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
