Introduction to Research & Research Process

TAKEAWAYS:

• Research is a systematic, logical, and objective process to solve problems or answer questions using evidence.
• The scientific research process follows a structured cycle: problem identification → literature review → hypothesis → data collection → analysis → conclusion.
• Research can be fundamental (theory-driven) or applied (problem-driven), with each serving distinct purposes in business.
• Ethical considerations (e.g., confidentiality, consent) are critical to maintain integrity in research.
• Business research methods (quantitative vs. qualitative) are chosen based on the research objective and data needs.
• Real-world applications (e.g., eSewa’s user satisfaction surveys, Daraz’s inventory optimization) rely on research to improve operations.

1. What is Research?

Research is a structured, evidence-based inquiry aimed at discovering new knowledge, solving problems, or validating theories. It involves:

• Systematic investigation: Following a logical, step-by-step approach.
• Objective analysis: Removing personal bias to ensure accuracy.
• Problem-solving: Addressing gaps in existing knowledge or practice.

Definition (TU Syllabus):

"Research is a systematic, logical, and objective inquiry into a problem or issue to discover new facts, verify existing theories, or solve practical problems."

Key Characteristics of Research:

mindmap
  root((Research Characteristics))
    Systematic["Planned, step-by-step approach"]
    Logical["Follows a structured methodology"]
    Objective["Free from bias"]
    Critical["Evaluates existing knowledge"]
    Cyclical["Iterative process (refinement over time)"]
    Replicable["Results should be verifiable"]

Worked Example: eSewa’s User Feedback Study eSewa, Nepal’s leading digital payment platform, conducts user satisfaction surveys to identify pain points (e.g., slow transaction times, app crashes). This research helps them:

1. Identify problems (e.g., 30% of users report delays in refunds).
2. Test solutions (e.g., improving backend processing speed).
3. Validate improvements (e.g., post-update, user complaints drop by 20%).

2. Types of Research

Research is classified based on objectives, methodology, and scope:

Mermaid Diagram: Research Types Classification

Real-World Tie: NEPSE Stock Market Research NEPSE (Nepal Stock Exchange) uses applied research to analyze:

• Why small-cap stocks underperform in volatile markets.
• How regulatory changes (e.g., tax reforms) impact investor behavior. This informs policy decisions to stabilize the market.

3. The Scientific Research Process

The scientific method ensures reproducibility and validity. The steps are:

1. Problem Identification

   • Define the research question (e.g., "How does Pathao’s surge pricing affect rider satisfaction?").
   • Example: NTC noticed a 15% drop in rural call quality → research question: "What causes this, and how to fix it?"

2. Literature Review

   • Study existing research to avoid redundancy (e.g., reviewing past studies on Pathao’s pricing models).

3. Hypothesis Development

   • Propose a testable statement (e.g., "Higher surge pricing reduces Pathao’s rider satisfaction by >20%").

4. Data Collection

   • Choose methods (surveys, experiments, case studies).
   • Example: NTC conducts call-quality tests in rural vs. urban areas using random sampling.

5. Data Analysis

   • Use statistics (e.g., correlation analysis) or qualitative coding (e.g., theme analysis in interviews).

6. Conclusion & Reporting

   • Draw evidence-based conclusions (e.g., "Surge pricing correlates with a 22% drop in rider satisfaction").
   • Present findings in a structured report (see Unit 13: Writing Research Reports).

Visual: Scientific Research Process Flowchart

flowchart TD
    A["Problem Identification"] --> B["Literature Review"]
    B --> C["Hypothesis Development"]
    C --> D["Data Collection"]
    D --> E["Data Analysis"]
    E --> F["Conclusion & Reporting"]
    F -->|"Feedback"| A

Worked Example: Ncell’s Network Expansion Ncell wanted to expand 4G coverage in remote districts. They followed:

1. Problem: Low adoption in rural areas (only 10% usage).
2. Literature Review: Studied similar cases (e.g., NTC’s 3G rollout in Chitwan).
3. Hypothesis: "If we reduce setup costs by 30%, rural adoption will increase by >15%."
4. Data Collection: Surveyed 500 rural households + pilot testing in Rolpa.
5. Analysis: Found cost reduction + community training boosted adoption by 25%.
6. Report: Published findings to guide future expansions.

