BBM 521

Research Methods
BBM 521 Research Methods

Name : Dr. Vijayasundram Balasundram (Vijay)

E-mail Address : vab1@tutor.wou.edu.my

vijayasundram@gmail.com

Mobile : 019-4740615

Time slot for phone tutor - Mon-Wed-Friday/6-8pm

 Business Research Defined
• A process of determining,
acquiring, analyzing,
synthesizing, and
disseminating relevant
business data, information,
and insights to decision
makers in ways that mobilize
the organization to take
appropriate business actions
that, in turn, maximize
business performance
 Why Study Business Research?

Business
research
provides
information to
guide business
decisions
Research Should Reduce Risk
The primary
purpose of
research is to
reduce the level
of risk of a
decision
 Two Categories of Research
• Applied Research Applied
• Evaluate opportunities
• Improve a current situation

• Basic Research
• Solving theoretical problems
• No direct impact to actions, Basic (Pure)
performance or policy
decisions
 Basic Research
• Attempts to expand the limits of knowledge.
• Not directly involved in the solution to a
pragmatic problem.
 Basic Research Example
• Is executive success correlated with high need
for achievement?
• Are members of highly cohesive work groups
more satisfied than members of less cohesive
work groups?
• Do consumers experience cognitive
dissonance in low-involvement situations?
 Applied Research
• Conducted when a decision must be made
about a specific real-life problem
 Applied Research Examples
• Should McDonalds add Italian pasta dinners to
its menu?
• Business research told McDonald’s it should
not?
• Should Procter & Gamble add a high-priced
home teeth bleaching kit to its product line?
• Research showed Crest Whitestrips would sell
well at a retail price of $44
 Limitations in doing research

• Time constraint
• Availability of data
• Type of decision to be made
• Cost and Benefit
• Payback
• Improve quality
• Use of resources
 Determining When to Conduct
Business
Availability of Data
Research
Benefits vs.
Time Constraints Nature of the Decision Costs
Is the infor- Does the value
Is sufficient time
Yes mation already Yes
Is the decision
Yes of the research Yes Conducting
available before of considerable
a managerial
on hand
strategic
information Business
inadequate exceed the cost
decision
for making
or tactical
of conducting Research
must be made? importance?
the decision? research?

No No No No

Do Not Conduct Business Research

 Value versus Costs
• Potential Value of a Business Research Effort
Should Exceed Its Estimated Costs
 Value Should Exceed
Estimated Costs
Costs
Value •Research
expenditures
•Decreased certainty •Delay of business
•Increased likelihood
decision and
of a correct decision
possible disclosure
•Improved business
of information to
performance and
rivals
resulting higher •Possible erroneous
profits
research results
 Language of Research
Conceptual
Concepts Constructs
schemes

Operational
Models
definitions
Terms used
in research
Theory Variables

Propositions/
Hypotheses
 Theory
• A set of concepts, definition and propositions
that are inter related systematically which is
forwarded to explain or predict a phenomenon
 Value of theory to research
• Reduces the range of facts that needs to be
researched
• Summarizes what is already known about the
object of the research
• Is used to predict other facts that needs to be
found
 Concept (or Construct)
• A generalized idea about a class of objects,
attributes, occurrences, or processes that has
been given a name
• Building blocks that abstract reality
• “leadership,” “productivity,” and “morale”
• “gross national product,” “asset,” and
“inflation”
• A hypothesis is a proposition that is
empirically testable. It is an empirical
statement concerned with the relationship
among variables.
• A variable is anything that may assume
different numerical values.
 Hypothesis Formats
Descriptive Hypothesis Research Question
• In Penang, our potato • What is the market
chip market share stands share for our potato
at 13.7%. chips in Penang?
• Malaysian cities are • Are Malaysian cities
experiencing budget experiencing budget
difficulties. difficulties?
 The Role of Hypotheses

Guide the direction of the study

Identify relevant facts

Suggest most appropriate research

design

Provide framework for organizing

resulting conclusions
 Characteristics of Strong
Hypotheses

Adequate
A
Strong
Testable
Hypothesis
Is
Better
than rivals
 Definitions
• Abstract level -In theory development, the
level of knowledge expressing a concept that
exists only as an idea or a quality apart from
an object.
• Empirical level -Level of knowledge reflecting
that which is verifiable by experience or
observation.
 Scientific Business Researchers
Operate at Two Levels
• Abstract level
– concepts
– propositions
• Empirical level
– variables
– hypotheses
 The Scientific Method:
An Overview

Assess Formulate Statement

Design
relevant concepts & of
research
existing Propositions Hypotheses
knowledge

