Supplement to Business Research Methods, 9e 2006.

Student CD Content Module with Chapter 3 or Chapter 6:

Classifying Research
As they work through the management-research question hierarchy, researchers often identify different
types of research that could be considered during development of the research design. Using a classifying
scheme helps you understand your research options. You will be introduced to the most common
classification system in chapter 6, but we present below additional ways that educators and researchers
classify research studies.
Classification based on Nature of Questions Ased
n this first classification scheme, classifying research studies is driven by two dominant questions!
(1) What is the decision-making dilemma facing the manager?
(2) What must the research accomplish to assist the manager?
In this classifcation scheme, four classifcations of research comprise business
research studies: reporting, descriptie, e!planator", and predictie#
Reporting $t the most elementar" leel, a reporting study ma" be made onl" to
proide an account or summation of some data or to generate some statistics# $
reporting stud" calls for kno%ledge and skill %ith information sources and
gatekeepers of information sources# &he task ma" be 'uite simple and the data
readil" aailable# $t other times, the information ma" be di(cult to fnd or compile#
)eporting studies usuall" re'uire little inference or conclusion dra%ing, and thus
some researchers might not consider such studies true research# $ research design,
ho%eer, does not hae to be comple! and re'uire inferences for a pro*ect to be
called research# In the earl" part of "our career, "ou %ill likel" be asked to perform a
number of reporting studies# +an" managers consider the e!ecution of such studies
an e!cellent %a" for ne% emplo"ees to become familiar %ith their emplo"er and its
industr"#
Descriptive $ descriptive study tries to discoer ans%ers to the 'uestions who,
what, when, where, and, sometimes, how. &he researcher attempts to describe or
defne a sub*ect, often b" creating a profle of a group of problems, people, or eents#
,uch studies ma" inole the collection of data and the creation of a distribution
of the number of times the researcher obseres a single eent or characteristic (the
research variable), or the" ma" inole relating the interaction of t%o or more
ariables# -rgani.ations that maintain databases of their emplo"ees, customers, and
suppliers alread" hae signifcant data to conduct descriptie studies using internal
information# /et man" frms that hae such data fles do not mine them regularl" for
the decision-making insight the" might proide#
&he descriptie stud" is popular in business research because of its ersatilit"
across disciplines# In for-proft, not-for-proft and goernment organi.ations,
descriptie inestigations hae a broad appeal to the administrator and polic"
anal"st for planning, monitoring, and ealuating# In this conte!t, how 'uestions
address issues such as 'uantit", cost, e(cienc", e0ectieness, and ade'uac"#
1escriptie studies ma" or ma" not hae the potential for dra%ing po%erful
inferences# $ descriptie stud", ho%eer, does not e!plain %h" an eent has
occurred or %h" the ariables interact the %a" the" do#
!"planatory $n explanatory study attempts to e!plain the reasons for the
phenomenon (the why) that the descriptie stud" onl" obsered# In an e!planator"
stud", the researcher uses theories or h"potheses to account for the forces that
caused a certain phenomenon to occur#
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#redicti$e If %e can proide a plausible e!planation for an eent after it has occurred,
it ma" be een more desirable to be able to predict %hen and in %hat situations an
eent or phenomenon %ill occur# $ predictive study, the fourth t"pe, is *ust as
rooted in theor" as the e!planator" stud"# &his t"pe of stud" often calls for a high
order of inference making# In business research, prediction is found in studies
conducted to ealuate specifc courses of action or to forecast current and future
alues, such as sales, market share, emplo"ment, productiit", etc#
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Classification based on the Nature of the #roble%
$nother classifcation scheme diides research based on the nature of the problem
that the researcher is asked to address#
Applied Research Applied research has a practical, current, problem-soling
emphasis, although the problem the researcher addresses is not al%a"s generated b"
a negatie circumstance# &he need for applied research can also be generated b" an
opportunit"# $pplied research is conducted to reeal ans%ers to specifc current
'uestions related to an organi.ation2s action, performance, or polic" needs# 3or
e!ample, applied research might inole a decision about %hether a frm2s ne%
safet"-training program should be conducted ia online seminars using online
'ui..es, or %hether participants should be brought to corporate head'uarters to be
classroom trained#
#ure Research Pure research (a#k#a# basic research) is also problem-soling based,
but in a di0erent sense# It aims to sole perple!ing problems of a theoretical nature
that hae little direct impact on current action, performance, or polic" decisions# 4ure
research in the business arena might inole a researcher for an adertising agenc"
%ho is stud"ing the results of the use of coupons ersus rebates as demand
stimulation tactics# &he researcher is interested not in a specifc instance or in
relation to a specifc client2s product, but rather in relation to all campaigns that hae
used coupons or rebates# In another pure research scenario, researchers might stud"
the in5uence on productiit" of compensation s"stems that pa" b" piece-%ork ersus
salar"-plus-commission#
&hus, both applied and pure research are problem-soling based, but applied
research is directed much more to making immediate managerial decisions# Whether
the 6problem7 is negatie, like rectif"ing an inentor" s"stem that is resulting in lost
sales, or an opportunit" to increase stockholder %ealth through ac'uiring another
frm, a problem-soling emphasis preails in business research#
Case Studies
In each of the follo%ing illustrations, %e can abstract the essence of research# 8o% is
the research carried out? What can the research do for the organi.ation? What should
the research not be e!pected to do?
