DrAshrafElsafty ResearchMehods ESLSCA July12

Research Methods for Business MBA course - ESLSCA
Dr. Ashraf Elsafty

ashraf@ashrafelsafty.com 0100 146 3 111
1st Reference Book: Research methods for business: a skill building approach, 5th Edition, Uma Sekaran and Roger Bougie. 2nd Reference Book: Business research methods, 8th Edition, Donald Cooper and Pamela Shindler
1
Chapter 1
Introduction to Research
Definition of Business Research

Business research: an organized, systematic, data-based, critical, objective, scientific inquiry or investigation into a specific problem, undertaken with the purpose of finding answers or solutions to it. A process of determining, acquiring, analyzing, synthesizing, and disseminating relevant business data, information, and insights to decision makers in ways that mobilize the organization to take appropriate business actions that, in turn, maximize business performance
3
Applied versus Basic Research

Basic research: generates a body of knowledge by trying to comprehend how certain problems that occur in organizations can be solved. Applied research: solves a current problem faced by the manager in the work setting, demanding a timely solution.
Examples Applied Research

Apples iPod fueled the companys success in recent years, helping to increase sales from $5 billion in 2001 to $32 billion in the fiscal year 2008. Growth for the music player averaged more than 200% in 2006 and 2007, before falling to 6% in 2008. Some analysts believe that the number of iPods sold will drop 12% in 2009. The reality is theres a limited group of people who want an iPod or any other portable media player, one analyst says. So the question becomes, what will Apple do about it? The existing machinery in the production department has had so many breakdowns that production has suffered. Machinery has to be replaced. Because of heavy investment costs, a careful recommendation as to whether it is more beneficial to buy the equipment or to lease it is needed.
5
More Examples of Research Areas in Business

Absenteeism Communication Motivation Consumer decision making Customer satisfaction Budget allocations Accounting procedures
Why managers should know about research

Being knowledgeable about research and research methods helps professional managers to:
Identify and effectively solve minor problems in the work setting. Know how to discriminate good from bad research. Appreciate the multiple influences and effects of factors impinging on a situation. Take calculated risks in decision making. Prevent possible vested interests from exercising their influence in a situation. Relate to hired researchers and consultants more effectively. Combine experience with scientific knowledge while making decisions.
The ManagerResearcher Relationship

Each should know his/her role Trust levels Value system Acceptance of findings and implementation Issues of inside versus outside researchers/consultants
Whats Changing in Business that Influences Research

New Research Perspectives Computing Power & Speed Information Overload Technological Connectivity Shifting Global Economics
Factors
Battle for Analytical Talent
1-9
Critical Scrutiny of Business

Government Intervention
Computing Power and Speed

Lower-cost Data Collection
Integration of Data
Better Visualization Tools
Factors
Real-time Access
1-10
Powerful Computation
Business Planning Drives Business Research
Organizational Mission
Business Goals
Business Strategies
Business Tactics
1-11
Research May Not Be Necessary

Can It Pass These Tests?
Can information be applied to a critical decision? Will the information improve managerial decision making? Are sufficient resources available?
1-12
Information Value Chain

Data collection/ transmission Characteristics
Decision support systems Models
1-13
Data management
Data interpretation
The Business Research Process
1-14
Characteristics of Good Research

Clearly defined purpose Detailed research process Thoroughly planned design
High ethical standards

Limitations addressed Adequate analysis Unambiguous presentation Conclusions justified Credentials
1-15
Two Categories of Research
Applied
Basic (Pure)
1-16
Four Types of Studies
Reporting
Descriptive
Explanatory
Predictive
1-17
Internal Researchers
Advantages:
Better acceptance from staff Knowledge about organization Would be an integral part of implementation and evaluation of the research recommendations.
Disadvantages
Less fresh ideas Power politics could prevail Possibly not valued as expert by staff
18
External Researchers
Advantages
Divergent and convergent thinking Experience from several situations in different organizations Better technical training, usually
Disadvantages
Takes time to know and understand the organization Rapport and cooperation from staff not easy Not available for evaluation and implementation Costs
19
Who Conducts Business Research?
1-20
Key Terms
Applied research Business intelligence system (BIS) Business research Control Decision support system Descriptive studies Explanatory Studies Management dilemma Predictive studies Pure research Reporting studies Return on Investment (ROI) Scientific method Strategy Tactics
1-21
Chapter 2
Scientific Investigation, Thinking like a Researcher
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Hallmarks of Scientific Research:

Hallmarks or main distinguishing characteristics of scientific research:
Purposiveness Rigor Testability Replicability Precision and Condence Objectivity Generalizability Parsimony
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Research and Intuition

If we ignore supernatural inspiration, intuition is based on two things: experience and intelligence. The more experience I have with you, the more likely I am to encounter repetition of activities and situations that help me learn about you. The smarter I am, the more I can abstract from those experiences to find connections and patterns among them.
Jeffrey Bradshow, creator of the software that searches databases

3-24
Language of Research
Concepts Constructs Conceptual schemes Operational definitions
Models
Terms used in research

Theory Propositions/ Hypotheses
Variables
3-25
Language of Research
Clear conceptualization of concepts
Success of Research
Shared understanding of concepts
3-26
Job Redesign Constructs and Concepts
3-27
Hypothetico-Deductive Research
The Seven-Step Process in the HypotheticoDeductive Method
Identify a broad problem area Define the problem statement Develop hypotheses Determine measures Data collection Data analysis Interpretation of data
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Deduction and Induction

Deductive reasoning: application of a general theory to a specific case.
Hypothesis testing
Inductive reasoning: a process where we observe specific phenomena and on this basis arrive at general conclusions.
Counting white swans
Both inductive and deductive processes are often used in research.

