An Introduction Business Research Methods

the purpose of research is to provide knowledge regarding the organization, the market, the economy, or another area of uncertainty.

Some questions BR answers areWill the environment for long-term financing be better two years from now? What kind of training is necessary for production employees? What is the reason for the companys high employee turnover? How can I monitor my retail sales and retail trade activities

Business Research
The application of the scientific method in searching for the truth about business phenomena. These activities include defining business opportunities and problems, generating & evaluating ideas, monitoring performance, and understanding the business process.

Human Resource Finance

Marketing

Decision Making
Business Research is designed to facilitate the
managerial decision-making process for all aspects of the business: finance, marketing, human resources, and so on. Business research is an essential tool for management in virtually all problem-solving and decision-making activities.

Applied & Basic Business Research

Applied business research is conducted to address a specific business decision for a specific firm or organization.

Basic business research attempts to expand the limits of knowledge in general, and as such it is not aimed at solving a particular pragmatic problem.

Production-oriented describes a firm that prioritizes efficiency and effectiveness of the production processes in making decisions
Product-oriented describes a firm that prioritizes decision making in a way that emphasizes technical Process superiority in the Oriented product Marketing-oriented Describes a firm in which all decisions are made with a conscious awareness of their effect on the customer.

Market Oriented

Decision Making
Certainty Un-certainty

Ambiguity

Information, Data, and Intelligence

Information- is data formatted (structured) to support decision making or define the relationship between two facts. Data- are simply facts or recorded measures of certain phenomena (things or events).

Information, Data, and Intelligence

Business intelligence is the subset of data and information that actually has some explanatory power enabling effective managerial decisions to be made

The Characteristics of Valuable Information

Not all data are valuable to decision makers. Useful data become information and help a business manager make decisions. Useful data can also become intelligence. Four characteristics help determine how useful data may be:

Relevance Quality Timeliness & Completeness

Relevance-The characteristics of data reflecting how pertinent these particular facts are to the situation at hand. Data Quality-The degree to which data represent the true situation. High-quality data represent reality faithfully. Timeliness-Means that the data are current enough to still be relevant. Information Completeness- refers to having the right amount of information.

Research Concepts and Constructs

A concept or construct is a generalized idea about a class of objects, attributes, occurrences , or processes that has been given a name; an abstraction of reality that is the basic unit for Theory development.

Latent Construct
A concept that is not directly observable or measurable, but can be estimated through proxy measures

Research Propositions and Hypotheses

Propositions Statements explaining the logical linkage among certain concepts by asserting a universal connection between concepts

Research Propositions and Hypotheses contd

Hypotheses Formal statement of an unproven proposition that is empirically testable

A hypothesis is a proposition that is empirically testable. In other words, when one states a hypothesis, it should be written in a manner that can be supported or shown to be wrong through an empirical test
Empirical testing means that something has been examined against reality using data

Deductive Reasoning
The logical process of deriving a conclusion about a specific instance based on a known general premise or something known to be true.

Inductive Reasoning
The logical process of establishing a general proposition on the basis of observation of particular facts.

The Scientific Method

A set of prescribed procedures for establishing and connecting theoretical statements about events, for analyzing empirical evidence, and for predicting events yet unknown in an attempt to confirm or disprove prior conceptions

While there is not complete consensus concerning exact procedures for the scientific method, seven operations may be viewed as the steps involved in the application of the scientific method:

The Scientific Method

Formulation of concepts and propositions Statement of hypotheses

contd

Assessment of relevant existing knowledge of a phenomenon

Design of research to test the hypotheses

Acquisition of meaningful empirical data Analysis and evaluation of data Proposal of an explanation of the phenomenon and statement of new problems raised by the research

Assignment
A motorcycle mechanic . . . honks the horn to see if the battery works.

Is he informally conducting a true scientific experiment. Name the Process

Types of Business Research

Business research is undertaken to reduce uncertainty and focus decision making. In more Ambiguous circumstances, management may be totally unaware of a business problem.

Example 1- an entrepreneur may have a personal interest in softball and baseball. She is interested in converting her hobby into a profitable business venture and hits on the idea of establishing an indoor softball and baseball training facility and instructional center.

