The Research ProcessThe Research ProcessThe Research ProcessThe Research Process

MBA2216 BUSINESS RESEARCH PROJECTMBA2216 BUSINESS RESEARCH PROJECT

byStephen Ong

Visiting Fellow, Birmingham City University, UKVisiting Professor, Shenzhen University

Topics of DiscussionTopics of Discussion

1.1. Types of ResearchTypes of Research

2.2. The Research ProcessThe Research Process

3.3. Research Problem Research Problem DefinitionDefinition

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LEARNING OUTCOMESLEARNING OUTCOMESLEARNING OUTCOMESLEARNING OUTCOMES

1.1. Classify business research as either exploratory Classify business research as either exploratory research, descriptive research, or causal researchresearch, descriptive research, or causal research

2.2. List the major phases of the research process and the List the major phases of the research process and the steps within eachsteps within each

3.3. Explain why proper “problem definition” is essential to Explain why proper “problem definition” is essential to useful business researchuseful business research

4.4. Know how to recognize problemsKnow how to recognize problems

5.5. Translate managerial decision statements into relevant Translate managerial decision statements into relevant research objectivesresearch objectives

6.6. Translate research objectives into research questions Translate research objectives into research questions and/or research hypothesesand/or research hypotheses

After this lecture, you should

TYPES OF RESEARCHTYPES OF RESEARCH

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Types of Business ResearchTypes of Business Research

Business research can be classified on the basis of technique (e.g. experiments, surveys, or observation studies) or purpose.

Classifying research on the basis of its purpose, it can be broken into three categories:

1. exploratory,

2. descriptive, and

3. causal.

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Exploratory ResearchExploratory Research It is conducted to clarify ambiguous situations It is conducted to clarify ambiguous situations

or discover ideas that may be potential or discover ideas that may be potential business opportunities.business opportunities.

It is not intended to provide conclusive It is not intended to provide conclusive evidence from which to determine a particular evidence from which to determine a particular course of action.course of action.

It is not an end unto itself – usually it is It is not an end unto itself – usually it is conducted with the expectation that more conducted with the expectation that more research will be needed to provide more research will be needed to provide more conclusive evidence.conclusive evidence.

It is particularly useful in It is particularly useful in new product new product development.development.

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Descriptive ResearchDescriptive Research It describes characteristics of objects, people,

groups, organizations or environments. It addresses who, what, when, where, and how

questions. It often helps describe market segments. It is conducted with a considerable

understanding of the situation being studied. Diagnostic analysis

Seeks to diagnose reasons for market outcomes and focuses specifically on the beliefs and feelings consumers have about and toward competing products.

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Descriptive Research …Descriptive Research … Examples

The average Weight Watchers’ customer Is a female about 40 years old Has a household income of about $50,000 Has at least some college education Is trying to juggle children and a job

Characteristics of leaders Empathetic Resourceful Ability to delegate

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Causal ResearchCausal Research It allows causal inferences to be made. It seeks to identify cause-and-effect

relationships. When something causes an effect, it

means it brings it about or makes it happen; the effect is the outcome.

It usually follows exploratory and descriptive research and, therefore, the researchers are quite knowledgeable about the subject.

Causal Research …Causal Research … Causal research attempts to establish that when

we do one thing, another thing will follow – a causal inference is just such a conclusion.

A causal inference can only be supported when very specific causal evidence exists, and the three critical pieces of causal evidence are: Temporal Sequence – deals with the time

order of events; having an appropriate causal order of events means the cause must occur before the effect.

i.e. the cause must occur before the effect.i.e. the cause must occur before the effect. E.g. chef changed, sales dropped after that change.E.g. chef changed, sales dropped after that change.

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Concomitant Variation – occurs when two events “co-vary,” meaning they vary systematically and a when a change in the cause occurs, a change in the outcome also is observed.

Changes in income level will lead to changes in the spending.

Non-spurious Association – any covariation between a cause and an effect is true and not simply due to some other variable.

E.g. introduction of compulsory attendance in lecture leads to improved attendance in lecture.

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Causal Research …Causal Research …

The Spurious Effect of Ice CreamThe Spurious Effect of Ice Cream

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Causal Research - Degrees of Causal Research - Degrees of CausalityCausality

Absolute Causality The cause is necessary and sufficient to

bring about the effect. E.g. rain - wet floor

Conditional Causality A cause is necessary but not sufficient to

bring about an effect. Rain – wet floor – broken leg

Contributory Causality A cause need be neither necessary nor

sufficient to bring about an effect. Weakest form of causality. Rain – wet floor – quarrel between couples

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Causal Research - ExperimentsCausal Research - Experiments Experiment

A carefully controlled study in which the researcher manipulates a proposed cause and observes any corresponding change in the proposed effect.