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Sound Reasoning
Types of Discourse
Exposition
Argument
Deduction
3-30
Induction
Deductive Reasoning
Inner-city household interviewing is especially difficult and expensive This survey involves substantial inner-city household interviewing The interviewing in this survey will be especially difficult and expensive
3-31
2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Inductive Reasoning
Why didnt sales increase during our promotional event?
Regional retailers did not have sufficient stock to fill customer requests during the promotional period A strike by employees prevented stock from arriving in time for promotion to be effective A hurricane closed retail outlets in the region for 10 days during the promotion
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Why Didnt Sales Increase?
3-33
Tracys Performance
3-34
A Variable Is the Property Being Studied
Event
Act
Variable
Characteristic Trait
Attribute
3-35
Propositions and Hypotheses

Brand Manager Jones (case) has a higher-thanaverage achievement motivation (variable).
Generalization Brand managers in Company Z (cases) have a higher-than-average achievement motivation (variable).
3-36
Hypothesis Formats
Descriptive Hypothesis In Detroit, our potato chip market share stands at 13.7%. American cities are experiencing budget difficulties. Research Question What is the market share for our potato chips in Detroit? Are American cities experiencing budget difficulties?
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Relational Hypotheses
Correlational
Young women (under 35) purchase fewer units of our product than women who are older than 35.
The number of suits sold varies directly with the level of the business cycle.
Causal
An increase in family income leads to an increase in the percentage of income saved. Loyalty to a grocery store increases the probability of purchasing that stores private brand products.
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The Role of Hypotheses

Guide the direction of the study
Identify relevant facts
Suggest most appropriate research design

Provide framework for organizing resulting conclusions
3-39
Characteristics of Strong Hypotheses
Adequate A Strong Hypothesis Is
Testable
Better than rivals

3-40
Theory within Research
3-41
The Role of Reasoning
3-42
A Model within Research
3-43
The Scientific Method

Direct observation Clearly defined variables Clearly defined methods Empirically testable
Elimination of alternatives Statistical justification

Self-correcting process
3-44
3-45
Researchers
Encounter problems State problems Propose hypotheses Deduce outcomes Formulate rival hypotheses Devise and conduct empirical tests Draw conclusions
Key Terms
Argument Case Concept Conceptual scheme Construct Deduction Empiricism Exposition Hypothesis Correlational Descriptive Explanatory Relational 3-46 Hypothetical construct Induction Model Operational definition Proposition Sound reasoning Theory Variable Control Confounding (CFV) Dependent (DV) Extraneous (EV) Independent (IV) Intervening (IVV) Moderating (MV)
Chapter 3
The Research Process - The Broad Problem Area and Defining the Problem Statement
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The Broad Problem Area

Examples of broad problem areas that a manager could observe at the workplace:
Training programs are not as effective as anticipated. The sales volume of a product is not picking up. Minority group members are not advancing in their careers. The newly installed information system is not being used by the managers for whom it was primarily designed. The introduction of flexible work hours has created more problems than it has solved in many companies.
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Preliminary Information Gathering

Nature of information to be gathered:
Background information of the organization. Prevailing knowledge on the topic.
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Literature Review
A good literature survey:
Ensures that important variables are not left out of the study. Helps the development of the theoretical framework and hypotheses for testing. Ensures that the problem statement is precise and clear. Enhances testability and replicability of the findings. Reduces the risk of reinventing the wheel. Confirms that the problem is perceived as relevant and significant.
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Data sources
Textbooks Academic and professional journals Theses Conference proceedings Unpublished manuscripts Reports of government departments and corporations Newspapers The Internet
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Searching for Literature

Most libraries have the following electronic resources at their disposal:
Electronic journals Full-text databases Bibliographic databases Abstract databases
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The Problem Statement

Examples of Well-Defined Problem Statements
To what extent do the structure of the organization and type of information systems installed account for the variance in the perceived effectiveness of managerial decision making? To what extent has the new advertising campaign been successful in creating the high-quality, customer-centered corporate image that it was intended to produce? How has the new packaging affected the sales of the product? What are the effects of downsizing on the long-range growth patterns of companies?
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The Research Proposal

Key elements:
Purpose of the study Specific problem to be investigated. Scope of the study Relevance of the study Research design:
Sampling design Data collection methods Data analysis
Time frame Budget Selected Bibliography
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5-55
Stage 1: Clarifying the Research Question
5-56
Management-research question hierarchy process begins by identifying the management dilemma
Management-Research Question Hierarchy
5-57
SalePros Hierarchy
5-58
Formulating the Research Question
5-59
Types of Management Questions
5-60
The Research Question

Examine variables Break questions down
Determine necessary evidence
Fine-Tuning
Set scope of study
Evaluate hypotheses
5-61
Investigative Questions
Performance Considerations
Attitudinal Issues
Behavioral Issues
5-62
Chapter 4
The Research Process - Theoretical Framework & Hypothesis Development
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Theoretical Framework
A theoretical framework represents your beliefs on how certain phenomena (or variables or concepts) are related to each other (a model) and an explanation on why you believe that these variables are associated to each other (a theory).
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Theoretical Framework
Basic steps:

Identify and label the variables correctly State the relationships among the variables: formulate hypotheses Explain how or why you expect these relationships
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Variable
Any concept or construct that varies or changes in value Main types of variables: Dependent variable Independent variable Moderating variable Mediating variable
2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/sekaran
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(In)dependent Variables
Dependent variable (DV)
Is of primary interest to the researcher. The goal of the research project is to understand, predict or explain the variability of this variable.
Independent variable (IV)

Influences the DV in either positive or negative way. The variance in the DV is accounted for by the IV.
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Example
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Moderators
Moderating variable
Moderator is qualitative (e.g., gender, race, class) or quantitative (e.g., level of reward) variable that affects the direction and/or strength of relation between independent and dependent variable.
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Mediating Variable
Mediating variable surfaces between the time the independent variables start operating to influence the dependent variable and the time their impact is felt on it.
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Hypothesis
A proposition that is empirically testable. It is an empirical statement concerned with the relationship among variables. Good hypothesis:
Must be adequate for its purpose Must be testable Must be better than its rivals
Can be:
Directional Non-directional
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Exercise
Give the hypotheses for the following framework:
Service quality
Customer switching
Switching cost
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Exercise
Give the hypotheses for the following framework:
Service quality
Customer satisfaction
Customer switching
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Argumentation
The expected relationships / hypotheses are an integration of:
Exploratory research Common sense and logical reasoning
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Independent and Dependent Variable Synonyms

