1. 2-1 Research

2. Research What is research? It is any attempt undertaken in order to investigate some problem. In research, a problem is a question or a puzzle that stimulates thought and investigation. One eminent philosopher of science said, “A scientist is a man with a problem or he is nothing.” Some examples of research problems: –Why do businesses that uses TQM make more profits than those that do not use TQM? –Why do business firms lose their competitive advantage? –Does globalization destroy local industries in developing countries? –Why do we have serial killers? –Why does Dubai attract so much foreign investment?

3. 2-3 What Do Researchers Do? Encounter problems State problems Propose hypotheses Deduce outcomes Formulate rival hypotheses Devise and conduct empirical tests Draw conclusions

4. Deductive and Inductive Research Deduction: Deduction is a process by which we drive conclusions logically from antecedents. The process of deduction is the same as the processes of logical validation. Characteristics of Deductive Research (i) In deductive research, we use deduction to drive hypotheses from theories. (ii) In deductive research, theory comes before research. (ii) The purpose of deductive research is to test theories, not to generate theories.

5. Deductive and Inductive Research Induction: Characteristics of Inductive Research (i) The purpose of inductive research is to generate or make theories. (ii) In inductive research, research comes before theory. This means that we do research/study first. Then the results of our study or research may lead us to make theories.

6. 2-6 Exhibit 2-1 Why Didn’t Sales Increase? Deduction

7. 2-7 Exhibit 2-2 Tracy’s Performance

8. Research 2. The Research Cycle or Process The research cycle or process includes the following steps that we have to follow in order to investigate/answer research problems. The research cycle includes the following steps:

9. Problem Definition Literature Review Formulation of Hypotheses Measurement Data Collection Data Analysis Research Findings

10. 2-10 Propositions and Hypotheses Brand Manager Jones (case) has a higher-than-average achievement motivation (variable). Brand managers in Company Z (cases) have a higher-than-average achievement motivation (variable). Generalization

11. 2-11 Hypothesis Formats Descriptive In Detroit, our potato chip market share stands at 13.7%. American cities are experiencing budget difficulties. Research Question What is the market share for our potato chips in Detroit? Are American cities experiencing budget difficulties?

12. 2-12 Relational Hypotheses Correlational Young women (under 35) purchase fewer units of our product than women who are older than 35. The number of suits sold varies directly with the level of the business cycle. Causal An increase in family income leads to an increase in the percentage of income saved. Loyalty to a grocery store increases the probability of purchasing that store’s private brand products.

13. 2-13 The Role of Hypotheses Guide the direction of the study Identify relevant facts Suggest most appropriate research design Provide framework for organizing resulting conclusions

14. 2-14 Characteristics of Strong Hypotheses A Strong Hypothesis Is A Strong Hypothesis Is Adequate Testable Better than rivals Better than rivals

15. 2-15 What Is A Variable? Variable Event Act Characteristic Trait

16. 2-16 Types of Variables Dichotomous Male/Female Employed/ Unemployed Male/Female Employed/ Unemployed Discrete Ethnic background Educational level Religious affiliation Ethnic background Educational level Religious affiliation Continuous Income Temperature Age Income Temperature Age

17. 2-17 Exhibit 2-4 Independent and Dependent Variables Independent Variable (IV) Predictor Presumed cause Stimulus Predicted from… Antecedent Manipulated Dependent Variable (DV) Criterion Presumed effect Response Predicted to…. Consequence Measured outcome

18. 2-18 Moderating Variables (MV) The switch to commission from a salary compensation system (IV) will lead to increased sales productivity (DV) per worker, especially among younger workers (MV). The loss of mining jobs (IV) leads to acceptance of higher-risk behaviors to earn a family-supporting income (DV) – particularly among those with a limited education (MV).