Business Research: Methods, Types & Examples

Business research can be done for anything. Generally, when discussing business research design, people ask research questions to determine where money can be spent to increase sales, profits, or market share.

Such research is critical to making wise and informed decisions. Because of this, business research plays a vital role in understanding various aspects of a business environment.

What Is Business Research

Business research is the process of acquiring detailed information on all business areas and using such information to maximize the business’s sales and profit. Such a study helps companies determine which product/service is most profitable or in demand.

It can be stated as acquiring information or knowledge for professional or commercial purposes to determine a business’s opportunities and goals.

For example, a mobile company wants to launch a new model in the market but needs to be made aware of the dimensions of a mobile that are in most demand. Hence, the company conducts business research using various methods to gather information and to test market demand, which is then evaluated. Conclusions are drawn as to what dimensions are most in demand.

This will enable the researcher to make wise decisions about positioning his phone at the right price in the market and, hence, acquire a larger market share.

Types of Business Research and Methodologies

Business research is part of the business intelligence process. It is usually conducted to determine whether a company can succeed in a new region, understand its competitors, or select a marketing approach for a product. This research can be carried out using the research process steps in qualitative or quantitative research methods.

Quantitative Research Methods

Quantitative research methods deal with numbers. They are systematic empirical investigations using statistical, mathematical, or computational techniques. Such methods usually start with data collection and then proceed to statistical analysis using various methods. The following are some research methods used to conduct business research.

1. Survey Research

Survey research is one of the most widely used methods of gathering data, especially for conducting business research. Surveys involve asking various survey questions to a set of audiences through various types, such as online polls, online surveys, questionnaires, etc. Nowadays, most major corporations use this method to gather data and use it to understand the market and make appropriate business decisions.

Various types of surveys, like cross-sectional studies, which need to collect data from a set of audiences at a given point in time, or longitudinal surveys, which need to collect data from a set of audiences across various time durations to understand changes in the respondents’ behavior, are used to conduct survey research. With technological advancement, surveys can now be sent online through email or social media.

For example: A company wants to know the NPS score for their website i.e. how satisfied are people who are visiting their website. An increase in traffic to their website or the audience spending more time on a website can result in higher rankings on search engines which will enable the company to get more leads as well as increase its visibility.

Hence, the company can ask people who visit their website a few questions through an online survey to understand their opinions or gain feedback and hence make appropriate changes to the website to increase satisfaction.

2. Correlational Research

Correlational research is conducted to understand the relationship between two entities and what impact each one of them has on the other. Using mathematical analysis methods, correlational research enables the researcher to correlate two or more variables.

Such research can help understand patterns, relationships, market research trends, etc. Manipulation of one variable can also yield the desired results. Generally, a conclusion cannot be drawn only based on correlational research.

For example, Research can be conducted to understand the relationship between colors and gender-based audiences. Using such research and identifying the target audience, a company can choose to produce particular-colored products for release in the market. This can enable the company to understand its products’ supply and demand requirements.

3. Causal-Comparative Research

Causal-comparative research is a method based on the comparison. It is used to deduce the cause-effect relationship between variables. Sometimes also known as quasi-experimental research, it involves establishing an independent variable and analyzing the effects on the dependent variable.

In such research, data manipulation is not done; however, changes are observed in the variables or groups under the influence of the same changes. Concluding such research is tricky as independent and dependent variables will always exist in a group. Hence, all other parameters must be considered before any inferences from the research are drawn.

For example: Research can be conducted to analyze the effect of good educational facilities in rural areas. Such a study can be done to analyze the changes in the group of people from rural areas when they are provided with good educational facilities and before that.

Another example is analyzing the effect of dams on farmers or crop production in an area.

4. Experimental Research

Experimental research is based on trying to prove a theory. Such research may be useful in business research as it can let the product company know some behavioral traits of its consumers, which can lead to more revenue. In this method, an experiment is carried out on a set of audiences to observe and later analyze their behavior when impacted by certain parameters.

