The Business Research Process

THE BUSINESS RESEARCH PROCESS

Marketing research is the systematic &objective approach to the development & provision of information for the marketing management decision. Business research has several steps which includes following:

a.      Define the problem;

b.      Determine research design;

c.      Design data collection method & forms;

d.      Design sample & collect data;

e.      Analyze & interpret the data;

f.        Prepare the research report.

DATA COLLECTION

Data collection is a fundamental step in advertising and marketing research. In data collection, sampled data are collected through various means that provide a basis for analyzing the market behavior of a general population from which the data are sampled. 

Surveys

Traditional methods for data collection include survey and data recording. A survey usually consists of three basic elements: target audiences (the group of selected people from the population), communication methods such as mail, fax, telephone, and person-to-person interviews, and survey content that contains a set of carefully designed questions. Data recording refers to the process of collecting market-related data over time, such as sales data, advertising expenditure, customer information, etc. Usually, these data are collected for business purposes and are stored in the company's central database. Analyzing market data is crucial for understanding a consumer's buying habits and forecasting future market outcomes, and, accordingly, in assisting marketing decision-making.

The procedures and devices used to obtain primary data vary depending on the sampling and measurement requirements. Data collection is a key part of the research plan and often represents the biggest cost of primary research. Data collection methods need to be mastered by the professional marketing researcher.

DATA COLLECTION INSTRUMENTS

No survey can achieve success without a well-designed data collection instrument. Following are the commonly used tools/instruments being used widely by marketing researchers and business researchers in respect of primary research data collection process.

a.      Questionnaire

b.      Interviews

QUESTIONNAIRES 

The design of a questionnaire will depend on whether the researcher wishes to collect exploratory information (i.e. qualitative information for the purposes of better understanding or the generation of hypotheses on a subject) or quantitative information (to test specific hypotheses that have previously been generated). 

Exploratory questionnaires: If the data to be collected is qualitative or is not to be statistically evaluated, it may be that no formal questionnaire is needed. For example, in interviewing the female head of the household to find out how decisions are made within the family when purchasing breakfast foodstuffs, a formal questionnaire may restrict the discussion and prevent a full exploration of the woman's views and processes. Instead one might prepare a brief guide, listing perhaps ten major open-ended questions, with appropriate probes/prompts listed under each. 

Formal standardized questionnaires: If the researcher is looking to test and quantify hypotheses and the data is to be analyzed statistically, a formal standardized questionnaire is designed. Such questionnaires are generally characterized by: 

a.      Prescribed wording and order of questions, to ensure that each respondent receives the same stimuli

b.      Prescribed definitions or explanations for each question, to ensure interviewers handle questions consistently and can answer respondents' requests for clarification if they occur

c.      Prescribed response format, to enable rapid completion of the questionnaire during the interviewing process

Steps Preceding Questionnaire Design

There are no hard-and-fast rules about how to design a questionnaire, but there are a number of points that can be borne in mind:

a.      A well-designed questionnaire should meet the research objectives.

b.      It should obtain the most complete and accurate information possible. A good questionnaire is organized and worded to encourage respondents to provide accurate, unbiased and complete information.

c.      A well-designed questionnaire should make it easy for respondents to give the necessary information and for the interviewer to record the answer, and it should be arranged so that sound analysis and interpretation are possible.

d.      It would keep the interview brief and to the point and be so arranged that the respondent(s) remain interested throughout the interview.

Preliminary Decisions in Questionnaire Design

There are at least nine distinct steps involved in the development of a questionnaire: 

i.        Decide the information required:  The first step is to decide 'what are the things one needs to know from the respondent in order to meet the survey's objectives?' These should appear in the research brief and the research proposal. 

ii.      Define the target respondents:  The researcher must define the population about which he/she wishes to generalize from the sample data to be collected. Secondly, researchers have to draw up a sampling frame. Thirdly, in designing the questionnaire we must take into account factors such as the age, education, etc. of the target respondents.

iii.    Choose the method(s) of reaching target respondents:  The method of contact will influence not only the questions the researcher is able to ask but also the phrasing of those questions. The main methods available in survey research include, Personal interviews, group or focus interviews, mailed questionnaires, telephone interviews. Within this region the first two mentioned are used much more extensively than the second pair. However, each has its advantages and disadvantages. A general rule is that the more sensitive or personal the information, the more personal the form of data collection should be.

iv.     Decide on question content:  Researchers must always be prepared to ask, "Is this question really needed?" The temptation to include questions without critically evaluating their contribution towards the achievement of the research objectives, as they are specified in the research proposal, is surprisingly strong. No question should be included unless the data it gives rise to is directly of use in testing one or more of the hypotheses established during the research design.

v.       Develop the question wording:  Survey questions can be classified into three forms, i.e. closed, open-ended and open response-option questions. So far only the first of these, i.e. closed questions has been discussed. This type of questioning has a number of important advantages:

vi.     It provides the respondent with an easy method of indicating his answer - he does not have to think about how to articulate his answer.

vii.   It 'prompts' the respondent so that the respondent has to rely less on memory in answering a question.

viii.       Responses can be easily classified, making analysis very straightforward.

ix.     It permits the respondent to specify the answer categories most suitable for their purposes.

Physical Appearance of the Questionnaire

The physical appearance of a questionnaire can have a significant effect upon both the quantity and quality of marketing data obtained. The quantity of data is a function of the response rate. Ill-designed questionnaires can give an impression of complexity, medium and too big a time commitment. Data quality can also be affected by the physical appearance of the questionnaire with unnecessarily confusing layouts making it more difficult for interviewers, or respondents in the case of self-completion questionnaires, to complete this task accurately. Attention to just a few basic details can have a disproportionately advantageous impact on the data obtained through a questionnaire. 

In general it is best for a questionnaire to be as short as possible. A long questionnaire leads to a long interview and this is open to the dangers of boredom on the part of the respondent (and poorly considered, hurried answers), interruptions by third parties and greater costs in terms of interviewing time and resources. In a rural situation an interview should not last longer then 30-45 minutes.

INTERVIEWS

The major advantages of interviews are the ability to explore topics in great depth, to achieve a high degree of interviewer control, and to provide maximum interviewer flexibility for meeting unique situations.  However, this method is costly and time-consuming, and the flexibility can result in excessive interviewer bias. 

A successful interview requires that we seek information the respondent can provide and that the respondent understands the role and is motivated to play this role, Motivation in particular is a task for the interviewer.  Good rapport with the respondent should be quickly established, and then the technical process of collecting data should begin.  The latter often calls ofr skillful probing to supplement the answers volunteered by the respondent.