Business Research Process William G. Zikmund

Uncertainty Influences the Type Of Research

Types Of Business ResearchExploratory ResearchExploratory research is conducted to clarify ambiguous problems and define the nature of a problem

Exploratory research is a means for acquiring a deeper and hence more useful understanding of a business or management problem.

Exploratory research does not intend to answer research questions conclusively, rather, it is a preliminary step towards undertaking more elaborate and conclusive research like causal or descriptive research.

Analyzes the dimensions of the research problem and set the stage for subsequent research and priorities.For instance personnel manager often conduct this research - What are current important issues of employee concern or what are the possible explanations for decreasing employee motivation?

Exploratory research usually provides qualitative data, not quantitative data.

Exploratory research is used to select the best possible alternatives given the existence of constraints such as budget limitationsFor example -To determine whether consumers would be interested in purchasing un-refrigerated, shelf-stable yoghurt

Exploratory research can help generate new, previously unthought of ideas.For example - Employees suggest convenient ways of increasing factory production or propose new products and services

E.g. determining whether employee needs on-site child care service.

E.g. determining whether a new product should be introduced.

E.g. why employees are leaving the organization.

Types Of Business Research2. Descriptive ResearchThe main goal of this type of research is to describe the data and characteristics about the population being studied .It seeks to determine the answers to who, what, when, where, and how questions.It is based on some previous understanding of the nature of the research problem.Accuracy is of paramount importance in descriptive research.Usually conducted by Bureau of statistics. (e.g. population census)E.g a fast food shop conducting a survey to describe its customers.E.g. to find out what age group is buying a particular brand of soft drink.E.g. whether a companys market share differs between geographical regions.E.g. to discover how many competitors a company has in their marketplace.

Types Of Business Research3. Causal Research It is conducted to identify cause and effect relationships between variables.While conducting the research, researcher must be knowledgeable about the research subject.Usually exploratory and descriptive research precede cause and effect studies.E.g. relationship between price and perceived quality of product.E.g. relationship between a new package and an increase in sales.For example, if a clothing company currently sells blue denim jeans, causal research can measure the impact of the company changing the product design to the color white.

The formulation of the problem is often more essential than its solution

Albert Einstein

Problem Discovery And DefinitionFirst and probably most important step of research.Too often neglected research stage leading to costly errors.Provides direction for the investigation.Discovery problem before defining it.A problem well defined is a problem half solved.

Problem Discovery And DefinitionSometimes the problem identified is only the symptom!

Differentiating symptoms from problems is not an easy task and often requires extensive exploratory research and the gathering of background information.

Symptoms can be confusing. We have a problem we are losing money. Losing money is a result (symptom) of the problem (issue that needs to be determined and corrected. For example - that problem could be changes in cost structure or sales decline or inefficiency of employees)

In situations where background information is available related to why a certain problem has happened in the past, in such a case, managers can play an important role in helping researchers to define the problem (by exercising managerial judgment)

In case of events where past information is inadequate / unavailable, this involves informal gathering of background information often through Exploratory Research to define the situation or problem.

Problem Discovery And Definition

Exploratory Research Techniques

Exploratory research is needed when there is inadequacy in problem definition.A) Secondary data (historical data)Secondary Data: Analysis of already existing data and literature on a similar problem field can yield clues and interesting background information on the problem field under study.

Literature survey of published articles and booksDatabases (e.g., www.bbs.gov.bd )

E.g. a bank wanting set up new ATM machine, could go through published materials to search for area which would be attractive for users.

B) Pilot studyPilot Studies A small-scale research project which uses sampling without the normally rigorous scientific standards to generate primary data.

The primary data generated from pilot studies are collected from specific groups (e.g. employees, consumers, students, voters) and not from experts or from a case situation

Major components of pilot studies are: 1) Focus group interviews2) Projective techniques and 3) Depth interview

B) Pilot Study1) Focus Groups Interviews: This is a free-flowing interview usually, and supervised over by one or two moderator or interviewer.

B) Pilot Study: 2) Projective TechniquesProjective Techniques The purpose of this is to discover an individuals attitudes, motivations and ways of responding.Common projective techniques include:Word association testsSentence completion method

Sentence Completion

I like ______________________

At home ___________________

The best ___________________

When I was younger _________

The future _________________

I need _____________________

3) Depth Interview Intensive and interesting questioning of a research subject in an open, unstructured and candid atmosphere on a specific topic in a face-to-face interview. Tools and Techniques of Exploratory Research

C) Case Studies Using information and experiences gained from a similar problem situation.

