LECTURE DISCUSSIONS MODULE 1 – 4

MODULE 1 : INTRODUCTION TO BUSINESS RESEARCH - FUNDAMENTALS OF

RESEARCH
You’re here starting to study business research, both the process and the tools needed
to reduce risk in managerial decision making. Business research is a systematic inquiry
that provides information to guide managerial decisions. It is also a process of planning,
acquiring, analyzing, and disseminating relevant data, information and insights to
decision makers in ways that mobilize the organization to take appropriate action which
in turn maximize performance (Cooper & Schindler, 2014).
Furthermore, business research is the systematic and objective identification, collection,
analysis, dissemination, and use of information for the purpose of improving decision
making related to the identification and solution of problems and opportunities in
business and management.
A. WHAT IS THE PURPOSE OF THE BUSINESS RESEARCH?
Business research is conducted purposely to investigate some existing problems or new
opportunities as well as to find solutions to problems and to exploit opportunities that
would help decision makers come up with smart decisions.
In developing a research design suitable for a specific research problem, take into
consideration the factors such as the objective of the problem to be studied; the nature
of the problem to be studied, the time and the money available for the research work, the
method of collecting information and the availability of good and skilled researchers.
B. FACTORS THAT STIMULATE THE STUDY OF RESEARCH
1. Information overload
2. Technological connectivity
3. Shifting global centers of economic activity and competition.
4. Increasingly critical scrutiny of big business
5. More government intervention
6. Battle for analytical talent
7. Greater computer power and speed
 Lower-cost data collection
 Better visualization tools
 Powerful computations
 More integration of data
 Real time access to knowledge
8. New perspective on established research methodologies
Managers have access to information from other sources aside from the information
derived from business research. Understanding the relationship between business
research and other sources of information such as decision support system (DSS) and
business intelligence is considered critical for understanding how information drives
decisions relating to companies’ mission, goals, strategies, and tactics.
C. THE RESEARCH PROCESS
The research process involves similar activities regardless of area of research or
research methodology. The process expresses scientific method using the steps as
follows: statement of the problem, generating hypothesis, review of relevant literature
and studies, creating measures, choosing the samples, collecting data, analyzing the
data and reporting results as shown in the illustration:
A management dilemma triggers the need for a decision such as growing complaints of
customers, a controversy arises, major commitment of resources are called for or
conditions in the business environment signal the need for a decision, thus conduct
business research starting with a thorough understanding of the management question.
Hence, business research process involves the stages as follows:
1. Clarifying the research question
2. Proposing research
3. Designing the research project
4. Data collection and preparation
5. Data analysis and interpretation
6. Reporting the results

D. WHAT IS GOOD RESEARCH?

1. Purpose clearly defined
2. Research process detailed
3. Research design thoroughly planned
4. High ethical standards apply
5. Limitations frankly revealed
6. Adequate analysis for decision makers’ needs
7. Findings presented unambiguously
8. Conclusions justified
9. Researchers experience reflected
E. ETHICS IN BUSINESS RESEARCH
Ethics are norms or standards of behavior that guide moral choices about our behavior
and our relationship with others. Hence, the goal of ethics in research is to ensure that
no one is harmed or suffers adverse consequences from research activities. Unethical
activities are pervasive such as follows:
1. Violating non-disclosure agreement
2. Breaking participant confidentiality
3. Misrepresenting results
4. Deceiving people
5. Using invoicing irregularities
6. Avoiding legal liability

F. ETHICAL TREATMENT OF PARTICIPANTS

1. Explain study benefits
2. Explain participants rights and protection
3. Obtain informed consent
ETHICS AND THE SPONSOR
1. Confidentiality
Sponsor non-disclosure.
2. Sponsor-Researcher Relationship- both of them should fulfill their respective
obligations
Source of Manager-Researcher Conflict
a. Knowledge gap between the researcher and the manager
b. Job status and internal political coalitions to preserve status
c. Unneeded or inappropriate research
 d. The right to quality research

Sponsor’s Ethics
Unethical behavior that must be avoided:
1. Violating participants confidentiality
2. Changing data or creating false data to meet a desired objective
3. Changing data presentation or interpretation
4. Interpreting data from a biased perspective
5. Omitting sections of data analysis and conclusions
6. Making recommendations beyond the data collected

