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Research is the systematic process of collecting and analyzing information to increase our understanding of the phenomenon under study. It is the function of the researcher to contribute to the understanding of the phenomenon and to communicate that understanding to others. Research and experimental development is formal work undertaken systematically to increase the stock of knowledge, including knowledge of humanity, culture and society, and the use of this stock of knowledge to devise new applications It is used to establish or confirm facts, reaffirm the results of previous work, solve new or existing problems, support theorems, or develop new theories. A research project may also be an expansion on past work in the field. To test the validity of instruments, procedures, or experiments, research may replicate elements of prior projects, or the project as a whole. The primary purposes of basic research (as opposed to applied research) are documentation, discovery, interpretation, or the research and development of methods and systems for the advancement of human knowledge. Approaches to research depend on epistemologies, which vary considerably both within and between humanities and sciences. Definition of Business Research Business research is the application of the scientific method in searching for the truth about business phenomena. These activities include defining business opportunities and problems, generating and evaluating alternative courses of action, and monitoring employee and organizational performance. Business research is more than conducting surveys. This process includes idea and theory development, problem definition, searching for and collecting information, analyzing data, and communicating the findings and their implications. The definition also emphasizes, through reference to the scientific method, that any information generated should be accurate and objective. The nineteenth-century American humorist Artemus Ward claimed, It aint the things we dont know that gets us in trouble. Its the things we know that aint so. In other words, research isnt performed to support preconceived ideas but to test them. The researcher must be personally detached and free of bias in attempting to find truth. If bias enters into the research process, the value of the research is considerably reduced. We will discuss this further in a subsequent chapter. Our definition makes it clear that business research is designed to facilitate the managerial decisionmaking process for all aspects of the business: finance, marketing, human resources, and so on. Business research is an essential is an essential tool for management in virtually all problem-solving and decision-making activities. By providing the necessary information on which to base business decisions, research can decrease the risk of making a wrong decision in each area. However, it is important to note that research is an aid to managerial decision making, never a substitute for it.

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Why study business research? Business research is the process of gathering the necessary data for an industry to be successful. Business research is synonymous with market research, but companies typically use every type of market research available to fully analyze their business situation: industry analysis, product research, and even identifying key customer groups. The business research process is necessary to assist managers in making major business decisions. Defining Business Objective Before a business can start operating, it first must define its business. For example, a new discount health-care company may define its objective as providing affordable health care to individuals and families. After a company defines its main objective, it then is ready to study the industry and competition. The process of defining a business objective is necessary for managers to properly align their business plans with the right customers. Data Collection Companies usually start the data collection process by studying secondary research data. Some of this information may be available in business articles or at local libraries. A company often will need to purchase this data from vendors. Businesses can acquire information through secondary research about the size of their industry and how sales have trended. The second part of data collection entails primary research surveys. Companies do research surveys to measure satisfaction among customers, to ensure that the customer's needs are being met with current products and to identify consumers that are most likely to use their products. Analysis Marketing managers and other business professionals analyze data so they fully understand where they stand versus competitors in sales volume and market share. A company may also learn more about its key strengths and weaknesses versus competitors. For example, secondary research may reveal that a key competitor is on the verge of merging with another company. Another competitor may be suffering financially. Additionally, analyzing primary research can help a company understand how it fares against competitors in product quality, service, price and value. Customers also may want additional features added to the company's products. The ultimate goal of the analysis stage is to start developing some relevant choices or alternatives. Alternatives After fully analyzing all available data, business managers usually will list possible alternatives for harnessing strengths and overcoming weaknesses. These alternatives eventually will need to be winnowed down to one viable solution or alternative. The goal of this solution will be to better satisfy key customers, increase distribution or whatever it takes to improve the company's sales and profits. Decision Making Ultimately, the business research process will lead to certain company decisions or strategies. The savvy business man knows that he can learn a lot from business research. However, he must also use Extreme group

