Business Research Methods

The Business Research Process

Information

• Reduces uncertainty

• Helps focus decision making

Types Of Research

• Exploratory

• Descriptive

• Causal

COMPLETELYCERTAIN

ABSOLUTEAMBIGUITY

CAUSAL ORDESCRIPTIVE

EXPLORATORY

Uncertainty Influences The Type Of Research

5

Exploratory Research

Secondary data

Experience survey

Pilot studies

Exploratory Research

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

• Does not provide conclusive evidence

• Subsequent research expected

Descriptive Research

• Describes characteristics of a population or phenomenon

• Some understanding of the nature of the problem

Descriptive Research Example

• Weight Watchers average customer

• Woman about 40 years old

• Household income of about $50,000

• At least some college education

• Trying to juggle children and a job

Descriptive Research Example

• Men’s fragrance market

• 1/3 size of women’s fragrance market

• But growing at a faster pace

• Women buy 80 % of men’s fragrances

Causal Research

• Conducted to identify cause and effect relationships

Identifying Causality

• A causal relationship is impossible to prove.

• Evidence of causality:– 1. The appropriate causal order of events– 2. Concomitant variation--two

phenomena vary together– 3. An absence of alternative plausible

explanations

Exercise

For each of the situations below, decide whether the research should be exploratory, descriptive, or causal?

1. Establishing the functional relationship between advertising and sales

2. Investigating reactions to the idea of a new method of defense budgeting

3. Identifying target market demographics for a shopping center4. Estimating prices for IBM stock two years in the future5. Learning how many organizations are actively involved in just-

in-time production6. Learning the extent of job satisfaction in a company.

Stages of the Research Process

Problem Discoveryand Definition

ResearchDesign

Sampling

DataGathering

Data Processingand Analysis

Conclusions andReport

Discovery andDefinition

and so on

Problemdiscovery

Problem definition(statement of

research objectives)

Secondary(historical)

data

Experiencesurvey

Pilotstudy

Casestudy

Selection ofexploratory research

technique

Selection ofbasic research

method

Experiment SurveyObservation

SecondaryData StudyLaboratory Field Interview Questionnaire

Selection ofexploratory research

techniqueSampling

Probability Nonprobability

Collection ofdata

(fieldwork)

Editing andcodingdata

Dataprocessing

Interpretationof

findings

Report

DataGathering

DataProcessingandAnalysis

Conclusionsand Report

Research Design

Problem Discoveryand Definition

Problem Discovery And Definition

• First step

• Problem, opportunity, or monitor operations

• Discovery before definition

• Problem means management problem

“The formulation of the problem is often more essential than its

solution”

Albert Einstein

17

State the research questions and research

objectives

Hypothesis

• A statement

• that can be refuted/proved

• by empirical data

SecondarySecondary((historicalhistorical))

DataData

PilotPilot

StudyStudy

ExperienceExperience

SurveySurvey

CaseCaseStudyStudy

ExploratoryExploratory

ResearchResearch

Exploratory Research Techniques

• Secondary data (historical data)– Previously collected– Census of population– Literature survey

• Pilot study– A number of diverse techniques

Focus Group Interview

Research Design

• Master plan

• Framework for action

• Specifies methods and procedures

Basic Research Methods

• Surveys

• Experiments

• Secondary data

• Observation

Exercise

What research design seems appropriate for the following studies?

1. The manufacturer and marketer of flight simulators and pilot training equipment wishes to forecast sales volume for the next five

2. A local chapter of the American Lung Association wishes to identify the demographic characteristics of individuals who donate more than $500.00 per year

3. A manager notices that the number of grievances increases. The manager wishes to investigate this occurrence.

4. A financial analyst is concerned with whether load versus no-load mutual funds have higher yields.

5. A corporation is concerned with judging the quality of its college graduate recruitment program.

POPULATIONPOPULATION

SAMPLESAMPLESample: Sample: subsetsubsetof a larger populationof a larger population..

Selecting a Sample

Sampling

• Who is to be sampled?

• How large a sample?

• How will sample units be selected?

Data Gathering Stage

Data Processing and Analysis

Conclusions And Report Writing

• Effective communication of the research findings

Research Proposal

• A written statement of the research design that includes a statement explaining the purpose of the study.

• Detailed outline of procedures associated with a particular methodology