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Unit 2: Introduction to Research

2.3 Scope and Significance of Research Notes

Let us discuss the scope and significance of research:
i. Decision-making tool: Whenever a decision is to be made, business research becomes
necessary in the corporate world. The degree of dependence on research is based on the
cost of decisions. If the cost of decision is high, the dependence on research is high, and
vice versa.
ii. Facilitates large-scale production: The MR helps large scale enterprises in the areas of
production to determine:

(a) What to produce?
(b) How much to produce?
(c) When to produce?
iii. To determine the pattern of consumption: The consumption patterns vary from place to
place and time to time. The MR helps in identifying the consumption pattern and also the
availability of consumer credit in that particular place.

MR helps the marketer to identify:
(a) Consumption pattern
(b) Brand loyalty
(c) Consumer behaviour

(d) Market trends, etc.
iv. Complex market: In a complex and dynamic environment, the role of MR is very vital. MR
acts as a bridge between the consumer and the purchaser. This is because MR enables the
management to know the need of the customer, the about demand for the product and
helps the producer to anticipate the changes in the market.

v. Problem-solving: The MR focuses on both short range and long range decisions and helps
in making decisions with respect to the 4p's of marketing, namely, product, price, place
and promotion.
vi. Distribution: The MR helps the manufacturer to decide about the channel, media, logistics
planning so that its customers and distributors are benefited. Based on the study of MR,
suitable distributors, retailers, wholesalers and agents are selected by the company for
distributing their products.

vii. Sales promotion: The MR helps in effective sales promotion. It enlightens the manufacturer
with regard to the method of sales promotion to be undertaken, such as advertising,
personal selling, publicity etc. It also helps in understanding the attitude of the customers
and helps how to design the advertisement in line with prevailing attitudes.

Self Assessment

Fill in the blanks:

3. A good research is …………..in the sense that it must answer the research questions.
4. …………….acts as a bridge between the consumer and the purchaser.

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