Business Research Basics: Definitions, Process & Reports

TAKEAWAYS:

• Business research is a systematic inquiry to solve problems or generate new knowledge using scientific methods.
• The scientific research process follows a structured cycle: problem identification → literature review → hypothesis formulation → data collection → analysis → reporting.
• A research problem must be clear, significant, feasible, and ethical to ensure validity.
• Research design determines how data will be collected and analyzed, with key types including exploratory, descriptive, and causal designs.
• Research reports and proposals follow standardized structures to ensure clarity, credibility, and reproducibility.
• Real-world applications of business research include customer satisfaction analysis (e.g., Daraz), financial forecasting (e.g., Nabil Bank), and policy evaluation (e.g., NTC).

---

What Is Business Research?

Business research is a systematic, logical, and objective process of gathering, analyzing, and interpreting data to solve business problems or generate new knowledge. It is not just data collection but involves critical thinking, hypothesis testing, and evidence-based decision-making.

Why Is Business Research Important?

• Solves real-world problems: Helps businesses make informed decisions (e.g., why customers leave Daraz).
• Reduces uncertainty: Provides data-driven insights instead of guesswork.
• Improves efficiency: Identifies best practices (e.g., how Pathao optimizes delivery routes).
• Supports innovation: Drives product/service improvements (e.g., eSewa’s digital payment solutions).

---

The Scientific Research Process

The scientific research process is a cyclical and iterative approach to problem-solving. It ensures objectivity and reliability. Below is a step-by-step breakdown:

Key Steps Explained:

1. Problem Identification:

   • Define the specific issue (e.g., "Why do customers abandon their carts on Daraz?").
   • Ensure the problem is clear, measurable, and relevant.
   • Example: NTC might research "Why do customers complain about internet speed?"

2. Review of Literature:

   • Study existing research to avoid redundancy and build on prior knowledge.
   • Sources: Academic journals, industry reports, government data.
   • Example: Before studying customer satisfaction in banks, review studies on Nabil Bank or Global IME.

3. Hypothesis Formulation:

   • Develop testable statements (e.g., "Customers abandon carts due to high shipping costs").
   • Hypotheses must be specific and falsifiable.

4. Research Design:

   • Choose the methodology (exploratory, descriptive, causal).
   • Decide on data collection tools (surveys, interviews, experiments).

5. Data Collection:

   • Gather primary (firsthand) or secondary (existing) data.
   • Example: Daraz might conduct surveys or analyze past order data.

6. Data Analysis:

   • Use statistical tools (SPSS, Excel) to interpret data.
   • Look for patterns, correlations, or causations.

7. Interpretation & Reporting:

   • Present findings clearly and objectively.
   • Recommend actionable solutions.

---

Research Problem: Identification and Criteria

A research problem is a gap in knowledge that needs investigation. It must meet the following criteria:

How to Identify a Research Problem?

1. Observe trends: Use data (e.g., NEPSE stock trends, Daraz sales reports).
2. Consult stakeholders: Talk to managers, customers, or experts.
3. Brainstorm ideas: List potential problems and narrow them down.
4. Pilot testing: Check if the problem is researchable (e.g., survey a small group).

---

Research Design: Types and Principles

Research design is the blueprint for conducting research. It determines how data will be collected and analyzed.

Types of Research Design:

Principles of Good Research Design:

1. Validity: Measures what it claims to measure.
   • Example: A survey on "customer satisfaction" should not ask leading questions.
2. Reliability: Consistent results if repeated.
   • Example: Same survey questions yield similar answers over time.
3. Objectivity: Free from bias.
   • Example: Avoiding loaded questions like "Don’t you hate slow Daraz delivery?"
4. Feasibility: Practicable within constraints.
   • Example: Surveying 1000 customers is feasible; surveying 100,000 may not be.

Common Sources of Error in Research Design:

• Sampling error: Bias due to non-representative samples (e.g., surveying only Kathmandu residents for a national study).
• Measurement error: Faulty tools (e.g., using a broken scale to weigh products).
• Non-response bias: Ignoring feedback from certain groups (e.g., only young users responding to an eSewa survey).
• Researcher bias: Influencing results unintentionally (e.g., favoring a particular brand in questions).

---

In the Real World

Business research is everywhere! Here’s how companies in Nepal and globally apply these concepts:

1. eSewa (Digital Payments):

   • Research Problem: "Why do users abandon transactions mid-process?"
   • Method: Conducted exploratory research via user surveys and app analytics.
   • Finding: Long loading times and unclear error messages were key issues.
   • Solution: Simplified the UI and added real-time support chat.

2. Daraz (E-commerce):

   • Research Design: Used descriptive research to analyze customer cart abandonment.
   • Data Collection: Tracked user behavior via heatmaps and exit surveys.
   • Insight: High shipping costs and lack of multiple payment options were barriers.
   • Action: Introduced "free shipping over Rs. 1000" and integrated Khalti payments.

3. Nabil Bank (Financial Services):

   • Research Problem: "How can we improve loan approval rates?"
   • Method: Causal research via A/B testing on loan application forms.
   • Finding: Simplified forms with fewer fields increased approvals by 20%.
   • Result: Faster loan processing and higher customer satisfaction.

4. Pathao (Ride-Hailing):

   • Research Design: Experimental research to test dynamic pricing.
   • Process: Compared surge pricing vs. flat rates during peak hours.
   • Outcome: Dynamic pricing reduced wait times by 30% and increased driver earnings.