Independent Variable (IV) Predictor Presumed cause Stimulus Predicted from Antecedent Manipulated Dependent Variable (DV) Criterion Presumed effect Response Predicted to. Consequence Measured outcome
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3-76
Relationships Among Variable Types
3-77
3-78
Moderating Variables (MV)

The introduction of a four-day week (IV) will lead to higher productivity (DV), especially among younger workers (MV) The switch to commission from a salary compensation system (IV) will lead to increased sales (DV) per worker, especially more experienced workers (MV). The loss of mining jobs (IV) leads to acceptance of higher-risk behaviors to earn a family-supporting income (DV) particularly among those with a limited education (MV).
3-79
Extraneous Variables (EV)

With new customers (EV-control), a switch to commission from a salary compensation system (IV) will lead to increased sales productivity (DV) per worker, especially among younger workers (MV). Among residents with less than a high school education (EV-control), the loss of jobs (IV) leads to high-risk behaviors (DV), especially due to the proximity of the firing range (MV).
3-80
Intervening Variables (IVV)

The switch to a commission compensation system (IV) will lead to higher sales (DV) by increasing overall compensation (IVV). A promotion campaign (IV) will increase savings activity (DV), especially when free prizes are offered (MV), but chiefly among smaller savers (EV-control). The results come from enhancing the motivation to save (IVV).
3-81
Chapter 5
The Research Process Elements of Research Design
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Evaluating the Value of Research
Option Analysis
Decision Theory Prior or Interim Evaluation Ex Post Facto Evaluation
4-83
Research Design
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4-85
Purpose of the Study

Exploration Description Hypothesis Testing
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Exploratory study:
is undertaken when not much is known about the situation at hand, or no information is available on how similar problems or research issues have been solved in the past.
Example:
A service provider wants to know why his customers are switching to other service providers?
87

Descriptive study:
is undertaken in order to ascertain and be able to describe the characteristics of the variables of interest in a situation.
Example:
A bank manager wants to have a profile of the individuals who have loan payments outstanding for 6 months and more. It would include details of their average age, earnings, nature of occupation, full-time/part-time employment status, and the like. This might help him to elicit further information or decide right away on the types of individuals who should be made ineligible for loans in the future.
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Hypothesis testing:
Studies that engage in hypotheses testing usually explain the nature of certain relationships, or establish the differences among groups or the independence of two or more factors in a situation.
Example:
A marketing manager wants to know if the sales of the company will increase if he doubles the advertising dollars.
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Type of Investigation
Causal Study
it is necessary to establish a definitive cause-and-effect relationship.
Correlational study
identification of the important factors associated with the problem.
90
Study Setting
Contrived: artificial setting Non-contrived: the natural environment where work proceeds normally
91
Population to be Studied
Unit of analysis:
Individuals Dyads Groups Organizations Cultures
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Time Horizon
Cross-sectional studies
Snapshot of constructs at a single point in time Use of representative sample
Multiple cross-sectional studies

Constructs measured at multiple points in time Use of different sample
Longitudinal studies
Constructs measured at multiple points in time Use of same sample = a true panel
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4-94
Stage 1: Clarifying the Research Question
Management-research question hierarchy process begins by identifying the management dilemma
4-95
Stage 2: Proposing Research

Budget Types Rule-of-thumb Departmental Task
The Research Proposal

Purpose Legallybinding contract Methods Extent
Written proposals establish
Timing
Obligations
Delivery Budgets
4-96
Stage 3: Research Design
4-97
Stage 3: Designing the Research

Research Design The Research Project Sampling Design
Pilot Testing
4-98
4-99
Data Characteristics
Abstractness Verifiability Elusiveness Closeness
Steps in Data Analysis and Interpretation
Reducing data to manageable size
Developing summaries
Looking for patterns
Applying statistical techniques

4-100
Parts of the Research Report
Executive Summary
Research Overview
Research Report
Technical Appendix
4-101
Implementation Strategies
The Research Report Overview

Problems background
Summary of exploratory findings
Research design and procedures
Conclusions
4-102
Research Process Problems to Avoid
Ill-defined management problem Unresearchable questions
Politically-motivated research
4-103
Research Process Problems to Avoid
Company Database Strip-Mining The FavoredTechnique Syndrome
4-104
Exploratory Phase Search Strategy

Discovery/ Analysis Secondary Sources
Expert Interview
Search Strategy
Group Discussions
5-105
Individual Depth Interviews
Integration of Secondary Data into the Research Process
5-106
Objectives of Secondary Searches

Expand understanding of management dilemma Gather background information Identify information that should be gathered Identify sources for and actual questions that might be used Identify sources for and actual sample frames that might be used
5-107
Conducting a Literature Search

Define management dilemma
Consult books for relevant terms
Use terms to search
Locate/review secondary sources Evaluate value of each source and content

5-108
Levels of Information
Primary Sources: Memos Letters Interviews Speeches Laws Internal records Secondary Sources: Encyclopedias Textbooks Handbooks Magazines Newspapers Newscasts Tertiary Sources: Indexes Bibliographies Internet search engines
5-109
Integrating Secondary Data
5-110
Information Sources
Indexes/ Bibliographies
Directories
Dictionaries
Types
Handbooks Encyclopedias
5-111
Evaluating Information Sources

Purpose
Format
Scope
Evaluation Factors
Audience Authority
5-112
The Evolution of Data Mining

Evolutionary Step Investigative Question Enabling Technologies Characteristics
Data collection (1960s)
What was my average total revenue over the last five years? What were unit sales in California last December? What were unit sales in California last December? Drill down to Sacramento. Whats likely to happen to Sacramento unit sales next month? Why?
Computers, tapes, disks
Retrospective, static data delivery Retrospective, dynamic data delivery at record level Retrospective, dynamic data delivery at multiple levels
Data access (1980s)
Relational databases (RDBMS), structured query language (SQL), ODBC Online analytic processing (OLAP), multidimensional databases, data warehouses Advanced algorithms, multiprocessor computers, massive databases
Data navigation (1990s)
Data mining (2000)
Prospective, proactive information delivery
5-113
Data-Mining Process
5-114
Searching Databases vs. the Web
5-115
What Is Research Design?