However, the demand for such a business is unknown. Even if there is sufficient demand, she is not sure of the best location, actual services offered, desired hours of operation, and so forth. Some preliminary research is necessary to gain insights into the nature of such a situation.

Example 2- an organization may face a problem regarding health care benefits for their employees. Awareness of this problem could be based on input from human resource managers, recruiters, and current employees. The problem could be contributing to difficulties in recruiting new employees. How should the organizations executive team address this problem?

Types of Business Research

contd

Business research can be classified on the basis of either technique or purpose.

Exploratory Descriptive Causal

Exploratory Research
Conducted to clarify ambiguous situations or discover ideas that may be potential business opportunities.
Usually exploratory research is a first step, conducted with the expectation that additional research will be needed to provide more conclusive evidence.

Exploratory research is particularly useful in new product development.

Sony and Honda have each been instrumental in developing robot technology. Making a functional robot that can move around, perform basic functions, carry out instructions, and even carry on a conversation isnt really a problem.

What Sony and Honda have to research is what business opportunities may exist based on robot technology. Exploratory research allowing consumers to interact with robots suggests that consumers are more engaged when the robot has human qualities, such as the ability to walk on two legs.

Researchers noticed that people will actually talk to the robot (which can understand basic oral commands) more when it has human qualities. In addition, consumers do seem entertained by a walking, talking, dancing robot
These initial insights have allowed each company to form more specific research questions focusing on the relative value of a robot as an entertainment device or as a security guard, and identifying characteristics that may be important to consumers.

Descriptive Research
Descriptive Research is to describe characteristics of objects, people, groups, organizations, or environments. It tries to paint a picture of a given situation by addressing who, what, when, where, and how questions Unlike exploratory research, descriptive studies are conducted after the researcher has gained a firm grasp of the situation being studied

every month the Bureau of Labor Statistics (BLS) conducts descriptive research in the form of the Current Population Survey. Descriptive research often helps describe market segments
Accuracy is critically important in descriptive research. If a descriptive study incorrectly estimates a universitys demand for its MBA offering by even a few students, it can mean the difference between the program sustaining itself or being a drain on already scarce resources

Causal Research
Causal research seeks to identify cause andeffect relationships. When something causes an effect, it means it brings it about or makes it happen. The effect is the outcome.
Rain causes grass to get wet. Rain is the cause and wet grass is the effect. exploratory research builds the foundation for descriptive research, which usually establishes the basis for causal research

How will implementing a new employee training program change job performance? It attempts to establish that when we do one thing, another thing will follow. A causal inference is just such a conclusion
A causal inference can only be supported when very specific evidence exists. Three critical pieces of causal evidence are: 1. Temporal Sequence 2. Concomitant Variance 3. Non spurious Association

Temporal Sequence
One of three criteria for causality; deals with the time order of eventsthe cause must occur before the effect, Having an appropriate causal order of events, or temporal sequence

If a change in the CEO causes a change in stock prices, the CEO change must occur before the change in stock values.

Concomitant Variation
Concomitant variation occurs when two events co-vary or correlate, meaning they vary Systematically. when a change in the cause occurs, a change in the outcome also is observed

if a retail store never changes its employees vacation policy, then the vacation policy cannot possibly be responsible for a change in employee satisfaction

Non spurious Association

Non spurious association means any co-variation between a cause and an effect is true, rather than due to some other variable, that is, both may be influenced by a third variable. A spurious association is one that is not true. there is a strong, positive correlation between ice cream purchases and murder rates-as ice cream purchases increase, so do murder rates. When ice cream sales decline, murder rates also drop.

In summary, causal research should do all of the following:

1. Establish the appropriate causal order or sequence of events 2. Measure the concomitant variation between the presumed cause and the presumed effect 3. Examine the possibility of spuriousness by considering the presence of alternative plausible causal factors

Degrees Of Causality
Absolute causality
the cause is necessary and sufficient to bring about the effect. A warning label used on cigarette packages claims smoking causes cancer. Is this true in an absolute sense?

If we find only one smoker who does not eventually get cancer, the claim is false.

Degrees Of Causality
Conditional causality
A cause is necessary but not sufficient to bring about an effect. This is a weaker causal inference. One way to think about conditional causality is that the cause can bring about the effect, but it cannot do so alone. If other conditions are right, the cause can bring about the effect. We know there are other medical factors that contribute to cancer.

