Business Research Methods

William G. Zikmund

Chapter 4:

The Business Research Process

Information

• Reduces uncertainty

• Helps focus decision making

Types Of Research

• Exploratory

• Descriptive

• Causal

COMPLETELYCERTAIN

ABSOLUTEAMBIGUITY

CAUSAL ORDESCRIPTIVE

EXPLORATORY

Uncertainty Influences The Type Of Research

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

6

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

9

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.”

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

• Men’s fragrance market

• 1/3 size of women’s fragrance market

• But growing at a faster pace

• Women buy 80 % of men’s 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

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

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State the research questions and research

objectives

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.

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

Focus Group Interview

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

Research Program Strategy

Statement of Research Objectives

Problem Definition

Defining Problem Results inClear Cut Research Objectives

ExploratoryResearch(Optional)

Analysis of the Situation

Symptom Detection