Experimental variable Represents the proposed cause and is

controlled by the researcher by manipulating it. Manipulation

The researcher alters the level of the variable in specific increments.

Test-market An experiment that is conducted within actual

market conditions.

© 2010 South-Western/Cengage Learning. All rights reserved. May not

be scanned, copied or duplicated, or posted to a publically accessible

website, in whole or in part.4–15

Testing for Causes with an ExperimentTesting for Causes with an Experiment

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COMPLETELYCERTAIN

ABSOLUTEAMBIGUITY

CAUSAL ORDESCRIPTIVE

EXPLORATORY

Uncertainty Influences The Type Of Research

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Exploratory ResearchExploratory Research Descriptive ResearchDescriptive Research Causal ResearchCausal Research(Unaware of Problem)(Unaware of Problem) (Aware of Problem)(Aware of Problem) (Problem Clearly Defined)(Problem Clearly Defined)

“ “Our sales are declining and Our sales are declining and “What kind of“What kind of people people are buying“ Will buyers purchase more of ourare buying“ Will buyers purchase more of our we don’t know whywe don’t know why.”.” our product? our product? products in a new package?products in a new package? WhoWho buys our competitor’s buys our competitor’s

product?”product?” “ “Would people be interested Would people be interested “Which of two advertising “Which of two advertising in our new product idea?”in our new product idea?” “What “What featuresfeatures do buyers prefer do buyers prefer campaigns is more effective?”campaigns is more effective?”

in our product?”in our product?”

poss

ible

sit

uati

on

Degree of Problem DefinitionDegree of Problem Definition

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Characteristics of Different Types of Business ResearchCharacteristics of Different Types of Business Research

Uncertainty Influences the Type of Research Uncertainty Influences the Type of Research ConductedConducted

THE RESEARCH PROCESS THE RESEARCH PROCESS 22

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Stages in the Research ProcessStages 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.

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Stages of the Research ProcessStages of the Research Process

EXHIBIT 4.EXHIBIT 4.66

Flowchart Flowchart of the of the

Business Business Research Research ProcessProcess

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.

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Stages in the Research Process Stages in the Research Process 1. Defining the Research Objectives1. Defining the Research Objectives

It is the beginning of the research process. Research objectives are the goals to be achieved by

conducting research. In consulting, the term deliverables is often used to

describe the objectives to a research client. In applied business research, the objectives cannot be

listed until there is an understanding of the decision situation, which must be shared between the actual decision maker and the lead researcher.

This understanding is often described as a problem statement.

A research proposal is a document in which the problem is stated.

This is a process of discovery rather than confirmation.

Stages in the Research Process Stages in the Research Process 1. Defining the Research Objectives1. Defining the Research Objectives

Defining the research problemAn orderly definition of the research problem lends a sense of direction to the investigation.Properly defining a problem can be more difficult than solving it.Defining the decision situation must precede the research objectives.Best place to begin a research project is at the end; that is, knowing what is to be accomplished determines the research process.

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Stages in the Research ProcessStages in the Research Process1. Defining the Research Objectives1. Defining the Research Objectives

Exploratory ResearchExploratory ResearchExploratory Research can be used to help identify the Exploratory Research can be used to help identify the decisions that need to be made.decisions that need to be made.Once done, the researcher should know exactly which Once done, the researcher should know exactly which data to collect during formal phases of the project and data to collect during formal phases of the project and how to conduct the project.how to conduct the project.Researchers can employ techniques from four basic Researchers can employ techniques from four basic categories to obtain insights and gain a clearer idea of categories to obtain insights and gain a clearer idea of the problem: the problem:

previous research, previous research, pilot studies, pilot studies, case studies, and case studies, and experience surveysexperience surveys

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Example : Exploratory Research Example : Exploratory Research TechniquesTechniques

Previous ResearchPrevious Research

Literature reviewLiterature review

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

Pilot StudiesPilot Studies

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Example : Exploratory Research Example : Exploratory Research TechniquesTechniques

A small-scale research project that collects data A small-scale research project that collects data from respondents similar to those to be used in from respondents similar to those to be used in the full study.the full study.

