lecture 20 business research methods by aziza munir

Lecture 20Business Research Methods

ByAziza Munir

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What we will Learn?

• To classify Business research• Business research and decision making• Link decision making alternatives available for

researcher at each stage in decision making

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Decision Making

• Decision making is a process of resolving a problem or choosing among alternatives opportunity.

• The key to decision making is to recognize the nature of problem or opportunity.

• To identify how much information is available and recognize what information is needed.

• Every business problem or decision making situation can be classified on a continuum ranging from complete certainty to complete ambiguity

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Complete Certainty Certainty Absolute Ambiguity

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Certainty

Complete certainty means that the decision maker has all the information that he or she needs. The decision maker knows the exact nature of the business problem or opportunity. Eg an airline may need to know the demographic characteristics of its pilots. The firm knows exactly what information it requires and from where it can find it. If a manager is so completely certain about the problem or opportunity and future outcomes, then research may not be needed at all. However perfect certainty about future is rare

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Uncertainty

It means that all the managers grasp the general nature of the objectives they wish to obtain, but the information about the alternatives is incomplete. Predictions about the forces that will shape future events are educated guesses. under conditions of uncertainty, effective managers recognize potential value in spending additional time gathering information to clarify the nature of problem.

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Absolute Ambiguity

Ambiguity means that the nature of problem to be solved is unclear. The objectives are vague and the alternatives are difficult to decline. This is so far considered as the ost difficult situation of taking decision.As the situation moves farther along the scale towards ambiguity, the need to spend additional time on business research becomes more compelling

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Types of business research

• Business research produces information that reduce uncertainty.

• It helps focus decision making• Business researchers exactly know what their

problems are and design studies to test specific hypothesis.

• Eg a soft drink company introducing a new iced coffee might want to know whether a gold or silver label would make packaging more attractive

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• Eg a manager identifies a drastic increase in absenteeism, which has greatly affected the productivity but not fully aware of all the possible causes of absenteeism

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Types of research

• Because of variety of research activity, it will be helpful to categorize the business research.

• Business research can be classified on the basis of either techniques or functions.

• Experiments, surveys, and observational studies are common research techniques

• Classification on the basis of functions allow us to understand how nature of problem influences the choice of research methods.

• The nature of problem indicates if it is:

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• Exploratory research• Descriptive research • Causal research

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Exploratory Study

• Initial research conducted to clarify and define the nature of problem

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Descriptive research

• A research designed to describe characteristics of a population or phenomenon

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Diagnostic Analysis

• Ensuing analysis used to understand findings such as explanations respondents give for a behavior or attitude

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Causal Research

• Research conducted to identify cause and effect relationships among variables where the research statement has already been defined narrowly

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Combined look of examplesExploratory Descriptive Causal

Absenteeism is increasing and we don’t know why

Would people be interested in our new product idea

What should be the specific leadership traits which solve problems of our labor union

What kind of people favor trade protectionism

Last year product sale affects company’s stock price

People are interested in buying saving certificates from past decade

Which of two training programs are more effective

Will buyers buy more of our products if we change our package

Smoking cause cancer

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Flow chart of research processProblem

discovery and Definition

Research Design

Sampling

Problem Discovery

Selection of basic research method

Selection of Sample Design

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Problem Discovery

Selection of Exploratory

Research Technique

Secondary Data Pilot Study Experience

Survey Case Study

Problem Definition (Statement of Research

Objectives)

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Selection of basic

research method

SurveyInterview

Questionnare

ExperimentLab Feild Observation Secondary

data Search

Selection of Sample Design

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Probability Non Probability

Data Collection

Editing and Coding

Data Processing

Interpretations

Report

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Problem Definition

• The indication of specific business decision area that will be clarified by answering some research questions

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Secondary Data

• Data that have been collected previously for some project other than in hand

• Primary data is assembled primarily and specifically for the problem in consideration

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Pilot Study

• Any small scale exploratory research technique that uses sampling but doesnot apply rigorous standards

• Serves as a guide for large study• Informal and lacks in precision• Future extensive work is required

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Research Project

• A specific research investigation: that completes or plan to follow research process through identified research objectives

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Research design

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Survey / Experiment

• Most common method of generating primary data• A research technique in which data is collected

through questionnaire• Interviews, personalized or self administered also

solves the purpose• Use of experiments allows to analyse the impact

of change in one variable over other.• Conducted in controlled environment• Results are restricted in given conditions

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Sampling

• Any procedure that includes small number of items or that uses parts of population to make conclusions regarding whole population.

• Sample is a subset of population• Sample should hold a characteristic of

providing right estimate of population• Sampling units are catagorized as probability

or non probability

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Data Collection, and investigation

• Primary• Secondary means• Questionnaire• Interviews• Observations• Focus group• Empirical work

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Editing and Coding

• Collected data should be converted into the format of answer to decision making

• Editing involves checking the data collection forms for omissions, legibility and consistency in classification

• It correct problems and errors during research• Coding process facilitates computer or hand

tabulations, for verification and analysis

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Report Generation

• Formal document• Communicate research findings• Assumptions and limitations are secified• Proper language and format should be

followed• Comprises of necessary tabulations, charts

and graphical analysis• Easy to understand and interpret

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Research Process and Research Program

• Research is a continuous process rather one shot approach

• An ongoing series of research projects defined to supply an organization’s continuing informational needs

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Conclusion

• Exploratory• Descriptive• Causal Research• Problem definition• Primary and secondary data• Pilot study• Research project • Research design and • Research program