G. ETHICS AND RESEARCHERS AND TEAM MEMBERS

1. Right to safety
2. Protection of anonymity of the participants and confidentiality of the sponsor’s
information
To broader your understanding on the fundamentals of research, please watch the video
through this link:

H. CLASSIFICATION OF RESEARCH
We can classify the research according to:

1. The Purpose of Research

2. The technique Based Classification

PURPOSE OF THE RESEARCH

We can classify the research into three basic categories according to the purpose of the
research:

Descriptive research
Descriptive research presents a detailed picture of the problem or situation. Descriptive
research is in more detail as compared to exploratory research.
a. Finds answer to the questions who, what, when where and how
b. Describes a situation or a given state of affair in terms of specified aspects or factors.
c. What may be described are characteristics of individuals or groups (students,
administrators, entrepreneurs, patients, customers) or condition (marketing
practices/strategies, sales, profit, productivity)

Examples of Research Topics/Titles that Fall under Descriptive Research

d. “Service Quality in health service providers in private hospitals in Iloilo City”
e. “Marketing strategies of the commercial banks in Antique”
f. Performance of Commercial banks in Iloilo City”

Explanatory/Correlation research
Explanatory research is an attempt to connect different ideas and to understand the
different reasons, causes, and effects.
a. Goes beyond description of the problem or situation.
b. It attempts to explain the possible factors related to the problem which have been
observed in the descriptive study
c. Answers the questions why and how.
d. The factors related to the problem are not viewed as real “causes” of the problem
but factors which are associated with or may contribute to the occurrence of the problem
e. Also called “assumed to correlation research in which the research investigates
relationship between factors or variables.
f. Certain factors are “assumed” to explain or contribute to the existence of a problem
or a certain condition or the variation in a given situation
g. The researcher usually uses a theory or hypothesis to account for or explain the
forces that are “assumed to have caused” the problem.

Examples of research topics that fall under explanatory/correlation research.

a. Financial Management Practices and Profitability of SMEs in Iloilo City”
b. Factors Associated with Investment Intention of Investors in Small Businesses”
c. Factors Associated with Sustainability of On-Line Business among Entrepreneurs
in Iloilo City”
d. “Customer Service and Customer Satisfaction among Selected Food Establishments
in Iloilo City”
e. Marketing Strategies and Sales Performance of Garment Industries in the
Province of Iloilo”

Experimental/Intervention Research
a. Evaluates the effects or outcome of a particular intervention/treatment.
b. It studies the cause and effect relationship between certain factors on a certain
phenomenon under controlled conditions.
c. The respondents of the study are randomly assigned to the experimental group
and to the control group and both groups are exposed to similar conditions except for
the intervention.

Examples of intervention/experimental research

a. “Advertising: Its Effect on sales and profit of Auto Parts Business Establishments in
Iloilo City”
b. “The Effect of Humor In advertising on the Buying Behavior of the Customers”
c. “The Effect of Customer Service Training on the Quality of Service Delivery on the
Commercial Bank Employees in Iloilo City”
d. “The Effect of Technology on the Financial Performance of the SMEs in Iloilo City”

Exploratory research
In exploratory research, a small amount of information is available about the topic but if
you want to explore it in detail for a better understanding of the problem and its solution.
Techniques Based Classification
We can classify the research into two basic categories according to the techniques of the
research.
QUALITATIVE RESEARCH
Qualitative research does not handle the measurable variable. This research is mainly
done to find relationships and to define things in a qualitative way.
QUANTITATIVE RESEARCH
In quantitative research data is represented in the quantitative from in the form of
numbers. Statistical analysis is conducted in quantitative research.

MODULE 2 OVERVIEW: SELECTING AND DEFINING A RESEARCH TOPIC

2.1. CHARACTERISTICS OF A GOOD RESEARCH PROBLEM

1. Research problem must be relevant.
2. Research problem must be feasible.
3. Research problem must be clear.
4. Research problem must be ethical.
2.2 THE PROBLEM STATEMENT/ OBJECTIVES AND HYPOTHESIS OF THE
STUDY

THE PROBLEM STATEMENT/ OBJECTIVES

O State what the study aims to do and find out.
O Stated in behavioral terms, it specifies the what, why, and who of the study.
O The variables of the study are specified in measurable terms.

Statement of the Problem should have the introductory problem/general problem

and sub-problems/specific problems.