For example: Experimental research was conducted recently to understand if particular colors have an effect on consumers’ hunger. A set of the audience was then exposed to those particular colors while they were eating, and the subjects were observed. It was seen that certain colors like red or yellow increase hunger.

Hence, such research was a boon to the hospitality industry. You can see many food chains like Mcdonalds, KFC, etc., using such colors in their interiors, brands, as well as packaging.

Another example of inferences drawn from experimental research, which is used widely by most bars/pubs across the world, is that loud music in the workplace or anywhere makes a person drink more in less time. This was proven through experimental research and was a key finding for many business owners across the globe.

5. Online Research / Literature Research

Literature research is one of the oldest methods available. It is very economical, and a lot of information can be gathered using such research. Online research or literature research involves gathering information from existing documents and studies, which can be available at Libraries, annual reports, etc.

Nowadays, with the advancement in technology, such research has become even more simple and accessible to everyone. An individual can directly research online for any information that is needed, which will give him in-depth information about the topic or the organization.

Such research is used mostly by marketing and salespeople in the business sector to understand the market or their customers. Such research is carried out using existing information that is available from various sources. However, care has to be taken to validate the sources from where the information is going to be collected.

For example, a salesperson has heard a particular firm is looking for some solution that their company provides. Hence, the salesperson will first search for a decision maker from the company, investigate what department he is from, and understand what the target company is looking for and what they are into.

Using this research, he can cater his solution to be spot on when he pitches it to this client. He can also reach out to the customer directly by finding a means to communicate with him by researching online.’

Qualitative Research Methods

Qualitative research is a method that is highly important in business research. It involves obtaining data through open-ended conversational means of communication. Such research enables the researcher to not only understand what the audience thinks but also why they think it.

In such research, in-depth information can be gathered from the subjects depending on their responses. Various types of qualitative research methods, such as interviews, focus groups, ethnographic research, content analysis, and case study research, are widely used.

Such methods are of very high importance in business research as they enable the researcher to understand the consumer. What motivates the consumer to buy and what does not is what will lead to higher sales, and that is the prime objective for any business.

The following are a few methods that are widely used by most businesses in today’s world:

1. Interviews

Interviews are somewhat similar to surveys, like sometimes they may have the same types of questions used. The difference is that the respondent can answer these open-ended questions at length, and the direction of the conversation or the questions being asked can be changed depending on the response of the subject.

Such a method usually gives the researcher detailed information about the perspective or opinions of its subject. Interviewing subject matter experts can also provide important information critical to some businesses.

For example, a telecom manufacturer interviewed a group of women to understand why they have fewer female customers. After interviewing them, the researcher understood that some of the models had fewer feminine colors, and females preferred not to purchase them.

Such information can be critical to a business such as a telecom manufacturer. Hence, it can be used to increase its market share by targeting women customers by launching some feminine colors in the market.

Another example would be to interview a subject matter expert in social media marketing. Such an interview can enable a researcher to understand why certain types of social media advertising strategies work for a company and why some of them don’t.

2. Focus Groups

Focus groups are a set of individuals explicitly selected to understand their opinions and behaviors. They are usually a small group that is selected keeping in mind the parameters for their target market audience to discuss a particular product or service. Such a method enables a researcher to have a larger sample than an interview or a case study while taking advantage of conversational communication.

Focus groups are also one of the best examples of qualitative data in education. Nowadays, focus groups can also be sent online surveys to collect data and answer why, what, and how questions. Such a method is crucial for testing new concepts or products before they are launched in the market.

For example, Research is conducted with a focus group to understand what dimension of screen size is preferred most by the current target market. Such a method can enable a researcher to dig deeper to determine whether the target market focuses more on screen size, features, or phone colors. Using this data, a company can make wise decisions about its product line and secure a higher market share.

