Chapter 4:

The Business Research Process: An

Overview
 Decision Making
• Information reduces uncertainty
-It helps focus decision making

Certainty

Uncertainty

Ambiguity
 Types Of Research
• Exploratory
– Initial research conducted to clarify ambiguous
situations or discover potential business opportunities
– Does not provide conclusive evidence
– Subsequent research expected
– Useful in new product development
• Descriptive
– Describes characteristics of a population or
phenomenon (who, what, when, where, and how)
– Some understanding of the nature of the problem
– Useful in describing market segment
• Causal
– Conducted to identify cause and effect relationships
 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
 Identifying Causality
• Evidence of causality:
1. Temporal Sequence - the appropriate causal order of
events – the cause must occur before the effect
2. Concomitant variation--two phenomena vary together
systematically, i.e, when a change in the cause occurs,
a change in the outcome also is observed . Correlation
coefficient is used to represent concomitant variation.
– An absence of alternative plausible explanations
3. Non-spurious Association (eg. Icecream sales)
• Often Use Experiments in Causal Research
 Uncertainty Influences
The Type Of Research
CAUSAL OR COMPLETELY ABSOLUTE EXPLORATORY
DESCRIPTIVE CERTAIN AMBIGUITY
 Stages of the Research Process
Defining Research Discovery and
Objectives ------- 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
Define objectives Selection of
and Definition
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 study
• 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?”
 Chapter 6:
Problem Definition: The Foundation
of Business Research
A Sea Horse’s Tale
Problem Discovery and Definition

• First step
• Problem, opportunity, or monitor operations
• Discovery before definition
• Problem means management problem
“The formulation of the problem
is often more essential than its
solution.”

Albert Einstein
 Problem Definition
• The indication of a specific business
decision area that will be clarified by
answering some research questions.
• Problems Mean Gap
– Business performance is worse than expected
– Actual business performance is less than
possible
– Expected business performance is greater than
possible business performance
 Defining Problem Results in
Clear Cut Research Objectives
Symptom Detection

Analysis of
the Situation
Exploratory
Research
Problem Definition (Optional)

Statement of
Research Objectives
 The Process of
Problem Definition
Determine unit of
Understand analysis
background of the
problem

Isolate/identify the Determine relevant

problem, not the variables
symptoms

Ascertain the State research

decision maker’s questions and
objectives objectives
 Ascertain the Decision Maker’s
Objectives
• Decision makers’ objectives
• Managerial goals expressed in measurable
terms.

30
 The Iceberg Principle

• The principle indicating that the dangerous

part of many business problems is neither
visible to nor understood by managers.
 Understand the Background of
the Problem
• Exercising judgment
• Situation analysis - The informal gathering
of background information to familiarize
researchers or managers with the decision
area.

32
Isolate and Identify the Problems,
Not the Symptoms
• Symptoms can be confusing

33
 Symptoms Can Be Confusing
Twenty-year-old neighborhood swimming
association:
• Membership has been declining for years.
• New water park -residents prefer the
expensive water park????
• Demographic changes: Children have
grown up
 Problem Definition
Organization Symptoms Based on Symptom True Problem

Twenty-year-old Membership has been Neighborhood Demographic changes:

neighborhood declining for years. residents prefer the Children in this 20-
swimming New water park with expensive water year-old neighborhood
association in a wave pool and water park and have have grown up. Older
major city. slides moved into negative image of residents no longer
town a few years ago. swimming pool. swim anywhere.
What Language Is Written on
This Stone Found by
Archaeologists?

TOTI
EMUL
ESTO
The Language Is English: To Tie
Mules To

TOTI
EMUL
ESTO
 Determine the Unit of Analysis
• Individuals, households, organizations, etc.
• In many studies, the family rather than the
individual is the appropriate unit of
analysis.

38
Determine the Relevant Variable
• Anything that may assume different
numerical values

39
 Types of Variables
• Categorical
• Continuous
• Dependent
• Independent
 Hypothesis
• An unproven proposition
• A possible solution to a problem
• Guess
State the research questions and
research objectives

42
If you do not know where you are going,
any road will take you there.
Broad research Statement of Exploratory
objectives business research
problem (optional)

Specific Specific Specific

Objective 1 Objective 2 Objective 3

Research
Results
Design
 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
• Normally a schedule of costs and deadline
is included
 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?