Lecture 1

Introduction to Business Research

1
 Learning Outcomes
• Define business research
• Identify different categories of business research
• Learn various concepts of research
• Understand scientific method
• Recognize the research process and the ethical issues that may arise in
the process

2
 Definition of Business Research
• Research (re-search) means “to search again.”
• Business research is the application of the scientific method in
searching for the truth about business phenomena.
• These activities include defining business opportunities and problems,
generating and evaluating alternative courses of action, and
monitoring employee and organizational performance.

3
 Two Categories of Business Research
Based on Purpose:
• Applied business research is conducted to address a specific business
decision for a specific firm or organization. Example: Aflac
• Basic business research (sometimes referred to as pure research) is
conducted without a specific decision in mind, and it usually does not
address the needs of a specific organization. It attempts to expand the
limits of knowledge in general, and as such it is not aimed at solving a
particular pragmatic problem. Example: Employee motivation.

4
Comparison

5
 Research Concepts and Constructs
A concept or construct is a generalized idea about a class of objects,
attributes, occurrences, or processes that has been given a name, an
abstraction of reality that is the basic unit for theory development.
Propositions are statements concerned with the relationships among
concepts. A proposition explains the logical linkage among certain
concepts by asserting a universal connection between concepts.
Hypothesis is a formal statement of an unproven proposition that is
empirically testable.

6
 Research Concepts and Constructs
Empirical testing means that something has been examined against
reality using data.
Variables are anything that may assume different numerical values; the
empirical assessment of a concept.
Theory is a set of interrelated constructs (concepts), definitions, and
propositions that presents a systematic view of phenomena by
specifying relations among variables, with the purpose of explaining
and predicting the phenomena.

7
Research Concepts and Constructs
Figure: A Basic Theory Explaining Voluntary Job Turnover

8
 Research Concepts and Constructs
Purpose statement is a declarative statement that advances the overall direction or
focus for the study.
Research questions are interrogative statements that narrow the purpose statement
to specific questions that researchers seek to answer in their study
Research objectives are statements of intent for the study that specifies specific
goals that the investigator plans to achieve in a study.

9
 The Scientific Method
Scientific method- A set of prescribed procedures for establishing and connecting theoretical
statements about events, for analyzing empirical evidence, and for predicting events yet unknown;
techniques or procedures used to analyze empirical evidence in an attempt to confirm or disprove
prior conceptions.
The steps involved in the application of the scientific method:
1. Assessment of relevant existing knowledge of a phenomenon
2. Formulation of concepts and propositions
3. Statement of hypotheses
4. Design of research to test the hypotheses
5. Acquisition of meaningful empirical data
6. Analysis and evaluation of data
7. Proposal of an explanation of the phenomenon and statement of new problems raised by the research

10
 The Research Process
Step 1: Problem Definition
In defining the problem, the researcher should take into account the purpose of the study, the relevant
background information, the information needed, and how it will be used in decision making. Problem
definition involves discussion with the decision makers, interviews with industry experts, analysis of
secondary data, and, perhaps, some qualitative research, such as focus groups.
Step 2: Development of an Approach to the Problem
Development of an approach to the problem includes formulating an objective or theoretical framework,
analytical models, research questions, and hypotheses and identifying the information needed. This process
is guided by discussions with management and industry experts, analysis of secondary data, qualitative
research, and pragmatic considerations.

11
 The Research Process
Step 3: Research Design Formulation
A research design is a framework or blueprint for conducting the research project.
Formulating the research design involves the following steps:
1. Definition of the information needed
2. Secondary data analysis
3. Qualitative research
4. Methods of collecting quantitative data (survey, observation, and experimentation)
5. Measurement and scaling procedures
6. Questionnaire design
7. Sampling process and sample size
8. Plan of data analysis

12
 The Research Process
Step 4: Fieldwork or Data Collection
Data collection involves a field force or staff that operates either in the field, as in the case of personal
interviewing (in-home, mall intercept, or computer-assisted personal interviewing), from an office by
telephone (telephone or computer-assisted telephone interviewing), through mail (traditional mail and mail
panel surveys with pre-recruited households), or electronically (e-mail or Internet).
Step 5: Data Preparation and Analysis
Data preparation includes the editing, coding, transcription, and verification of data. Each questionnaire or
observation form is inspected or edited and, if necessary, corrected. The data are analyzed to derive
information related to the components of the marketing research problem and, thus, to provide input into the
management decision problem.

13
 The Research Process
Step 6: Report Preparation and Presentation
The entire project should be documented in a written report that addresses the specific research questions
identified; describes the approach, the research design, data collection, and data analysis procedures
adopted, and presents the results and the major findings. The findings should be presented in a
comprehensible format so that management can readily use them in the decision-making process. In
addition, an oral presentation should be made to management using tables, figures, and graphs to enhance
clarity and impact.

14
 An Overview of Ethical Issues in Research
Process
I. Problem Definition
• Using surveys as a guise for selling or fundraising
• Personal agendas of the researcher or client
• Conducting unnecessary research
II. Developing an Approach
• Using findings and models developed for specific clients or projects for other projects
• Soliciting proposals to gain research expertise without pay

15
 An Overview of Ethical Issues in Research Process
III. Research Design
• Formulating a research design more suited to the researcher’s rather than the client’s needs
• Using secondary data that are not applicable or have been gathered through questionable means
• Disguising the purpose of the research
• Soliciting unfair concessions from the researcher
• Not maintaining anonymity of respondents
• Disrespecting privacy of respondents
• Misleading respondents
• Disguising observation of respondents
• Embarrassing or putting stress on respondents
• Using measurement scales of questionable reliability and validity
• Designing overly long questionnaires, overly sensitive questions
• Using inappropriate sampling procedures and sample size

16
 An Overview of Ethical Issues in Research Process
IV. Fieldwork
• Increasing (dis)comfort level of respondents
• Following (un)acceptable fieldwork procedures
V. Data Preparation and Analysis
• Identifying and discarding unsatisfactory respondents
• Using statistical techniques when the underlying assumptions are violated
• Interpreting the results and making incorrect conclusions and recommendations
VI. Report Preparation and Presentation
• Incomplete reporting
• Biased reporting
• Inaccurate reporting

17
 References
Chapter 1 (The Role of Business Research) and Chapter 3 (Theory Building), Zikmund
Chapter 1: Introduction to Marketing Research, Malhotra

18