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Steps of Research Process

Step 1: Defining the Problem

Step 2: Developing an Approach to the Problem

Step 3: Formulating a Research Design

Step 4: Doing Field Work or Collecting Data

Step 5: Preparing and Analyzing Data

Step 6: Preparing and Presenting the Report

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Problem Definition

“The truly serious mistakes are made not as a result of

wrong answers but because of asking wrong questions”
… Peter Drucker

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Problem Definition

• The most important step in research

• Problem Definition covers purpose of study, relevant

background information, information needed, and how it
will be used in decision making

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Why is it important to clearly define problem?

• Because problem definition sets the course of entire
project
• Because client is paying for research so both need to know
what to expect
• Problem definition process provides guidelines on how to
correctly define research problem
• Because mistakes made at this level grow into larger, more
expensive mistakes later.
• All the effort, time & money spent from this point on will be
wasted if problem is not properly defined.

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Problem Definition: Genesis

• Drivers for problem formulation:
– Unanticipated change, basically in the environment of
focal firm
– Planned change (estimation, effects, outcome)
– Serendipity (random ideas or information)

• Situation Narration by management

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Exercise before Problem Definition

1. Discussion with Decision maker
2. Discussion with Industry expert
3. Secondary Data
4. Qualitative Research

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Environmental Context of the Problem

Past Information & Forecasts

Resources & Constraints

Objectives

Buyer Behavior

Legal Environment

Economic Environment

Marketing & Technological Skills

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Management Decision Problem (MDP)

• A statement specifying the type of managerial action
required to solve the problem.
– It asks what a decision maker needs to do.
– It is action oriented.
– It focuses on symptoms.

• The Problem being faced by decision maker for which

research is intended to provide answers or information

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Research Problem (RP)

• A statement specifying the type of information needed by
the decision maker to help solve the management decision
problem and how the information can be obtained
efficiently & effectively.
– It asks what information is needed & how it should be
obtained
– Information oriented
– Focus on underlying cause

• A statement of the decision problem in research terms

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MDP vs. RP: Illustration

MDP RP

Should a new product be To determine consumer preferences

introduced? and purchase intentions for the
proposed new product.

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Problem Definition
• MDP asks what Decision maker needs to do where as,

• RP asks what information is needed & how it can be

obtained effectively & efficiently

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Problem Definition: Steps Involved

• Understanding Genesis of Problem
• Conducting four must exercise
• Considering Environmental Context of the problem
• Developing MDP & Developing relevant RP(s)

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Business Research Method

Prof. Ravi Shekhar Kumar

XLRI- Xavier School of Management, Jamshedpur

ravishekhar@xlri.ac.in
Session-2

Problem Definition: Steps Involved

• Understanding Genesis of Problem
• Conducting four must exercise
• Considering Environmental Context of the problem
• Developing MDP & Developing relevant RP(s)
– MDP asks what Decision maker needs to do where as,

– RP asks what information is needed & how it can be obtained

effectively & efficiently

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MDP vs. RP: Illustration

MDP RP

Should a new product be To determine consumer preferences

introduced? and purchase intentions for the
proposed new product.

Should the advertising To determine the effectiveness

campaign be changed? of the current advertising
campaign.

MDP vs. RP: Illustration

MDP RP

Should the price of the To determine the price elasticity

brand be increased? of demand and the impact on sales
and profits of various levels
of price changes.

Should management share explicit To identify merit and demerit of

career-development plan sharing explicit career-development
with new recruit? plan with new recruit.

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Problem Definition: Discussion

• Are these problems correct?
– Improve the company’s image
– Develop a suitable employee strategy for firm
– Improve the competitive position of the firm
– Develop a marketing strategy for the brand.
• Is the problem correct?
– How should the firm adjust its pricing given that a major competitor
has initiated price changes?
• (How should the firm respond to the competitor’s Price changes)

• Is the problem correct?

– What are the drivers of employee engagement and What can be
done to improve employee engagement?

Developing an Approach to the Problem

• Focus:
– Developing more specific devices to address the components of
research problems defined at previous step

• Includes:
– Theory / Objective evidence
– Analytical model (verbal/graphical/mathematical)
– Research question (define it)
– Hypotheses (End product in this step)