D) Experience Surveys Conversation or interviews with knowledgeable persons and experts, inside or outside the organization, who have some previous experience with the problem area in question If you wish to know the road up the mountain, you must ask the man who goes back and forth on it.- Zenrinkusi

State the Research Questions and Research ObjectivesAfter identifying and clarifying the problem, with or without exploratory research, the researcher should form or make a formal statement of the problem and the research objectives.Problem statement will clarify scope of the research project that is what the researcher hopes to accomplish from the study.

A series of research questions and hypotheses will add clarity to the statement of the problem.

Problem statements are phrased as questions are interrogative whereas hypotheses are declarative.

State the Research Questions and Research ObjectivesA Hypothesis an unproven proposition or possible solution to a problem. Theory also help generate hypothesises.

Hypotheses are statements that can be empirically / realistically tested.It test the degree/level ofrelationshipsdifferenceeffect / impact

E.g. male employees dominates woman employees in the workplace.

State The Research Questions And Research ObjectivesWhen the research questions and/or hypotheses have been stated, the research objectives are derived from the problem definition.

Research objectives explain the purpose of the research in measurable terms and define standards of what the research should accomplish.

Research objectives must indicate the information needed by a manager to make a decision .Research objectives typically use the following terms:to determine to compare to evaluateExamples:The goal of this study is todiscover theunderstand the cause / effect of theprovide a new interpretation ofunderstand what makes _____ effective or ineffective

Research Topic: Management needs information concerning the major competitors.After discussion with management, the management question was understood as:Research Question: Are the major competitors sales increasing?Research objective: Determine competitors sales for the past three years.

Data needed: Identification of competitors Determine the competitors sales for past three yearsData source:Industry sales informationSpecific companys product sales for three yearsexternal secondary information is needed and refers to information that has been collected for some other purpose

Management Problem Setting the selling price for a new product line

Research QuestionsWhat are our costs of production and marketing (COGS)?What are our pricing objectives and position in the market?What price does similar types of products sell for?What is the perceived value of our product in the marketplace?

Research ObjectivesTo assess the costs involved in producing and selling our productTo determine corporate objectives and their implications for pricingTo examine current prices for direct and indirect competitionTo determine potential customer reaction to various prices and their perception of the benefits of owning the product

Research Design / Research MethodologyIt is a master plan specifying the methods and procedures for collecting and analyzing the needed information.

Under the research design, the researcher needs to determine: The source of informationThe design technique (survey /experiment etc)The sampling methodologyThe schedule and cost of the research.

Basic Research Methodsa) Surveys: most common method of generating primary data. Information gathered through interviewThrough QuestionnaireContact respondents by telephone, by mail or in person.

Survey MethodsTelephonePersonalElectronic TraditionalTelephoneComputer-Assisted Telephone InterviewingMall InterceptIn-HomeE-MailInternetComputer-Assisted Personal InterviewingMailMail Panel Mail/Fax Interview

b) Experiments: It is conducted under control conditions so that one or more variable can be changed to see the effect in one or two other variables or to test a hypothesis. E.g. effect of monetary reward on productivity, under controlled condition.It is best for establishing cause and effect relationship.Field experiments: e.g. in a super market- to find the attractiveness of same product with new packaging.Laboratory experiments are used in basic research to test theories or concepts.

Basic Research Methods

Basic Research Methodsc) Secondary / Historical data: Exploratory, Descriptive, Causal all studies uses secondary data. e.g. predicting future sales on the basis of past sales.Literature survey Database

Traditional Internal Sources of Secondary DataInternal data usually centers on sales or cost information and includes:Sales invoices - customer profiles, sales trends.Accounts receivable reports - profit margins.Quarterly sales reports - dollar and unit sales.Sales activity reports - sales and competition.Other forms - customer letters/ comment cards, mail-order forms, credit applications, etc.Etc, etc,.

