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Business Research

What is Research
 Research is a systematic inquiry aimed at providing information

to solve research problems and guide business decisions.
 Research is the process of finding solutions to a problem after a

thorough study and analysis of the situational factors.

What is Business Research
 Research provides the needed information that guides managers

to make informed decisions to successfully deal with problems.
 The information provided could be the result of a careful

analysis of data gathered firsthand or of data that are already
available (in the company).

 People think they already know a lot about these topics and do not easily accept research findings that differ from their opinion.  Physical research is normally conducted under controlled laboratory conditions while business research seldom is. the physical sciences. . behavior. and performance.  Business Research normally deals with such topics as human attitudes.How Scientific is Business Research?  The development of scientific method in business research lags behind.

Analysis of data should be sufficiently adequate to reveal its significance.  The researcher should report. with complete frankness. flaws in procedural design and estimate their effects upon the findings.  The procedural design of the research should be carefully planned to yield results that are as objective as possible.   . Conclusions should be confined to those justified by the data of the research and limited to those for which the data provide an adequate basis. and methods of analysis used should be appropriate.  The research procedures should be described in sufficient detail to permit another researcher to repeat the research.What is Good Research?  Purpose of research or problem involved should be clearly defined.

findings must be replicable  Faith in the scientific method.  Complete honesty in the managerial and business research process.Objectivity in Managerial and Business Research  An open atmosphere of critical inquiry. what evidence is there against your hypothesis? . tempered by skepticism  Belief that most natural phenomena can be understood (even if only in a limited and probabilistic manner). the good researcher is a self-critic only testable statements are relevant.

Meaning of Managerial and business research  The word "research" is derived from the Latin word meaning. such as: 1. "to know. What do I want to know? 2. How do I want to gain knowledge? 3." Answering questions. Why do I want to know it? .

a belief system about evidence. A collection of methods. tools. A process carried on by people . A group of assumptions. An established body of knowledge. A purposeful or functional activity 5.The Managerial and Business Research Mechanism 1. a strategy for knowing. 3. and techniques 4. 2.

Knowledge is better than ignorance 4.Nothing is self evident. but must be verified or falsified .1. All natural phenomena have natural causes 5. Knowledge is derived from observation of nature . Research as a Belief System 1. Nature is orderly and regular 2. We can know nature 3.

Research as a collection of methods  Managerial and business research as a collection of methods. Research as an established body of knowledge  As an established body of knowledge. tools. 3. and provides a way for researchers to communicate and compare their findings. .  It provides a background against which claims for knowledge can be evaluated.2. its methods are what set it apart from other ways of acquiring knowledge. and techniques forms the basis for most managerial and business research texts and courses in research. managerial and business research is the accumulation of evidence by researchers over time.

Research as a process carried on by people  Where do managerial and business research topics come from?  Where is managerial and business research done?  Who does managerial and business research? .4. managerial and business research must justify the resources it consumes to accomplish its purposes. 5. Research as a purposeful or functional activity  As a purposeful or functional activity.

2. It is also known as pure research . To solve a current problem faced by the manager in the work setting. To generate a body of knowledge about how to solve problems that could be occurred in organizations. Such research is called Applied research. This is called Basic research or fundamental research.Types of Business Research  Research can be undertaken for two different purpose: 1.

Case studies and action research are sometimes used to study certain types of issues.Other Types of Research  1. Case Studies Action Research . 2.

 Case study. as a problem solving technique.Case Studies  Case studies involve in depth. where the nature and definition of the problem happen to be the same as experienced in the current situation. is not often undertaken in organizations because such studies dealing with problems similar to the one experienced by a particular organization of a particular size and in a particular type of setting are difficult to come by. contextual analyses of similar situations in the other organizations. .

.Action Research  The researcher begins with a problem that is already identified and gathers relevant data to provide a tentative problem solution.  The effects are then evaluated. with the knowledge that there may be unintended consequences following such implementation. defined and diagnosed and the research continues on an ongoing basis until the problem is fully resolved.  This solution is then implemented.

or by a combination of the two. .Induction and Deduction  Answers to issues can be found either by the process of deduction or the process of induction. in induction we logically establish a general proposition based on observed facts. Induction  Induction is a process where we observe certain phenomena and on this basis arrive at conclusions. In other words.

Deduction  Deduction is the process by which we arrive at a reasoned conclusion by logical generalization of a known fact. we then conclude that he is highly proficient in his job . If John is a high performer. Example: we know that all high performers are highly proficient in their jobs.

(Fact) 2. You know from experience that in effective promotion will not increase sales. You use this hypothesis to conclude (deduce) that sales will not increase during a poorly executed promotion. (Hypothesis) 4. You infer a conclusion (hypothesis) to answer the question: The promotion was poorly executed. (Deduction) .Combining Deduction and Induction  Deduction and Induction are used together in research reasoning: 1. You ask the question “Why didn’t sales increase?” (induction) 3. You promote a product but the sales do not increase.

