Chapter 3 1

STA G E 1 : C L A R I F Y T H E R ES EA R C H Q UE ST I O N

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 Learning Objectives 2

Understand . . .
• The question hierarchy.
• The purposes and process of exploration.
• How internal and external exploration differ.
• The process and goal of research valuation.
• The process and justification needed to budget for
research.
• Ethical issues at this stage of the process.

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 Tasks Associated with Stage 1

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 The Management-Research Question Hierarchy

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 Management Questions

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 Types of Management Questions
Categories
Evaluation of solutions
(choices between concrete actions to
solve problems or take advantage of
opportunities)
Choice of purpose
(choice of objectives)
Troubleshooting
(diagnosing ways an organization is
failing to meet its goals)
Control
(monitoring or diagnosing ways an
organization is failing to meet its goals)
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General Question Sample Management Questions
• How can we achieve • Should we reposition brand X as a
the objectives we therapeutic product from its current
have set? cosmetic positioning?
• How can we improve our program for
product repairs and servicing?
• What do we want to • What goals should XYZ try to achieve
achieve? in its next round of union negotiations?
• What goals should we set for sales and
profits in the next 5 years?
• What goals should XYZ set for its
return on its investment portfolio?
• Why is our (blank) • Why does our department have the
program not lowest sales-to-web page visit ratio?
meeting its goals? • Why does our recruiting program
generate the lowest hire-to-offer ratio in
the industry?
• How well is our • What is our product line's sales-to-
(blank) program promotion cost ratio?
meeting its goals?
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 Declining sales is one of the most common symptoms serving as a stimulus for a
research project, especially a continuing pattern that is unexplained. SalePro, a
large manufacturer of industrial goods, faces this situation. Exploration (1) reveals

Exhibit 3-3: that sales, in fact, should not be declining in the South and Northeast.
Environmental factors there are as favorable as in the growing regions. Subsequent
exploration (2, 3) leads management to believe that the problem is in one of three
The areas: salesperson compensation, product formulation, or trade advertising. Further
exploration (4) has SalePro management narrowing the focus of its research to
Management alternative ways to alter the sales compensation system, which (5) leads to a
survey of all sales personnel in the affected regions.

-Research
Question
Hierarchy:
SalePro 2

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 Exhibit 3-4:
Formulating
the Research
Question 2

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 Tasks of Exploration 1

Understand management dilemma,

management problem and research
question.

Discover how others have addressed or

solved similar problems.
Establish priorities for addressing
management dilemmas or management
problems.

Identify action options and develop

hypotheses.

Gather background information to refine

research question.
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 Tasks of Exploration 2

Identify information to formulate

investigative questions.

Develop operational definitions for

concepts, constructs, variables.

Provide evidence for justifying and

budging research.

Set foundation for final research design.

Identify sources for sample frames &

measurement questions.
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 Desired Outcomes of Exploration 1

Establish range and scope of possible

management decisions.

Establish major dimensions of research

task.

Define a set of subsidiary questions that

can guide research design.

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 Desired Outcomes of Exploration 2

Develop hypotheses about possible

causes of management dilemma.

Learn which hypotheses can be safely

ignored.

Conclude additional research is not

needed or not feasible.

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 Exploration Strategy

What information What methods will be

sources should be used to extract
used? information from
+ these sources?

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 Exploration Strategy Methods

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 Four Groups of People Sources
Institutional memory guardians
or company historians.

Industry or problem experts.

Company employees involved

directly in the problem.

Company employees likely to be

affected by any considered
solution.

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 Questions to Ask of People Sources

What is being done?

What has been tried with/without success?

How have things changed?

Who is involved in the decisions?

What problem areas can be seen?

Who can we expect to assist/participate in research

on this issue/topic?
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 Exploration
Strategy
Sources

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 Levels of Published & Digital Sources

Primary Secondary Tertiary

Sources: Sources: Sources:
Memos Encyclopedias Indexes
Letters Textbooks Bibliographies
Interviews Handbooks Internet
Speeches Magazines search engines
Laws Newspapers
Internal records Newscasts

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 Primary Internal Sources
• Many company reward
programs collect
transaction data made
via store-owned credit
programs.
• Data can reveal the
likely success of a
promotion or the sales
lift effect of a price
incentive.

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 Conduct a Literature Search

Define management dilemma.

Consult books/articles for

relevant terms.

Use terms to search.

Locate/review secondary
sources.

Evaluate value of each source

and content.
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 Types of Secondary Sources

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 Labor Law Chart

The U.S.
Government is the
world’s largest
source of published
and digital sources.

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 Evaluate Published & Digital Sources 1

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 Evaluate Published & Digital Sources 3

Evaluation Questions to Answer

Factor
Scope, • How does the information presented compare with that on similar sites?
continued • Is it a series of links only (a metasite), or is there added value?
• What is the nature of the added value?
• What information did you expect to find that was missing?
• Is the site self-contained, or does it link to other websites?
Audience • Whom does the site cater to?
• What level of knowledge or experience is assumed?
• How does this intended audience affect the type and bias of the information?
Format • How quickly can you find needed information?
• How easy is the site to use? Is it intuitive?
• Does it load quickly?
• Is the design appealing?
• Are there navigation buttons?
• Is there a site map or search button?
• Is there an easily identifiable Help button?
• Is Help helpful?
• Are pages in ASCII or graphic format?
• Is the information downloadable into a spreadsheet or word processing program, if desired?

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 Evaluating Internal Sources
Compatibility.

Timelessness.

Recentness.

Quality.

Author’s Experience.

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 Fine-Tuning the Research Question

Operationally define variables.

Formulate levels of research questions.

Set the scope of the study.

Evaluate hypotheses.

Determine necessary evidence.

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 Value the
Research 1

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 Value the Research: Defined
“Difference between
the result of
decisions made with
[new] information
and the result that
would be made
without it.”

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 Value the Research 2

Higher financial risks of

decision.
Higher social risks of decision.

Higher physical risks of

decision.

Longer time commitment of

decision.

Greater uncertainty of decision

environment.

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 Value the Research: Option Analysis

Identify the Options.

Identify the Decision Variables.

Determine the Decision Rule.

Estimate the budget.

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 Budget the Research

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 Advocate for Research
• Every research project
needs an advocate.
• The process for
obtaining funding is
competitive among
managers.
• The best crafted
argument should, but
doesn’t always, win
approval.

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 Key Terms
• Bibliography.
• Data warehouse.
• Decision rule.
• Decision variable.
• Dictionary.
• Directory.
• Encyclopedia.
• Expert interview.
• Exploration.
• Exploration Strategy.
• Handbook.
• Index.
• Investigative questions.
• Literature search.
• Management dilemma.
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• Management question.
• Management-research question
hierarchy.
• Measurement questions.
• Option Analysis.
• Primary sources.
• Research questions.
• Secondary sources.
• Source evaluation.
• Purpose.
• Scope.
• Authority.
• Audience.
• Format.
• Tertiary sources.
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