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Chapter 1
Scope & Relevance of Research in Management
References: Business Research Methods by D.Cooper, P. Schindler D.Cooper, Modified by Rahul Dalvi

Business Research Defined

A systematic inquiry that provides information to

guide managerial decisions . 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. 1-2

Why Study Business Research?

Business research provides information to guide business decisions

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Studying Business Research

New Research Perspectives Stakeholder Influence Growth of Internet Greater Computing Power Business as a discipline

Factors
Competition Government Intervention Complex Decisions

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Computer Advances
Data warehousing Storing vast amounts of data in electronic storehouses Data mining Applying mathematical models to extract meaningful knowledge from data in internal databases

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Business Planning Drives Business Research

Organizational Mission

Business Goals

Business Strategies

Business Tactics

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Information Sources
Decision Support Systems Numerous elements of data organized for retrieval and use in business decision making Stored and retrieved via
Intranets Extranets

Business Intelligence Systems Ongoing information collection Focused on events, trends in micro and macro-environments

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Exhibit 1-1 Sources of Business Intelligence

Government/ Regulatory Competitive

Demographic

Economic Business Intelligence

Technological

Cultural/ Social
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Business Tactics and Research Amul Ice-cream

Dozens of flavors Small packages Available in franchise and grocery stores

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Research May Be Unnecessary Can information be applied to a critical decision? Does it improve managerial decisionmaking? Are sufficient resources available?

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What Research is not ?

Research isnt information Gathering Research isnt transportation of facts Research is systematic process of collecting , analyzing information in order to increase our understanding of phenomenon about which we are concerned.

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Examples of Non-Research Projects Comparing data sets Correlating data sets Problems with Yes/No answers.

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Exhibit 1-4 Who Conducts Business Research?

Internal

External

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Eastman Kodak has a worldclass research department

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Eastman Kodak
World-class research department involves restructuring department & redifining depts responsibilities. 3 focus specialities 1) Performance mgmt 2)Research innovation 3) consumer insights

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Exhibit 1-4 Who Conducts Research?

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Exhibit 1-4 Business Research Suppliers

External Research Suppliers Business Research Firms Communication Agencies Consultants Trade Associations

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Business Research Firms

Business Research Firms Full Service Specialists

Custom

Methods Syndicated Data Other

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Proprietary

Business Research Suppliers

Full-service firms conduct all phases of research from planning to insight development. They may offer custom projects tailored to a clients needs and/or proprietary work. Proprietary methodologies are programs or techniques that are owned by a single firm. Syndicated data providers track the change of one or more measures over time, usually in a given industry.

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Business Research Suppliers

Specialty firms establish expertise in one or a few research methodologies. They represent the largest number of research firms and tend to dominate the small research firms operated by a single research firm or a very small staff. Omnibus studies are those studies that combines one or a few questions from several business decision makers who need information from the same population.

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Exhibit 1-6 Some Syndicated Data Providers

AC Nielsen Scarborough Millward Brown Nielsen Media Research Roper ASW CSA TMO Yahoo! ORC International DoubleClick Nielsen/NetRatings Taylor Nelson Sofres Intersearch J.D. Power Associates MediaMark Simmon (SMRB) BRMB Information Resources Inc.

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Specialty Business Research Firms Methodology Process Industry Participant group Geographic Region
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Communication Agencies
Sales Promotion Advertising

Direct Business

Public Relations
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Consultants and Trade Associations

Consultants Business General Business Trade Associations General business Business specialties Research specialties

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Exhibit 1-8 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
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Assignment
Ad Track is a weekly survey of how much consumers like or dislike a major advertising campaign compared with other ads . Who sponsors this poll and who collects the data ?

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The Scientific Method

Direct observation Clearly defined variables Clearly defined methods Empirically testable Elimination of alternatives Statistical justification Self-correcting process
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Researchers
Encounter problems State problems Propose hypotheses Deduce outcomes Formulate rival hypotheses Devise and conduct empirical tests Draw conclusions
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Synovate
Curiosity is necessary to be a good business researcher

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Sound Reasoning
Types of Discourse

Exposition

Argument

Deduction

Induction

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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
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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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Exhibit 2-1 Why Didnt Sales Increase?

Deduction

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Exhibit 2-2 Tracys Performance

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Language of Research
Concepts Constructs Conceptual schemes Operational definitions

Models

Terms used in research

Theory Propositions/ Hypotheses

Variables

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Language of Research

Success of Research

Clear conceptualization of concepts

Shared understanding of concepts

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Exhibit 2-3 Job Redesign Constructs and Concepts

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Operational Definitions
How can we define the variable class level of students?

Freshman Sophomore Junior Senior

< 30 credit hours 30-50 credit hours 60-89 credit hours > 90 credit hours

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Chapter 4
Identification of Research Variables
References: Business Research Methods by D.Cooper, P. Schindler D.Cooper, Modified by Rahul Dalvi

What Is A Variable?

Event

Act

Variable

Characteristic

Trait
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Types of Variables
Dichotomous
Male/Female Employed/ Unemployed Ethnic background Educational level Religious affiliation Income Temperature Age

Discrete

Continuous

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Exhibit 2-4 Independent and Dependent Variables

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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Moderating Variables (MV) The switch to commission from a salary compensation system (IV) will lead to increased sales productivity (DV) per worker, especially among younger 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).
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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).
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Intervening Variables (IVV) The switch to a commission compensation system (IV) will lead to higher sales productivity (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).
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Propositions and Hypotheses Brand Manager Jones (case) has a higher-than-average achievement motivation (variable).
Generalization

Brand managers in Company Z (cases) have a higher-than-average achievement motivation (variable).

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Hypothesis Formats
Descriptive 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
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Characteristics of Strong Hypotheses Adequate A Strong Hypothesis Is

Testable Better than rivals

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Exhibit 2-6 Theory of the Product Life Cycle

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Model
Representation of a system constructed to study some aspect of that system or the system as a whole.
Models versus Theories
a models role is to represent or describe A theorys role is to explain.

Models in business research may be descriptive, predictive, and normative.

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Types of Model
Descriptive models are used for complex systems because they allow for the visualization of numerous variables and relationships. Predictive models forecast future events and facilitate business planning. Normative models are used for control, because they indicate necessary actions.

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Exhibit 2-7 A Distribution Network Model

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Model
Models allow researchers to specify hypotheses that characterize present or future conditions: the effect of advertising on consumer awareness or intention to purchase, brand switching behavior, an employee training program, or other aspects of business.
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Exhibit 2-8 The Role of Reasoning

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