Business Research Methods

The Business Research Process

Information
Reduces uncertainty Helps focus decision making

Types Of Research
Exploratory Descriptive Causal

Uncertainty Influences The Type Of Research

CAUSAL OR DESCRIPTIVE
COMPLETELY CERTAIN ABSOLUTE AMBIGUITY

EXPLORATORY

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

Mens fragrance market 1/3 size of womens fragrance market But growing at a faster pace Women buy 80 % of mens 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 center 4. Estimating prices for IBM stock two years in the future 5. Learning how many organizations are actively involved in justin-time production 6. Learning the extent of job satisfaction in a company.

Stages of the Research Process

Problem Discovery and Definition Discovery and Definition

Research Design

and so on Conclusions and Report

Sampling Data Processing and Analysis Data Gathering

Problem Discovery and Definition

Problem discovery
Sampling Selection of exploratory research technique

Selection of exploratory research technique

Probability

Nonprobability

Secondary (historical) data

Experience survey

Pilot study

Case study

Data Gathering Data Processing and Analysis

Collection of data (fieldwork) Editing and coding data Data processing

Problem definition (statement of research objectives)

Research Design

Selection of basic research method

Conclusions and Report

Interpretation of findings

Experiment
Laboratory Field Interview

Survey
Questionnaire

Observation

Secondary Data Study

Report

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

State the research questions and research objectives

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Hypothesis
A statement that can be refuted/proved by empirical data

Secondary (historical) Data

Pilot Study

Experience Survey

Case Study

Exploratory Research

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 noload mutual funds have higher yields. 5. A corporation is concerned with judging the quality of its college graduate recruitment program.

Selecting a Sample
Sample: subset of a larger population. SAMPLE

POPULATION

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