Inductive reasoning is based on learning from experience. Patterns, resemblances and regularities in experience (premises) are observed in order to reach conclusions (or to generate theory). Application of Inductive Approach (Inductive Reasoning) in Business Research Another type of reasoning, inductive, is also used. Deductive Reasoning Tests. Often, people confuse deductive reasoning with inductive reasoning, and vice versa. It is important to learn the meaning of each type of reasoning so that proper logic can be identified. Deductive reasoning is a basic form of valid reasoning. The aim is to describe the development of a middle-range theory by using an inductive-deductive approach. A theory of well-being supporting physical environment of home-dwelling elderly is used as an example. The inductive-deductive theory development process is described through four different phases: (1) the creations of concepts were described inductively through concept synthesis, (2 ... Jan 21, 2020 · Inductive reasoning uses patterns and observations to draw conclusions, and it’s much like making an educated guess. Whereas, deductive reasoning uses facts, definitions and accepted properties and postulates in a logical order to draw appropriate conclusions. Unlike deductive reasoning, inductive reasoning does not guarantee a valid conclusion, but inducing rules is perhaps more important to developing a working knowledge of the world than using the process of deduction. There are numerous forms of inductive reasoning. In this section we will focus on category-based induction.