Blueprint
Plan
Guide Framework
6-116
What Tools Are Used in Designing Research?
6-117
What Tools Are Used in Designing Research?
MindWriter Project Plan in Gantt chart format
6-118
Design in the Research Process
6-119
Descriptors of Research Design

Perceptual Awareness
Question Crystallization
Data Collection Method Experimental Effects
Purpose of Study
Descriptors
Research Environment
Topical Scope
6-120
Time Dimension
Degree of Question Crystallization

Exploratory Study Loose structure Expand understanding Provide insight Develop hypotheses Formal Study Precise procedures Begins with hypotheses Answers research questions
6-121
Approaches for Exploratory Investigations

Participant observation Film, photographs Projective techniques Psychological testing Case studies Ethnography Expert interviews Document analysis Proxemics and Kinesics
6-122
Desired Outcomes of Exploratory Studies

Established range and scope of possible management decisions
Established major dimensions of research task Defined a set of subsidiary questions that can guide research design
6-123
Desired Outcomes of Exploratory Studies (cont.)

Developed hypotheses about possible causes of management dilemma
Learned which hypotheses can be safely ignored Concluded additional research is not needed or not feasible
6-124
Commonly Used Exploratory Techniques
Secondary Data Analysis
Experience Surveys
Focus Groups
6-125
Experience Surveys
What is being done? What has been tried in the past with or without success? How have things changed? Who is involved in the decisions? What problem areas can be seen? Whom can we count on to assist or participate in the research?
6-126
6-127
Focus Groups
Group discussion 6-10 participants Moderator-led 90 minutes-2 hours

Purpose of Study
Descriptors
Topical Scope
6-128
Time Dimension
Data Collection Method

Monitoring Communication
6-129

Purpose of Study
Descriptors
Topical Scope
6-130
Time Dimension
The Time Dimension
Cross-sectional
Longitudinal
6-131

Purpose of Study
Descriptors
Topical Scope
6-132
Time Dimension
The Topical Scope

Statistical Study Breadth Population inferences Quantitative Generalizable findings Case Study Depth Detail Qualitative Multiple sources of information
6-133

Purpose of Study
Descriptors
Topical Scope
6-134
Time Dimension
6-135
The Research Environment

Field conditions Lab conditions
Simulations

Purpose of Study
Descriptors
Topical Scope
6-136
Time Dimension

Reporting Descriptive
Casual Explanatory
6-137
Causal Predictive
Descriptive Studies
Who?
How much?
What?
When?
Where?
6-138
Descriptive Studies
Descriptions of population characteristics
Estimates of frequency of characteristics Discovery of associations among variables
6-139

Purpose of Study
Descriptors
Topical Scope
6-140
Time Dimension
Experimental Effects
Ex Post Facto Study After-the-fact report on what happened to the measured variable Experiment Study involving the manipulation or control of one or more variables to determine the effect on another variable
6-141
Ex Post Facto Design

Fishing Club Member Age
Under 30 years
Non-Fishing-Club Member High Absentee

30
High Absentee
36
Low Absentee
6
Low Absentee
48
30 to 45
45 and over
4
0
4
0
35
5
117
115
6-142
Causation and Experimental Design
Control/ Matching
Random Assignment
6-143
Mills Method of Agreement
6-144
Mills Method of Difference
6-145
Causal Studies
Symmetrical Reciprocal
Asymmetrical
6-146
Understanding Casual Relationships

Property
Behavior
Response
Disposition
6-147
Stimulus
Asymmetrical Casual Relationships

Stimulus-Response
PropertyBehavior
PropertyDisposition
Disposition-Behavior
6-148
6-149
Exhibit 6-6 Types of Asymmetrical Causal Relationships

Relationship Type
Stimulus-response
Nature of Relationship
An event or change results in a response from some object.
Examples
A change in work rules leads to a higher level of worker output. A change in government economic policy restricts corporate financial decisions. A price increase results in fewer unit sales. Age and attitudes about saving. Gender attitudes toward social issues. Social class and opinions about taxation. Opinions about a brand and its purchase. Job satisfaction and work output. Moral values and tax cheating. Stage of the family life cycle and purchases of furniture. Social class and family savings patterns. Age and sports participation.
Property-disposition
An existing property causes a disposition. A disposition causes a specific behavior. An existing property causes a specific behavior.
Disposition-behavior
Property-behavior
Evidence of Causality
Covariation between A and B
Time order of events
No other possible causes of B

6-150

Purpose of Study
Descriptors
Topical Scope
6-151
Time Dimension
6-152
Participants Perceptional Awareness
No deviation perceived Deviations perceived as unrelated Deviations perceived as researcher-induced

Category
The degree to which the research question has been crystallized
Options
Exploratory study Formal study
The method of data collection

The power of the researcher to produce effects in the variables under study The purpose of the study
Monitoring Communication Study

Experimental Ex post facto Reporting Descriptive Causal-Explanatory Causal-Predictive Cross-sectional Longitudinal Case Statistical study Field setting Laboratory research Simulation Actual routine Modified routine
The time dimension The topical scopebreadth and depthof the study The research environment
6-153
The participants perceptional awareness of the research activity
Key Terms
Census Data Primary data Secondary data Data analysis Decision rule exploration Investigative questions Management dilemma
4-154
Management question Management-research question hierarchy Pilot test Research design Research process Research questions Sample Target population
Key Terms
Asymmetrical relationship Case study Causal study Causation Childrens panels Communication study Control Control group Correlation Cross-sectional study
6-155
Descriptive study Ethnographic research Ex post facto design Experience Experiment Exploratory study Field conditions Focus group Formal study Individual depth interview Intranet
Key Terms (cont.)