PretestPretest A small-scale study in which the results are A small-scale study in which the results are

only preliminary and intended only to assist only preliminary and intended only to assist in design of a subsequent study.in design of a subsequent study.

Focus GroupFocus Group A small group discussion about some A small group discussion about some

research topic led by a moderator who research topic led by a moderator who guides discussion among the participants.guides discussion among the participants.

Stages in the Research ProcessStages in the Research Process1. Defining the Research Objectives1. Defining the Research Objectives

Stating Research ObjectivesStating Research Objectives After identifying and clarifying the problem, After identifying and clarifying the problem,

the researcher must formally state the the researcher must formally state the research objectives.research objectives.

This statement delineates the type of This statement delineates the type of research that is needed and what research that is needed and what intelligence may result that would allow the intelligence may result that would allow the decision maker to make informed choices.decision maker to make informed choices.

Represents a contract of sorts that commits Represents a contract of sorts that commits the researcher to producing the needed the researcher to producing the needed research.research.

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ExampleExampleResearch ideaResearch idea Research Research

QuestionsQuestionsResearch Research ObjectivesObjectives

Using team Using team briefing in briefing in orientation orientation programprogram

1. Why have 1. Why have organisations organisations introduced team introduced team briefing?briefing?

1. To identify 1. To identify organisations’ organisations’ objectives for objectives for team briefing.team briefing.

2. Has team 2. Has team briefing been briefing been effective?effective?

2. To describe 2. To describe the extent to the extent to which the which the effectiveness effectiveness criteria for team criteria for team briefing being briefing being met.met.

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Stages in the Research ProcessStages in the Research Process1. Defining the Research Objectives1. Defining the Research Objectives

Linking Decision Statements, Linking Decision Statements, Objectives, and HypothesesObjectives, and HypothesesHypotheses should be Hypotheses should be

logically derived from and logically derived from and linked to the research linked to the research objectives.objectives.

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Example : Decision/Problem Statements, Example : Decision/Problem Statements, Research Objectives and Research Objectives and

Research HypothesesResearch Hypotheses

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Stages in the Research ProcessStages in the Research Process2. Planning the Research 2. Planning the Research DesignDesign

Research DesignResearch Design A master plan that specifies the methods A master plan that specifies the methods

and procedures for collecting and and procedures for collecting and analyzing the needed information.analyzing the needed information.

Basic design techniques for descriptive Basic design techniques for descriptive and causal research:and causal research: SurveysSurveys ExperimentsExperiments Secondary dataSecondary data ObservationObservation

Stages in the Research ProcessStages in the Research Process2. Planning the Research Design2. Planning the Research Design Determination of which method should

be chosen depends on:objectives of the studyavailable data sourcesurgency of the decisioncost of obtaining data

Most common method is the survey.4–33

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Selection of the Basic Research Selection of the Basic Research MethodMethod

SurveySurvey A research technique in which a A research technique in which a

sample is interviewed in some form sample is interviewed in some form or the behavior of respondents is or the behavior of respondents is observed and described.observed and described. TelephoneTelephone

MailMail

InternetInternet

In personIn person

Selection of the Basic Research MethodSelection of the Basic Research Method Observations

It can be mechanically recorded or observed by humans.

One advantage of the observation technique is that it records behaviour without relying on reports from respondents.

Several things of interest (i.e., attitudes, opinions, motivations) cannot be observed.

The “Best” Research Design There is no single best research design. Several alternatives can accomplish the stated

research objectives. Ability to select the most appropriate design

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Stages in the Research ProcessStages in the Research Process3. 3. Planning a sample

SamplingSampling

Involves any procedure that draws Involves any procedure that draws conclusions based on measurements of conclusions based on measurements of a portion of the population.a portion of the population.

Sampling decisionsSampling decisions

Who to sample?Who to sample?—t—target populationarget population What size should the sample be?What size should the sample be? How to select the sampling units?How to select the sampling units?

Random sampleRandom sample Cluster-sampleCluster-sample

Stages in the Research ProcessStages in the Research Process4. Gathering Data4. Gathering Data

This is the process of gathering or collecting information.

It may be gathered by human observers or interviewers or may be recorded by machines (e.g., scanner data).

An unobtrusive method is one in which the subjects do not have to be disturbed for data to be collected.

However the data are collected, it is important to minimize errors in the process.

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Stages in the Research ProcessStages in the Research Process5. Processing and Analyzing Data5. 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.