External Sources of Secondary DataPublished Data in Periodicals, Directories, or IndicesSyndicated/ Commercial Sources Obtained on a As-Needed BasisTechnology - Driven Computer Sources Available On-Line

d) Observation:observation is the systematic process of recording the behavioral patterns of people, objects and occurrences as they are witnessed or the compilation of evidence from records of past events.E.g: number of cars using a gas station every day.E.g: time required by an employee to perform a task. Intangible states of mind like attitudes, motivation, opinions are difficult factor to be observed and recorded.

Basic Research Methods

What Can Be ObservedPhenomena ExampleHuman behavior or physical Shoppers movementactionpattern in a store

Verbal behaviorStatements made byairline travelers who waitin line

Expressive behaviorFacial expressions, tone of voice, and other form of body language

What Can Be ObservedPhenomenaExampleSpatial relationsHow close visitors at anand locationsart museum stand to paintings

Temporal patternsHow long fast-food customerswait for their order to be served

Physical objectsWhat brand name items are stored in consumers shopping cart.

Verbal and Pictorial How women are depicted in Recordsprint ads

SamplingWho is to be sampled?How large a sample?How will sample units be selected?

Census: Investigation of all individual elements that make up a population

Census

Sample: subset of a larger population.

There are two basic sampling techniques:

a) Probability Sampling: Where every member of population has a known and non-zero chance of selection.

b) Non- Probability Sampling: Where selection is done on the basis of personal judgement.

Selecting a Sample

Sampling Procedure: Selecting a Sample Design

Non- Probability Sampling: Convenience Sampling Also called haphazard or accidental samplingThe sampling procedure of obtaining the people or units that are most conveniently availableE.g people in my class, mall intercepts, friends, relatives.

Non- Probability Sampling: Judgment Sampling Also called purposive sampling Judgment sampling involves choosing objects / sample that it is believed will give accurate resultsE.g. a research is conducted on toy stores, selecting three stores purposively from where accurate results can be found.

Data Gathering StageThere are many methods of data collection through interviewing or questionnaireYou may collect data by mail, or telephone or in person.

What is a questionnaire?An instrument (form) to collect answers to questionscollect factual data gathers information or measuresA series of written questions/items in a fixed, rational order

Types of QuestionnaireFace to face Telephone By post E-mail/Internet

Self-administrated

Interviewer -administrated

Phrasing QuestionsOpen-ended questionsFixed-alternative/Close-ended questionsMost questionnaires include both.

Single dichotomy or dichotomous-alternative questionsAre you currently registered in a course at the University of Lethbridge?Yes____ No____

Respondent chooses one of two alternatives (yes/no; )

Types of Close-ended or fixed alternative questions

Open-ended Question

Main focus should be on error minimization in the data collection process .

Pretest study, using a small subsample, will help in determine whether data collection plan for the main study is an appropriate procedure or not. Seeks to determine whether respondents have any difficulty understanding the questionnaire and whether there are any ambiguous or biased questions.

Tabulation of data from the pretest study, will help determine whether the questionnaire will meet the objectives of the research.

Data Gathering Stage

ERROR CHECKINGANDVERIFICATIONEDITINGData Processing and Analysis

EditingThe process of checking and adjusting the datafor omissionsfor legibilityfor consistency

And readying them for coding and storage

CodingThe process of identifying and assigning a numerical score or other character symbol to previously edited data

CODINGI believe that people judge your success by the kind of car you drive.Strongly disagree 1Mildly disagree 2Neither disagree nor agree 3Mildly agree 4Strongly agree 5

Data EntryThe process of transforming raw data from the research project to computers for analysis.Data AnalysisThe transformation of raw data into a form that will make them easy to understand and interpret.

Data analysis technique will depend on information requirement from the study.e.g.: Statistical analysis like frequency distribution, regression analysis etc.

Conclusions And Report Writing Report Writing involves - effective communication of the research findings to help make business decisions.Usually includes making recommendations.

Report partsPrefatory partsMain body of the reportAppended parts

Prefatory partsTitle pageLetter oftransmittalLetter ofauthorizationTable of contentsObjectivesResultsConclusionsRecommendationsSummary

Main body of the reportIntroductionMethodologyArea 1Area 2Final areaResults

LimitationsConclusions and recommendations

Appended partsData collectionformsDetailedcalculationsGeneral tablesBibliography

DECISIONS TO MAKE IN THE RESEARCH PROCESS

DECISIONS TO MAKE IN THE RESEARCH PROCESS