1. Business Research Methods
Problem Definition & Approach

2. It is action oriented & is concerned with possible actions DM can take
Distinction between Management decision problem & Business research problem
Management Decision Problem is the problem confronting the decision maker
It is action oriented & is concerned with possible actions DM can take
It focuses on symptoms
-loss of market share for a particular product
-Decision problem is how to recover this loss

3. Business research problem
Business research problem asks what information is needed and how it should be obtained
It is information oriented
It focuses on underlying causes
-Causes for loss of market share could be:
ineffective ad. campaign,
inappropriate segmentation of market,
incorrect price strategy,
improper distribution
better product of the competitor
-After exploratory research it is found that problem is caused by inappropriate segmentation of the market
-Research problem would be identification & evaluation of an alternative basis for segmenting the market

4. Distinction between Management decision problem & Business research problem
Should a new product be introduced ?
Should the ad. Campaign be changed?
Should the price of the brand be increased?
Business research problem
To determine consumer preferences & purchase intentions for proposed product
To determine the effectiveness of the current Ad. Campaign
Determine price elasticity of demand& its impact on sales &profit

5. Distinction between Management decision problem & Business research problem
What should be done to improve patronage of our store?
Business research problem
To determine relative strengths & weaknesses of the store vis-a vis other major competitors with respect to factors that influence store patronage

6. “The formulation of the problem is often more essential than its solution.”
Albert Einstein

7. Problem Definition
The indication of a specific business decision area that will be clarified by answering some research questions.

8. Research Questions
Research questions are refined statements of specific components of the problem
They ask what specific information is required w.r.t .problem component
They are interrogative in nature
State the research questions

9. Hypothesis Hypothesis goes beyond research questions
An unproven proposition or statement of relationships
A possible solution to a problem
Guess
Hypothesis are declarative in nature
Can be tested empirically

10. RESEARCH QUESTION HYPOTHESIS
1) What is the mean income of ) The lower income people
heavy-drinkers of beer? consume more beer.
2) What age group of purchasers ) The age group 35–44 is
of product ‘X’ buys ‘X’ the most? the heaviest user.
3) What will be the result on sales of 3) A 20 percent increase in
a 20 percent increase in price? price will not lead to
a decrease in rupee sales