Business Research Method MGM4104 PJJ

The Scientific Method Scientific Method –The way researchers go about using knowledge and evidence to reach objective conclusions about the real world. –The analysis and interpretation of empirical evidence (facts from observation or experimentation) to confirm or disprove prior conceptions

Business Research Defined Business research is the application of the scientific method in searching for the truth about business phenomena. The process includes: –idea and theory development –problem definition –searching for and collecting information –analyzing data –communicating the findings and their implications

What is a Theory? Theory –A formal, logical explanation of some events that includes predictions or how things relate to one another. Goals of Theory –Understanding –Predicting

Research Concepts Concept (or construct) –A generalized idea about a class of objects, attributes, occurrences or process that has been given a name. Examples: –leadership –morale –gross domestic product –assets –customer satisfaction –market share

EXHIBIT 3.2 Concepts are Abstractions of Reality

EXHIBIT 3.3 Hypotheses Are the Empirical Counterparts of Propositions

The Scientific Method Scientific Method –A set of prescribed procedures for establishing and connecting theoretical statements about events, for analyzing empirical evidence, and for predicting events yet unknown. –Techniques or procedures used to analyze empirical evidence in an attempt to confirm or disprove prior conceptions. Suggested steps: 1.Assess relevant existing knowledge of phenomenon 2.Formulate concepts and propositions 3.State hypotheses 4.Design research to test the hypotheses 5.Acquire empirical data 6.Analyze and evaluate data 7.Propose an explanation of the phenomenon and state new problems raised by the research

Types of Business Research Exploratory Descriptive Causal

Stages in the Research Process Process stages: 1.Defining the research objectives 2.Planning a research design 3.Planning a sample 4.Collecting the data 5.Analyzing the data 6.Formulating the conclusions and preparing the report Forward linkage—earlier stages influence later stages. Backward linkage—later stages influence earlier stages.

EXHIBIT 4.5 Stages of the Research Process

EXHIBIT 4.6 Flowchart of the Business Research Process Note: Diamond-shaped boxes indicate stages in the research process in which a choice of one or more techniques must be made. The dotted line indicates an alternative path that skips exploratory research.

Defining the Research Objectives Research objectives –The goals to be achieved by conducting research. Deliverables –The consulting term used to describe research objectives to a research client.

Previous Research –Literature review A directed search of published works, including periodicals and books, that discusses theory and presents empirical results that are relevant to the topic at hand.

Planning the Research Design Research Design –A master plan that specifies the methods and procedures for collecting and analyzing the needed information. –Basic design techniques for descriptive and causal research: Surveys Experiments Secondary data Observation

Gathering Data Unobtrusive Methods –Methods in which research respondents do not have to be disturbed for data to be gathered.

Processing and Analyzing Data Editing –Involves checking the data collection forms for omissions, legibility, and consistency in classification. Codes –Rules for interpreting, categorizing, recording, and transferring the data to the data storage media. Data analysis –The application of reasoning to understand the data that have been gathered.

Drawing Conclusions and Preparing a Report Steps in communicating the research findings: –Interpreting the research results –Describing the implications –Drawing the appropriate conclusions for managerial decisions Reporting requirements –Conclusions fulfill the deliverables promised in the research proposal –Consider the varying abilities of people to understand the research results –A clearly-written, understandable summary of the research findings

Rights and Obligations of the Researcher The researcher should: –Understand that the purpose of research is research (no sales pitch to research participants) –Maintain objectivity –Not misrepresent research –Be honest in reporting errors –Protect the confidentiality of both subjects and clients

The Problem-Definition Process Problem –When there is a difference between the current conditions and a more preferable set of conditions. Problems Mean Gaps –Business performance is worse than expected business performance. –Actual business performance is less than possible business performance. –Expected business performance is greater than possible business performance.

EXHIBIT 6.2 The Problem-Definition Process

Determine the Unit of Analysis Unit of Analysis –Indicates what or who should provide the data and at what level of aggregation. Individuals (such as customers, employees, and owners) Households (families, extended families, and so forth) Organizations (businesses and business units) Departments (sales, finance, and so forth) Geographical areas Objects (products, advertisements, and so forth). –Multi-level analysis studies variables measured at more than one unit of analysis.

Determine the Relevant Variable What is a Variable? –Anything that varies or changes from one instance to another; can exhibit differences in value, usually in magnitude or strength, or in direction. What is a Constant? –Something that does not change; is not useful in addressing research questions.

Writing Research Objectives and Questions Research Questions –Express the research objectives in terms of questions that can be addressed by research. –Help to develop well-formulated, specific hypotheses that can be empirically tested. –Help the researcher design a study that will produce useful results.

Clarity in Research Questions and Hypotheses Research Questions –The researcher’s translation of the problem into a specific inquiry. Provide input that can be used as a standard for selecting from among alternative solutions. Hypotheses –Statements that can be empirically tested. State what is expected to be found through the study. Managerial Action Standard –A specific performance criterion upon which a decision can be based.

The Research Proposal Research Proposal –A written statement of the research design. Uses for the Proposal –As a planning tool –As a contract Funded Business Research –Basic research usually performed by academic researchers that is financially supported by some public or private institution as in federal government grants.

