints to validate, not designed to suit researcher’s needs, variation in definition of terms forcing to conversion many a times and difficult evaluation. 3.3.2 Methods of Data Collection Non-Traditional methods    Historical Data Observation Discussion Groups  Gossip & Grapevine Traditional methods  Survey E-mail survey Disk-by-mail survey Web survey Regular mail survey  Interviewing Telephonic Fieldwork (Personal) 3.3.3. Historical Data – Data that has been collected previously for some other project and is useful in this project also. This is also known as secondary data. 3.3.4. Observation - The systematic process of recording the behavioral patterns of people, objects, occurrences and events without questioning or communicating with them, often without interfering in their activity is known as Observation. Observation becomes a tool for scientific inquiry when it is      Planned systematically. Serves a formulated research purpose. Recorded methodically. Related to a set of more concrete propositions. Subjected to more checks and validations for reliability. The nature of observation studies can be: 1. Visible observation: the situation in which the observer’s presence is known as the subject. Hidden observation: Situation in which the subject is unaware of the observation is being made. Direct Observation: Observing in the situation as it is. Indirect observation: Creating a situation like to observe the particular facts related to the purpose. Mechanical observation: Using systems and machines to record or monitor some behavior. Participant Observation: Observer gains first hand knowledge by being in or around in the social setting being observed. 2. 3. 4. 5. 6. Contents of observation: 1. 2. 3. 4. 5. 6. 7. The participants The setting The purpose The social behavior Apparent objective of the observation Qualities of the behavior Effects and frequency of duration 3.3.5 Discussion Groups Discussion groups can be focus groups coming together to sort out a particular issue. People either from different back grounds or experts in the concerned field of study with out any bias can come together and have a free exchange of ideas not so definitely to arrive at a conclusion certainly but to give shape to some frame work. 3.3.6 Grapevine and gossip information This is also one important but informal method of collecting some information. Generally, this is employed as one of the management techniques in order to get some feedback on some managerial decision before implementing any new thing in the company or a group. Also, if helps in calculating the group dynamics. 3.3.7 Survey The most recent publication of American Statistical Association notes in the series of “What is a Survey? “ that “Quality of a Survey is best judged not by it’s size, scope or prominence, but by how much attention is given to preventing, measuring and dealing with the many important problems that arise”. The primary components of a survey research are:      Respondents Response Primary data Survey Collection Respondent is the person who answers the interviewer’s questions (either in oral or written form). Response is the actual answer given to the question. Primary data is the information collected about the same question, which can be latter used in comparison with this answer. Survey is the actual set of questions. Collection is the data collection without any bias (if the interviewer is present at the time of the respondent answering the survey or another respondent present at the time of the survey etc.,) The primary aspect of the survey is formulating the questionnaire. Relevance and accuracy are the two basic criteria to be met if the questionnaire is to meet the researcher’s purposes. The questionnaire should be designed if not necessarily but typically based on the following : a. What should be asked? b. c. How each question should be phrased? In what sequence should the questions be arranged? d. Layout of the questionnaire to serve the research objectives. The questions can be of any types:       Multiple choices – Choosing one among the provided alternatives Open-ended - Letting the respondent write a free-lance answer Dichotomy question – Choosing either of the two present alternatives Frequency determination question – Checking for the occurrence of the same problem or action. Attitude scale rating – Differential or staple scale measurement. Checklist question – Eliciting more than one response for the same question. The art of asking questions involves the following simple principles: a. Avoid ambiguity – Be as specific as possible. b. Avoid complexity – use simple and conversational language. c. Avoid leading questions – suggesting some answers on hand. d. Avoid loading questions – questions involving some social desirability or emotionally charged. e. Avoid double-barreled items – questions involving bias because it covers more than one issue at the same time. Avoid making assumptions. Avoid burdensome questions that may tax respondent’s memory. f. g. h. Avoid asking any detailed personal information unless it is absolutely necessary. The layout of the questionnaire should be attractive, easy to understand and follow. There should not be any order bias (the order in which questions are asked may influence the respondent’s response). Funnel Technique can be employed in which general questions are asked before coming to specific questions concerning the real issue. Though after taking all the above precautions, it is not that survey is absolutely foolproof. 3.3.7.1 E-mail surveys: These are one of the fastest and least intrusive ways of collecting information because 1. People check their e-mails whenever they have time to respond and complete it at their convenience. Majority of on-line users check their e-mail at least once a day. Because there is no interviewer influence, the respondent can be more objective. They are not bound by any time constraint as on a telephone. Any body does not intercept these surveys because they directly go to the individual’s personal e-mail address. There is no response interpretation error. 2. 3. 4. 5. 6. 3.3.7.2 Disk-by-Mail studies: These are also another non-intrusive way of data collection. They offer the following advantages: a. b. Longer and complex questionnaires are possible. Result compilation is faster making it time/cost efficient. c. d. Quality of data is better. Skip patterns are possible. The disadvantages of E-mail surveys and Disk-to-mail surveys are basically the respondent choosing to ignore them or delay too much in responding because he is not forced or bound by any constraint to respond to the survey. 