RESEARCH 1

- Nature of Business
Research
- Overall Process of
Business Research
- Language of Research
Learning objective
 The student is able to understand the
nature of business research
 The student is able to understand the
overall process of business research
 The student is able to identify key terms in
business research
BUSINESS RESEARCH
 Defined as a systematic inquiry that
provides information to guide a specific
managerial decision.

 Set of processes that include planning,

acquiring, analysis and reporting the
relevant data information and insights to
decision makers in ways to mobilize the
organizations to take appropriate action.
 Nature of Business Research
Every manager in the course of his/her career, regardless of
which field, will make thousands of decisions:

 STRATEGIC  TACTICAL  PROCEDURAL

- Determines the - Method for - Specifics for
general approach executing the executing the
strategic decision tactical

T T O O
S T T O O
Illustration 1. 1
 Dilemma – A local school supplies retailer
has noticed that, increasingly, people are
bypassing their store to shop online.
Strategic Tactical Procedural

Focus on
serving the Identify what
crafting Sell Frames,
type of Materials
market backdrop are used by the
- setting items Photographers
Photographers for backdrop
setting
 The gap between the dilemma and the decision
to be undertaken shall be filled by the results of
research.

Dilemma Research Decisions

Lesser sales Past trends showed that Strategic
photographers are one of
the common customers Tactical
who place bulk orders of
specific supplies Procedural

Experience
Observational
Information
 Where else can businesses collect
information?
TYPES OF DATA WHERE DATA SOURCE

Transactional -in store purchases; inquiries -customer, potential customer

-online -customer, potential customer
-warehouse, shipping manifests -logistic partners, employee
-machine performances -machine data log

Observational -Competitor Interactions -customer, potential customer

-Online visits & In-store -customer, potential customer,
shopping trips employees

Conversational -Surveys, online and in-store -customer, potential customer

intercepts -customer, potential customer,
-Webchat interactions employees
-Financial performance -Financial analysts, institutional
presentations investors

Internet Analytics -keyword searches and click -customer, potential customer

analysis
Overall Process of Business Research
CLARIFY THE RESEARCH QUESTION

Exploration Exploration

DESIGN THE RESEARCH

Data Collection Sampling Design

Collect and Prepare

Data

Analyze and
Interpret the Data

Report Insights
STAGE 1 CLARIFY THE RESEARCH QUESTION

Exploration
Exploration

DESIGN THE RESEARCH

STAGE 2
Data Collection Sampling Design

Collect and
STAGE 3 Prepare Data

STAGE 4 Analyze and

Interpret the Data

STAGE 5
Report Insights
STAGE 1 – Clarifying the Research Design
The purpose of this stage is to determine if the research
should be conducted.

At this stage the managers identify and prioritize the

dilemma.

Seeking existing information is often used not only to identify

dilemmas but also to ask the right questions and better
understand decision options. (Exploration)
STAGE 2 – DESIGN THE RESEARCH PROJECT
The blueprint for collecting data that fulfills
objectives and answer questions:

a. DATA COLLECTION DESIGN

a. “What data need to be collected?”
b. “How and in what format?”

b. SAMPLING DESIGN
a. “From whom or what do the data need to be
collected?”
b. “For how many?”
STAGE 3 – COLLECT AND PREPARE THE DATA
This stage contains two subprocesses:
a. ACTUAL COLLECTION OF DATA
- Questionnaires, standardized tests, observations,
checklists, event notes, video or audio recordings,
photographs and instrument calibration logs.

b. PREPARATION OF DATA
- Address the recording of error, improve legibility,
clarify unclear or unexpected responses.
- As data are processed by computers,
alphanumeric codes are assigned to each data
unit responses to more manageable categories for
processing.
STAGE 4 – ANALYZE AND INTERPRET THE DATA
- Involves reducing the accumulated data by
developing summaries, looking for patterns by
looking at relationships among variables and
applying statistical techniques.
- At the end of this stage, the researcher interprets
the findings in the light of the research questions.
(developing insights)

- Insights determine whether the hypothesis or

theories are supported or refuted.
- This is the most critical stage of research.
STAGE 5 – REPORT INSIGHTS AND RECOMMENDATIONS
- In this stage, the researcher reports and transmits
the findings, insights and any recommendations
to the manager.

- Results may be communicated via formal oral

presentation, conference call, letter, detailed
written report, top-line summary, infographics or
some combination of all these methods.