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it to avoid being outmaneuvered by competitors on important issues such as service and product features. For example, a company may revamp its customer service department to deal with low customer satisfaction scores revealed in the research. New product features may be added to satisfy the sector of the market that requested them. When business research is needed? The need to make intelligent, informed decision motivates an organization to engage in a business research. Not every decision requires research. Thus, when confronting a key decision, a manager must initially decide whether or not to conduct business research. The determination of the need for research centers on the followings: Time constrains: Systematic research takes time. In many instances, management believes that a decision must be made immediately, allowing no time to research. Although making decision without researching is not ideal, sometimes the urgency of situation precludes the use of research. Otherwise research is needed where there is enough time to take decision. Availability of data: Often managers already process enough data, to make sound decisions without additional research. When they lack additional research. When they lack additional information, however, research must be considered. This means data need to be collected from appropriate source. If a potential source of data exists, managers will decide how much it will cost to get the data. If the data cannot be obtained, or cannot be obtained in a timely fashion, this particular research process should not be conducted. Nature of the decision: the value of business research will depend on the nature of the managerial decision to be made. A routine tactical decision that does not require a substantial investment may not seem to warrant a substantial expenditure for research. For example, a computer company must update its operators instruction manual when it makes minor product modifications. The research cost of determining the proper wording to use in the updated manual is likely to be too high for such a minor decision. However, the more strategically or ractically important the decision, the more likely that the research will be conducted. Benefits versus cost: conducting research to obtain benefits requires an expenditure of money. In any decision making situation, managers must identify alternative courses of action and then weigh the value of each alternative against its cost. When deciding whether to make a decision without research or to postpone the decision in order to conduct research, managers should ask three questions: o Will the payoff or rate of return be worth the investment? o Will the information gained by business research improve the quality of managerial decision enough to warrant the expenditure? o Is the proposed research expenditure the best use of available funds?

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Managerial value of business research

There is no doubt that research improves the efficiency of management. But different business adopt different research in accordance with their different strategy. In all of business strategy, there are only a few business orientations. These are Product - oriented, Production - oriented & Marketing - oriented.

Lets take a quick look how research varies in these orientations with the help of a table Product oriented firm Example

Prioritizes decision making that emphasizes the The fashion Industry makes clothes in styles and physical product design, trendiness or technical sizes that few can adopt. superiority. Research focuses on technicians and experts in the field Production oriented firm Example

Prioritizes efficiency and effectiveness of the U.S. auto industrys assembly line process is intent production process in making decisions. on reducing cost of production as low as possible. Research focuses on line employees, engineers, accountants and other efficiency experts Marketing oriented firm Examples

Focuses on how the firm provides value to the Well known hotel chains are designed to address customers. the needs of travelers, particularly business travelers. Research focuses on customers

We have argued that research facilitates effective management. The prime managerial value of business research is that it provides information that improves the decision - making process. Decision - making process associated with the development and implementation of a business strategy involves 4 interrelated stages: 1. 2. 3. 4. Identifying problems or opportunities Diagnosing and assessing problems or opportunities Selecting and implementing a course of action Evaluating the course of action

Business research, by supplying managers with pertinent information, may play an important role by reducing managerial uncertainty in each of these stages.