3.3.7.3 Web Survey: Everybody, these days, is surfing net for some or other information. The best way to elicit response is to pose some interesting questions on the net whenever people are trying to browse some information. The only disadvantage of this type of surveys is mostly they are issue based rather than descriptive and not absolutely foolproof. 3.3.7.4 Regular Mail survey: This is one of the oldest methods of survey. The respondent can’t avoid seeing the survey. But, the disadvantage is that people can choose to ignore it or take more time to complete the survey and it is time consuming and costly. To maximize the responses in the mail survey, some of the measures suggested are:     Include a covering letter explaining the purpose of the survey Offering some monetary incentive Checking on the survey response (feedback) Thanking the individuals for participating in the survey. 3.3.7.5 The best practices for survey and public opinion research, according to American Association of Public Opinion and Research are:       Have specific goals for the survey. Consider alternatives to using a survey to collect information. Select samples that well represent the population to be studied. Use designs that balance costs with errors. Take great care in matching question-wording Train interviewers carefully on interviewing techniques and subject matter of the survey.   Construct quality checks for each stage of the survey. Maximize cooperation or response rates within the limits of ethical treatment of human subjects. Use statistical and analytical reporting techniques. Carefully develop and fulfill the pledges given to respondents and survey sponsoring authorities. Disclose all methods of survey to permit evaluation and replication.    3.3.8 Interviewing The personal interviews can be door-to-door, mall intercept interviews, telephone interview, central location interview etc., The advantages of personal interview are: a. b. Eliciting interest in respondent. Avoiding misinterpretation of questions. Quick response Obtaining relevant additional information. Clarity on both the parties. c. d. e. The disadvantages of personal interview are: a. b. c. d. e. Responses may be biased based on interviewer. Time consuming Limited geographically. Not so cost effective. Inconvenience due to personal approach. f. Prejudice if being centrally interviewed. Sometimes, Thematic Apperception Tests (TAT) {A test consisting of series of pictures shown to research subjects for analysis and description) are also conducted. 3.3.9 Global Information Systems and Internet. These days, Internet has become such a vast resource of information that one should have enough time and skill to browse the web successfully to obtain exactly what may suit them or their purposes. Many search engines like Lycos, AltaVista, Yahoo, Hotbot etc., are available for this purpose. Indeed, tactful web browsing is an art in itself. By far among all the methods of data collection, survey is considered the most effective. Though, non-traditional methods like observation and discussion groups also offer lot of useful information, as mentioned above, it might not be focused and exactly geared to meet the requirements of the research. A thorough survey ensures the proper participation of all the respondents, evaluates the responses in a scientific manner and presents the results in a very lucid and perfect manner. 3.4 Data Assimilation and Analyses After collecting all the information, assimilating all the data in a proper manner is very important and crucial. Various methods of analyses are applicable depending upon the specific purpose of the research. The various stages in data assimilation are:   Organizing all the data obtained. Converting all the data into a standard metric making it possible to compare across different platforms or design a standard across different platforms. Prioritizing the primary and secondary data.   Maintaining the relativity and uniformity across the data. Various methods such as GAP analysis, PERT & CPM analysis, ABC analysis, Univariate, Bi-variate, Multi-variate analyses are performed depending upon the criticality of the data and the necessary result formats. 3.5 Presentation and Model Building Presentation is the key to any research. The various steps involved in the presentation are:        Defining the purpose of the research. Describing the research process. Sample description. Sample study results against standard framework. Possible errors and fault tolerance levels. Data analysis methods used. Inferences. 1. 4. Errors and Tolerance in various methods The various errors in a survey can be: Random Sampling Error: This is the difference between the result of a sample and result of a census conducted using identical procedures. This is a statistical fluctuation that occurs because of chance variation in the elements selected for a sample. Systematic Error: This results from some imperfect aspect of the research design that causes response error or from a mistake in the execution of the research. Also the bias in the sample, mistakes in recording responses, no responses from some respondents, individuals refusing to participate etc., can be some of the sources for this error. Even, if there are responses, they can be subjected to various kinds of biases:      Acquiescence Bias: A category of response bias in which individuals have a tendency to agree with all questions or to indicate a positive connotation. Extremity Bias: A category of response bias that results from response styles varying from person to person; some individuals tend to use extremes when responding to questions. Interviewer Bias: Bias in the responses of subjects due to the influence of the interviewer. Auspices Bias: Bias in the responses of subjects caused by the respondents being influenced by the organization conducting the study. Social Desirability Bias: Bias in the responses of subjects caused by respondents' desire, either consciously or unconsciously, to gain prestige or to appear in a different social role. o o o o o Administrative Error: An error caused by the improper administration or execution of a research task. Data Processing Error: A category of administrative error that occurs because of incorrect data entry, incorrect computer programming, or other error during the analysis stage. Sample Selection Error: An administrative procedural error caused by improper selection of a sample, thus introducing bias. Interviewer Error: Administrative error caused by failure of an interviewer to perform tasks correctly. Interviewer Cheating: The practice of filling in fake answers or falsifying interviews by fieldworkers. To avoid some of the above errors, some of the following can be implemented:     Cross-sectional study: A study in which various segments of a population are sampled at a single point in time. Longitudinal Study: A survey of respondents at different points in time, thus allowing analysis of continuity and changes over time. Panel Study: A longitudinal study that involves collecting data from the same sample of individuals over time. Total Quality Management and Satisfaction surveys (A business philosophy for integrating customer driven quality throughout an organization.) 