- Reports should be developed from the

managers’ perspective and whether how the
information should be shared.
Language of Research
CONCEPT
- Generally accepted collection of
meanings or characteristics
associated with certain events,
objects, conditions and
situations/behaviors, using words as
labels to designate them.
Example:
- Time period, such as weekly, monthly,
annually
- Before or after income taxes are
deducted
- Salary and wages, bonuses, dividends
Language of Research
CONSTRUCTS
- Abstract idea specifically invented for
a given research
- Built by combining simpler, more
concrete concepts

Example:
- Salary and wages,
- bonuses, COMPENSATION
- dividends
Language of Research
Operational Definitions
- A definition stated in terms of specific
criteria for measurement or testing.

Example:
- Freshman - Fewer than 30 hours credit
- Sophomore - 30 to 59 hours credit
- Junior - 60 to 89 hours credit
- Senior - 90 more hours credit

*Instead of the normal definitions of these

categories, we substitute a specific criteria of
measurement
Language of Research
VARIABLES
- Measurable symbol of events, act,
characteristics, traits and attributes.
Types of Variables
DEPENDENT INDEPENDENT
- Criterion - Predictor
- Presumed Effect - Presumed Cause
- Predicted to - Predicted Form
- Consequence - Antecedent
- Measured
Outcome - Manipulated
Language of Research
Types of Variables
DEPENDENT VARIABLES (DV) are the primary interest;
measured, predicted, or otherwise monitored and it
is expected to be affected by manipulation of the
INDEPENDENT VARIABLES (IV)

MODERATING VARIABLE
- Second independent variable, believed to
have a significant contributory effect on the
original IV-DV relationship.
EXTRANEOUS VARIABLE
- Has intervening effect
- Might influence the IV-DV Relationship but effect
is not at the core of the problem being studied.
Language of Research
HYPOTHESIS
- Unsubstantiated assumption about
the relationship between the concept
and constructs
- It drives the research

- Can be phrased as a declarative

statement or question about the
relationship between concepts and
constructs that may be judged as
true or false
Language of Research
TYPES OF HYPOTHESIS
DESCRIPTIVE
- States the existence, size, form or distribution of
some concept.

Example:
- Unemployment Rate in the country
- Life expectancy of the PPE Model XX1
Language of Research
TYPES OF HYPOTHESIS
RELATIONAL
- Describes a relationship between two or more
concepts.

TWO TYPES OF RELATIONAL HYPOTHESIS

CAUSAL CORRELATIONAL
one variable being Variables being
studied is assumed to studied occur
cause a specific together but there is
effect on other no assumption of
variables causation
Language of Research
EXAMPLES
CAUSAL
Loyalty to a particular grocery store leads to
purchasing that stores private brands
Construct (cause)
“Loyalty to a particular store”

Construct (Effect)
“purchasing that store’s private brands”

*predicts the cause and effect

Language of Research
EXAMPLES
CORRELATIONAL
Students who attend class regularly earns higher
grades than those who do not attend regularly

Construct
“students who attend class regularly”
Concept
“earns higher grades”
Construct
“students who do not attend regularly”

*Often made when we believe that there are more

basic casual forces that affect the concept/constructs.
Language of Research
REASONING
Gathering facts consistent with the problem,
proposing and eliminating rival hypothesis,
measuring outcomes, deriving conclusions –
pivotal to a researcher’s success.

2 TYPES OF REASONING
1. INDUCTION
2. DEDUCTION
Language of Research
2 TYPES OF REASONING
1. INDUCTION
Starting from deriving the conclusions from one or
more particular facts and the facts that support the
conclusion.
Illustration:
Suppose a company spends 10Million on a regional
promotional campaign but sales did not increase
Using the induction reasoning, your conclusion
is the hypothesis
- The competitor lowers its prices and customers
bought their product rather than ours.

- Promotional campaign was poorly executed.

Language of Research
2 TYPES OF REASONING
2. DEDUCTION
Starts from one or two premises and conclusion
flow from the premise given
Illustration:
- All employees at Bank One can be trusted to observe
ethical behavior.
- Sara is an employee at Bank One.
- Sara can be trusted to observe ethical behavior at work

- The first two statements are the Premises that are

true and valid in the situation and the last
statement is the conclusion drawn from deductive
reasoning.
Language of Research
COMBINATION OF THE TWO
Induction
Fact 1
We promote
the product WHY?
but sales din
not increase
Hypothesis:
The
Promotion
was poorly
executed
Deduction
Fact 2
We run an
effective effective
promotion Promotion will not
and sales increase sales
increase
Language of Research
THEORY
Is an empirically supported description of the
relationships among concepts, constructs and
hypotheses that are advanced to explain or
predict a phenomena.
Example:
Language of Research
MODELS

Representations of a theory or system that is

constructed to study some aspects of that system.
The purpose of this is to increase understanding of
the prediction and control of the complexities of
the environment
Thank you!