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Stages in the Research ProcessStages in the Research Process6. Drawing Conclusions and 6. Drawing Conclusions and

Preparing a ReportPreparing 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

RESEARCH PROBLEM RESEARCH PROBLEM DEFINITIONDEFINITION

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Good Decisions Start with a Good Decisions Start with a Good Problem DefinitionGood Problem Definition

Importance of Starting with a Good Problem DefinitionImportance of Starting with a Good Problem Definition

The chances that a research project will prove The chances that a research project will prove useful are directly related to how well the useful are directly related to how well the research objectives correspond to the true research objectives correspond to the true business problem.business problem.

When the client fails to understand their When the client fails to understand their situation, or when they insist on studying an situation, or when they insist on studying an irrelevant problem, the research is very likely to irrelevant problem, the research is very likely to fail even if it is done properly.fail even if it is done properly.

Translating a business situation into something Translating a business situation into something that can be researched begins by coming to a that can be researched begins by coming to a consensus on a decision statement or question.consensus on a decision statement or question.

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Good Decisions Start with a Good Decisions Start with a Good Problem DefinitionGood Problem Definition

Decision Statement A written expression of the key question(s)

that the research user wishes to answer.

Problem Definition The process of defining and developing a

decision statement and the steps involved in translating it into more precise research terminology, including a set of research objectives.

Problem ComplexityProblem Complexity Problem definition - this stage of the research process can

be the most complex. Factors influencing problem complexity include:

Situation Frequency – cyclical, routine problems are easier to define.

Dramatic changes – when sudden change in the business situation takes place, it can be easier to define the problem.

How Widespread are the Symptoms? – the more scattered any symptoms are, the more difficult it is to put them together into some coherent problem statement.

Symptom Ambiguity – the greater the ambiguity of the symptoms, the more difficult it is to define the problem.

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Defining Problems Can Be DifficultDefining Problems Can Be Difficult

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The Problem-Definition ProcessThe Problem-Definition Process Problems Mean Gaps

A problem occurs when there is a difference between the current conditions and a more preferable set of conditions (i.e., a gap exists between the way things are now and the way that things could be better).

A gap can come about in a number of ways:1. Business performance is worse than expected (e.g., sales,

profits, margins are below targets set by management).

2. Actual business performance is less than possible business performance (note that realization of this gap first requires that management have some idea of what is possible).

3. Expected business performance is greater than possible business performance.

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The Problem-Definition ProcessThe Problem-Definition Process

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The Problem-Definition ProcessThe Problem-Definition ProcessStep 1: Understand the Business DecisionStep 1: Understand the Business Decision Situation AnalysisSituation Analysis

A situation analysis involves the A situation analysis involves the gathering of background information to gathering of background information to familiarize researchers and managers familiarize researchers and managers with the decision-making environment.with the decision-making environment.

It often requires exploratory research.It often requires exploratory research. The situation analysis begins with an The situation analysis begins with an

interview between the researcher and interview between the researcher and management.management.

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The Problem-Definition ProcessThe Problem-Definition ProcessStep 1: Understand the Business Decision …Step 1: Understand the Business Decision …

Interview Process Researcher should be granted access to all

individuals who have specific knowledge or insight of the situation.

It is important that the researcher not blindly accept a convenient problem definition for expediency’s sake.

Helpful hints that can be useful in the interview process include:

1. Develop many alternative problem statements.2. Think about potential solutions to the problem.3. Make lists – use free association and interrogative techniques

(i.e., asking multiple what, where, who, when, why, and how questions).

4. Be open-minded.

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Identifying Symptoms Probing is an interview technique that tries to

draw deeper and more elaborate explanations from the discussion with key decision makers.

One of the most important questions to ask – “What has changed?” (i.e., customers, competitors, internal conditions of the company and in the external environment).

Then, the researcher should probe to identify potential causes of the change.

The Problem-Definition ProcessThe Problem-Definition ProcessStep 1: Understand the Business Decision …Step 1: Understand the Business Decision …

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What Has Changed?What Has Changed?

The Problem-Definition ProcessThe Problem-Definition ProcessStep 2: Identify the relevant Step 2: Identify the relevant issues from the symptoms issues from the symptoms

The symptoms identified should The symptoms identified should be translated into a problem and be translated into a problem and then a decision statement. then a decision statement.

