Business Research Methods

The Business Research Process

What you will learn in this chapter

• To classify business research as either; exploratory research, descriptive research or causal research;

• To list stages in the business research process;

• To identify and briefly discuss the various decision alternatives available to the researcher during each stage of the research process.

Decision Making

• Decision making is the process of resolving a problem or choosing among alternative opportunities;

• The key to decision making is to recognize the nature of the problem/opportunity, to identify how much information is available, and to recognize what information is needed.

Continuum of Decision Making

Complete certainty Uncertainty Absolute ambiguity

Types of Business Research

• Exploratory

• Descriptive

• Causal

COMPLETELYCERTAIN

ABSOLUTEAMBIGUITY

CAUSAL ORDESCRIPTIVE

EXPLORATORY

Uncertainty Influences The Type Of Research

Exploratory Research

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

• Management may have discovered general problems, but research is needed to gain better understanding of the dimensions of the problems

• Subsequent research is expected.

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Exploratory Research

1. Secondary data (historical data)2. Experience survey3. Pilot study4. Case study

SecondarySecondary((historicalhistorical))

DataData

PilotPilot

StudyStudy

ExperienceExperience

SurveySurvey

CaseCaseStudyStudy

ExploratoryExploratory

ResearchResearch

Exploratory Research Techniques: Two Examples

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

• Pilot study– A number of diverse techniques

Descriptive Research

• Research designed to describe characteristics of a population or a phenomenon;

• Descriptive research seeks to determine the answers to who, what, when, where, and how questions.

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I keep six honest serving men, (they taught me all I knew), their names are

--Rudyard Kipling

what, and why, and when,

and how,and where and

who.”

Causal Research

• Research conducted to identify cause-and-effect relationships among variables where the research problem has already been narrowly defined.

• The main goal of causal research is identification of cause-and-effect relationships between variables;

• In causal studies it is typical to have an expectation of the relationship to be explained, such as predicting the influence the price, packaging, advertising, and the like, on sales.

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

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

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

in our product?”poss

ible

situ

atio

n

Degree of Problem Definition

Stages of the Research Process

Problem Discoveryand Definition

ResearchDesign

Sampling

DataGathering

Data Processingand Analysis

Conclusions andReport

Discovery andDefinition

and so on

Research Stages

• Cyclical process - conclusions generate new ideas

• Stages can overlap chronologically

• Stages are functionally interrelated– Forward linkages– Backward linkages

Problemdiscovery

Problem definition(statement of

research objectives)

Secondary(historical)

data

Experiencesurvey

Pilotstudy

Casestudy

Selection ofexploratory research

technique

Selection ofbasic research

method

Experiment SurveyObservation Secondary

Data StudyLaboratory Field Interview Questionnaire

Selection ofexploratory research

techniqueSampling

Probability Nonprobability

Collection ofdata

(fieldwork)

Editing andcodingdata

Dataprocessing

Interpretationof

findings

Report

DataGathering

DataProcessingandAnalysis

Conclusionsand Report

Research Design

Problem Discoveryand Definition

The Business Research Process

Problem Discovery

Exploratory Research

Selection of the Basic Research Method

Selection of Sample Design

Collection of the Data

The Research Process (cont.)

Editing and Coding

Data Processing

Interpretation of the Findings

Report

Stages In The Research Process

• Problem Discovery and Problem Definition

• Research Design

• Sampling

• Data Gathering

• Data Processing and Analysis

• Conclusions And 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

Hypothesis

• A statement

• that can be refuted

• by empirical data

If you do not know where you are going,any road will take you there.

Research Design

• Master plan

• Framework for action

• Specifies methods and procedures

Basic Research Methods

• Surveys

• Experiments

• Secondary data

• Observation

POPULATIONPOPULATION

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

Selecting a Sample

Sampling

• Who is to be sampled?

• How large a sample?

• How will sample units be selected?

Data Gathering Stage

Data Processing and Analysis

Conclusions and Report Writing

• Effective communication of the research findings

Research Proposal

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

• Detailed outline of procedures associated with a particular methodology.