5. NTC (Telecom Infrastructure):

   • Research Problem: "Why do rural areas have poor internet connectivity?"
   • Method: Correlational research analyzing terrain, population density, and infrastructure.
   • Solution: Deployed low-orbit satellites in remote regions (e.g., Mustang, Dolpa).

---

Research Proposal and Report Structure

Both proposals and reports follow a standardized format to ensure clarity and professionalism.

Structure of a Research Proposal:

Structure of a Research Report:

Key Differences:

---

Worked Example: Customer Satisfaction Survey for a Nepali Bank

Scenario: Nabil Bank wants to improve customer satisfaction scores.

Step 1: Problem Identification

• Issue: Customer satisfaction scores dropped by 15% last quarter.
• Research Question: "What factors most influence customer satisfaction at Nabil Bank branches?"

Step 2: Research Design

• Type: Descriptive (to understand current satisfaction levels).
• Method: Online survey + in-branch interviews.
• Sample: 500 customers (stratified by age, location, account type).

Step 3: Data Collection

• Tools:
  • SurveyMonkey for online questions (e.g., "How satisfied are you with our service? 1-5 scale").
  • Face-to-face interviews for deeper insights (e.g., "What frustrates you most?").

Step 4: Analysis

• Quantitative: Calculate mean satisfaction scores by branch.
• Qualitative: Themes from interview responses (e.g., "long queues," "unhelpful staff").

Step 5: Report Findings

Step 6: Recommendations

1. Staff Training: Mandatory customer service workshops.
2. ATM Expansion: Add 10 ATMs in busy branches (e.g., Thapathali, Lakshmi Chowk).
3. App Features: Add a "skip-the-queue" virtual appointment system.

---

Case Study: How Daraz Uses Business Research

Company: Daraz (Alibaba Group) Research Focus: Cart abandonment and checkout optimization.

Research Process:

1. Problem Identification:

   • Issue: 70% of users add items to cart but don’t checkout.
   • Hypothesis: High shipping costs and complex checkout are key barriers.

2. Data Collection:

   • Tools:
     • Google Analytics (track user drop-off points).
     • Heatmaps (see where users click/scroll).
     • Exit Surveys (ask why they left).

3. Findings:

   • Top Reasons for Abandonment:
     • 45%: Shipping costs too high.
     • 30%: Checkout process too long.
     • 15%: No multiple payment options.
     • 10%: Distrust in security.

4. Solutions Implemented:

   • Free Shipping Threshold: "Free shipping on orders over Rs. 1000."
   • One-Click Checkout: Integrated Khalti, eSewa, and credit card options.
   • Transparent Pricing: Show shipping costs upfront.
   • Trust Signals: Added SSL certificates, customer reviews, and secure payment icons.

5. Results:

   • Checkout rate increased by 40% within 6 months.
   • Revenue growth of 25% from reduced abandonment.

---

Exam Tip

This unit is foundational and often tested in definition-based, short-answer, and structured questions. Here’s how to score full marks:

Common Exam Questions and How to Answer:

1. Define Research Design. Explain the different types.

   • Do:
     • Start with a clear definition (e.g., "Research design is a framework for collecting and analyzing data to answer research questions").
     • Use a table (like above) to list and explain 3-4 types with Nepali examples.
     • Conclude with one advantage/disadvantage of each.
   • Don’t:
     • List types without examples.
     • Use vague language (e.g., "it’s important").

2. Describe the structure of a Research Report.

   • Do:
     • Use a mindmap or bullet list (like above) to show the logical flow.
     • Mention key sections (Introduction, Methodology, Findings) and why they matter.
     • Add a short example (e.g., "The Findings section in a TU BBS thesis would include graphs of student performance trends").
   • Don’t:
     • Write in paragraph form without structure.
     • Skip sections like "References" or "Appendices."

3. Discuss the basic principles of research design.

   • Do:
     • List 4 principles (validity, reliability, objectivity, feasibility).
     • For each, give a Nepali business example (e.g., "Reliability: If NTC surveys internet speed monthly and gets consistent results, the data is reliable").
     • Link to common errors (e.g., "Sampling error reduces validity").
   • Don’t:
     • Just define terms without application.

4. What is a research problem? Explain identification.

   • Do:
     • Define research problem in one sentence.
     • Use a table to explain 4 criteria (clear, significant, feasible, ethical) with examples.
     • Describe 3 methods to identify problems (e.g., "Observe trends in NEPSE stock data").
   • Don’t:
     • Give a generic answer without context.

Pro Tips for Full Marks:

• Use diagrams: Always draw a flowchart for the research process or a table for comparisons.
• Link to Nepal: Every example should relate to local companies (e.g., Daraz, Nabil Bank, NTC).
• Be concise: Exams have time limits; stick to key points.
• Practice past papers: Look at how marks are distributed (e.g., 5 marks for definition, 10 for explanation).
• Avoid jargon: If you use terms like "validity" or "hypothesis," briefly define them in context.

---

Summary Checklist for Revision:

• Can you define business research, research design, and scientific research process?
• Do you know the 4 types of research design and their Nepali examples?
• Can you list the structure of a research proposal and report?
• Do you understand the criteria for a good research problem?
• Can you explain how Daraz or Nabil Bank applies research methods?
• Are you comfortable drawing flowcharts for the research process?