Exhibit illustrates how symptoms Exhibit illustrates how symptoms can be translated into a problem can be translated into a problem and then a decision statement. and then a decision statement.

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EXHIBIT 6.EXHIBIT 6.44 Symptoms Can Be ConfusingSymptoms Can Be Confusing

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The Problem-Definition ProcessThe Problem-Definition ProcessStep 3: Writing Managerial Decision Step 3: Writing Managerial Decision

Statements into Corresponding Statements into Corresponding Research ObjectivesResearch Objectives

Decision statements must be translated into research objectives. Once the decision statement is written,

the research essentially answers the question, “What information is needed to address this situation?”

Research objectives are the deliverables of the research project.

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EXHIBIT 6.EXHIBIT 6.55 Translating Decision StatementsTranslating Decision Statements

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The Problem-Definition ProcessThe Problem-Definition ProcessStep 4: Determine the Unit of AnalysisStep 4: Determine the Unit of Analysis

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.

The Problem-Definition ProcessThe Problem-Definition ProcessStep 5: Determine the Relevant VariableStep 5: Determine the Relevant Variable

What is a Variable? A variable is anything that varies or

changes from one instance to another. It can exhibit differences in value, usually

in magnitude or strength, or in direction. Converse of a variable is a constant (i.e.,

something that does not change). What is a Constant?

Something that does not change; is not useful in addressing research

questions.

Types of VariablesTypes of Variables Continuous variable

Can take on a range of quantitative values.

E.g. Sales, profit, satisfaction

Categorical variable Indicates membership

in some group. Also called

classificatory variable. E.g. gender, customer

versus non-customers

Dependent variable, Dependent variable, DV or YDV or Y A process outcome or a

variable that is predicted and/or explained by other variables.

Independent Independent variable, IV or Xvariable, IV or X A variable that is

expected to influence the dependent variable in some way.

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Business Decision Situations, Corresponding Research Business Decision Situations, Corresponding Research Hypotheses, and Variable DescriptionsHypotheses, and Variable Descriptions

ExampleExample Why are Americans OBESE?Why are Americans OBESE?

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ExampleExampleHypothesis: There is a positive relationship

between treatment of employees and employee loyalty

Dependent variable Employee Loyalty

Independent variable Treatment of employee

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The Problem-Definition ProcessThe Problem-Definition ProcessStep 6: Writing Research Step 6: Writing Research Objectives and QuestionsObjectives 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.

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Clarity in Research Clarity in Research Questions and HypothesesQuestions and Hypotheses

1.1. A research question is the researcher’s translation of A research question is the researcher’s translation of the problem into a specific inquiry.the problem into a specific inquiry.

2.2. Asking specific research questions helps the researcher Asking specific research questions helps the researcher design a study that will produce useful results.design a study that will produce useful results.

3.3. A formal hypothesis has considerable practical value in A formal hypothesis has considerable practical value in planning and designing research because it forces planning and designing research because it forces researchers to be clear about what they expect to find researchers to be clear about what they expect to find through the study, and it raises crucial questions about through the study, and it raises crucial questions about data required.data required.

4.4. In cases of a “go/no go” decision, the research involves In cases of a “go/no go” decision, the research involves a managerial action standard that specifies a specific a managerial action standard that specifies a specific performance criterion upon which a decision can be performance criterion upon which a decision can be based.based.

5.5. Objectives should be limited to a manageable number.Objectives should be limited to a manageable number.

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Influence of Decision Statement of Marketing Influence of Decision Statement of Marketing Problem on Research Objectives and Problem on Research Objectives and

Research DesignsResearch Designs

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How Much Time Should Be How Much Time Should Be Spent on Problem Definition?Spent on Problem Definition? Budget constraints usually influence

how much effort is spent on problem definition.

The more important the decision faced by management, the more resources should be allocated toward problem definition.

The time taken to identify the correct problem is usually time well spent.

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Further ReadingFurther Reading

ZIKMUND, W.G., BABIN, B.J., CARR, J.C. AND GRIFFIN, M. (2010) BUSINESS RESEARCH METHODS, 8TH EDN, SOUTH-WESTERN

SAUNDERS, M., LEWIS, P. AND THORNHILL, A. (2012) RESEARCH METHODS FOR BUSINESS STUDENTS, 6TH EDN, PRENTICE HALL.

SAUNDERS, M. AND LEWIS, P. (2012) DOING RESEARCH IN BUSINESS & MANAGEMENT, FT PRENTICE HALL.