What is business research

Business Research

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The goal of any business is sales and profits. One process which can provide information regarding all sections of the business is called Business Research. The data and information obtained by business research can give direction to sales and profits.

Similarly, entrepreneurs can also gain insight into a particular field of business before entering. Business research derives detailed and intuitive data from the market, shares, customers, sales, and profits. You can make well-informed decisions and help plan financial investments. It also helps solve business problems while expanding knowledge of management. 

Let’s take an example of a Mobile Phone company that wants to launch a new model. The company requires crafting strategies in order to monitor customer demand. With the help of business research, the company can analyze the trend, the potential of the market, pricing of your competitors, and demand of the customers. 

The data collected from the research will help the company draft a fine model of mobile phone at the price range affordable by the majority of the audience while also fulfilling other criteria. This will lead to a large market share, increase in sales and demand in the market.

Business Research Types

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Fields to use Business Research

  • Management research, to gather intelligence on management efficiency
  • Production research before introducing a new product/service to the audience
  • Marketing research to understand and to satisfy the demands of customers
  • Financial management to study financial stability and investments
  • Also, business research can be used to study your competitor from similar fields

Why Business Research is Important

Understanding Customers: Communicating and understanding the existing and prospective customers, what they like to buy, and their buying patterns, what they dislike, all such information can be gathered by conducting Business research. 

Market potential: You can learn about your contenders in the same field; their unique selling point, how they attract customers, what they offer. Moreover, you can learn the trends and opportunities in the market, the threats, and how to build a potential market message. Identifying market threats can aid you in preventing risks and failure. Using the data from business research, you can adjust the pricing of the product/service, the quality provided, and also tend to market demand. 

Staying Updated: Business research in particular intervals can keep you updated about the market trends and customer’s preferences. You can also learn about the popular business strategies that attract and motivate customers to purchase.

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Types of Business Research

A facet of the business intelligence process, Business Research can help an organization/business determine the success rate in the target market and understand a suitable approach. There are two types of business research, Qualitative and Quantitative Business Research, which are further divided into various methods. 

Qualitative Business Research

Answering questions like “why” and “how”, qualitative business research gathers information on the thought process of the audience and opens a room for communication. Employing open-ended questions in business research assists in knowing customers in-depth and their reason for their purchase decision.

  1. Interviews: Interviews can present the opportunity to interact with the customers directly. Holding a discussion while answering questions to understand the customer’s mindset is the advantage that interviews have over surveys. The researcher’s as well can give their insight related to business and market in an interview. For example, an interview with the female audience can help a bike manufacturing company understand why they have fewer female customers. The lack of advertisement catered towards females and fewer female models makes it less attractive for the female audience. Interviewing female customers can help the company understand why they prefer some other brand and not theirs. With this, the company can learn more about how to develop their strategies to motivate the female bikers to purchase their products
  2. Focus Group: A focus group involves a small number of people among them; they all represent a diverse target market. Even when the sample size is small the participant is qualitatively diverse. Focus group research can be conducted online. Before launching a new product/service to the target market, the company launches it among a selected group of audiences. The participants help identify the improvements that can be made, the feature modified along with other suggestions and opinions from the point of view of the audience. 
  3. Ethnographic Research: Ethnographic research is one of the most time-consuming and expensive types of research. The procedure involves observing the target audience in their own environment and collecting data visually. The researchers adapt among the audience to observe them. Ethnographic research is employed when there is a need to understand the customers in a particular situation. For example, a Restaurant has decided to offer free samples to their customers with their ordered food. The restaurant owner or the head chef can mingle among the audience or have their waiters observe the customer’s reaction regarding the sample. 
  4. Fallstudie: A case study is a form of security in many businesses. When research is conducted to assess customer’s satisfaction with the company and its services, the case study highlights the challenges faced by the customers. The case study can help the company provide solutions to the customer’s query and motivate them to choose their company. By recording the entire interaction between the organization and the customers, the company can use the case study to showcase their aptitude and accomplishments to the new customers. 
  5. Website Visitor Research: If your business has an online presence, website visitor research is the best and easiest way to collect feedback from customers. By uploading a survey on your website you can observe the user’s behavior patterns, their intended searches in your websites. You can utilize a website survey to recognize your target audience and what they need from your company. Moreover, you can also gauge their satisfaction with your service after their purchase.
Performing business research

Quantitative Business Research

Statistical data, research dealing with numbers to understand the audience is called Quantitative Business Research

  • Survey Research: Online surveys, questionnaires, polls, rating, and other such methods are examples of Survey Research. These surveys collect feedback from the audience helping the company to understand the market and make well-informed decisions. The online survey, as well as social media survey, is less expensive and less time-consuming while also an effective type of Survey Research. With online tools, you can reach a large audience in a short time and also across various time durations.
  • Correlation Research: Correlation research, as the name suggests is conducted to establish a relationship between different units/systems and their impact on one another. The research assists in understanding patterns and trends. Correlation research, however, requires the use of another form of research method. For example, by researching a relationship between TV shows and ages of different generations, you can also figure out which generation prefers what kind of shows.
  • Causal-Comparative Research: Also known as quasi-experimental research, this research is based on comparison. The procedure involves establishing an independent variable to study its effects on the dependent variable. The conclusion of the process is the relationship of cause and effect between variables. The researchers do not manipulate any changes to influence the effect. Rather, the groups are observed as they experience change when influenced by similar changes. For example, the research can observe the effect a well-organized and excellent medical facility has on a rural setting. The researcher can observe and analyze the improvement in health and hygiene when people of rural areas are exposed to the medical facility.
  • Experimental Research: Experimental research begins with a hypothesis or theory, observing the audience as they are exposed to certain parameters. Their behavior and attitude are observed. Understanding the customer’s behavior can lead to a better-developed business plan and an increase in revenue.
  • Online Research: Online Research or as known as Literature Research involves gathering information from documents which is available in annual reports, libraries, or other old forms of documents. Online research serves to provide in-depth and thorough information on a particular subject. 

However, when conducting such research it is important to validate the information and the sources to prove they are credible. The marketing and sales department uses online research to understand their customers and the target market.

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