3. Ethnographic Research

Ethnographic research is one of the most challenging research but can give extremely precise results. Such research is used quite rarely, as it is time-consuming and can be expensive as well. It involves the researcher adapting to the natural environment and observing its target audience to collect data. Such a method is generally used to understand cultures, challenges, or other things that can occur in that particular setting.

For example: The world-renowned show “Undercover Boss” would be an apt example of how ethnographic research can be used in businesses. In this show, the senior management of a large organization works in his own company as a regular employee to understand what improvements can be made, what is the culture in the organization, and to identify hard-working employees and reward them.

It can be seen that the researcher had to spend a good amount of time in the natural setting of the employees and adapt to their ways and processes. While observing in this setting, the researcher could find out the information he needed firsthand without losing any information or any bias and improve certain things that would impact his business.

4. Case Study Research

Case study research is one of the most important types of business research. Most businesses use it as marketing collateral to attract more clients. It is conducted to assess customer satisfaction and document the challenges faced and the solutions provided by the firm.

These inferences are made to point out the benefits that the customer enjoyed when choosing their specific firm. Such research is widely used in other fields like education, social sciences, and similar. Businesses provide case studies to new clients to showcase their capabilities, and hence, such research plays a crucial role in the business sector.

For example: A services company has provided a testing solution to one of its clients. A case study research is conducted to find out what were the challenges faced during the project, what was the scope of their work, what objective was to be achieved, and what solutions were given to tackle the challenges.

The study can end with the benefits that the company provided through its solutions, like reduced time to test batches, easy implementation or integration of the system, or even cost reduction. Such a study showcases the capability of the company, and hence it can be stated as empirical evidence of the new prospect.

5. Website Visitor Profiling/Research

Website intercept surveys or website visitor profiling/research are new and quite helpful in the business sector. They are an innovative approach to collecting direct feedback from your website visitors using surveys. In recent times, a lot of business generation has happened online, and hence, it is important to understand your website visitors as they are your potential customers.

Collecting feedback is critical to any business, as no business can be successful without understanding customers. To stay on top, a company has to keep its customers satisfied and try to make them loyal customers.

A website intercept survey is an online survey that allows you to target visitors to understand their intent and collect feedback to evaluate the customers’ online experience. This can collect information like visitor intention, behavior path, and satisfaction with the overall website.

Depending on the information a company seeks, multiple forms of website intercept surveys can be used to gather responses. Some popular ones are pop-ups, also called modular boxes, and on-page surveys.

For example, a prospective customer is looking for a particular product that a company is selling. Once he is directed to the website, an intercept survey starts noting his intent and path. Once the transaction has been made, a pop-up or an on-page survey is provided to the customer to rate the website.

Such research enables the researcher to use this data effectively, understand the customers’ intent and path, and improve any parts of the website depending on the responses. This, in turn, would lead to satisfied customers and, hence, higher revenues and market share.

Importance of Business Research

Business research is one of the most effective ways to understand customers, the market, and competitors. It helps companies understand the market’s demand and supply. Using such research will help businesses reduce costs and create solutions or products that are targeted to the market’s demand and the correct audience.

In-house business research can enable senior management to build an effective team or train or mentor when needed. Business research enables the company to track its competitors and hence can give you the upper hand to stay ahead of them.

Conducting such research can avoid failures. It will give the researcher an idea of whether it is right to launch its product/solution and whether the audience is right. It will also help understand the brand value and measure customer satisfaction, essential to innovation and continuous customer demand.

This will help the company grow its revenue and market share. Business research also helps recruit ideal candidates for various company roles. By conducting such research, a company can conduct a SWOT analysis, i.e., understand its strengths, weaknesses, opportunities, and threats. With this information, wise decisions can be made to ensure business success.

Business Research To Improve Company Strategy

A well-rounded business strategy relies on data-driven insights across various areas of operation, from understanding customer needs to staying competitive in the market. Businesses need to conduct research to make informed decisions.

