Business Research Methods

Chapter 4:

The Business Research Process

Dr. Werner R. Murhadi

www.wernermurhadi.wordpress.com

Information

Researchers contribute to decision making in several key ways. These

include

1. Helping to better define the current situation

2. Defining the firm—determining how consumers, competitors, and

employees view the firm

3. Providing ideas for enhancing current business practices

4. Identifying new strategic directions

5. Testing ideas that will assist in implementing business strategies for

the firm

6. Examining how correct a certain business theory is in a given

situation

☺ A business opportunity is a situation that makes some potential

competitive advantage possible.

☺ A business problem is a situation that makes some significant

negative consequence more likely

☺ Problems are commonly inferred from symptoms, which are

observable cues that serve as a signal of a problem because they

are caused by that problem

☺ Decision making is the process of developing and deciding among

alternative ways of resolving a problem or choosing from among

alternative opportunities.

PROBLEMS AND OPPORTUNITIES

Types Of Research

Exploratory1

Descriptive2

Causal3

CAUSALITY

A causal inference is just such a conclusion.

While we use the term “cause” frequently in our everyday language,

scientifically establishing something as a cause is not so easy.

A causal inference can only be supported when very specific evidence

exists. Three critical pieces of causal evidence are:

1. Temporal Sequence

2. Concomitant Variance

3. Nonspurious Association

Characteristics of Different Types of Business Research

Degree of Problem Definition

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?”

Stages In The Research Process

Problem Discovery and Problem Definition

Research Design

Sampling

Data Gathering

Data Processing and Analysis

Conclusions And Report

Research objectives are the goals to be achieved by conducting

research.

In business research, the adage “a problem well defined is a problem

half solved” is worth remembering.

Albert Einstein noted that “the formulation of a problem is often more

essential than its solution.”

Exploratory research can be used to help identify and clarify the

decisions that need to be made.

These preliminary research activities can narrow the scope of the

research topic and help transform ambiguous problems into well-

defined ones that yield specific research objectives.

By investigating any existing studies on the subject, talking with

knowledgeable individuals, and informally investigating the situation,

the researcher can progressively sharpen the focus of the research.

LINKING DECISION STATEMENTS, OBJECTIVES, AND HYPOTHESES