Laboratory conditions Longitudinal study Matching Monitoring Primary data Qualitative techniques Random assignment Reciprocal relationship Research design Secondary data Simulation Statistical study Symmetrical relationship
6-156
Chapter 6
Measurement of Variables: Operational Definition
157
Measurement
Measurement: the assignment of numbers or other symbols to characteristics (or attributes) of objects according to a pre-specified set of rules.
158
(Characteristics of) Objects

Objects include persons, strategic business units, companies, countries, kitchen appliances, restaurants, shampoo, yogurt and so on. Examples of characteristics of objects are arousal seeking tendency, achievement motivation, organizational effectiveness, shopping enjoyment, length, weight, ethnic diversity, service quality, conditioning effects and taste.
159
Types of Variables
Two types of variables:
One lends itself to objective and precise measurement; The other is more nebulous and does not lend itself to accurate measurement because of its abstract and subjective nature.
160
Operationalizing Concepts
Operationalizing concepts: reduction of abstract concepts to render them measurable in a tangible way. Operationalizing is done by looking at the behavioral dimensions, facets, or properties denoted by the concept.
161
Example
162
Chapter 7
Measurement of Variables: Scaling, Reliability, Validity
163
Scale
Scale: tool or mechanism by which individuals are distinguished as to how they differ from one another on the variables of interest to our study.
164
Nominal Scale
A nominal scale is one that allows the researcher to assign subjects to certain categories or groups. What is your department? O Marketing O Maintenance O Production O Servicing O Sales O Public Relations What is your gender? O Male O Female
O Finance O Personnel O Accounting
165
Nominal Scale
166
Ordinal Scale
Ordinal scale: not only categorizes variables in such a way as to denote differences among various categories, it also rank-orders categories in some meaningful way. What is the highest level of education you have completed? O Less than High School O High School/GED Equivalent O College Degree O Masters Degree O Doctoral Degree
167
Ordinal Scale
168
Interval Scale
Interval scale: whereas the nominal scale allows us only to qualitatively distinguish groups by categorizing them into mutually exclusive and collectively exhaustive sets, and the ordinal scale to rank-order the preferences, the interval scale lets us measure the distance between any two points on the scale.
169
Interval scale
Circle the number that represents your feelings at this particular moment best. There are no right or wrong answers. Please answer every question. 1. I invest more in my work than I get out of it I disagree completely 1 2 3 4 5 I agree completely
2. I exert myself too much considering what I get back in return I disagree completely 1 2 3 4 5 I agree completely
3. For the efforts I put into the organization, I get much in return I disagree completely 1 2 3 4 5 I agree completely
170
Interval scale
171
Ratio Scale
Ratio scale: overcomes the disadvantage of the arbitrary origin point of the interval scale, in that it has an absolute (in contrast to an arbitrary) zero point, which is a meaningful measurement point. What is your age?
172
Ratio Scale
173
Properties of the Four Scales
174
Goodness of Measures
175
Validity
176
Reliability
Reliability of measure indicates extent to which it is without bias and hence ensures consistent measurement across time (stability) and across the various items in the instrument (internal consistency).
177
Stability
Stability: ability of a measure to remain the same over time, despite uncontrollable testing conditions or the state of the respondents themselves.
TestRetest Reliability: The reliability coefcient obtained with a repetition of the same measure on a second occasion. Parallel-Form Reliability: Responses on two comparable sets of measures tapping the same construct are highly correlated.
178
Internal Consistency
Internal Consistency of Measures is indicative of the homogeneity of the items in the measure that tap the construct.
Interitem Consistency Reliability: This is a test of the consistency of respondents answers to all the items in a measure. The most popular test of interitem consistency reliability is the Cronbachs coefcient alpha. Split-Half Reliability: Split-half reliability reflects the correlations between two halves of an instrument.
179
1.Illustrate the needed operationalization for : - Need for Cognition, OR - Shopping Enjoyment.
2. Select among the studied scales, the needed types to measure 4 of your elements, make sure to use all scales types.
180
Chapter 8
Data Collection Methods
181
Sources of Data
Primary data: information obtained rsthand by the researcher on the variables of interest for the specific purpose of the study. Examples: individuals, focus groups, panels Secondary data: information gathered from sources already existing.
Examples: company records or archives, government publications, industry analyses offered by the media, web sites, the Internet, and so on.
182
Personal Interview
Advantages
Can clarify doubts about questionnaire Can pick up non-verbal cues Relatively high response/cooperation Special visual aids and scoring devises can be used
Disadvantages
High costs and time intensive Geographical limitations Response bias / Confidentiality difficult to be assured Some respondents are unwilling to talk to strangers Trained interviewers
183
Telephone Interview
Advantages
Discomfort of face to face is avoided Faster / Number of calls per day could be high Lower cost
Disadvantages
Interview length must be limited Low response rate No facial expressions
184
Self-administered
Advantages
Lowest cost option Expanded geographical coverage Requires minimal staff Perceived as more anonymous
Disadvantages
Low response rate in some modes No interviewer intervention possible for clarification Cannot be too long or complex Incomplete surveys
185
Principles of Questionnaire Design.
186
Questionnaire Design
Definition
A questionnaire is a pre-formulated, written set of questions to which the respondent records his answers
Steps
1. 2. 3. 4. 5. Determine the content of the questionnaire Determine the form of response Determine the wording of the questions Determine the question sequence Write cover letter
187
1. Questionnaire content
Framework
Need information for all constructs in framework
Measurement: Operationalizing
Objective construct:
1 element/items => 1 question
Subjective construct:
multiple elements/items => multiple questions
188
2. Response format
Closed vs. Open-ended questions
Closed questions
Helps respondents to make quick decisions Helps researchers to code
Open-ended question
First: unbiased point of view Final: additional insights Complementary to closed question: for interpretation purpose
Cfr. Measurement: Response scales
189
3. Question Wording
Avoid double-barreled questions Avoid ambiguous questions and words Use of ordinary words
Avoid leading or biasing questions

Social desirability
Avoid recall depended questions
190
Question Wording
Use positive and negative statements
Dresdner delivers high quality banking service Dresdner has poor customer operational support Avoid double negatives
Limit the length of the questions

Rules of thumb: < 20 words < one full line in print
191
4. Question Sequence
Personal and sensitive data at the end

