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.