Chapter 4:

The Business Research Process: An Overview

Decision Making

• Information reduces uncertainty-It helps focus decision making

Certainty

Uncertainty

Ambiguity

Types Of Research• Exploratory

– Initial research conducted to clarify ambiguous situations or discover potential business opportunities

– Does not provide conclusive evidence

– Subsequent research expected

– Useful in new product development

• Descriptive– Describes characteristics of a population or phenomenon (who,

what, when, where, and how)

– Some understanding of the nature of the problem

– Useful in describing market segment

• Causal– Conducted to identify cause and effect relationships

Exploratory Research Descriptive Research Causal Research(Unaware of Problem)(Aware of Problem) (Problem Clearly Defined)

“Our sales are declining and “What kind of people are buying “Will buyers purchase more of we don’t know why.” our product? Who buys our our products in a new package?

competitor’s product?” “Would people be interested “Which of two advertising in our new product idea?” “What features do buyers prefer campaigns is more effective?”

in our product?”poss

ible

situ

atio

n

Degree of Problem Definition

Descriptive Research Example

• Weight Watchers average customer

• Woman about 40 years old

• Household income of about $50,000

• At least some college education

• Trying to juggle children and a job

Identifying Causality

• Evidence of causality:1. Temporal Sequence - the appropriate causal order of

events – the cause must occur before the effect2. Concomitant variation--two phenomena vary together

systematically, i.e, when a change in the cause occurs, a change in the outcome also is observed . Correlation coefficient is used to represent concomitant variation.

– An absence of alternative plausible explanations3. Non-spurious Association (eg. Icecream sales)

• Often Use Experiments in Causal Research

COMPLETELYCERTAIN

ABSOLUTEAMBIGUITY

CAUSAL ORDESCRIPTIVE

EXPLORATORY

Uncertainty Influences The Type Of Research

Stages of the Research Process

P Defining Objectives

ResearchDesign

Sampling

DataGathering

Data Processingand Analysis

Conclusions andReport

Discovery andDefinition

and so on

-------

Research Stages

• Cyclical process - conclusions generate new ideas

• Stages can overlap chronologically

• Stages are functionally interrelated– Forward linkages– Backward linkages

Define objectives

Problem definition(statement of

research objectives)

Secondary(historical)

data

Experiencesurvey

Pilotstudy

Casestudy

Selection ofexploratory research

technique

Selection ofbasic research

method

Experiment SurveyObservation Secondary

Data StudyLaboratory Field Interview Questionnaire

Selection ofSample Design

Sampling

Probability Nonprobability

Collection ofdata

(fieldwork)

Editing andcodingdata

Dataprocessing

Interpretationof

findings

Report

DataGathering

DataProcessingandAnalysis

Conclusionsand Report

Research Design

Problem Discoveryand Definition

Stages In The Research Process

• Problem Discovery and Problem Definition

• Research Design

• Sampling

• Data Gathering

• Data Processing and Analysis

• Conclusions And Report

“The formulation of the problem is often more essential than its

solution”

Albert Einstein

Problem Discovery And Definition

• First and probably most important step

• Too often neglected leading to costly errors

• Provides direction for the project

• Problem, opportunity, or monitor operations

• Discovery before definition

• Must not mistake symptoms for problem

Exploratory Research Techniques Three Examples

• Secondary data (historical data)– Previously collected for another purpose– Literature survey – Databases (e.g., www.census.gov)

• Pilot study– A number of diverse techniques– Focus Groups

• 6 to 10 people in group dynamics session

State the research questions and research objectives

Hypothesis:

A statement that can be refuted

by empirical data

Research Design

• Master plan

• Specifies methods and procedures

• Framework for action

Basic Research Methods

• Surveys – Interview– Questionnaire

• Experiments – control conditions so that one or more variables can be

manipulated to test a hypothesis– Field– Laboratory

• Secondary data study• Observation

POPULATIONPOPULATION

SAMPLESAMPLESample: Sample: subsetsubsetof a larger populationof a larger population..

Selecting a Sample

Sampling

• Who is to be sampled?

• How large a sample?

• How will sample units be selected?– Probability Samples – every member of the

population has a known, nonzero probability of being selected

– Nonprobability Samples

Data Gathering Stage

• Focus on error minimization• Pretesting

Data Processing and Analysis

• Editing Checking the data collection

forms for omissions, legibilityand consistency

• Coding Rules for interpreting, categorizing and recording the data

Conclusions And Report Writing

• Effective communication of the research findings

• Usually includes making recommendations

• “What does this mean to management?”