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1. Identifying problems or opportunities: Before any strategy can be developed, an organization must determine where it wants to go and how it will get there. Business research can help managers plan strategies by determining the nature of situations or by identifying the existence of problem or opportunities present in the organization. Once business research indicates a problem or opportunity, managers may feel that the alternatives are clear enough to make a decision based on their experience or institution. 2. Diagnosing and assessing problems or opportunities: After an organization recognizes a problem or identifies a potential opportunity, business research can help clarify the situation. Managers need to gain insight about the underlying factors causing the situation. If there is a problem, they need to specify what happened and why. If an opportunity exists, they may need to explore, refine, and quantity the opportunity. If multiple opportunities exist, research may be conducted to set priorities. 3. Selecting and implementing a course of action: After the alternative courses of action have been clearly identified, business research is often conducted to obtain specific information that will aid in evaluating the alternatives and in selecting the best course of action. 4. Evaluating the course of action: After a course of action has been implemented, business research may serve as a tool to tell managers whether or not planned activities were properly executed and if they accomplished what they expected to accomplish. In other words, managers may use evaluation research to provide feedback for evaluation and control of strategies and tactics. Evaluation research: Evaluation research is the formal, objective measurement and appraisal of the extant a given activity, project, or program has achieved its objectives. Performance - monitoring research: Performance monitoring research is a specific type of evaluation research that regularly, perhaps routinely, provides feedback for the evaluation and control of recurring business activity.

The research process Writers usually treat the research study as a sequential process involving several clearly defined steps. No one can claim that research requires completion of each step before going to the next. Recycling, circumventing and skipping occur. Some steps are began out of sequence, some are carried out simultaneously, and some may be omitted. Despite these variations, the idea of sequence is useful for developing a project and for keeping the project orderly as it unfolds. The graphical presentation of the research process is given below.

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Clarifying the Research Questions

Discover the Management Dilemma Define the Management Question Define the Research Questions(s) Refine the research question(s)

Exploration

Exploration

Proposing Research

Research Design Strategy

(type, purpose, time frame, scope, environment)

Data Collection Design

Sampling Design

Instrument Development & Pilot Testing

Data Collection & Preparation

Data Analysis & Interpretation Analysis Research Reporting

Management Decision Extreme group

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Stage 1: Clarifying the Research Question A useful way to approach the research process is to state the basic dilemma that prompts the research and then try to develop other questions by progressively breaking down the original question into more specific ones. The process begins at the most general level with the management dilemma. And ends with Refining the research question. Stage 2: Proposing research It includes Resource allocation and budgets Valuing research information The research proposal Stage 3: Designing the research project It includes Research design: It is the blueprint for fulfilling objectives and answering questions. Sampling design: Sampling test examines a portion the target population, and the portion must be carefully selected. Pilot testing: A pilot test is conducted to detect weaknesses in design and instrumentation and to provide proxy data for selection of a probability sample. Stage 4: Data Collection and Preparation There are different ways of collecting data. Questionnaires, standardized tests, observational form, laboratory notes, and instrument calibration logs are among the devices used to record raw data. Data are edited to ensure consistency. Edited data should be put in such way that makes analysis easier. Stage 5: Data Analysis and Interpretation Data analysis usually involves reducing accumulated data to a manageable size, developing summaries, looking for patterns and applying statistical techniques. Further, researchers must interpret these findings in light of the clients research question or determine if the results are consistent with their hypothesis and theories. Stage 6: Reporting the result Finally, it is necessary to prepare a report and transmit the findings and recommendations to the manager for the intended purpose of decision making. Stage 7: Management decision At the end managers take necessary decision depending on the research report.

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Is research always problem-solving based ? Researchers often are asked to respond to problem that managers needed to solve Applied research has a practical problem-solving emphasis. Whether the problem is negative, like rectifying an inventory system that is resulting in lost sales, or an opportunity to increase stockholder wealth through acquiring another firm, problem solving is prevalent. The problem-solving nature of applied research means it is conducted to reveal answers to specific questions related to action, performance, or policy needs. Pure research or basic research is also problem-solving based, but in a different sense. It aims to solve perplexing questions or obtain new knowledge of an experimental or theoretical nature that has little direct or immediate impact on action, performance, or policy decisions. Basic research in the business arena might involve a researcher who is studying the results of the use of coupons versus rebates as demand stimulation tactics, but not in a specific instance or in relation to a specific clients product. In another pure research scenario, researchers might study the influence on productivity of compensation systems that pay by piece-work versus salary plus-bonus structures. Thus, both applied and pure research are problem-solving based, but applied research is directed much more to making immediate managerial decisions. In answer to the question posed at the beginning of this section, is research always problem solving based ? The answer is yes. Whether the typology is applied or pure, simple or complex, all research should provide an answer to some question. If managers always knew what was causing problems or offering opportunities in their realm of responsibility, there would be little need for applied research or basic research; intuition would be all that was necessary to make quality decisions.

