The term ‘research’ refers to ‘search for facts’. It is an extensive and careful investigation of a given phenomenon with a specific goal of enhancing one’s knowledge level. In short, through scientific and scholarly analysis it conveys a sense of deep and purposeful study. The aim of research is accomplished with the sincere study of experiments, observation and comparison. In other words, research is a process whereby, one gains information about any natural or human phenomenon.
Research can also be termed as a field of scientific and practical study, where, in order to better administer the business, the company obtains data and analyses it. Research includes financial data, consumer feedback, product research and competitive analysis. The companies where the executives and managers apply research methods are able to understand their business better, the position it holds in the market and the various ways of enhancing that position.
Research is a practical activity intended to find out things about business matters in a systematic and a logical way. The idea is to advance knowledge and help managers solve business problems by providing reliable and consistent measures. Fast-changing global marketplace, the need for cost-effective, accurate information and timely decision-making are the most distinguished features of modern age business. Hence to keep up with the ongoing trend the management has to take decisions in a certain environment that is influenced by many factors. The main aim of a business research is to help the management by providing them with information that can serve as a foundation for sound decision-making. Research methodology provides a means for management to meet the information requirements of key decision-makers.
Thus, research is an ‘organised’ and ‘systematic’ approach of finding solutions to problem or finding answers to questions. Research ¡s said to be systematic as ¡t involves a definite set of steps in order to arrive at some conclusion. Also, it is said to be structured, as it is a planned procedure which is focused, having a well defined scope and method. Research is designed and meant to find answers – be it simple or hypothesis. It is believed to be successful only when solutions are sought. Questions are the most important part of a research and a research would be incomplete without it, therefore it stands out as the chief component of research. This is so, because the dynamics of research invariably involves the process of focusing on relevant, useful and important questions. The questionnaire for a research may originate from management dilemma.
To sum up, research may be termed as “systematic, controlled, empirical and critical investigation of hypothetical proposition”.
Purpose of Research
Research ¡s undertaken to set a business organisation apart from its competitors in all aspects. It is especially essential for individuals who want to launch a start-up, as it proves helpful to evaluate a new business plan and its standing in the society. It is a systematic and methodical attempt to study the solution of a specific crisis encountered in a working environment. The purpose of business research is to provide learning and guidance to managers helping them take sound business decisions and also to overcome the existing and forth coming challenging situations in a business organisation.
Research serves the following purposes:
1. It reduces the risk of product failure as there is no assurance about a new initiative to be a commercial hit, but accurate and up-to-date previous knowledge and surveys on market can help a business make knowledgeable decisions to achieve commercial success.
2. It forecasts future trends. Research not only provides information regarding the existing state of the business market but is also used to anticipate future customer requirements. Based on these research organisations can then apply the necessary improvisation to their product portfolios and levels of output in order to flourish.
3. It increases the knowledge of an individual on topics like humans, social life, and environment and to make reliable predictions of events yet to happen. It also helps in analysing inter-relationships between variables.
4. It helps in verifying and testing of existing facts and theory. It also proves to be helpful in creating generalizations and reducing risk factor. It saves time and money during a new start-up.
5. It develops new tools, concepts and theories for improved study of unidentified phenomenon. It helps in the learning of where and how to produce, distribute and sell the product.
6. It gains a comprehensive understanding of consumers’ needs and requirements. Research can help firms to learn consumers’ opinions on a vast range of issues, e.g., views on products’ prices, packaging, recent advertising campaigns.