RCH201 Business Research Methods

Business Research MethodsUnit 212 min read

Nature & Features of Scientific Research

Unit 2 of Business Research Methods: Explores the definition, core characteristics, and systematic process of scientific research, comparing it to general research, and highlighting its role in evidence-based decision-making.

TAKEAWAYS:

  • Scientific research is systematic, objective, and empirical, unlike general research which may lack structure or bias.
  • It follows a cyclical process of problem identification, hypothesis testing, data collection, and validation.
  • Key features include verifiability, replicability, and generalizability, ensuring credibility and reliability.
  • Positivism vs. interpretivism shapes research philosophies—positivism relies on measurable data, while interpretivism explores subjective meanings.
  • Ethical rigor is critical to avoid bias, misconduct, or harm in research.
  • Real-world applications (e.g., NEPSE stock analysis, Daraz customer feedback) rely on scientific research to drive decisions.

1. Definition of Research

Research is a structured, logical, and systematic inquiry aimed at discovering new knowledge, solving problems, or validating theories. It involves:

  • Observation of phenomena.
  • Hypothesis formulation (educated guesses).
  • Testing through experiments or data collection.
  • Analysis and conclusion drawing.

Scientific research is a subset of research that adheres to empirical methods, objectivity, and reproducibility. It seeks generalizable truths rather than subjective opinions.


2. Nature of Scientific Research

Scientific research is not just about collecting data—it is a disciplined, evidence-based process with distinct characteristics:

Key Features of Scientific Research

mindmap
  root((Scientific Research))
    Characteristics((Features))
      Systematic((Structured steps: problem → hypothesis → data → analysis → conclusion))
      Objective((Free from bias; based on facts))
      Empirical((Relies on observable, measurable evidence))
      Verifiable((Results can be checked by others))
      Replicable((Same methods yield similar results))
      Generalizable((Findings apply beyond the study sample))
      Cyclical((Research builds on prior knowledge; iterative))

How It Differs from General Research

Aspect Scientific Research General Research
Methodology Structured, empirical, replicable May be informal, subjective
Objective Discover universal truths Solve specific problems or gather opinions
Data Source Experiments, surveys, observations Books, interviews, anecdotal evidence
Bias Control Minimized through controls and randomization Higher risk of bias
Application Used in academia, policy, and industry Used in everyday problem-solving

3. Scientific Research Process

Scientific research follows a cyclical, iterative process (not a linear one). Below is the classic research cycle:

flowchart TD
    A["Problem Identification"] --> B["Literature Review"]
    B --> C["Hypothesis Formulation"]
    C --> D["Research Design"]
    D --> E["Data Collection"]
    E --> F["Data Analysis"]
    F --> G["Conclusion"]
    G --> H["Report Writing"]
    H --> I["Peer Review & Validation"]
    I -->|"New Problems/Evidence"| A

Step-by-Step Breakdown

  1. Problem Identification

    • Start with a researchable question (e.g., "Does customer satisfaction affect bank loan defaults in Nepal?").
    • Example: NEPSE studies whether stock market volatility correlates with economic policies.
  2. Literature Review

    • Survey existing studies to avoid redundancy and build on prior work.
    • Example: Before studying Daraz’s customer satisfaction, researchers review past studies on e-commerce trust in Nepal.
  3. Hypothesis Formulation

    • Propose a testable statement (e.g., "Higher customer satisfaction leads to lower loan defaults").
    • Must be falsifiable (able to be disproven).
  4. Research Design

    • Choose methodology (experimental, survey, case study).
    • Example: Ncell might use a survey-based design to study mobile data usage patterns.
  5. Data Collection

    • Gather empirical evidence (quantitative: numbers; qualitative: opinions).
    • Example: Pathao collects ride feedback ratings to improve service.
  6. Data Analysis

    • Use statistics, coding, or thematic analysis to interpret data.
    • Example: Nabil Bank analyzes loan repayment data to predict defaults.
  7. Conclusion & Reporting

    • Draw evidence-based conclusions and write a report.
    • Example: Khalti publishes research on digital payment adoption trends.
  8. Peer Review & Validation

    • Submit findings to journals or experts for scrutiny.
    • Example: Himalayan Java validates its coffee quality research through third-party tastings.

4. Types of Scientific Research

Scientific research can be classified based on objectives, methods, and scope:

Pure ResearchApplied ResearchBy ObjectiveQuantitativeQualitativeMixed MethodsBy MethodologyScientific Research Types
Classification of scientific research by key criteria.

A. By Objective

Type Description Example in Nepal
Basic (Fundamental) Expands knowledge without immediate application. Studying NEPSE’s market efficiency models.
Applied Solves practical problems. Ncell’s 5G network optimization study.
Exploratory Investigates new areas with little prior research. Pathao’s ride-sharing algorithm improvements.
Descriptive Documents characteristics of a phenomenon. Daraz’s customer demographic study.
Explanatory Explains why something happens. "Why do NEPSE stocks crash during elections?"