4. Research Philosophies: Positivism vs. Interpretivism

Research approaches differ based on worldview and methodology:

Mermaid Diagram: Positivism vs. Interpretivism

mindmap
  root((Research Philosophies))
    Positivism["Objective, quantitative"]
      - Data: Numbers, stats
      - Example: Nabil Bank’s loan default rates
    Interpretivism["Subjective, qualitative"]
      - Data: Words, observations
      - Example: Himalayan Java’s barista interviews

Real-World Tie: Daraz’s Inventory Management

• Positivist Approach: Daraz uses quantitative data (sales trends, stock turnover rates) to predict demand via algorithms.
• Interpretivist Approach: They also conduct qualitative interviews with sellers to understand local market dynamics (e.g., seasonal demand in Pokhara vs. Kathmandu).

5. Ethical Issues in Business Research

Research must adhere to ethical standards to protect participants and maintain credibility. Key issues:

1. Confidentiality

   • Example: NTC’s customer data must be anonymized to prevent misuse.

2. Informed Consent

   • Participants must know the purpose of the study (e.g., Pathao riders must consent before being surveyed).

3. Honesty and Transparency

   • Misrepresenting data (e.g., falsifying survey results) is unethical.

4. Avoiding Harm

   • Example: NEPSE’s research on stock market crashes should not cause panic.

5. Plagiarism

   • Copying others’ work without citation (e.g., lifting data from a competitor’s report).

Mermaid Diagram: Ethical Issues in Research

Worked Example: Khalti’s User Privacy Scandal (2022) Khalti faced backlash when it was revealed that user transaction data was sold to third parties without consent. This violated:

• Confidentiality (data was exposed).
• Informed Consent (users were not notified). The incident led to regulatory scrutiny and a public apology, highlighting the importance of ethics in research.

6. Applied vs. Fundamental Research

In the Real World

1. eSewa’s Algorithm Improvements

   • Idea: Hypothesis testing (e.g., "Does reducing transaction fees by 1% increase user retention?").
   • How: eSewa ran A/B tests on two groups of users—one with the fee reduction, one without—and measured retention rates.
   • Result: Confirmed a 12% increase in retention, leading to permanent fee cuts.

2. Pathao’s Surge Pricing Dynamics

   • Idea: Explanatory research (why surge pricing affects rider behavior).
   • How: Pathao analyzed ride data + rider surveys to find that prices >20% above normal led to 30% fewer bookings.
   • Real Impact: Adjusted pricing algorithms to balance revenue and rider satisfaction.

3. NEPSE’s Market Stability Studies

   • Idea: Descriptive + explanatory research (tracking stock trends and their causes).
   • How: NEPSE used historical data + expert interviews to identify that political instability caused 35% of market volatility.
   • Real Impact: Led to new regulatory guidelines to mitigate crashes.

Exam Tip

This unit is highly examinable—expect case studies, definitions, comparisons, and process explanations. Here’s how to score full marks:

1. For Definitions (e.g., "Define research"):

   • Use the TU syllabus definition verbatim, then expand with 1-2 examples (e.g., "Like Ncell’s 4G expansion study").
   • Avoid: Generic answers like "Research is studying things."

2. For Case Studies (e.g., ABC Bank’s customer satisfaction):

   • Follow the scientific research process (problem → data → analysis → conclusion).
   • Highlight ethical considerations (e.g., "The bank ensured anonymity in surveys").
   • Use a table to compare quantitative vs. qualitative methods used in the case.

3. For Comparisons (e.g., Positivism vs. Interpretivism):

   • Use a clear table (as above) with Nepali examples (e.g., Nabil Bank vs. Pathao).
   • Add a real-world tie: "Nabil Bank uses positivism for loan defaults, while Pathao uses interpretivism for rider feedback."

4. For Ethical Issues:

   • List all 5 key issues (confidentiality, consent, etc.) and link to a Nepali company (e.g., "Khalti’s data breach violated confidentiality").
   • Discuss consequences: "Regulatory fines, loss of trust."

5. For Process Questions (e.g., "Steps of scientific research"):

   • Draw a flowchart (like the one above) and label each step with a Nepali example.
   • Mention feedback loops: "Research is cyclical—findings lead to new questions."

6. For Applied vs. Fundamental:

   • Use the table format and name-drop 2 Nepali companies (e.g., "Nabil Bank (applied) vs. TU’s consumer research (fundamental)").

Pro Tip:

• Always include a Nepali example—examiners love it!
• Use diagrams for processes (e.g., research cycle, positivism vs. interpretivism).
• Avoid jargon—explain terms like "hypothesis" in simple terms (e.g., "a guess we test with data").

Final Note: This unit is the foundation of your research skills. Master it, and you’ll ace Units 2–14 (which build on these concepts). Practice writing a research proposal (even a mock one) to reinforce learning!