Business Research Defined

Business research is defined as the systematic and objective process of generating information for aid in making business decisions.

Determining When to Conduct Business Research Time constraints

Availability of data
Nature of the decision Benefits versus costs

Determining When to Conduct Business Research

Availability of Data Benefits Time Constraints Nature of the Decision vs. Costs
Is sufficient time available before a managerial decision must be made?
Yes

Is the information already on hand inadequate for making the decision?

Yes

Is the decision of considerable strategic or tactical importance?

Yes

Does the value of the research information exceed the cost of conducting research?
No

Yes

Conducting Business Research

No

No

No

Do Not Conduct Business Research

Value Should Exceed Estimated Costs

Costs Value Decreased certainty Increased likelihood of a correct decision Improved business performance and resulting higher profits Research expenditures Delay of business decision and possible disclosure of information to rivals Possible erroneous research results

Major Topics for Research in Business General Business Conditions and Corporate Research Financial and Accounting Research Management and Organizational Behavior Research Sales and Marketing Research Information Systems Research Corporate Responsibility Research

Global Research

Business Research is increasingly global Market knowledge is essential A.C. Nielsen - more than 67% international business

Global Business Research

General information about country economic conditions and political climate Cultural and consumer factors Market and competitive conditions demand estimation

What is Good Research?

Following the standards of the scientific method Purpose clearly defined Research process detailed Research design thoroughly planned Limitations frankly revealed High ethical standards applied

Types Of Research Design

Exploratory Descriptive Causal

Uncertainty Influences The Type Of Research

CAUSAL OR DESCRIPTIVE

COMPLETELY CERTAIN

ABSOLUTE AMBIGUITY

EXPLORATORY

Degree of Problem Definition

Exploratory Research Descriptive Research Causal Research (Unaware of Problem) (Aware of Problem) (Problem Clearly Defined)
P O S S I B L E S I T U A T I O n

Our sales are declining and we dont know why.

What kind of people are buying our product? Who buys our competitors product? What features do buyers prefer in our product?

Will buyers purchase more of our products in a new package?

Would people be interested in our new product idea?

Which of two advertising campaigns is more effective?

Exploratory Research Initial research conducted to clarify and define the nature of a problem

Does not provide conclusive evidence

Subsequent research expected

Exploratory Research
Secondary data Experience survey Pilot studies

13

Descriptive Research Describes characteristics of a population or phenomenon Some understanding of the nature of the problem

Causal Research Conducted to identify cause and effect relationships

Exploratory Research Techniques Two Examples

Secondary data (historical data)

Previously collected Census of population Literature survey

Pilot study
A number of diverse techniques

Focus Group Interview A structured group process conducted for the purpose of exploring peoples thoughts and feelings and obtaining detailed information about a particular topic or issue.

Exploratory research

Secondary data Experience survey Pilot studies

Exploratory Research

Initial research conducted to clarify and define the nature of a problem Does not provide conclusive evidence Subsequent research expected

Why Conduct Exploratory Research?

Diagnose a situation Screening of alternatives Discover new ideas

Categories of Exploratory Research

Experience surveys Secondary data analysis Case studies Pilot studies

Experience Surveys

Ask knowledgeable individuals about a particular research problem

most are quite willing

Secondary Data Analysis

Data collected for a purpose other than the project at hand Economical Quick source for background information

Case Study Method

Intensely investigates one or a few situations similar to the problem Investigate in depth Careful study May require cooperation

Pilot Study

A collective term Any small scale exploratory study that uses sampling

Pilot Studies Focus Group Interviews

Projective Techniques
In-Depth Interviews

Focus Group Interview A structured group process conducted for the purpose of exploring peoples thoughts and feelings and obtaining detailed information about a particular topic or issue.

Projective Techniques

Word association tests Sentence completion method Third-person technique Role playing T.A.T. Picture frustration version of T.A.T.

