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Chapter 2

Thinking Like A Researcher

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Learning Objectives
Understand
the need for sound reasoning to enhance
business research results
the terminology used by professional
researchers employing scientific thinking
what you need to formulate a solid
research hypothesis

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The Scientific Method


Direct observation

Clearly defined variables


Clearly defined methods
Empirically testable

Elimination of alternatives
Statistical justification
Self-correcting process

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Researchers

Encounter problems
State problems
Propose hypotheses
Deduce outcomes
Formulate rival hypotheses
Devise and conduct empirical tests
Draw conclusions
Curiosity is necessary to be a good
business researcher

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Sound Reasoning
Types of Discourse

Exposition

Deduction

Argument

Induction

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Exposition consists of statements that


describe without attempting to explain.
Argument allows us to explain, interpret,
defend, challenge, and explore meaning.
There are two types of argument: deduction
and induction.

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Deduction is a form of reasoning in which the


conclusion must necessarily follow from the
premises given. The next slide provides an
example of a deductive argument.
Induction is a form of reasoning that draws a
conclusion from one or more particular facts
or pieces of evidence. Slide 2-8 illustrates an
inductive argument.

2-8

Deductive Reasoning
Inner-city household interviewing is especially
difficult and expensive

This survey involves substantial inner-city


household interviewing

The interviewing in this survey will be


especially difficult and expensive

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Inductive Reasoning
Why didnt sales increase during our
promotional event?
Regional retailers did not have sufficient stock
to fill customer requests during the
promotional period
A strike by employees prevented stock from
arriving in time for promotion to be effective
A hurricane closed retail outlets in the region
for 10 days during the promotion

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Exhibit 2-1 Why Didnt


Sales Increase?

Deduction

2-11

Exhibit 2-2 Tracys


Performance

2-12

Language of Research
Concepts

Constructs

Models

Terms used
in research
Theory

Conceptual
schemes
Operational
definitions

Variables
Propositions/
Hypotheses

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Several terms are used by researchers to


converse about applied and theoretical business
problems.
A concept is a bundle of meanings or characteristics
associated with certain concrete, unambiguous
events, objects, conditions, or situations. The
importance of conceptualization is discussed in the
following slide.
A construct is a definition specifically invented to
represent an abstract phenomena for a given
research project. Exhibit 2-3, a depiction of job
redesign constructs, is provided in Slide 2-13.

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A conceptual scheme is the interrelationship


between concepts and constructs.
An operational definition defines a variable
in terms of specific measurement and testing
criteria. An example of an operational
definition is provided in Slide 2-14.
A variable is used as a synonym for the
construct being studied. Slides 2-15 through
2-20 expand on different types of variables.

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A proposition is a statement about observable


phenomena that may be judged as true or false.
(Slide 2-21)
A hypothesis is a proposition formulated for
empirical testing. (Slides 2-22 through 2-25)
A theory is a set of systematically interrelated
concepts, definitions, and propositions that are
advanced to explain or predict phenomena. Slide 226 shows an example of a theory.
A model is a representation of a system constructed
to study some aspect of that system. Slide 2-27
shows an example of a model.

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Language of Research

Success
of
Research

Clear conceptualization
of concepts

Shared understanding
of concepts

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Operational Definitions
How can we define the variable class level of students?

Freshman
Sophomore
Junior
Senior

< 30 credit hours


30-50 credit hours
60-89 credit hours
> 90 credit hours

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What Is A Variable?

Act

Event

Variable

Characteristic

Trait

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Types of Variables

Dichotomous

Male/Female
Employed/ Unemployed

Discrete

Ethnic background
Educational level
Religious affiliation

Continuous

Income
Temperature
Age

2-20

For the purposes of data entry and analysis, we


assign numerical values to a variable based on
that variables properties. Dichotomous variables
have only two values that reflect the absence or
presence of a property. Variables also take on
values representing added categories such as
demographic variables. All such variables are
said to be discrete since only certain values are
possible. Continuous variables take on values
within a given range or, in some cases, an
infinite set.

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Exhibit 2-4 Independent


and Dependent Variables
Independent Variable
(IV)
Predictor
Presumed cause
Stimulus
Predicted from
Antecedent
Manipulated

Dependent Variable
(DV)
Criterion
Presumed effect
Response
Predicted to.
Consequence
Measured outcome

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Exhibit 2-4 presents the commonly used


synonyms for independent and dependent
variables.
An independent variable is the variable
manipulated by the researcher to cause an
effect on the dependent variable.
The dependent variable is the variable
expected to be affected by the
manipulation of an independent variable.

