FORMULATION OF RESEARCH

PROBLEM
TEXT BOOK: ZIKMUND, W.G., BABIN,B.J., CHAPTER-6
CARR,J.C., GRIFFIN,M., (2021) ,BUSINESS
RESEARCH METHODS, 9TH EDITION,
CENGAGE LEARNING
 GOOD DECISIONS START WITH A GOOD
PROBLEM DEFINITION

 Decision Statement
 A written expression of the key question(s) that the research
user wishes to answer.
 Problem Definition
 The process of defining and developing a decision statement
and the steps involved in translating it into more precise
research terminology, including a set of research objectives.

6–2
MAN AGEMENT D ECISION PROBLEM RESEARCH
PROBLEM

Decision problem Research problem

What should be done to increase the What is the awareness and purchase
customer base of organic products in the intention of health conscious consumers
domestic market for organic products

How to reduce turnover What is the impact of shift duties on

turnover intentions

Can the housing and real estate growth What is the current investment in real
be accelerated estate and housing

How to improve the supply chain How does industry leader manages its
performance supply chain
 THE PROBLEM-DEFINITION PROCESS

 Problem
• When there is a difference between the current conditions and a
more preferable set of conditions.
 Problems Mean Gaps
• Business per formance is worse than expected business per formance.
• Actual business per formance is less than possible business
per formance.
• Expected business per formance is greater than possible business
per formance.

6–4
PROBLEM I DENTIFICATION PROCESS

Management Decision Problem

Discussions Review of Organization Qualitative

with subject existing Analysis analysis
experts literature

Management Research Problem / Question

Research framework / Analytical model

Statement of Research Objectives

Formulation of Research Hypothesis

 PROBLEM I DENTIFICATION P ROCESS

 M a n agemen t d e c ision p r o blem: the issue/decision that needs

to be resolved through research

 D i s cus sion wi t h e x p er ts : to get the right perspective on the

issue, discussion/dialogue is held with subject/industr y
expert.

 R e view o f l i t erature: the most valuable source of framing the

research question is to review the past work done on related
topic(s).
 Q u a l itative s u r veys: primar y explorator y loosely structured
sur veys to attain the environmental context.
 E X HIBIT 6.2THE P ROBLEM -DEF INITI ON
P RO CESS

6–7
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible web site, in whole or in part.
 UNDERSTAND THE BUSINESS DECISION

 Situation Analysis
 The gathering of background information to familiarize researchers
and managers with the decision-making environment.
 Inter view Process
 Develop many alternative problem statements
 Think about possible solutions to the problem
 Make lists
 Be open-minded

6–8
 UNDERSTAND THE BUSINESS DECISION

 Identifying Symptoms
 Interrogative techniques
 Asking multiple what, where, who, when, why, and how questions about
what has changed.
 Probing
 An interview technique that tries to draw deeper and more elaborate
explanations from the discussion.

6–9
W RIT ING MAN AGERIAL D ECISION STAT EMENT S IN T O
CORRESPON DING RESEARCH OBJECT IVES

 Decision statements must be translated into research

objectives.
 Once the decision statement is written, the research essentially
answers the question, “What information is needed to address
this situation?”
 Research objectives are the deliverables of the research
project.

6–10
 DETERMINE THE UNIT OF ANALYSIS

 Unit of Analysis
• Indicates what or who should provide the data and at what level of
aggregation.
 Individuals (such as customers, employees, and owners)
 Households (families, extended families, and so forth)
 Organizations (businesses and business units)
 Departments (sales, finance, and so forth)
 Geographical areas
 Objects (products, advertisements, and so forth).
• Multi-level analysis studies variables measured at more than one unit
of analysis.

6–11
 DETERMINE THE RELEVANT VARIABLE

 What is a Variable?
 Anything that varies or changes from one instance to another; can
exhibit differences in value, usually in magnitude or strength, or in
direction.

6–12
 T YPES OF RESEARCH VARIABLES

 The research problem also requires identification of the key

variables under the particular study
 Research variables: To carr y out an investigation, it becomes
necessar y to convert the concepts to be studied into
empirically testable and obser vable variables
 Dependent variable – variable to be analysed /variable gets
influenced by other variables
 Independent variable – variable that can be stated as
influencing or impacting the dependent variable
 MODERATING VARIABLE

 A m o derator is a v a r iable that af fects the strength of the

relation be t w een the predictor and criterion v a riab le
 Moderator variable is a third party variable that modify the
relationship between an independent variable (IV) and a
dependent variable (DV). Objective of the moderator variable
is to measure the strength of the relationship between the IV
& DV.
 They have the potential to modify the direction and magnitude
of the above stated association.
 INTERVENING/MEDIATING VARIABLE

 A me diating variable explains the relation bet ween the

independent (predictor) and the dependent (criterion)
variable. It explains how or why there is a relation between
two v a r iables .

 Inter vening variables are the temporal occurrence which

follows the independent variable and precedes the dependent
variable
GRAPHICAL PRESENTATION
 STATEMENT OF RESEARCH OBJECTIVES

 Research objectives are to be formulated according to the

basic thrust areas of the research which are crucial to the
study being conducted
 This section makes active use of verbs such as
1. To find out
2. To determine
3. To establish
4. To measure
 FORMU LATION OF RESEARCH HYPOTHESIS

 Any assumption that the researcher makes on the probable

direction of the results that might be obtained on completion
of the research process is termed as a hypothesis
 A hypotheses is any assumption/presuppo sition that the
researcher makes about the probable direction of the results
that might be obtained on the completion of the research
process

Types
 Descriptive
 Relational
 THE RESEARCH PROPOSAL

 Research Proposal
• A written statement of the research design.
 Uses for the Proposal
• As a planning tool
• As a contract
 Funded Business Research
• Basic research usually per formed by academic researchers that is
financially supported by some public or private institution as in
federal government grants.

6–19