Degrees Of Causality
Contributory causality
A cause need be neither necessary nor sufficient to bring about an effect. However, causal evidence can be established using the three factors discussed. There may be multiple causes. So, an event can be a contributory cause of something so long as the introduction of the other possible causes does not eliminate the correlation between it and the effect

Experiments
An experiment is a carefully controlled study in which the researcher manipulates a proposed cause and observes any corresponding change in the proposed effect. An experimental variable represents the proposed cause and is controlled by the researcher by manipulating it. Manipulation means that the researcher alters the level of the variable in specific increments

Experiments
An experiment like the one described above may take place in a test-market. Test-marketing is a frequently used form of business experimentation. A test-market is an experiment that is conducted within actual market conditions.
McDonalds restaurants have a long-standing tradition of test-marketing new product concepts by introducing them at selected stores and monitoring sales and customer feedback.

Uncertainty Influences the Type of Research

The Research Process

Business research, like other forms of scientific inquiry, involves a sequence of highly interrelated activities. The stages of the research process overlap continuously, and it is clearly an oversimplification to state that every research project has exactly the same ordered sequence of activities. Nevertheless, business research often follows a general pattern.

The Research Process Steps

Defining the research objectives Planning a research design Planning a sample Collecting the data Analyzing the data Formulating the conclusions and preparing the report

Forward linkage implies that the earlier stages

influence the later stages. Thus, the research objectives outlined in the first stage affect the sample selection and the way data are collected. The sample selection question affects the wording of questionnaire items. For example, if the research concentrates on respondents with low educational levels, the questionnaire wording will be simpler than if the respondents were college graduates

Backward linkage implies that later steps

influence earlier stages of the research process. If it is known that the data will be collected via email, then the sampling must include those with e-mail access. The knowledge that the executives, who will read the research report are looking for specific information.

The professional researcher anticipates executives needs for information throughout the planning process, particularly during the analysis and reporting.

Alternatives in the Research Process

When there are severe time constraints, the quickest path may be most appropriate. When money and human resources are plentiful, more options are available and the appropriate path may be quite different

Research Objectives
Research objectives are the goals to be achieved by conducting research. The objectives may involve exploring the possibilities of entering a new market. Alternatively, they may involve testing the effect of some policy change on employee job satisfaction. Different types of objectives lead to different types of research designs.
this process is oriented more toward discovery than confirmation or justification. Managers and researchers alike may not have a clear-cut understanding of the situation at the outset of the research process.

Research Objectives
In business research, the adage a problem well defined is a problem half solved is worth remembering. Similarly, Albert Einstein noted that the formulation of a problem is often more essential than its solution. properly defining a problem can be more difficult than actually solving it.
Thus, defining the decision situation must precede the research objectives. An error or omission in specifying objectives is likely to be a costly mistake that cannot be corrected in later stages of the research process.

Research Design
Previous Research Pilot Studies Stating Research Objectives Linking Decision Statements, Objectives, And Hypotheses

Research Design
A research design is a master plan that specifies the methods and procedures for collecting and analyzing the needed information. A research design provides a framework or plan of action for the research. The researcher also must determine the sources of information, the design technique (survey or experiment), the sampling methodology, and the schedule and cost of the research.

Sampling
Sampling involves any procedure that draws conclusions based on measurements of a portion of the population. In other words, a sample is a subset from a larger population. If certain statistical procedures are followed, a researcher need not select every item in a population because the results of a good sample should have the same characteristics as the population as a whole

Gathering Data
Data gathering is the process of gathering or collecting information. Data may be gathered by human observers or interviewers, or they may be recorded by machines as in the case of scanner data and Web-based surveys.
research techniques involve many methods of gathering data. Surveys require direct participation by research respondents. This may involve filling out a questionnaire or interacting with an interviewer. In this sense, they are obtrusive

Gathering Data
Unobtrusive methods of data gathering are those in which the subjects do not have to be disturbed for data to be collected. They may even be unaware that research is going on at all. For instance, a simple count of motorists driving past a proposed franchising location is one kind of data gathering method

