Business Research Methods

Problem Definition & Approach

Distinction between Management decision problem & Business research problem

Management Decision Problem is the problem confronting the decision maker It is action oriented & is concerned with possible actions DM can take It focuses on symptoms -loss of market share for a particular product -Decision problem is how to recover this loss

Business research problem Business research problem asks what information is needed and how it should be obtained It is information oriented It focuses on underlying causes -Causes for loss of market share could be: ineffective ad. Campaign, inappropriate segmentation of market, incorrect price strategy, Improper distribution -After exploratory research it is found that problem is caused by inappropriate segmentation of the market -Research problem would be identification & evaluation of an alternative basis for segmenting the market

Distinction between Management decision problem & Business research problem Management decision Business research problem problem To determine consumer Should a new product be preferences & purchase introduced ? intentions for proposed product Should the ad. Campaign To determine the effectiveness of the current be changed? Ad. Campaign Determine price elasticity Should the price of the of demand& its impact on brand be increased? sales &profit

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.

Research Questions
Research questions are refined statements of specific components of the problem They ask what specific information is required w.r.t .problem component They are interrogative in nature State the research questions

Hypothesis
Hypothesis goes beyond research questions An unproven proposition or statement of relationships A possible solution to a problem Guess Hypothesis are declarative in nature Can be tested empirically

RESEARCH QUESTION

HYPOTHESIS

1) What is the mean income of heavy-drinkers of beer? 2) What age group of purchasers of product X buys X the most?

1 ) The lower income people consume more beer. 2) The age group 3544 is the heaviest user.

3) What will be the result on sales of 3) A 20 percent increase in a 20 percent increase in price? price will not lead to a decrease in rupee sales