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Moderating Variables (MV)


The switch to commission from a salary
compensation system (IV) will lead to
increased sales productivity (DV) per
worker, especially among younger workers
(MV).
The loss of mining jobs (IV) leads to
acceptance of higher-risk behaviors to
earn a family-supporting income (DV)
particularly among those with a limited
education (MV).

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Moderating variables are variables that are


believed to have a significant contributory
or contingent effect on the originally stated
IV-DV relationship. Whether a variable is
treated as an independent or as a
moderating variable depends on the
hypothesis. Examples of moderating
variables are shown in the slide.

2-25

Extraneous Variables (EV)


With new customers (EV-control), a switch
to commission from a salary compensation
system (IV) will lead to increased sales
productivity (DV) per worker, especially
among younger workers (MV).
Among residents with less than a high
school education (EV-control), the loss of
jobs (IV) leads to high-risk behaviors (DV),
especially due to the proximity of the firing
range (MV).

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Extraneous variables are variables that


could conceivably affect a given
relationship. Some can be treated as
independent or moderating variables or
assumed or excluded from the study. If an
extraneous variable might confound the
study, the extraneous variable may be
introduced as a control variable to help
interpret the relationship between
variables. Examples are given in the slide.

2-27

Intervening Variables (IVV)


The switch to a commission compensation
system (IV) will lead to higher sales
productivity (DV) by increasing overall
compensation (IVV).
A promotion campaign (IV) will increase
savings activity (DV), especially when free
prizes are offered (MV), but chiefly among
smaller savers (EV-control). The results
come from enhancing the motivation to
save (IVV).

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An intervening variable is a factor that


affects the observed phenomenon but
cannot be measured or manipulated. It is a
conceptual mechanism through which the
IV and MV might affect the DV.

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Propositions and
Hypotheses
Brand Manager Jones (case) has a
higher-than-average achievement
motivation (variable).
Generalization

Brand managers in Company Z (cases)


have a higher-than-average achievement
motivation (variable).

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A proposition is a statement about


observable phenomena that may be
judged as true or false. A hypothesis is a
proposition formulated for empirical
testing. A case is the entity or thing the
hypothesis talks about. When the
hypothesis is based on more than one
case, it would be a generalization.
Examples are provided in the slide.

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Hypothesis Formats
Descriptive
In Detroit, our potato
chip market share
stands at 13.7%.
American cities are
experiencing budget
difficulties.

Research Question
What is the market
share for our potato
chips in Detroit?
Are American cities
experiencing budget
difficulties?

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A descriptive hypothesis is a statement


about the existence, size, form, or
distribution of a variable. Researchers
often use a research question rather than
a descriptive hypothesis. Examples are
provided in the slide. Either format is
acceptable, but the descriptive hypothesis
has three advantages over the research
question.

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Descriptive hypotheses encourage


researchers to crystallize their thinking
about the likely relationships.
Descriptive hypotheses encourage
researchers to think about the implications
of a supported or rejected finding.
Descriptive hypotheses are useful for
testing statistical significance

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Relational Hypotheses
Correlational
Young women (under 35)
purchase fewer units of
our product than women
who are older than 35.
The number of suits sold
varies directly with the
level of the business
cycle.

Causal
An increase in family
income leads to an
increase in the
percentage of income
saved.
Loyalty to a grocery store
increases the probability
of purchasing that stores
private brand products.

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A relational hypothesis is a statement


about the relationship between two
variables with respect to some case.
Relational hypotheses may be
correlational or explanatory (causal).

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A correlational hypothesis is a
statement indicating that variables occur
together in some specified manner without
implying that one causes the other.
A causal hypothesis is a statement that
describes a relationship between two
variables in which one variable leads to a
specified effect on the other variable.

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The Role of Hypotheses


Guide the direction of the study

Identify relevant facts

Suggest most appropriate research


design
Provide framework for organizing
resulting conclusions

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Characteristics of Strong
Hypotheses

Adequate
A
Strong
Hypothesis
Is

Testable

Better
than rivals

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Exhibit 2-8
The Role of Reasoning

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