C&'(DC) /ou %ork for 98I:19-, a corporation that is considering the ac'uisition of a
to" manufacturer# &he senior ice president for deelopment asks "ou to head a task
force to inestigate si! companies that are potential candidates# /ou assemble a
team composed of representaties from the releant functional areas# 4ertinent data
are collected from public sources because of the sensitie nature of the pro*ect# /ou
e!amine all of the follo%ing: compan" annual reports; articles in business *ournals,
trade maga.ines, and ne%spapers; fnancial anal"sts2 assessments; and compan"
adertisements# &he team members then deelop summar" profles of the candidate
frms based on the characteristics gleaned from the sources# &he fnal report
highlights the opportunities and problems that ac'uisition of the target frm %ould
bring to all areas of the business#
N*CM!D /ou are the business manager for <=9+>1, a large group of ph"sicians
speciali.ing in nuclear medicine and imaging# $ prominent health insurance
organi.ation has contacted "ou to promote a ne% cost containment program# &he
doctors2 committee to %hom "ou %ill make a recommendation %ill hae a narro%
enrollment %indo% for their decision# If the" choose to *oin, the" %ill agree to a
reduced fee schedule in e!change for easier fling procedures, 'uicker
reimbursement, and listing on a ph"sicians2 referral net%ork# If the" decline, the" %ill
continue to deal %ith their patients and the insurance carrier in the current manner#
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/ou begin "our inestigation b" mining data from patient fles to learn ho% man" are
using this carrier, fre'uenc" of care isits, comple!it" of flings, and so on# /ou then
consult insurance industr" data to discoer ho% man" potential patients in "our area
use this care plan, or similar care plans %ith alternatie insurance carriers, and the
likelihood of a patient choosing or s%itching doctors to fnd one that subscribes to the
proposed program# /ou attempt to confrm "our data %ith information from
professional and association *ournals# ?ased on this information, "ou deelop a profle
that details the number of patients, oerhead, and potential reenue reali.ed b"
choosing to *oin the plan#
ColorSplash 9olor,plash, a paint manufacturer, is haing trouble maintaining profts#
&he o%ner beliees inentor" management is a %eak area of the compan"2s
operations# In this industr", the man" paint colors, t"pes of paint, and container si.es
make it eas" for a frm to accumulate large inentories and still be unable to fll
customer orders# &he o%ner asks "ou to make recommendations# /ou look into the
present %arehousing and shipping operations and fnd e!cessie sales losses and
delier" dela"s because of out-of-stock conditions# $n informal poll of customers
confrms "our impression# /ou suspect the present inentor" database and reporting
s"stem do not proide the prompt, usable information needed for appropriate
production decisions# ?ased on this supposition, "ou familiari.e "ourself %ith the
latest inentor" management techni'ues in a local college librar"# /ou ask the
%arehouse manager to take an accurate inentor", and "ou reie% the incoming
orders for the last "ear# In addition, the o%ner sho%s "ou the production runs of the
last "ear and his method for assessing the need for a particular color or paint t"pe#
+odeling the last "ear of business using production, order, and inentor"
management techni'ues, "ou choose the method that proides the best theoretical
proft# /ou run a pilot line using the ne% control methodolog"# $fter t%o months, the
data sho% a much lo%er inentor" and a higher order fulfllment rate# /ou