Introductory/General Problem
- Reflects the main problem of the study

Sub-Problems/Specific Problems
- be stated in such a way that it’s not answerable by either yes, no, when, &
where
- include all the independent & moderate variables which are reflected in the
conceptual framework.
- be arranged in logical order and extensive in coverage and must be
mutually exclusive in its dimensions.

THINGS TO REMEMBER WHEN DEFINING A RESEARCH PROBLEM

1. Review relevant literature and previous studies on the problem.

2. Examine current available data/statistics.
3. Seek educated opinions from persons concerned with the problem.
4. Determine the problem reasons for the existence of the problem from
social, economic or other theories that may explain the existence of the problem
and the possible connection between the problem and other factors.
A careful review of existing information or studies on a problem can also help the
investigator determine:

O What answers or solutions have been found/tried in the past to solve the
problem and how successfully they were, and
O What questions still remain unanswered and what aspects of the problem
need to be studied further.

HYPOTHESIS OF THE STUDY

O The statement created by researchers when they speculate upon the

outcome of a research or experiment.
O Statements of tentative answers to the research objectives/questions
O Although the hypotheses are often stated in the null form, the alternative
hypotheses or the research hypotheses are generally preferred
O They must be coherent with the research questions/ or the study objectives
O A hypothesis must be testable, taking into account current knowledge and
techniques, and be realistic.
O A hypothesis must be verifiable by statistical and analytical means, to
allow a verification or falsification.

Types of Hypothesis

1. NULL HYPOTHESIS VS. ALTERNATIVE HYPOTHESIS

2. DIRECTIONAL VS. NON- DIRECTIONAL

NULL HYPOTHESIS VS. ALTERNATIVE HYPOTHESIS

Null Hypothesis
O The null hypothesis (H0) is a hypothesis which the researcher tries to
disprove, reject or nullify.
O The 'null' often refers to the common view of something, while the
alternative hypothesis is what the researcher really thinks is the cause of a
phenomenon.
O The simplistic definition of the null is as the opposite of the alternative
hypothesis, H1
O Negative statement which indicates the absence of a
relationship/correlation between two variables or absence of a significant
difference between the proportions of two groups of people or objects
possessing a particular characteristics

EXAMPLES
O There is no significant relationship between mass media exposure and
attitude towards smoking among the customers of KTV bars in Iloilo City.
O There is no significant relationship between customer service and
customer satisfaction among food establishments in Iloilo City.
O There is no significant relationship between the amount paid in
advertisement and gross sales among food establishments in Iloilo City.

Alternative Hypothesis
O Positive form of the null hypothesis
O it may state the presence of a significant relationship between the
independent and dependent variables or the presence of a significant difference
between two means.
EXAMPLES
O There is a significant relationship between mass media exposure to the
attitude towards smoking among the KTV customers in Iloilo City.
O The amount paid in advertisement by food establishments is significantly
associated with their monthly gross sales.

DIRECTIONAL VS. NON- DIRECTIONAL

Directional Hypothesis
O States whether the relationship between two variables is direct or inverse
or positive or negative
O Positive/direct relationship is present when the value of one variable
increases with the increase in the value of another
O Negative/inverse relationship when the value of one variable increases as
the value of another decreases

EXAMPLES
O The higher the level of exposure of KTV customers to mass media the less
favorable their attitude towards smoking. (NEGATIVE)
O The higher the advertisement expenses of food establishments, the higher
their monthly gross sales. (POSITIVE)

Non-Directional Hypothesis

O Does not specify the direction of relationship between variables

O it merely states the presence or absence of a relationship between two
variables or that one variable influence another, or there is a significant
difference in the mean values of the two variables.

EXAMPLES
O The KTV customers exposure to mass media is significantly associated
with their behavior towards smoking.
O The advertisement expenses of the food establishments is significantly
associated with their gross sales.

MODULE 3 OVERVIEW: RESEARCH FRAMEWORK

3.1. THEORETICAL FRAMEWORK
a. Presented to explain the theoretical basis of the problem
b. A theory that explains the existence of the problem and an elaboration on how
the problem (dependent variable) may be influenced by the independent variables
is presented.
c. consist of theories, principles, generalizations & research findings which are
closely related to the present study under investigation.
d. where the recent research problem understudy evolved.
e. Authors be cited.

FUNCTIONS OF THEORETICAL FRAMEWORK IN RESEARCH

• It provides the general framework which can guide data analysis.