What is Qualitative Research? Qualitative business research –Research that addresses business objectives through techniques that allow the researcher to provide elaborate interpretations of phenomena without depending on numerical measurement Its focus is on discovering true inner meanings and new insights. Researcher-dependent –Researcher must extract meaning from unstructured responses such as text from a recorded interview or a collage representing the meaning of some experience.

Qualitative “versus” Quantitative Research Quantitative business research –Descriptive and conclusive Addresses research objectives through empirical assessments that involve numerical measurement and statistical analysis. Qualitative business research –Exploratory Uses small versus large samples Asks a broad range of questions versus structured questions Subjective interpretation versus statistical analysis

Contrasting Exploratory and Confirmatory Research Qualitative data –Data that are not characterized by numbers but rather are textual, visual, or oral. Focus is on stories, visual portrayals, meaningful characterizations, interpretations, and other expressive descriptions. Quantitative data –Represent phenomena by assigning numbers in an ordered and meaningful way.

Qualitative Research Orientations Major Orientations of Qualitative Research 1.Phenomenology—originating in philosophy and psychology 2.Ethnography—originating in anthropology 3.Grounded theory—originating in sociology 4.Case studies—originating in psychology and in business research

What Is a Phenomenological Approach to Research? Phenomenology –A philosophical approach to studying human experiences based on the idea that human experience itself is inherently subjective and determined by the context in which people live. –Seeks to describe, reflect upon, and interpret experiences. –Relies on conversational interview tools and respondents are asked to tell a story about some experience.

What Is Hermeneutics? Hermeneutics –An approach to understanding phenomenology that relies on analysis of texts through which a person tells a story about him- or herself. Hermeneutic Unit –A text passage from a respondent’s story that is linked with a key theme from within the respondent’s story or provided by the researcher.

What Is Ethnography? Ethnography –Represents ways of studying cultures through methods that involve becoming highly active within that culture. Participant-observation –An ethnographic research approach where the researcher becomes immersed within the culture that he or she is studying and draws data from his or her observations.

What Is Grounded Theory? Grounded Theory –Represents an inductive investigation in which the researcher poses questions about information provided by respondents or taken from historical records. The researcher asks the questions to him or herself and repeatedly questions the responses to derive deeper explanations. –Key questions: What is happening here? How is it different?

What Are Case Studies? Case Studies –The documented history of a particular person, group, organization, or event. Themes –Are identified by the frequency with which the same term (or a synonym) arises in the narrative description.

EXHIBIT 7.2 Common Qualitative Research Tools

Focus Group Interview An unstructured, free-flowing interview with a small group (6-10 people) led by a moderator who encourages dialogue among respondents. Advantages: 1.Relatively fast 2.Easy to execute 3.Allow respondents to piggyback off each other’s ideas 4.Provide multiple perspectives 5.Flexibility to allow more detailed descriptions 6.High degree of scrutiny

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

The Focus Group Moderator Moderator –A person who leads a focus group interview and insures that everyone gets a chance to speak and contribute to the discussion. Qualities of a good moderator: –Develops rapport with the group –Good listener –Tries not to interject his or her own opinions –Controls discussion without being overbearing

Planning a Focus Group Outline Discussion guide –Includes written introductory comments informing the group about the focus group purpose and rules and then outlines topics or questions to be addressed in the group session.

Focus Group Discussion Guide 1.Welcome and introductions should take place first. 2.Begin the interview with a broad icebreaker that does not reveal too many specifics about the interview. 3.Questions become increasingly more specific as the interview proceeds. 4.If there is a very specific objective to be accomplished, that question should probably be saved for last. 5.A debriefing statement should provide respondents with the actual focus group objectives and answering any questions they may have.

Disadvantages of Focus Groups Focus groups: –Require objective, sensitive, and effective moderators. –May have unique sampling problems. –May not be useful for discussing sensitive topics in face-to-face situations. –Cost a considerable amount of money, particularly when they are not conducted by someone employed by the company desiring the focus group.

Depth Interviews Depth interview –A one-on-one interview between a professional researcher and a research respondent conducted about some relevant business or social topic. Laddering –A particular approach to probing asking respondents to compare differences between brands at different levels. –Produces distinctions at the: attribute level benefit level value or motivation level

Conversations –An informal qualitative data-gathering approach in which the researcher engages a respondent in a discussion of the relevant subject matter. Semi-structured interviews –Written form and ask respondents for short essay responses to specific open-ended questions. –Advantages An ability to address more specific issues Responses are easier to interpret Without the presence of an interviewer, semi-structured interviews can be relatively cost effective

Social Networking One of the most impactful trends in recent times. –For many, social networking sites have become the primary tool for communicating with friends both far and near and known and unknown. MySpace Second Life Zebo A large portion of this information discusses business and consumer-related information. –Companies monitor these sites for information related to their brands.

Other Techniques Observation – Field notes The researcher’s descriptions of what actually happens in the field. These notes then become the text from which meaning is extracted. –Advantageous for gaining insight into things that respondents cannot or will not verbalize.