1/10/2020

Theory/Objective evidence
• Theory
– Example for choice making related theories:
• Theory of rationality
• Bounded rationality Theory

• Objective Evidence
– Empirical observation (available in literature)

Model: Theory of Planned Behavior

(Ajzen, 1985)

4
 1/10/2020

Model: Technology Acceptance Model

(Davis 1989)

Research Question
• MDP: what should be done to improve the patronage of Big
Bazar store?

RP: To determine the relative strengths and weaknesses of Big

bazar, vis-à-vis other major competitors, with respect to
factors that influence store patronage.

Specific Specific Specific

Question 1 Question 2 Question n

• Research questions(RQ):
Refined Questions or statements of the specific components
of the (research) problem.

10

5
 1/10/2020

Possible Research Questions

• What criteria do households use when selecting department stores?
• How do households evaluate Big Bazar and competing stores in terms of
the choice criteria identified in above question?
• Which stores are patronized when shopping for specific product
categories?
• What is the market share of Big Bazar and its competitors for specific
product categories?
• What is the demographic and psychological profile of the customers of
Big Bazar? Does it differ from the profile of customers of competing
stores?
• Can store patronage and preference be explained in terms of store
evaluations and customer characteristics?

11

MDP, RP & RQ: Exercise

• Management Decision Problem (MDP):
– Should Amul launch packaged sweet products

• Research Problem (RP):

– To determine the customer preference for packaged Sweets of
Amul

• Research Question (RQ):

– Are milk-based sweets popular among target customers
– What is the perceived quality of packaged sweets

12

6
 1/10/2020

Development of Research Questions

Research Problem

Objective/
Theoretical
Framework;
Analytical
Model

RQ- 1: Specific RQ- 2: Specific RQ- n: Specific

Question 1 Question 2 Question n

13

Research Hypothesis
• An unproven statement or proposition about a factor or
phenomenon that is of interest to the researcher.
– Often, a hypothesis is a possible answer to the research
question.
– It is mostly about the relationship between two
variables/ two phenomena.
– An empirically testable statement

14

7
 1/10/2020

Null vs Alternate Hypothesis

• Null Hypothesis (H0): is a statement about a population, this is
assumed to be true.
– … is generally assumed to be true until evidence indicates
otherwise.
– … is a statement of the status quo, one of no difference or no effect.
– If null hypothesis is not rejected, no changes will be made.

• Alternate Hypothesis (H1): is a statement that directly contradicts

a null hypothesis by stating contrary thing about population.
– … is one in which some difference or effect is expected.
– Statement that is hoped or expected to be true instead of null
hypothesis.
– Accepting alternative hypothesis will lead to changes in opinions
or actions.

15

Department Store: Illustration

• RQ
– Do the customers of Big Bazar exhibit store loyalty and what is their
characteristics?

• Hypothesis
– H1: Customers who are store loyal are less knowledgeable about
the shopping environment.
– H2: Store-loyal customers are more risk-averse than are non-loyal
customers.
– H3: Customers of Big Bazar are loyal.
• Inappropriate hypothesis

16

8
 1/10/2020

Research Questions & Hypotheses: Illustration

RQ: What is the lifestyle of consumers who purchase athletic
footwear based on image?
• Hypotheses:
– H1: Consumers who purchase athletic footwear based on image are
not price sensitive.
(A lifestyle typically reflects an individual's attitudes, way of life, values, or world
view. It can denote the attitudes, interests, opinions, behaviors, and behavioral
orientations.)

RQ: What is the lifestyle of the typical Nike consumer?

• Hypotheses:
– H1: The typical Nike consumer is ‘young and independent’.
– H2: The typical Nike consumer watches sports on television.

17

18

9
 1/15/2020

Business Research Method

Prof. Ravi Shekhar Kumar

XLRI- Xavier School of Management, Jamshedpur

ravishekhar@xlri.ac.in

Session-3

Problem Definition Process

Discussion Environmental
with Decision Context of
Problem
Maker
Defining
RP-1

Interview
with Experts
Problem Situation
Defining Defining
Genesis of MDP RP-2
Problem
Secondary
Data Analysis

Defining
RP-3
Qualitative
Research

1
 1/15/2020

Developing an Approach to Problem

Based on Theoretical
Knowledge

Based on
Defining • Literature Review
Defining • Qualitative study
RP-1 RQ-1

Defining
Defining RQ-2 Developing
RP-2 Hypothesis-1

Defining
RQ-3 Developing
Hypothesis-2
Defining
RP-3
Defining
RQ-4 Developing
Hypothesis-2

Situation
• Harley- Davidson made such an important comeback in
early 2000s that there was a long waiting list to get Harley-
Davidson bike.
• In 2007 market share was about 50% in heavyweight bike
category.
• Distributors urging for expansion.
• But the company was skeptical about investing in new
production facilities.

2
 1/15/2020

Exercise before Problem Definition

• Discussion with Decision maker:
– Years of declining sales has taught management to be more risk
averse than risk prone.
• Discussion with Industry expert:
– Brand Loyalty was a major factor influencing sale and repeat sales of
bike.
• Secondary Data:
– A vast majority of bike owners also owned automobiles such as cars,
SUVs and trucks.
• Qualitative Research:
– Focus groups with bike owner indicated bikes were not used as
primary means of transportation but as a means of recreation. Also
highlighted the importance of brand.

Environmental context of Problem

• Forecast called for an increase in consumer spending on
recreation & entertainment in 2015
• Harley has necessary resources to achieve its objective of
being the dominant motorcycle brand on global basis
• Brand image & brand loyalty played a significant role in
buyer behavior with well-known brands continuing to
command a premium.
• Harley has necessary marketing & technological skills to
achieve its objective.

3
 1/15/2020

Problem Definition
• MDP:
– Should Harley-Davidson invest to produce more bike?
• RP:
– To determine if customer would be loyal buyers of
Harley-Davidson

Approach to Problem

RQ:
• Who are customers? What are their demographic &
psychographic characteristics?
• Can different types of customers be segmented? Is it
possible to segment market in a meaningful way?
• How do customers feel regarding their Harleys? Are all
customers motivated by the same appeal?
• Are the customers loyal to Harley-Davidson? What is the
extent of brand loyalty?