Acquire Analyze & Provide

empirical evaluate explanation-
data data state new
problem
 Research Strategy
• Quantitative Research
– Quantification and measurement in collection of
data.
– Theory and hypotheses is tested using logic of
deduction.
Meta-analysis (Quantitative Research)

Pooling the results from various studies in

order to estimate the overall effect of a
particular variable by correcting the various
methodological errors of individual studies.
 Deduction
Theory

Develop
hypothesis

Collect and
Analyze data

Accept/reject
hypothesis
 Research Strategy
• Qualitative Strategy
– Focuses on words and texts
– Is associated with generation of theories
– Uses logic of induction
 Meta-ethnography (Qualitative
Research)

Relating various qualitative studies to each

other to produce a synthesis. The usual
criteria for selection are credibility and
interest-level. Through repeated readings of
the selection, a number of characteristics of
the observed phenomenon emerges.
 Induction
Develop
Theory

Formulate
Relationship

Analyze patterns
& themes

Observe
phenomenon
Tracy’s Performance
 Types Of Research
• Exploratory
• Descriptive
• Causal
 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?”
Exploratory Research

Secondary data

Experience survey

Pilot studies

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 Exploratory Research
• Initial research conducted to clarify and define
the nature of a problem
• Does not provide conclusive evidence
• Subsequent research expected
 Exploratory Research Techniques
Two Examples
• Secondary data (historical data)
– Previously collected
– Census of population
– Literature survey
• Pilot study
– A number of diverse techniques
 Descriptive Research
• Describes characteristics of a population or
phenomenon
• Some understanding of the nature of the
problem
 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
 Causal Research
• Conducted to identify cause and effect
relationships
Stages of the Research Process
Problem Discovery
and Definition

Problem Definition

Research Design

Data Collection

Data Analysis

Report Writing/
Interpretation of results
 Stages In The Research Process
• Problem Discovery
• Problem Definition
• Research Design
• Data Gathering
• Data Analysis
• Conclusions And Report
 Problem Discovery
• First step
• Problem, opportunity, or monitor operations
• Discovery before definition
• Problem means management problem
 Problem Definition
• The indication of a specific business decision
area that will be clarified by answering some
research questions.
 Defining Problem Results in
Clear Cut Research Objectives
Symptom Detection

Analysis of
the Situation
Exploratory
Research
(Optional)
Problem Definition

Statement of
Research Objectives
 The Process of
Problem Definition
Ascertain the Determine unit of
decision maker’s analysis
objectives

Understand Determine relevant

background of the variables
problem

Isolate/identify the State research

problem, not the questions and
symptoms objectives
 Research Design
• Master plan
• Framework for action
• Specifies methods and procedures
 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
 Basic Research Methods
• Surveys
• Experiments
• Secondary data
• Observation
Data Gathering Stage
Data Processing and Analysis
Conclusions And Report Writing
• Effective communication of the research
findings
 Determine the Unit of Analysis
• Individuals, households, organizations, etc.
• In many studies, the family rather than the
individual is the appropriate unit of analysis.

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 Basic Questions -
Problem Definition

• What is the purpose of the study?

• How much is already known?
• Is additional background information necessary?
• What is to be measured? How?
• Can the data be made available?
• Should research be conducted?
• Can a hypothesis be formulated?
 Basic Questions -
Basic Research Design
• What types of questions need to be answered?
• Are descriptive or causal findings required?
• What is the source of the data?
 Basic Questions -
Basic Research Design
• Can objective answers be obtained by asking
people?
• How quickly is the information needed?
• How should survey questions be worded?
• How should experimental manipulations be
made?
 Basic Questions -
Selection of Sample
• Who or what is the source of the data?
• Can the target population be identified?
• Is a sample necessary?
• How accurate must the sample be?
• Is a probability sample necessary?
• Is a national sample necessary?
• How large a sample is necessary?
• How will the sample be selected?
 Basic Questions -
Data Gathering
• Who will gather the data?
• How long will data gathering take?
• How much supervision is needed?
• What operational procedures need to be
followed?
 Basic Questions -
Data Analysis
• Will standardized editing and coding
procedures be used?
• How will the data be categorized?
• What statistical software will be used?
• What is the nature of the data?
• What questions need to be answered?
• How many variables are to be investigated
simultaneously?
• Performance criteria for evaluation?
 Basic Questions -
Type of Report
• Who will read the report?
• Are managerial recommendations requested?
• How many presentations are required?
• What will be the format of the written report?
 Basic Questions -
Overall Evaluation
• How much will the study cost?
• Is the time frame acceptable?
• Is outside help needed?
• Will this research design attain the stated
research objectives?
• When should the research be scheduled to
begin?
 Anticipating Outcomes
• Dummy tables
• Representations of the actual tables that will
be in the findings section of the final report;
used to gain a better understanding of what the
actual outcomes of the research will be.