Business research is a crucial part of every business enterprise, from startups to established organisations. It provides a detailed analysis of how efficiently business management and marketing strategies are working and the scope for improvement. There are two main types of business research corresponding to quantitative analysis and qualitative analysis. As the name suggests, both the methods are entirely different from each other in terms of drafting the best business strategies across various departments. This blog elaborates upon the prominent types of business research methods on the basis of qualitative and quantitative research.
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What is Business Research?
The process of business research is carried out to determine the performance of varied areas in an organisation and finding the best strategies accordingly to maximize the sales and profit of the business. Through different types of business research, enterprises are able to figure out which product/service is generally beneficial for their target audience. In simple words, it is defined as the collection of information by business professionals to boost up the opportunities for the business. It can be performed for discovering various marketing strategies. In general, if people talk about marketing research it means they are focusing on spending money to increase sales, profit and market share. Such exploration is crucial to settle on wise and formal choices. Business research helps the business enterprise to discover more about their target audience from what they purchase and the amount they’re willing to pay. Further, it also provides you with an analytical overview of your competitors. Following this process, the research studies are broken down into strategies and reviewed to understand the aetiology of the market.
Types of Business Research
As mentioned above, business research plays a crucial part in helping the company get a proper review of their target audience as well as what they prefer in terms of the products on offer, competitors, prices, etc. It prepares an insightful analysis of the product and its performance in the market. It can assist you in finding out whether your products are as per the needs of your target audience and use these inputs for your future plans before you commit any error. There are two main types of business research mainly, qualitative and quantitative research methods. In the coming sections, we are going to discuss different methodologies and examples of these two business research methods.
Quantitative Research Methods
The Quantitative research method deals with a numerical process of analysis and is a systematic enquiry method done by statistical, mathematical, computational and algorithm techniques. In a nutshell, it means the collection of data is processed, and then the quantitative analysis is done to acquire informative results. This process is further carried out by various techniques mentioned below.
Survey research is one of the most broadly utilized types of business research techniques to assemble information for leading companies. It involves online surveys, online reviews, polls etc. The vast majority of the significant industries utilize this strategy to assemble information and use it to comprehend the market and settle on suitable business choices. Cross-sectional reviews which are expected to gather information from a varied audience at a given purpose of time are performed to achieve the desired market result. It is a multidisciplinary technique to understand the market of your business.
Benefits of Survey Research
If survey research is applied for the right purposes at the right time, it can be beneficial for a company’s growth. However, it can hijack the number of customers reaching out for a particular product/service. The major advantages of this type of business research are:
- Low investment
- Easy sources for data collection
- Reliable for responses
- Cyber secured
- Accurate result production
Correlational research is carried out to comprehend the connection between two elements and what vibration does both of them have on each other. Using numerical analysing techniques, correlational exploration empowers the professional to associate more than two factors. Such research can help get trends, connections, patterns, etc. Manipulating the one factor can give you the required result in productivity and analysis. These types of business research are widely used in merchandise industries and business firms to connect their products with customers.
Benefits of Correlational Research
It has multiple benefits, not in the field of business but also social science and medicine. Some of the advantages of correlational research is-
- Versatility of results
- Enhances productivity by providing accurate data
- Provides a good starting position’
- Determines causation experimentally
Causal Comparative Research
Amongst the prominent types of business research, Causal-Comparative technique is dependent on investigation and comparison. It is utilized to conclude the cause impact connection between variables. It is also known as semi exploratory study which includes setting up a free factor and dissecting the results on the reliant variable. In such an analysis, there are zero chances of manipulation. However, concluding such a study is a little complicated as independent and secondary variables will always exist in a group. Hence, it becomes necessary to look after every minute parameter details.
Benefits of Causal Comparative Research
The crucial benefits of Causal comparative research are:
- Allows the study of causal and effect relationship
- Variable can not be manipulated
- Two or more groups are compared
Experimental research depends on trying to demonstrate a hypothesis. Such an analysis might be valuable in business research as it can let the company know some social qualities of its customers, which can prompt more income. In this technique, an investigation is done on a lot of crowds to watch and later understand their behaviour when concerned with specific parameters. Experimental research permits you to test your thought in a controlled domain before taking it to market. It likewise gives the best technique to test your hypothesis, on account of the accompanying preferences.
Benefits of Experimental Research
These types of business research are important to test the new ideas and theories before applying them in the market. Some of the benefits are:
- Allows us to have a stronger hold on variables without altering them
- Effective in business analysis
- Accurate results
Qualitative Research Methods
Qualitative research is a strategy that has a high significance in business research plans. It includes getting information through open conversational methods of communication. Such analysis empowers the specialist to comprehend what the crowd thinks but also how they will react. In such an investigation, top to bottom data can be assembled from the subjects relying upon their reactions. There are different types of business research strategies for qualitative research, for example, interviews, group discussion, ethnographic observation, content investigation, contextual analysis etc. Below are some major types of qualitative research techniques that are widely used in business management.
Focus group research is a technique in which 5-6 individuals gather in a room to suggest ideas and remarks on a particular product/service. It is a small gathering conducted to ensure the various aspects of business-related areas. Such a technique empowers a specialist with a bigger example than the meeting or a contextual analysis while exploiting communication. The group might comment on the manufacturing of products, feature updates and another topic of interest related to a particular cause.
Benefits of Focus Groups
- It helps in collecting accurate feedback
- Open access to customer queries and product description
- The best medium to focus on true feelings of the target audience
Ethnography carries out the qualitative analysis for a business through the direct observations of its customers across varied environments. The target of this type of business research is to pick up experiences into how customers associate with things around them. Ethnographic research is a technique incorporating direct observation, the journal studies, video accounts, photography and ancient rarity investigation, for example, gadgets that an individual uses for the day. Observations can be made anywhere from the client’s work environment, their home or while they are out with loved ones. They can last for two or three hours of study, to cases that last more than seven months in these types of business research.
Benefits of Ethnographic Research
- It gives access to understand how users interact with the products in their environment
- Identifies expected problems
- Gives opportunities to test new products
It is one of the types of business research techniques which analyzes the situation and customer reaction. The phenomenological approach means to investigate the encounters of specific phenomena in a network or a gathering of individuals. It is the investigation of a specific phenomenon through meetings of individuals who have encountered it to discover the copies between their meetings. Even though this methodology relies significantly upon interviews, different sources of information combination may likewise be utilized to enhance the discoveries.
Benefits of Phenomenological Research
It is beneficial in understanding the variety of customers according to their reactions. Some of the advantages are:
- Helps in understanding people choice
- Contribute to developing new strategies
- Gathers natural data
- Help in resolving new issues
Thus, we hope that this blog has helped you explore the diverse types of business research. Want to pursue a degree in business administration abroad? Reach out to our experts at Leverage Edu who can help you choose the best university and course as per your preferences and guide you throughout the admission process to ensure that you get successfully shortlisted. Sign up for a free career counselling session with us today!