Each component—from market and financial analysis to demand forecasting—requires a structured approach to gather, interpret, and apply information effectively.

Let’s explore how business research supports different aspects of a company’s strategy and decision-making process. You can uncover insights that drive growth, reduce risks, and enhance efficiency with the right tools and approach.

Market Analysis

Business research in market analysis helps companies understand the landscape in which they operate. This includes gathering information about customer demographics, buying behaviors, industry trends, and market size. By analyzing these factors, businesses can identify potential growth opportunities, understand market demand, and determine the best strategies for targeting their audience.

Accurate market research allows a company to understand its customers better, identify unmet needs, and tailor its products or services accordingly, while promoting retention. It’s the foundation for creating effective marketing and business development strategies.

Financial Analysis

Business research examines a company’s financial health and performance in financial analysis. This includes assessing income statements, balance sheets, cash flows, and financial ratios. Research helps businesses evaluate their profitability, liquidity, and overall economic stability. It also provides insight into investment viability and guides financial decision-making.

A thorough financial analysis is crucial for making informed budget decisions, ensuring sustainable growth, and attracting investors. Research-driven financial analysis can help pinpoint areas where costs can be reduced or investments optimized.

Brand Analysis

Business research in brand analysis assesses how customers perceive a brand and how it stands against competitors. This includes analyzing brand awareness, customer loyalty, reputation, and positioning. Research in this area often uses surveys, focus groups, and social listening.

Understanding brand perception enables companies to refine their branding strategies to resonate with their target audience. Effective brand research helps businesses build substantial brand equity, differentiate from competitors, and maintain customer loyalty.

Product Analysis

Product analysis involves researching a product’s performance, customer satisfaction, features, and competitive position. Research helps identify a product’s strengths and weaknesses, assess customer preferences, and determine potential for improvement or innovation.

Business research informs product development and innovation. By understanding customer needs and comparing the product against competitors, companies can improve their offerings, refine features, or introduce new products to meet evolving demands.

Risk Analysis

Risk analysis involves identifying, assessing, and prioritizing potential risks that could impact the business. Business research in this area examines factors such as market volatility, regulatory changes, operational risks, and economic conditions. It helps companies quantify and manage the risks they face.

Effective risk analysis protects a business from unforeseen disruptions and prepares it for potential challenges. Research in this area allows companies to develop risk management strategies, minimize losses, and ensure business continuity.

Competitor Analysis

Competitor analysis involves gathering and analyzing data about competitors, such as their products, pricing, marketing strategies, strengths, and weaknesses. This research helps companies understand the competitive landscape and identify their own competitive advantages.

By knowing what competitors are doing, businesses can strategize more effectively, capitalize on their own strengths, and exploit competitors’ weaknesses. Competitor analysis helps companies stay relevant and maintain a competitive edge.

Demand Analysis

Demand analysis assesses current and future demand for a product or service. Research in this area examines consumer purchasing patterns, economic factors, seasonal trends, and overall market demand.

Understanding demand helps companies adjust their production, pricing, and marketing efforts. It allows businesses to anticipate market needs, avoid overproduction or shortages, and make data-driven decisions to optimize supply chain management.

Distribution Analysis

Distribution analysis examines the most efficient ways to deliver products or services to the end customer. Research in this area evaluates distribution channels, logistics, transportation costs, and delivery times.

Efficient distribution is crucial for customer satisfaction and cost management. Business research helps companies select the right channels, optimize their supply chain, reduce delivery times, and improve customer experience.

Conclusion

Business research is the first step any business owner needs to take to establish his business and ensure its survival or excellence in the market. Such research is of the utmost importance because it helps companies grow in terms of revenue, market share, and brand value.

If you want to streamline your business research process, consider tools like QuestionPro to gather and analyze data effectively across all these critical areas. With specialized solutions to handle surveys, analysis, and reporting, you can make informed decisions to drive your business forward.