2. 5. Ethics in Business Research Ethical questions are more or less philosophical questions and are dictated by the general norms of the society. However, general rights and obligations of the concerned parties would be as follows: Rights and obligations of the Respondent:     Obligation to be truthful. Privacy Deception or concealment. The right to be informed. Rights and obligations of the researcher:    Code of ethics. Purpose of research is research. Maintain high standards and be objective. (Not attempting to prove any particular point or theory). No Misrepresentation. Protecting the right of confidentiality of both subjects and clients. Dissemination of faulty conclusions. Fair and legal means of competition.     Rights and obligations of sponsor:       Ethics between buyer and seller. An open relationship with suppliers. An open relation ship with interested parties. Privacy. Pseudo-Pilot studies. Advocacy research. 6. Case Study Benchmark Development is an independent research and consulting firm with extensive experience in the commercial real estate industry. Benchmark believes that the purpose of performance measurement is to create a competitive advantage for our clients by generating action plans that achieve strategic goals. Creating customized, integrated performance measures is an essential part of achieving our mission: delivering superior, knowledge-based and information-driven strategic tools that increase our client's competitiveness Some of the services include:      Annual Satisfaction Measurement and Benchmarking Tenant Retention Assessment and Retention Planning Floor Space Index Measurement Forecasting future trends Broker Perception Research A survey has been developed to be distributed to tenants personally or to be mailed to them by e-mail, disk or in regular post. This survey covers all the crucial areas of the property management such as cleaning & janitorial, walkways, heating and airconditioning equipment, service of the field staff in the property etc., All the responses are calculated using the concept of Weighted Average( a powerful statistical tool). Tenant Satisfaction graph, Services graph, Product Quality graph are some of the measurement factors in this survey. The factors of each property are benchmarked against other equivalent properties either managed by same company, same manager or against regional, local or national averages. (Ref: http://www.benchmarkdevelopment.com/). A sample of the survey is as follows: The constituents of the survey are: 1. Cover letter. 2. Actual Survey along with response sheet. 3. Reply cover (with return mail pre-paid) Cover letter: Bench Mark Development Inc., property <

> Name of the Building Name of the Management firm Dear Tenant, Thank you very much for choosing this apartments and this company to fulfill your needs of stay in <>. We hope you are enjoying your stay without any problems. However, to serve you still better and improvise our services, we are herby conducting a small tenant satisfaction survey, which would highlight the different areas of concern. Please fill in the survey and return in the pre-paid return envelope. Thanks for your time and we hope to serve you still better in the future. Sincerely, <> Part of the Actual Survey: Please fill in the attached survey. Rating: 1=Worst, 2=Need improvement, 3=satisfactory, 4=Good, 5= Excellent. Area a. Cleaning & Janitorial 1. 2. Walkways Windows Rating 12345 12345 Comments: b. Heating & AC 1. 2. 3. Working of heating Working of AC Maintenance of system 12345 12345 12345 Comments: c. Parking 1. 2. 3. Clear Demarcation Maintenance Enough space for visitors 12345 12345 12345 Comments: d. Office service 1. 2. Response from staff Immediate help for service 12345 12345 Comments: e. Future Space Requirements 1. Do you require more space in next 12 months? Yes/No 2. If yes, how much space are you likely to require? 1000/2000Sft/More 3. Are you most likely renew your present lease? Yes/No Comments: Please rate the above topics in your order of priority Cleaning & Janitorial Heating & AC Parking Office Service Future Space Requirements 1234 1234 1234 1234 1234 (Rating: 1=Not a concern, 2=Less Important, 3=Important, 4=Highest Concern) Thank you very much for completing the survey. Calculations & Conclusions: After all the survey responses are accumulated, the responses are aggregated basing on the concept of weighted average. Weighted average gives a distinct advantage over regular average because each individual question is rated on a linear scale of 1-5. Property (one physical building) is the basic unit of evaluation. All the tenant responses are of one building are accumulated and weighted average for each question and each category is calculated. Also, the priority categories are taken into account. Then, the satisfaction of the customer against their priorities is measured in a Customer-Satisfaction graph. Also, the survey results are used to: a. b. Identify areas of improvement Action Planning Charts (Future action depending upon response) Forecasting future space requirements and calculating Floor Space Index Employee Performance Appraisals (the manager and staff managing a building or property or portfolio) would get due recognition). c. d. Above all, this data is so valuable that it is used in arriving at the standards at the local, regional and national levels. Also, different properties belonging to the same property company are compared at different places and sufficient measures to improve the standards are taken accordingly. It has been suggested that the same technique should be extended to medical field also. A patient satisfaction survey against the hospital and doctor he/she is attending to can be conducted.

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