Business

Research Methods

William G. Zikmund

Chapter 4:
The Business Research Process
 Information
• Reduces uncertainty
• Helps focus decision making
 Types Of Research
1. Exploratory
– Initial research conducted to clarify and define the
nature of a problem
– Does not provide conclusive evidence
– Subsequent research expected
2. Descriptive
– Describes characteristics of a population or
phenomenon
– Some understanding of the nature of the problem
3. Causal
– Conducted to identify cause and effect relationships
 Uncertainty Influences
The Type Of Research
CAUSAL OR COMPLETELY ABSOLUTE EXPLORATORY
DESCRIPTIVE CERTAIN AMBIGUITY
 Degree of Problem Definition
Exploratory Research Descriptive Research Causal Research
(Unaware of Problem)(Aware of Problem) (Problem Clearly Defined)

“Our sales are declining and “What kind of people are buying “Will buyers purchase more of
possible situation

we don’t know why.”
“Would people be interested
in our new product idea?”
our product? Who buys our our products in a new package?
competitor’s product?”
“Which of two advertising
“What features do buyers prefer campaigns is more effective?”
in our product?”
 Descriptive Research Example
• Weight Watchers average customer
• Woman about 40 years old
• Household income of about $50,000
• At least some college education
• Trying to juggle children and a job
 Descriptive Research Example
• Men’s fragrance market
• 1/3 size of women’s fragrance market
• But growing at a faster pace
• Women buy 80 % of men’s fragrances
 Identifying Causality
• Can NEVER prove causality.
• Evidence of causality:
1. The appropriate causal order of events
2. Concomitant variation--two phenomena vary
together
3. An absence of alternative plausible
explanations
• Often Use Experiments in Causal
Research
 Stages of the Research Process
Problem Discovery Discovery and
and Definition Definition

Research and so on
Design Conclusions and
Report

Sampling
Data Processing
and Analysis
Data
Gathering
 Research Stages
• Cyclical process - conclusions generate new
ideas
• Stages can overlap chronologically
• Stages are functionally interrelated
– Forward linkages
– Backward linkages
Problem Discovery Problem
Selection of
and Definition discovery Sample Design
Sampling

Selection of
exploratory research
technique Probability Nonprobability

Secondary
Experience Pilot Case Collection of
(historical) Data
survey study study data
data Gathering
(fieldwork)

Data
Editing and
Problem definition Processing
coding
(statement of and
Analysis data
research objectives)

Data
Selection of processing
Research Design basic research
method Conclusions
Interpretation
and Report
of
findings
Experiment Survey
Secondary
Laboratory Field Interview Questionnaire Observation
Data Study Report
 Stages In The Research Process
• Problem Discovery and Problem Definition
• Research Design
• Sampling
• Data Gathering
• Data Processing and Analysis
• Conclusions And Report
“The formulation of the problem
is often more essential than its
solution”

Albert Einstein
 Problem Discovery And
Definition
• First and probably most important step
• Too often neglected leading to costly errors
• Provides direction for the project
• Problem, opportunity, or monitor operations
• Discovery before definition
• Must not mistake symptoms for problem
 Exploratory Research Techniques
Three Examples
• Secondary data (historical data)
– Previously collected for another purpose
– Literature survey
– Databases (e.g., www.census.gov)
• Pilot study
– A number of diverse techniques
• Focus Groups
– 6 to 10 people in group dynamics session
 State the research questions and
research objectives

Hypothesis:
• A statement
• that can be refuted
• by empirical data
 Research Design
• Master plan
• Specifies methods and procedures
• Framework for action
 Basic Research Methods
• Surveys
– Interview
– Questionnaire
• Experiments control conditions so that one or
more variables can be manipulated to test a
hypothesis
– Field
– Laboratory
• Secondary data
• Observation
 Selecting a Sample

Sample: subset SAMPLE

of a larger population.

POPULATION
 Sampling
• Who is to be sampled?
• How large a sample?
• How will sample units be selected?
– Probability Samples – every member of the
population has a known, nonzero probability of
being selected
– Nonprobability Samples
 Data Gathering Stage
• Focus on error minimization
• Pretesting
Data Processing and Analysis
• Editing
Checking the data collection
forms for omissions, legibility
and consistency
• Coding
Rules for interpreting,
categorizing and recording
the data
Conclusions And Report Writing
• Effective communication of the research
findings
• Usually includes making recommendations
• “What does this mean to management?”
 Research Proposal
• A written statement of the research design
that includes a statement explaining the
purpose of the study.
• Detailed outline of procedures associated
with a particular methodology
 Research Program vs. Research Project

• Research program – firm’s overall strategy

for utilizing business research. Places each
research project into company’s strategic
plan.
 Assignment for Chapter 7:
Exploratory Research and
Qualitative Analysis
Using the Ingram Library Databases, Pull
and Read the Article, “A Typology of
Consumer Responses to Cause-Related
Marketing: From Skeptics to Socially
Concerned,” by Deborah J. Webb and Lois
A. Mohr in the Journal of Public Policy and
Marketing, Fall 1998, Volume 17, Issue 2.