Processing & Analyzing Data

Editing And Coding

the data must be converted into a format that will answer the managers questions. This is part of the data processing and analysis stage. Here, the information content will be mined from the raw data. Data processing generally begins with editing and coding the data

Processing & Analyzing Data

Editing And Coding

Editing involves checking the data collection forms for omissions, legibility, and consistency in classification. The editing process corrects problems such as interviewer errors (an answer recorded on the wrong portion of a questionnaire, for example) before the data are transferred to the computer

Processing & Analyzing Data

Editing And Coding

The rules for interpreting, categorizing, recording, and transferring the data to the data storage media are called codes. This coding process facilitates computer or hand tabulation. If computer analysis is to be used, the data are entered into the computer and verified.

Processing & Analyzing Data

Data Analysis

Data analysis is the application of reasoning to understand the data that have been gathered. In its simplest form, analysis may involve determining consistent patterns and summarizing the relevant details revealed in the investigation.

Drawing Conclusions & Preparing a Report

The conclusions and report preparation stage consists of interpreting the research results, describing the implications, and drawing the appropriate conclusions for managerial decisions. These conclusions should fulfill the deliverables promised in the research proposal. In addition, its important that the researcher consider the varying abilities of people to understand the research results.

Research Project & Research Program

Research ProjectA single study that addresses one or a small number of research objectives Research Program Numerous related studies that come together to address multiple, related research objectives

Ethics in Business Research

Ethics in Business Research

Ethical questions are philosophical questions. There are several philosophical theories that address how one develops a moral philosophy and how behavior is affected by morals. These include theories about cognitive moral development, the bases for ethical behavioral intentions, and opposing moral values

Ethics in Business Research

Business ethics is the application of morals to behavior related to the business environment or context. Generally, good ethics conforms to the notion of right, and a lack of ethics conforms to the notion of wrong. Highly ethical behavior can be characterized as being fair, just, and acceptable. Ethical values can be highly influenced by ones moral standards.

Ethics in Business Research

Moral standards are principles that reflect beliefs about what is ethical and what is unethical. More simply, they can be thought of as rules distinguishing right from wrong. The Golden Rule, Do unto others as you would have them do unto you, is one such ethical principle.

Ethics in Business Research

An ethical dilemma simply refers to a situation in which one chooses from alternative courses of actions, each with different ethical implications. Each individual develops a philosophy or way of thinking that is applied to resolve the dilemmas they face.

Rights and Obligations of the Research Participant

Traditional survey research requires that a respondent voluntarily answer questions in one way or another. This may involve answering questions on the phone, responding to an e-mail request, or even sending a completed questionnaire by regular mail. In these cases, informed consent means that the individual understands what the researcher wants him or her to do and consents to the research study.

Rights and Obligations of the Research Participant

In other cases, research participants may not be aware that they are being monitored in some way. For instance, a research firm may monitor superstore purchases via an electronic scanner. However, no consent is provided since the participant is participating passively. The ethical responsibilities vary depending on whether participation is active or passive.

Rights and Obligations of the Research Participant

When someone willingly consents to participate actively, it is generally expected that he or she will provide truthful answers. Honest cooperation is the main obligation of the research participant. In return for being truthful, the subject has the right to expect confidentiality.

Rights and Obligations of the Research Participant

It has been suggested that subjects be informed of their right to be left alone or to break off the interview at any time. Researchers should not follow the tendency to hold on to busy respondents. However, this view definitely is not universally accepted in the research community.
Generally, interviewing firms practice common courtesy by trying not to interview late in the evening or at other inconvenient times.

Rights and Obligations of the Research Participant

Do-not-call legislation restricts any telemarketing effort from calling consumers who either register with a no-call list in their state or who request not to be called. Research companies should adhere to the principles of the do-not-call policy and should respect consumers Internet privacy.

Deception In Research Designs & The Right To Be Informed

A placebo is a false experimental effect used to create the perception of a true effect.

Every experiment should include a debriefing session in which research subjects are fully informed and provided a chance to ask any questions that they may have about the experiment.

Rights and Obligations of the Researchers

The Purpose Of Research Is Research - Mixing Sales and Research

Honesty in Presenting Results

Honesty in Reporting Errors