Presentation on theme: "Chapter 4: The Business Research Process: An Overview"— Presentation transcript:
1Chapter 4: The Business Research Process: An Overview
2Decision Making Information reduces uncertainty -It helps focus decision makingCertaintyUncertaintyAmbiguity
3Types Of Research Exploratory Descriptive Causal Initial research conducted to clarify ambiguous situations or discover potential business opportunitiesDoes not provide conclusive evidenceSubsequent research expectedUseful in new product developmentDescriptiveDescribes characteristics of a population or phenomenon (who, what, when, where, and how)Some understanding of the nature of the problemUseful in describing market segmentCausalConducted to identify cause and effect relationships
4Degree 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 ofwe don’t know why.” our product? Who buys our our products in a new package?competitor’s product?”“Would people be interested “Which of two advertisingin our new product idea?” “What features do buyers prefer campaigns is more effective?”in our product?”possible situation
5Descriptive Research Example Weight Watchers average customerWoman about 40 years oldHousehold income of about $50,000At least some college educationTrying to juggle children and a job
6Identifying Causality Evidence of causality:1. Temporal Sequence - the appropriate causal order of events – the cause must occur before the effect2. 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 explanations3. Non-spurious Association (eg. Icecream sales)Often Use Experiments in Causal Research
7Uncertainty Influences The Type Of Research CAUSAL ORDESCRIPTIVECOMPLETELYCERTAINABSOLUTEAMBIGUITYEXPLORATORY
8Stages of the Research Process P Defining ObjectivesDiscovery andDefinitionand so onResearchDesignConclusions andReportSamplingData Processingand AnalysisDataGathering
9Research Stages Cyclical process - conclusions generate new ideas Stages can overlap chronologicallyStages are functionally interrelatedForward linkagesBackward linkages
11Stages In The Research Process Problem Discovery and Problem DefinitionResearch DesignSamplingData GatheringData Processing and AnalysisConclusions And Report
12“The formulation of the problem is often more essential than its solution” Albert Einstein
13Problem Discovery And Definition First and probably most important stepToo often neglected leading to costly errorsProvides direction for the projectProblem, opportunity, or monitor operationsDiscovery before definitionMust not mistake symptoms for problem
14Exploratory Research Techniques Three Examples Secondary data (historical data)Previously collected for another purposeLiterature surveyDatabases (e.g.,Pilot studyA number of diverse techniquesFocus Groups6 to 10 people in group dynamics session
15State the research questions and research objectives Hypothesis:A statement that can be refutedby empirical data
16Research Design Master plan Specifies methods and procedures Framework for action
17Basic Research Methods SurveysInterviewQuestionnaireExperimentscontrol conditions so that one or more variables can be manipulated to test a hypothesisFieldLaboratorySecondary data studyObservation
18Selecting a Sample Sample: subset SAMPLE of a larger population.
19Sampling 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 selectedNonprobability Samples
20Data Gathering StageFocus on error minimizationPretesting
21Data Processing and Analysis EditingChecking the data collectionforms for omissions, legibilityand consistencyCodingRules for interpreting,categorizing and recordingthe data
22Conclusions And Report Writing Effective communication of the research findingsUsually includes making recommendations“What does this mean to management?”
23Chapter 6: Problem Definition: The Foundation of Business Research
25Problem Discovery and Definition First stepProblem, opportunity, or monitor operationsDiscovery before definitionProblem means management problem
26“The formulation of the problem is often more essential than its solution.” Albert Einstein
27Problem DefinitionThe indication of a specific business decision area that will be clarified by answering some research questions.Problems Mean GapBusiness performance is worse than expectedActual business performance is less than possibleExpected business performance is greater than possible business performance
28Defining Problem Results in Clear Cut Research Objectives Symptom DetectionAnalysis ofthe SituationExploratoryResearch(Optional)Problem DefinitionStatement ofResearch Objectives
29The Process of Problem Definition Ascertain the decision maker’s objectivesDetermine unit of analysisUnderstand background of the problemDetermine relevant variablesIsolate/identify the problem, not the symptomsState research questions and objectives
30Ascertain the Decision Maker’s Objectives Managerial goals expressed in measurable terms.
31The Iceberg PrincipleThe principle indicating that the dangerous part of many business problems is neither visible to nor understood by managers.
32Understand the Background of the Problem Exercising judgmentSituation analysis - The informal gathering of background information to familiarize researchers or managers with the decision area.
33Isolate and Identify the Problems, Not the Symptoms Symptoms can be confusing
34Symptoms 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
35Problem DefinitionOrganization Symptoms Based on Symptom True ProblemTwenty-year-old neighborhood swimming association in a major city.Membership has been declining for years. New water park with wave pool and water slides moved into town a few years ago.Neighborhood residents prefer the expensive water park and have negative image of swimming pool.Demographic changes: Children in this 20-year-old neighborhood have grown up. Older residents no longer swim anywhere.
36What Language Is Written on This Stone Found by Archaeologists? TOTIEMULESTO
38Determine the Unit of Analysis Individuals, households, organizations, etc.In many studies, the family rather than the individual is the appropriate unit of analysis.
39Determine the Relevant Variable Anything that may assume different numerical values
40Types of VariablesCategoricalContinuousDependentIndependent
41Hypothesis An unproven proposition A possible solution to a problem Guess
42State the research questions and research objectives
43If you do not know where you are going, any road will take you there.
44Broad research objectives Statement of business problem Exploratory research (optional)Specific Objective 1Specific Objective 2Specific Objective 3Research DesignResults
45Research ProposalA written statement of the research design that includes a statement explaining the purpose of the studyDetailed outline of procedures associated with a particular methodologyNormally a schedule of costs and deadline is included
46Basic 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?
47Basic 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?
48Basic 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?
49Basic 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?
50Basic 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?
51Basic 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?
52Basic 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?
53Basic 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?