B. By Methodology

Type Description Example
Quantitative Uses statistical data (numbers, surveys, experiments). Nabil Bank’s loan default prediction model.
Qualitative Explores meanings, opinions (interviews, focus groups). Khalti’s user experience feedback study.
Mixed Methods Combines both quantitative and qualitative approaches. Ncell’s customer satisfaction + survey study.

5. Research Philosophies: Positivism vs. Interpretivism

Research philosophies shape how knowledge is generated:

mindmap
  root((Research Philosophies))
    Positivism((Objective, Scientific))
      - Reality is **external and measurable**
      - Methods: **Quantitative** (surveys, experiments)
      - Example: **NEPSE stock market studies**
    Interpretivism((Subjective, Contextual))
      - Reality is **socially constructed**
      - Methods: **Qualitative** (interviews, case studies)
      - Example: **Pathao driver motivation study**
Aspect Positivism Interpretivism
View of Reality Objective, measurable Subjective, influenced by context
Method Experiments, surveys, statistics Interviews, observations, narratives
Data Type Numerical, quantifiable Textual, interpretive
Example in Nepal Ncell’s network coverage analysis Khalti’s user trust in digital payments

6. Ethical Issues in Scientific Research

Ethics ensure research integrity, fairness, and safety. Common ethical dilemmas include:

1947Nuremberg Codeestablishes ethical gu1979Belmont Reportoutlines principles of2000sInstitutionalReview Boards (IRBs) b
Key milestones in research ethics development.

How Companies Handle Ethics

  • NEPSE: Ensures transparent stock market data to prevent manipulation.
  • Daraz: Obtains explicit consent before collecting customer data.
  • Nabil Bank: Follows ethical loan approval policies to avoid predatory lending.

7. Challenges in Scientific Research

Even the best research faces obstacles:

Challenge Example in Nepal Solution
Bias Survey questions leading respondents. Use neutral phrasing; pilot test.
Small Sample Size Studying Kathmandu’s traffic with 100 drivers. Increase sample; use stratified sampling.
Data Reliability Khalti’s payment data has missing entries. Clean data; use multiple sources.
Ethical Concerns Ncell’s customer data sold to third parties. Anonymize data; follow GDPR-like laws.
Resource Constraints Limited funds for NEPSE’s economic impact studies. Partner with universities or NGOs.

8. Real-World Applications

## In the Real World

  1. NEPSE (Nepal Stock Exchange)

    • Idea Used: Quantitative research to analyze stock trends.
    • How?
      • Uses time-series data to predict market crashes.
      • Applies regression models to identify risk factors (e.g., political instability).
    • Worked Example:
      • After the 2022 election, NEPSE researchers found that volatility increased by 30% when election dates were announced. They used this to warn investors and adjust trading strategies.
  2. Daraz (E-commerce Platform)

    • Idea Used: Mixed-methods research (surveys + customer reviews).
    • How?
      • Conducts post-purchase surveys to measure satisfaction.
      • Uses sentiment analysis on reviews to detect trends (e.g., delayed deliveries).
    • Worked Example:
      • Daraz noticed that customers in rural areas had higher return rates due to poor logistics. They expanded delivery hubs in those regions, reducing returns by 15%.
  3. Ncell (Telecom Provider)

    • Idea Used: Applied research to optimize network coverage.
    • How?
      • Uses GPS data to identify dead zones in Kathmandu.
      • Tests 5G rollout strategies before full deployment.
    • Worked Example:
      • Ncell found that student areas (e.g., TU campus) had peak data usage at 2 PM. They increased bandwidth during that slot, reducing buffering by 40%.

9. Exam Tip

This unit is highly examinable—expect:

  • Case studies (e.g., analyzing a bank’s research on customer satisfaction).
  • Comparisons (e.g., positivism vs. interpretivism, quantitative vs. qualitative).
  • Definitions (e.g., scientific research, hypothesis, ethics in research).
  • Application-based questions (e.g., "How would you apply research methods to study Pathao’s driver retention?").

Key Strategies: ✅ Memorize the research cycle (problem → hypothesis → data → conclusion). ✅ Compare positivism vs. interpretivism with real examples (NEPSE vs. Pathao). ✅ List ethical issues and how companies (Ncell, Daraz) handle them. ✅ Practice defining terms like systematic, empirical, replicable. ✅ For case studies, follow the structured approach:

  1. Identify the research problem.
  2. Note the methodology used.
  3. Highlight ethical considerations.
  4. Suggest improvements (e.g., larger sample, mixed methods).

Common Pitfalls to Avoid: ❌ Describing general research instead of scientific research (always emphasize systematic, empirical, replicable). ❌ Ignoring ethics—examiners love testing knowledge of plagiarism, bias, consent. ❌ Overcomplicating definitions—keep explanations clear and exam-focused.


Based on the TU BBA syllabus for Business Research Methods (RCH201), unit 2.

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