Classifying and categorizing objects or events that have common characteristics beyond any single observation creates concepts.Concepts It is a generally accepted collection of meanings or characteristics associated with certain events. objects. situations and behaviors. conditions. .

more concrete concepts . . Such abstract concepts are often called constructs.Constructs An abstraction like personality is much more difficult to visualize. A construct is an image or abstract idea specifically invented for a given research and/or theory building purpose. We build constructs by combining the simpler. especially when the idea or image we intended to convey is not subject to direct observation.

trait or attribute that can be measured and to which we assign categorical values. .Variables It is used as synonym for construct or the property being studied. art. A variable is a symbol of an event. characteristics.

For example. does a newspaper coupon (independent variable) influence product purchase (dependent variable) or can a salesperson’s ethical standards influence her ability to maintain customer relationships? .Independent and Dependent Variables Researchers are most interested in relationships among variables.

We recognize that there are often several independent variables and that they are probably at least somewhat “correlated” and they are not independent among themselves.Independent Variable IV is manipulated by the researcher. . and the manipulation causes an effect on the dependent variable.

criterion variable is used as synonymously with DV.Dependent Variable Similarly. . the term. This variable is measured. predicted. or otherwise monitored and is expected to be effected by manipulation of an independent variable.

Interested not only on the effect of social support on depression levels. but whether this differs if the person is male or female .Moderators A moderator is a variable that alters the direction or strength of the relationship between a predictor and an outcome Really.g. it is just an interaction – the effect of one variable depends on the level of another E.

g. Interested in whether or not males and females have differing levels of depression because of differing levels of social support .Mediators A mediator variable explains the relationship between a predictor and an outcome E.

. we call it a hypothesis. When a proposition is formulated for empirical testing. As a declarative statement about the relationship between two or more variables.Propositions and Hypothesis We define a proposition as a statement about observable phenomena (concepts) that may be judged as true or false. Hypotheses have also been described as statements in which we assign variables to cases. a hypothesis is of a tentative and conjectural nature. A case is defined in this sense as the entity or thing the hypothesis talks about.

in the hypothesis. example: Brand managers in Company Z (cases) have a higher-thanaverage achievement motivation (variable).Cont… The variable is the characteristic. is imputed to the case. If our hypothesis was based on more than one case. For example. or attribute that. . we might create the following hypothesis: Brand Manager Javed (case) has a higher-than-average achievement motivation (variable). it would be a generalization. trait.

Researchers often use a research question rather than a descriptive hypothesis. form. For example: Research Question Descriptive Hypothesis   In Islamabad. size. Pakistani citizens (case) are facing budget difficulties (variable). (case) our potato chip market share variable) stands at 13.Descriptive Hypotheses Both of the above hypotheses are examples of descriptive hypotheses. or distribution of some variable. They state the existence.7 %.   What is the market share for our potato chip in Islamabad? Are Pakistani citizens facing budget difficulties? .

" The above interpretation (unspecified relationship) indicates a corelational relationship. .Relational Hypothesis These are statements that describe a relationship between two variables' with respect to some case. For example. "Foreign (variable) cars are perceived by Pakistani consumers (case) to be of better quality (variable) than domestic cars.

.Correlation Hypotheses Correlation hypotheses state that the variables occur together in some specified manner without implying that one causes the other.

An increase in family income (IV) leads to an increase in the percentage of income saved (DV). Here are 2 examples of explanatory hypotheses: 1. 2. The causal variable is typically called the independent variable (IV) and the other the dependent variable (DV). Loyalty to a particular grocery store (IV) increases the probability of purchasing the private brands (DV) sponsored by that store." So the IV need not be the sole reason for the existence of or change in the DV. there is an implication that the existence of a change in one variable causes or leads to a change in the other variable. .Causal Hypotheses With explanatory (causal) hypotheses. Cause means roughly to "help make happen.

. 3. a hypothesis serves several important functions: 1. 2. It provides a framework for organizing the conclusions of the research. It guides the direction of the study.The Role of the Hypothesis  In research. It suggests which form of research design is likely to be most appropriate. It identifies facts that are relevant and those that are not. 4.

Adequate for its purpose.What Is a Strong Hypothesis?  A strong hypothesis should fulfill three conditions: 1. Testable. 2. . 3. Better than its rivals.

.Models The term model is used in business research and other fields of business to represent phenomena through the use of analogy. A model is defined here as a representation of a system that is constructed to study some aspect of that system or the system as a whole. Models differ from theories in that a theory's role is explanation whereas a model's role is representation.

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