recommend that the o%ner adopt the ne% inentor" method#
+or College /ou %ork for /ork 9ollege2s alumni association# It is eager to deelop
closer ties %ith its aging alumni, to proide strong stimuli to encourage increased
donations, and to induce older, nontraditional students to return to supplement
enrollment# &he president2s o(ce is considering starting a retirement communit"
geared to%ard uniersit" alumni and asks "our association to assess the
attractieness of the proposal from an alumni ie%point# /our director asks "ou to
diide the stud" into four parts#
Phase 1. 3irst "ou are to report on the number of alumni %ho are in the
appropriate age bracket, the rate of ne% entries per "ear, and the actuarial statistics
for the group# &his information allo%s the director to assess %hether the pro*ect is
%orth continuing#
Phase 2. /our earl" results reeal there are su(cient alumni to make the pro*ect
feasible# &he ne!t step in the stud" is to describe the social and economic
characteristics of the target alumni group# /ou reie% gift statistics, anal".e *ob titles,
and assess home location and alues# In addition, "ou reie% fles from the last fe
"ears to see ho% alumni responded %hen the" %ere asked about their income
bracket# /ou are able to describe the alumni group for "our director %hen "ou fnish#
Phase 3. It is eident that the target alumni can easil" a0ord a retirement
communit" as proposed# &he third phase of the stud" is to e!plain the characteristics
of alumni %ho %ould be interested in a uniersit"-related retirement communit"# 3or
this phase, "ou engage the $merican $ssociation of )etired 4ersons ($$)4) and a
retirement communit" deeloper# In addition, "ou search for information on senior
citi.ens from the federal goernment# 3rom the deeloper "ou learn %hat
characteristics of retirement communit" planning and construction are most
attractie to retirees# 3rom the $$)4 "ou learn about the main serices and features
Supplement to Business Research Methods, 9e 2006. % of 6
that potential retirees look for in a retirement communit"# 3rom goernment
publications "ou become familiar %ith e!isting regulations and recommendations for
operating retirement communities and uncoer a full range of descriptie information
on the t"pical retirement communit" d%eller# /ou make an e!tensie report to both
the alumni director and the uniersit" president# &he report coers the number of
eligible alumni, their social and economic standings, and the characteristics of those
%ho %ould be attracted b" the retirement communit"#
Phase 4. &he report e!cites the college president# ,he asks for one additional
phase to be completed# ,he needs to predict the number of alumni %ho %ould be
attracted to the pro*ect so she can ade'uatel" plan the si.e of the communit"# $t this
point, "ou call on the business school2s research methods class for help in designing
a 'uestionnaire for the alumni# ?" proiding telephones and funding, "ou arrange for
the class to conduct a sure" among a random sample of the eligible alumni
population# In addition, "ou hae the class deise a second 'uestionnaire for alumni
%ho %ill become eligible in the ne!t 1@ "ears# =sing the data collected, "ou can
predict the initial demand for the communit" and estimate the gro%th in demand
oer the ne!t 1@ "ears# /ou submit "our fnal report to the director and the president#
&he manager2s predicament is fairl" %ell defned in the four cases# :et2s see ho%
carefull" "ou read and understood them#
,hat 's the Dile%%a -acing the Manager.
In each instance, %hat %ould "ou e!pect the manager responsible for the research to
do at the conclusion of the research pro*ect?