• It identifies the variables to be measured.
• It explains why one variable can possibly affect another or why the
independent variable can possibly influence the dependent variable.
• It limits the scope of data relevant to the framework by focusing on specific
variables.
• It stipulates the specific frame of mind or viewpoint that the researcher will
take in analyzing and interpreting the data.

3.2 CONCEPTUAL FRAMEWORK

a. Explains in operational terms the assumed relationship between/among the
major variables of the study.
b. The dependent, independent, intervening (if any) and sometimes the
antecedent variables (if any) are identified and the possible links between/among
them are explained
c. The explanation is based on the theoretical framework
d. The schematic diagram which shows the variables included in the study and
the expected flow of relationship among them is presented
e. Arrows or lines should be properly placed & connected between boxes to
show the relationship between the independent and dependent variables.
f. All the independent & dependent variables should be clearly discussed &
explained how these would influence the results of the study.
g. It is summarized in a paradigm identifying the hypothesized link between the
independent & dependent variables, independent & intervening variables (if any)
& intervening variables & dependent ones.
MODULE 4 OVERVIEW: THE VARIABLES OF THE RESEARCH STUDY AND
DEFINITION OF TERMS

4.1. THE VARIABLE OF THE STUDY

> A concept that stands for a variation within a class of objects or person
> A characteristic or property that can take different values or attributes.
> the basic elements which are measured in a study which observable and
measurable.

EXAMPLES
age
sex
civil status
income location of business
product
price
promotion
service quality
customer relationship management
corporate social responsibility
investments
financial management
degree of effectiveness
extent of implementation
business performance
sales
profit
cost
Types of Variables

1. Dependent variable

a. The “assumed effect” of another variable

b. The change that occur in the study population when one or more factors
are changed or when an intervention is introduced
c. Usually dependent variable is the problem itself

2. Independent variable

a. The “assumed cause” of a problem

b. It’s an assumed reason for any “change” or variation in a dependent
variable
c. Sometimes treated as “antecedent” variable (the variable before)
d. Likewise the “antecedent” variable may be treated as an “independent”
variable

EXAMPLE

“RELATIONSHIP BETWEEN EXPOSURE TO MASS MEDIA AND PURCHASE

INTENTION OF FAST-MOVING CONSUMER GOODS CUSTOMERS”

Independent Variable Dependent variable

Exposure to mass media Purchase Intention

3. Intervening variable

a. A factor that works “between” the independent and dependent variables

b. It can weaken/decrease or strengthen/increase the effect of the
independent variable on the dependent variable
c. Also called a facilitating variable/ moderating/ control variable

EXAMPLE

“FACTORS THAT INFLUENCE CONSUMER DECISION MAKING PARTICIPATION

OF MARRIED PROFESSIONALS”

Independent Variable: sex, age, education, income

Intervening Variable: Gender Sensitivity (Perception about gender roles)
Dependent Variable: Consumer Decision-Making Participation

4. Antecedent variable

a. A factor or characteristics which is found before (ante) the independent

variable.
b. It is expected to influence the independent variable

EXAMPLE

“EXTENT OF EXPOSURE TO ADVERTISEMENT AND PURCHASE INTENTION OF

THE CUSTOMERS OF AESTHETIC PRODUCTS”

Antecedent Variables: Income, Age

Independent Variable: Extent of Exposure to Advertisement
Dependent Variable: Purchase Intention
4.2 THE DEFINITION OF TERMS

Operational Definition of Variables and Other Terms

a. The major variables of the study and other relevant terms should be
operationally defined according to how they are used in the study.
b. It gives a specific meaning to the variable.
c. It must indicate and clarifies how a variable is going to be measured and
used.
d. The variable must be defined in terms of events/units of measurements that
are observable by the senses. Which serve as indicators of the variable?

HOW TO MAKE OPERATIONAL DEFINITIONS

1. List your independent and dependent and intervening and antecedent (if
any) variables.
2. Write an operational definition for each variable.
3. Identify the possible categories of each variable and determine if the
categories can be clearly understood, are mutually exclusive (do not overlap) and
exhaustive. The list of categories is complete so that all respondents can be
categorized.
4. List the key terms which may be interpreted differently by different people
unless they are operationally defined. Write an operational definition for each
term.
5. When defining a variable or a term, be guided by the following questions:
a. Does the definition clearly specify the way the variable will be measured?
b. Are the categories of each variable mutually exclusive?
c. Are the categories exhaustive?