192
5. Cover Letter
The cover letter is the introductory page of the questionnaire It includes:
Identification of the researcher Motivation for respondents to fill it in Confidentiality Thanking of the respondent
193
Structured Observations
Recording prespecified behavioral patterns of people, objects and events in a systematic manner. Quantitative in nature Different types
Personal observation
(e.g., mystery shopper, pantry audit)
Electronic observation
(e.g., scanner data, people meter, eye tracking)
194
Chapter 9
Experimental Designs
195
Causal Research
Research conducted to identify cause-and-effect relationships among variables when the research has already been narrowly defined
196
Evidence for Causality

Covariation
Evidence of the extent to which X and Y occur together or vary together in the way predicted by the hypothesis Evidence that shows X occurs before Y Evidence that allows the elimination of factors other than X as the cause of Y About why the independent variable affects the dependent variable.
197
Time order of occurrence of variable
Elimination of other possible causal factors A logical explanation
Experiment
Data collection method in which one or more IVs are manipulated in order to measure their effect on a DV, while controlling for exogenous variables in order to test a hypothesis
Cause and effect relationship is established by
Manipulation of independent variable Controlling for exogenous factors
198
Manipulation of IV
Manipulation
Creation of different levels of the IV to assess the impact on the DV
Treatment levels
The arbitrary or natural groups a researcher makes within the IV
Evidence for causality

Covariation (difference between groups) Time order control
199
Exogenous Variables
Controlling for exogenous/confounding variables
Eliminating other possible causal factors Eliminating alternative explanations
Experimental designs available Two types of exogenous variables

Related to participants Related other, environmental factors
200
Related to Participants
Selection bias: improper assignment of participants to the experimental
groups Matched groups: Match the different groups as closely as possible in terms of age, interest, expertise etc. Random assignment: Randomly assign members to different treatment groups. The differences will be randomly distributed. Systematic bias will reduce. Statistical control: Measuring the external variables and adjusting for their effect through statistical methods
Mortality: Loss of participants during the experiment
201
Related to other actors

History effects: External events occurring at the same time that
may affect the DV

Maturation effects: Changes in the participants as a passage of time that may affect the DV
Testing effects: The experiment itself affect the responses
Main testing effect: prior responses affect later responses

Interactive testing effect: prior responses affect perception of IV
Instrumentation effects: Changes in measuring instrument
202
Experimental Design
203
Experimental Design
204
Experimental Design
205
Experimental Design
206
Experimental Design
207
Experimental Design
208
Experimental Design
209
Exercise
An organization would like to introduce one of two types of new manufacturing processes to increase the productivity of workers. Both involve heavy investment in expensive technology. The company wants to test the efficacy of each process in one of its small plants. Propose an experiment, using: - Pretest posttest control group design - Posttest control group design And calculate for each design the specific effect of each new process on the productivity.
210
Validity
Internal validity
Determination of whether the effect is actually caused by the manipulation of treatments and not by other, exogenous variables
External validity
Determination of whether the cause-and-effect relationships found in the experiment can be generalized
211
Compared to field experiments, lab experiments have the following

Advantages
High degree of control High internal validity / replication Less costly and less expensive
Disadvantages
Artificiality => reactive error Demand artifacts Lower external validity
212
Chapter 10
Sampling
213
Sampling
Sampling: the process of selecting a sufficient number of elements from the population, so that results from analyzing the sample are generalizable to the population.
214
Relevant Terms - 1
Population refers to the entire group of people, events, or things of interest that the researcher wishes to investigate. An element is a single member of the population. A sample is a subset of the population. It comprises some members selected from it.
215
Relevant Terms - 2
Sampling unit: the element or set of elements that is available for selection in some stage of the sampling process. A subject is a single member of the sample, just as an element is a single member of the population.
216
Relevant Terms - 3
The characteristics of the population such as (the population mean), (the population standard deviation), and 2 (the population variance) are referred to as its parameters. The central tendencies, the dispersions, and other statistics in the sample of interest to the research are treated as approximations of the central tendencies, dispersions, and other parameters of the population.
217
Statistics versus Parameters
218
Advantages of Sampling
Less costs Less errors due to less fatigue Less time Destruction of elements avoided
219
The Sampling Process

Major steps in sampling:
Define the population. Determine the sample frame Determine the sampling design Determine the appropriate sample size Execute the sampling process
220
Sampling Techniques
Probability versus nonprobability sampling Probability sampling: elements in the population have a known and non-zero chance of being chosen
221
Sampling Techniques
Probability Sampling
Simple Random Sampling Systematic Sampling Stratified Random Sampling Cluster Sampling
Nonprobability Sampling
Convenience Sampling Judgment Sampling Quota Sampling
222
Simple Random Sampling
Procedure
Each element has a known and equal chance of being selected
Characteristics
Highly generalizable Easily understood Reliable population frame necessary
223
Systematic Sampling
Procedure
Each nth element, starting with random choice of an element between 1 and n
Characteristics
Idem simple random sampling Easier than simple random sampling Systematic biases when elements are not randomly listed
224
Cluster Sampling
Procedure
Divide of population in clusters Random selection of clusters Include all elements from selected clusters
Characteristics
Intercluster homogeneity Intracluster heterogeneity Easy and cost efficient Low correspondence with reality
225
Stratified Sampling
Procedure
Divide of population in strata Include all strata Random selection of elements from strata
Proportionate Disproportionate
Characteristics
Interstrata heterogeneity Intrastratum homogeneity Includes all relevant subpopulations
226
(Dis)proportionate Stratified Sampling

Number of subjects in total sample is allocated among the strata (dis)proportional to the relative number of elements in each stratum in the population Disproportionate case:
strata exhibiting more variability are sampled more than proportional to their relative size requires more knowledge of the population, not just relative sizes of strata
227
Example
228
Overview
229
Overview
230
Overview
231
Choice Points in Sampling Design
232
Tradeoff between precision and confidence

We can increase both confidence and precision by increasing the sample size
233
Sample size: guidelines

In general:
Categories: Multivariate:
30 < n < 500

30 per subcategory 10 x number of vars
Experiments:
15 to 20 per condition
234
Sample Size for a Given Population Size
235
Sample Size for a Given
236
Chapter 11
Quantitative Data Analysis
237
Getting the Data Ready for Analysis