In 98I:19- the senior ice president for deelopment must make a proposal
to the president or possibl" the board of directors about %hether to ac'uire a
to" manufacturer and, if one is to be ac'uired, %hich one of the si! under
consideration is the best candidate#
In <=9+>1 the ph"sicians in the group must decide %hether to *oin the
proposed managed health care plan of one of their primar" insurers#
In 9olor,plash the o%ner of the paint manufacturer must decide %hether to
implement a ne% inentor" management s"stem#
$t /ork 9ollege, the president must propose to the board of directors %hether
to fund the deelopment of a retirement communit"#
If "ou didn2t come to these same conclusions, reread the cases before proceeding, to
catch %hat "ou missed#
9orrectl" defning the research 'uestion is one of the critical stages in the
management-research 'uestion hierarch"# In 9olor,plash, rather than pinpointing
the problem as one of inentor" management, the paint manufacturer2s o%ner could
hae faced seeral interactie phenomena, each re'uiring a di0erent approach to
research# ,ome of these interactie phenomena might hae been:
$ strike b" the teamsters impacting inentor" delier" to retail and %holesale
customers#
&he deelopment of a ne% paint formula that o0ers superior coerage but
re'uires a relatiel" scarce ingredient to manufacture, thereb" a0ecting
production rates#
$ fre that destro"ed the primar" loading dock of the main shipping %arehouse
in the +id%est#
&he simultaneous occurrence of all three eents#
,hat Must the Research Acco%plish.
C&'(DC) In 98I:19- the researcher needs to kno% %hat information should be
ealuated in order to alue a compan"# In the stud" of management, this kno%ledge
%ould be ac'uired primaril" in courses in fnancial management, accounting, and
marketing# Ano%ing the t"pe of information needed, the researcher in 98I:19-
Supplement to Business Research Methods, 9e 2006. 6 of 6
identifes sources of information, like trade press articles and annual reports# ?ecause
of the possible e0ect of the to" manufacturer ealuation on the stock prices of the
conglomerate instigating the stud" and each to" compan", onl" public sources are
used# -ther reporting studies of a less sensitie nature might hae the researcher
interie%ing source gatekeepers#
N*CM!D In <=9+>1, the researcher must present data that reeal %ho is a(liated
%ith the insurer, %ho uses managed health care programs (both doctors and
patients), the general trends in use of imaging technolog" in diagnosing illness or
in*ur" seerit", and the relationship of patient characteristics, doctor referrals, and
technolog" use patterns#
ColorSplash In 9olor,plash, belieing the problem %ith paint stockouts is the result
of inentor" management, the o%ner asks the researcher to detail %arehousing and
shipping processes# &his %ould be a descriptie stud" if it had stopped here# ?ut if
problems in the processes could be linked %ith sales losses due to an inabilit" to
make timel" delieries to retail or %holesale customers, then an e!planator" stud"
%ould emerge# &he researcher tests this h"pothesis b" modeling the last "ear of
business using the relationships bet%een processes and results#
+or College In /ork 9ollege, for e!ample, interie%ing the director of local retirement
facilities might hae reealed other sources to include in the search# ,uch an e!pert
is considered a gatekeeper# >arl" in "our career, identif"ing gatekeepers for "our frm
and industr" is critical to "our success as a manager#
&he researcher is asked to predict for the /ork 9ollege president the success of
the proposed retirement facilit" for alumni based on the number of applicants for
residenc" the pro*ect %ill attract# &his prediction %ill be based on the e!planator"
h"pothesis that alumni fre'uent programs and pro*ects sponsored b" the institution
because of an association the" maintain bet%een their college e!perience and
images of "outhfulness and mental and ph"sical stimulation#
$ logical outcome of prediction is that %e %ould like to be able to control a
phenomenon once %e can e!plain and predict it# ?eing able to replicate a scenario
and dictate a particular outcome is the ob*ectie of control. In /ork 9ollege, if %e
assume that the college proceeds %ith its retirement communit" and en*o"s the
predicted success, the president %ill fnd it attractie to be able to build a similar
facilit" to sere another group of alumni and duplicate that success#
&he comple!it" of the phenomenon and the ade'uac" of the prediction theor",
ho%eer, largel" decide success in a control stud"# $t /ork 9ollege, if a control stud"
%ere done of the arious promotional approaches used %ith alumni to stimulate
images of "outhfulness, the promotional tactics that dre% the largest number of
alumni applications for residenc" could be identifed# -nce kno%n, this kno%ledge
could be used successfull" %ith di0erent groups of alumni only if the researcher could
account for and control all other ariables in5uencing applications#
Discussion Questions:
&. =sing the classifcation schemes aboe, ho% %ould "ou classif" each of the
four cases (or its phases or parts)?
". dentify some pure research studies that would be helpful in the four above scenarios.
'ource! (his material was developed from )onald *ooper and +amela 'chindler. Business Research Methods, ,e, *hicago, -!
.c/raw-0ill, 1"22$, chapter &.