Chapter 6:

Problem Definition: The Foundation of Business Research

A Sea Horse’s Tale

Problem Discovery and Definition

• First step

• Problem, opportunity, or monitor operations

• Discovery before definition

• Problem means management problem

“The formulation of the problem is often more essential than its

solution.”

Albert Einstein

Problem Definition

• The indication of a specific business decision area that will be clarified by answering some research questions.

• Problems Mean Gap– Business performance is worse than expected– Actual business performance is less than

possible– Expected business performance is greater than

possible business performance

Statement of Research Objectives

Problem Definition

Defining Problem Results inClear Cut Research Objectives

ExploratoryResearch(Optional)

Analysis of the Situation

Symptom Detection

The Process ofProblem Definition

Ascertain the decision maker’s objectives

Understand background of the problem

Isolate/identify the problem, not the symptoms

Determine unit of analysis

Determine relevant variables

State research questions and objectives

30

Ascertain the Decision Maker’s Objectives

• Decision makers’ objectives

• Managerial goals expressed in measurable terms.

The Iceberg Principle

• The principle indicating that the dangerous part of many business problems is neither visible to nor understood by managers.

32

Understand the Background of the Problem

• Exercising judgment

• Situation analysis - The informal gathering of background information to familiarize researchers or managers with the decision area.

33

Isolate and Identify the Problems, Not the Symptoms

• Symptoms can be confusing

Symptoms Can Be Confusing

Twenty-year-old neighborhood swimming association:

• Membership has been declining for years.

• New water park -residents prefer the expensive water park????

• Demographic changes: Children have grown up

Problem DefinitionOrganization Symptoms Based on Symptom True Problem

Twenty-year-old neighborhood swimming association in a major city.

Membership has been declining for years. New water park with wave pool and water slides moved into town a few years ago.

Neighborhood residents prefer the expensive water park and have negative image of swimming pool.

Demographic changes: Children in this 20-year-old neighborhood have grown up. Older residents no longer swim anywhere.

TOTIEMULESTO

What Language Is Written on This Stone Found by

Archaeologists?

TOTIEMULESTO

The Language Is English: To Tie Mules To

38

Determine the Unit of Analysis

• Individuals, households, organizations, etc.

• In many studies, the family rather than the individual is the appropriate unit of analysis.

39

Determine the Relevant Variable

• Anything that may assume different numerical values

Types of Variables

• Categorical

• Continuous

• Dependent

• Independent

Hypothesis

• An unproven proposition

• A possible solution to a problem

• Guess

42

State the research questions and research objectives

If you do not know where you are going,any road will take you there.

Statement of business

problem

Exploratory research (optional)

Statement of business

problem

Broad research

objectives

Specific Objective 1

Specific Objective 2

Specific Objective 3

Research Design

Results

Research Proposal

• A written statement of the research design that includes a statement explaining the purpose of the study

• Detailed outline of procedures associated with a particular methodology

• Normally a schedule of costs and deadline is included

Basic Questions - Problem Definition

• What is the purpose of the study?• How much is already known?• Is additional background information necessary?• What is to be measured? How?• Can the data be made available?• Should research be conducted?• Can a hypothesis be formulated?

Basic Questions - Basic Research Design

• What types of questions need to be answered?

• Are descriptive or causal findings required?

• What is the source of the data?

Basic Questions - Basic Research Design

• Can objective answers be obtained by asking people?

• How quickly is the information needed?

• How should survey questions be worded?

• How should experimental manipulations be made?

Basic Questions - Selection of Sample

• Who or what is the source of the data?

• Can the target population be identified?

• Is a sample necessary?

• How accurate must the sample be?

• Is a probability sample necessary?

• Is a national sample necessary?

• How large a sample is necessary?

• How will the sample be selected?

Basic Questions - Data Gathering

• Who will gather the data?

• How long will data gathering take?

• How much supervision is needed?

• What operational procedures need to be followed?

Basic Questions - Data Analysis

• Will standardized editing and coding procedures be used?

• How will the data be categorized?

• What statistical software will be used?

• What is the nature of the data?

• What questions need to be answered?

• How many variables are to be investigated simultaneously?

• Performance criteria for evaluation?

Basic Questions - Type of Report

• Who will read the report?

• Are managerial recommendations requested?

• How many presentations are required?

• What will be the format of the written report?

Basic Questions - Overall Evaluation

• How much will the study cost?

• Is the time frame acceptable?

• Is outside help needed?

• Will this research design attain the stated research objectives?

• When should the research be scheduled to begin?