Data coding: assigning a number to the participants responses so they can be entered into a database. Data Entry: after responses have been coded, they can be entered into a database. Raw data can be entered through any software program (e.g., SPSS)
238
Editing Data
An example of an illogical response is an outlier response. An outlier is an observation that is substantially different from the other observations. Inconsistent responses are responses that are not in harmony with other information.
Illegal codes are values that are not specified in the coding instructions.
239
Transforming Data
240
Getting a Feel for the Data
241
Frequencies
242
Descriptive Statistics: Central Tendencies and Dispersions
243
Reliability Analysis
244
Chapter 12
Quantitative Data Analysis: Hypothesis Testing
245
Type I Errors, Type II Errors and Statistical Power

Type I error (): the probability of rejecting the null hypothesis when it is actually true. Type II error (): the probability of failing to reject the null hypothesis given that the alternative hypothesis is actually true. Statistical power (1 - ): the probability of correctly rejecting the null hypothesis.
246
Choosing the Appropriate Statistical Technique
247
Testing Hypotheses on a Single Mean

One sample t-test: statistical technique that is used to test the hypothesis that the mean of the population from which a sample is drawn is equal to a comparison standard.
248
Testing Hypotheses about Two Related Means

Paired samples t-test: examines differences in same group before and after a treatment. The Wilcoxon signed-rank test: a non-parametric test for examining significant differences between two related samples or repeated measurements on a single sample. Used as an alternative for a paired samples t-test when the population cannot be assumed to be normally distributed.
249
Testing Hypotheses about Two Related Means - 2

McNemar's test: non-parametric method used on nominal data. It assesses the significance of the difference between two dependent samples when the variable of interest is dichotomous. It is used primarily in before-after studies to test for an experimental effect.
250
Testing Hypotheses about Two Unrelated Means

Independent samples t-test: is done to see if there are any significant differences in the means for two groups in the variable of interest.
251
Testing Hypotheses about Several Means

ANalysis Of VAriance (ANOVA) helps to examine the signicant mean differences among more than two groups on an interval or ratioscaled dependent variable.
252
Regression Analysis
Simple regression analysis is used in a situation where one metric independent variable is hypothesized to affect one metric dependent variable.
253
Scatter plot
100
80
LKLHD_DATE
60
40
20
30
40
50
60
70
80
90
PHYS_ATTR
254
Simple Linear Regression

Yi 0 1 X i i
Y
0
1
1
? `0
X
255
Ordinary Least Squares Estimation

Minimize
e
i 1
2 i
Yi Y i
ei
Xi
256
SPSS
Analyze Regression Linear
Model Summary Model 1 R .841 R Square .707 Adjusted R Square .704 Std. Error of the Estimate 5.919
ANOVA Model 1 Sum of Squares 8195.319 3398.640 11593.960 df 1 97 98 Mean Square 8195.319 35.038 F 233.901 Sig. .000
Regression Residual Total
257
SPSS contd
Coefficients Unstandardized Coefficients B Std. Error 34.738 2.065 .520 .034 Standardized Coefficients Beta .841
Model 1
(Constant) PHYS_ATTR
t 16.822 15.294
Sig. .000 .000
258
Model validation
1. 2. Face validity: signs and magnitudes make sense Statistical validity:
Model fit: R2 Model significance: F-test Parameter significance: t-test Strength of effects: beta-coefficients Discussion of multicollinearity: correlation matrix Out-of-sample forecast errors
3.
Predictive validity: how well the model predicts
259
SPSS
260
Measure of Overall Fit: R2

R2 measures the proportion of the variation in y that is explained by the variation in x. R2 = total variation unexplained variation total variation R2 takes on any value between zero and one:
R2 = 1: Perfect match between the line and the data points. R2 = 0: There is no linear relationship between x and y.
261
SPSS
= r(Likelihood to Date, Physical Attractiveness)
262
Model Significance
H0: 0 = 1 = ... = m = 0 H1: Not H0
(all parameters are zero)
263
Model Significance
H0: 0 = 1 = ... = m = 0 H1: Not H0
(all parameters are zero)
Test statistic (k = # of variables excl. intercept)
F =
(SSReg/k) (SSe/(n 1 k)
~ Fk, n-1-k
SSReg = explained variation by regression SSe = unexplained variation by regression
264
SPSS
265
Parameter significance
Testing that a specific parameter is significant H0 : j = 0 H1 : j 0 (i.e., j 0)
Test-statistic: t = bj/SEj ~ tn-k-1

with bj = the estimated coefficient for j SEj = the standard error of bj
266
SPSS contd
Model 1
(Constant) PHYS_ATTR
t 16.822 15.294
Sig. .000 .000
267
Conceptual Model
Physical Attractiveness
Likelihood to Date
268
Multiple Regression Analysis

We use more than one (metric or non-metric) independent variable to explain variance in a (metric) dependent variable.
269
Conceptual Model
Perceived Intelligence
+ +
Likelihood to Date
270
Coefficients Unstandardized Coefficients B Std. Error 31.575 3.130 .050 .037 .523 .034 Standardized Coefficients Beta .074 .846
Model 1
(Constant) PERC_INTGCE PHYS_ATTR
t 10.088 1.340 15.413
Sig. .000 .183 .000
271
Conceptual Model
Gender
+ +
+
Likelihood to Date
272
Moderators
Moderator is qualitative (e.g., gender, race, class) or quantitative (e.g., level of reward) that affects the direction and/or strength of the relation between dependent and independent variable Analytical representation
Y = 0 + 1X 1 + 2X2 + 3X1X 2
with Y = DV X1 = IV X2 = Moderator
273
Moderators
274
Moderators
Coefficients Unstandardized Coefficients B Std. Error 32.603 3.163 .000 .043 .496 .027 -.420 3.624 .127 .058 Standardized Coefficients Beta .000 .802 -.019 .369
Model 1
(Constant) PERC_INTGCE PHYS_ATTR GENDER PI_GENDER
t 10.306 .004 18.540 -.116 2.177
Sig. .000 .997 .000 .908 .032
interaction significant effect on dep. var.
275
Conceptual Model
Gender
+ +
+
Likelihood to Date
+
Communality of Interests
Perceived Fit
276
Mediating/intervening variable
Accounts for the relation between the independent and dependent variable Analytical representation
1. Y = 0 + 1X => 1 is significant
2.
M = 2 + 3 X => 3 is significant
Y = 4 + 5X + 6M => 5 is not significant => 6 is significant With Y = DV X = IV M = mediator
277
3.
Step 1
Mode l Summary Model 1 R .963 R Square .927 Adjus ted R Square .923 Std. Error of the Estimate 3.020
278
Step 1 contd
Coefficients Unstandardized Coefficients B Std. Error 17.094 2.497 .030 .029 .517 .018 -.783 2.379 .122 .038 .212 .019 Standardized Coefficients Beta .044 .836 -.036 .356 .319
Model 1
(Cons tant) PERC_INTGCE PHYS_ATTR GENDER PI_GENDER COMM_INTER
t 6.846 1.039 29.269 -.329 3.201 11.187
Sig. .000 .301 .000 .743 .002 .000
significant effect on dep. var.

