Research is “re-search”, meaning a voyage of discovery. “Re means again and again, and “search” means a voyage of knowledge. Research facilitates original contribution to the existing stock of knowledge, making for its advancement for the betterment of this universe.
Meaning and Definition of Business Research
According to McDaniel and Gates___”Business research is the planning,collection and analysis of data relevant to business decision-making and the communication of the results of this analysis to management“.
According to Zikmund___” It is a management tool that companies use to reduce uncertainty. It is a manager’s source of information about organizational and environmental conditions, and covers topics ranging from long-range planning to the most ephemeral tactical decisions”.
It is a systematic and objective process of gathering,recording and analyzing data for decision making. The research must be systematic, not haphazard. It must be objective, to avoid the distorting effects of personal bias. The aim of applied research is to facilitate managerial decision-making. On the other hand, basis or pure research is used to test and build specific theories and concepts.
Nature of Business Research
1. Clearly defined objectives: A good business research should clearly define the objective. It should know in advance what information want to procure.
2. Choose the right methodology: It is the method use for obtaining business research data. Business research methodologies include phone, mail and internet surveys as well as personal interviews. Mail intercept studies are another type of methodology, where researchers talk to consumers in stores.
3. Promoting business: The objectives of any good business research should be how to better promote business in an economically sound manner and to increase the business net profit, exposure,and ensure its continuity.
4. Covers region in which business operates: It covers all the regions in which the business operates, locally and internationally. Setting-up a hotel means knowing local conditions, such as attractions and competing establishments, but also problems such as crime or obtaining supplies.
5. Judging problems: Another characteristic of good business research is judging local problems of the environment in which our establishment is going to operate.
6. Flexibility: One more characteristic of good business research objectives is flexibility. The research may be programmed for one area and then something shows-up. If that ‘something’ is pertinent, it should be investigated and included in the research. Research is discovering new things and factors, it should not be easily sidetracked but it also should not be flexible.
7. Help determine how to produce the product: Good business research should include the use of the internet. If the business is manufacturing a specific product, look at the market size and options on how to produce the product. This is part of knowing who the competitor is, but slightly different as it helps to best determine how to produce the product.
Importance of Business Research
- Estimating expenses.
- Price determination.
- Managing costs.
- Assisting managers in the decision-making process.
- Evaluating market trends.
- Achieving competitive advantage.
Role of Business Research
1. Decision Making Tool: Research is useful for taking marketing management decisions. It provides necessary information and data in analysed and processed forms for making marketing decisions.
2. Management Planning: Research is used for management planning. It deals with marketing opportunities, those opportunities which are viable to be exploited by management. Thus, management can assess the resources that will be useful for the business.
3. Problem Solving: It is useful to identifying the problems of business and formulation of alternative solutions.
4. Control Technique: Research is used as a control technique of management to find our the weaknesses and shortcoming of the management decisions to re-orient the planning and performance techniques.
Limitations of Business Research
- Time Constraints
- Availability of Data: there may be difficulties in data collection
- Reliability of Data
- Cooperation of management and Employees
- Knowledge of Research Tools