Word Association

Subject is presented with a list of words Asked to respond with first word that comes to mind

Word Association Examples

Money Lawn Eggs and Ham

GREEN

CHEESE

Kraft Cheddar Goat

Sentence Completion

People who drink beer are ______________________ A man who drinks light beer is ___________________ Imported beer is most liked by ___________________ A woman will drink beer when____________________

Thematic Apperception Test T.A.T.

Focus Group Interviews

Unstructured Free flowing Group interview Start with broad topic and focus in on specific issues

Group Composition
6 to 10 people Relatively homogeneous Similar lifestyles and experiences

Outline for a Focus Group

Establish a rapport Begin with broad topic Focus in on specific topic Generate discussion and interaction

The Moderator
Develops rapport helps people relax Interacts Listens to what people have to say Everyone gets a chance to speak Maintains loose control and focuses discussion Stimulates spontaneous responses

Advantages of Online Focus Groups

Fast Inexpensive Bring together many participants from wide-spread geographical areas Respondent anonymity Transcript automatically recorded

Disadvantages of Online Focus Groups

Less group interaction Absence of tactile stimulation Absence of facial expression and body language Moderators job is different

ERRORS IN RESEARCH DESIGN

T O T A L E R R O R
A. Random sampling error B. Systematic error 1. Respondent error a) Nonresponse error b) Response bias (1) Deliberate falsification (2) Unconscious misrepresentation c) Types of Response bias (1) Acquiescence bias (2) Extremity bias (3) Interviewer bias (4) Auspices bias (5) Social desirability bias 2. Administrative error a) Data processing error b) Sample selection error c) Interviewer error d) Interviewer cheating

Tree Diagram of Total Survey Error

Random sampling error

Total error

Systematic error (bias)

Random Sampling Error

A statistical fluctuation that occurs because of change variation in the elements selected for the sample

Systematic Error or Non Sampling Error

Systematic error results from some imperfect aspect of the research design or from a mistake in the execution of the research

Tree Diagram of Total Survey Error

Administrative error

Systematic error (bias) Respondent error

Sample Bias

Sample bias - when the results of a sample show a persistent tendency to deviate in one direction from the true value of the population parameter

Tree Diagram of Total Survey Error

Nonresponse error Respondent error Response bias

Respondent Error

A classification of sample bias resulting from some respondent action or inaction Nonresponse bias Response bias

Nonresponse Error

Nonrespondents - people who refuse to cooperate Not-at-homes Self-selection bias

Over-represents extreme positions Under-represents indifference

Tree Diagram of Total Survey Error

Deliberate falsification Response bias Unconscious misrepresentation

Response Bias
A bias that occurs when respondents tend to answer questions with a certain slant that consciously or unconsciously misrepresents the truth

Tree Diagram of Total Survey Error

Acquiescence bias

Extremity bias
Response bias Interviewer bias

Auspices bias

Social desirability bias

Acquiescence Bias

A category of response bias that results because some individuals tend to agree with all questions or to concur with a particular position.

Extremity Bias

A category of response bias that results because response styles vary from person to person; some individuals tend to use extremes when responding to questions.

Interviewer Bias

A response bias that occurs because the presence of the interviewer influences answers.

Auspices Bias

Bias in the responses of subjects caused by the respondents being influenced by the organization conducting the study.

Social Desirability Bias

Bias in responses caused by respondents desire, either conscious or unconscious, to gain prestige or appear in a different social role.

Tree Diagram of Total Survey Error

Administrative error

Systematic error (bias) Respondent error

Administrative Error

Improper administration of the research task Blunders

Confusion Neglect Omission

Tree Diagram of Total Survey Error

Data processing error

Sample selection error Administrative error Interviewer error

Interviewer cheating

Administrative Error

Interviewer cheating - filling in fake answers or falsifying interviewers Data processing error - incorrect data entry, computer programming, or other procedural errors during the analysis stage. Sample selection error -improper sample design or sampling procedure execution. Interviewer error - field mistakes