279
Step 2
280
Step 2 contd
Model 1
(Cons tant) COMM_INTER
t 7.484 45.479
Sig. .000 .000
significant effect on mediator
281
Step 3
282
Step 3 contd
Coefficients Unstandardized Coefficients B Std. Error 14.969 2.478 .019 .028 .518 .017 -2.040 2.307 .142 .037 -.051 .085 .320 .102 Standardized Coefficients Beta .028 .839 -.094 .412 -.077 .405
Model 1
(Cons tant) PERC_INTGCE PHYS_ATTR GENDER PI_GENDER COMM_INTER PERC_FIT
t 6.041 .688 30.733 -.884 3.825 -.596 3.153
Sig. .000 .493 .000 .379 .000 .553 .002
insignificant effect of indep. var on dep. Var. significant effect of mediator on dep. var.
283
Chapter 13
Qualitative Data Analysis
284
Qualitative Data
Qualitative data: data in the form of words. Examples: interview notes, transcripts of focus groups, answers to open-ended questions, transcription of video recordings, accounts of experiences with a product on the internet, news articles, and the like.
285
Analysis of Qualitative Data

The analysis of qualitative data is aimed at making valid inferences from the often overwhelming amount of collected data. Steps:
data reduction data display drawing and verifying conclusions
286
Data Reduction
Coding: the analytic process through which the qualitative data that you have gathered are reduced, rearranged, and integrated to form theory. Categorization: is the process of organizing, arranging, and classifying coding units.
287
Data Display
Data display: taking your reduced data and displaying them in an organized, condensed manner. Examples: charts, matrices, diagrams, graphs, frequently mentioned phrases, and/or drawings.
288
Drawing Conclusions
At this point where you answer your research questions by determining what identified themes stand for, by thinking about explanations for observed patterns and relationships, or by making contrasts and comparisons.
289
Reliability in Qualitative Research

Category reliability depends on the analysts ability to formulate categories and present to competent judges definitions of the categories so they will agree on which items of a certain population belong in a category and which do not. (Kassarjian, 1977, p. 14). Interjudge reliability can be defined degree of consistency between coders processing the same data (Kassarjian 1977).
290
Validity in Qualitative Research

Validity refers to the extent to which the qualitative research results:
accurately represent the collected data (internal validity) can be generalized or transferred to other contexts or settings (external validity).
291
Chapter 14
The Research Report
292
Presentation of Results
Results of the study and recommendations to solve the problem have to be effectively communicated to the sponsor, so that suggestions made are accepted and implemented. Contents and organization of written report and oral presentation depend on the purpose of the research study, and the audience to which it is targeted.
293
The Written Report

Important to identify the purpose of the report, so that it can be tailored accordingly. Examples
Simple descriptive report Comprehensive report, offering alternative solutions
294
Characteristics of a Well-Written Report

Clarity Conciseness Coherence The right emphasis on important aspects Meaningful organization of paragraphs Smooth transition from one topic to the next Apt choice of words Specificity
295
Contents of Research Report

Title Executive summary or a synopsis Table of contents The research proposal
Purpose of the study Background Problem statement
Framework of the study & hypotheses Method Data analysis Conclusions and recommendations
296
Oral Presentation
Deciding on the Content Visual Aids
For instance graphs, charts, tables
The presenter The presentation Handling questions

297

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Research Methods for Business MBA course - ESLSCA

Dr. Ashraf Elsafty

Definition of Business Research

Applied versus Basic Research

Examples Applied Research

More Examples of Research Areas in Business

Why managers should know about research

The ManagerResearcher Relationship

Whats Changing in Business that Influences Research

Critical Scrutiny of Business

Computing Power and Speed

Better Visualization Tools

Business Planning Drives Business Research

Research May Not Be Necessary

Information Value Chain

The Business Research Process

Characteristics of Good Research

High ethical standards

Two Categories of Research

Four Types of Studies

Who Conducts Business Research?

Hallmarks of Scientific Research:

Research and Intuition

Jeffrey Bradshow, creator of the software that searches databases

Terms used in research

Shared understanding of concepts

Job Redesign Constructs and Concepts

Deduction and Induction

Both inductive and deductive processes are often used in research.

Why Didnt Sales Increase?

A Variable Is the Property Being Studied

Propositions and Hypotheses

The Role of Hypotheses

Identify relevant facts

Suggest most appropriate research design

Characteristics of Strong Hypotheses

Adequate A Strong Hypothesis Is

Better than rivals

Theory within Research

The Role of Reasoning

A Model within Research

The Scientific Method

Elimination of alternatives Statistical justification

The Broad Problem Area

Preliminary Information Gathering

Searching for Literature

The Problem Statement

The Research Proposal

Time frame Budget Selected Bibliography

The Business Research Process

Stage 1: Clarifying the Research Question

Management-research question hierarchy process begins by identifying the management dilemma

Management-Research Question Hierarchy

Formulating the Research Question

Types of Management Questions

The Research Question

Determine necessary evidence

Set scope of study

2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/sekaran

Independent variable (IV)

2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/sekaran

Independent and Dependent Variable Synonyms

Relationships Among Variable Types