Business

Research Methods



The Business Research Process
Information
Reduces uncertainty
Helps focus decision making
Types Of Research
1. Exploratory
Initial research conducted to clarify and define the
nature of a problem
Does not provide conclusive evidence
Subsequent research expected
2. Descriptive
Describes characteristics of a population or
phenomenon
Some understanding of the nature of the problem
3. Causal
Conducted to identify cause and effect relationships
COMPLETELY
CERTAIN
ABSOLUTE
AMBIGUITY
CAUSAL OR
DESCRIPTIVE
EXPLORATORY
Uncertainty Influences
The Type Of Research
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 dont know why. our product? Who buys our our products in a new package?
competitors 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?

Degree of Problem Definition
Descriptive Research Example
Woman about 40 years old
Household income of about $50,000
At least some college education
Trying to juggle children and a job
Descriptive Research Example
Mens fragrance market
1/3 size of womens fragrance market
But growing at a faster pace
Women buy 80 % of mens fragrances
Identifying Causality
Can NEVER prove causality.
Evidence of causality:
1. The appropriate causal order of events
2. Concomitant variation--two phenomena vary
together
3. An absence of alternative plausible
explanations
Often Use Experiments in Causal
Research
Stages of the Research Process
Problem Discovery
and Definition
Research
Design
Sampling
Data
Gathering
Data Processing
and Analysis
Conclusions and
Report
Discovery and
Definition
and so on
Research Stages
Cyclical process - conclusions generate new
ideas
Stages can overlap chronologically
Stages are functionally interrelated
Forward linkages
Backward linkages

Problem
discovery
Problem definition
(statement of
research objectives)
Secondary
(historical)
data
Experience
survey
Pilot
study
Case
study
Selection of
exploratory research
technique
Selection of
basic research
method
Experiment


Survey


Observation
Secondary
Data Study
Laboratory Field Interview Questionnaire
Selection of
Sample Design
Sampling
Probability Nonprobability
Collection of
data
(fieldwork)
Editing and
coding
data
Data
processing
Interpretation
of
findings
Report
Data
Gathering
Data
Processing
and
Analysis
Conclusions
and Report
Research Design
Problem Discovery
and 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
Observation
POPULATION
SAMPLE
Sample: subset
of 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, legibility
and 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?
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
Research Program vs. Research Project
Research program firms overall strategy
for utilizing business research. Places each
research project into companys strategic
plan.