What is good research ?

Good research generates dependable data that are derived by professionally conducted practices and that can be used reliably for decision making. In contrast, poor research is carelessly planned and conducted, resulting in data that a manager cant use to reduce his or her decision-making risks. Good research follows the standards of the scientific method: systematic, empirically based procedures for generating replicable research. Purpose clearly defined:

The purpose of the business research the problem involved or the decision to be made should be clearly defined and sharply delineated in terms as unambiguous as possible. Getting this in writing is valuable even in instances in which the same person serves as researcher and decision maker. Research process detailed :

The research procedures used should be described in sufficient detail to permit another researcher to repeat the research. This includes the steps to acquire participants, informed consent, sampling methods and representativeness, and data gathering procedures.

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Research design thoroughly planned:

The procedural design of the research, and its choice among competing designs, should be clearly described and carefully planned to yield results that are as objective as possible. High ethical standards applied :

Researchers often work independently and have significant latitude in designing and executing projects. A research design that includes safeguards against causing mental or physical harm to participants and makes data integrity a first priority should be highly valued. Ethical issues in research reflect important moral concerns about the practice of responsible behavior in society. Limitations frankly revealed:

The researcher should report, with complete frankness, flaws in procedural design and estimate their effect on the findings. There are very few perfect research designs. Some of the imperfections may have little effect on the validity and reliability of the data; others may invalidate them entirely. Adequate analysis for decision makers needs:

Analysis of the data should be extensive enough to reveal its significance, what managers call insights. The methods of analysis used should be appropriate. The extent to which this criterion is met is frequently a good measure of the competence of the researcher. Findings presented unambiguously:

Some evidence of the competence and integrity of the researcher may be found in the report itself. For example, language that is restrained, clear and precise; assertions that are carefully drawn and hedged with appropriate reservations; and an apparent effort to achieve maximum objectivity tend to leave a favorable impression of the researcher with the decision maker. Conclusions justified:

Conclusions should be limited to those for which the data provide an adequate basis. Researchers are often tempted to broaden the basis of induction by including personal experiences and their interpretationsdata not subject to the controls under which the research was conducted. Researchers experience reflected:

Greater confidence in the research is warranted if the researcher is experienced, has a good reputation in research, and is a person of integrity. Were it possible for the reader of a research report to obtain sufficient information about the researcher, this criterion perhaps would be one of the best bases for judging the degree of confidence a piece of research warrants and the value of any decision based upon it. Good business research has an inherent value only to the extent that it helps management make better decisions to achieve organizational goals. Interesting information about consumers,

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employees, competitors, or the environment might be pleasant to have, but its value is limited if the information cannot be applied to a critical decision.

Concept
To understand and communicate information about objects and events, there must be a common ground on which to do it. Concepts serve this purpose. A concept is a generally accepted collection of meanings or characteristics associated with certain events, objects, conditions, situations, and behaviors. Classifying and categorizing objects or events that have common characteristics beyond any single observation create concepts. When you think of a spreadsheet or a warranty card, what comes to mind is not a single instance but collected memories of all spreadsheets and warranty cards abstracted to a set of specific and definable characteristics. We abstract such meanings from reality and use words as labels to designate them. For example, we see a man passing and identify that he is running, walking, skipping, crawling, or hopping. These movements all represent concepts. We also have abstracted certain visual elements by which we identify that the moving object is an adult male, rather than an adult female or a truck or a horse. We use large numbers of concepts daily in our thinking, conversing, and other activities. Sources of Concepts Concepts that are in frequent and general use have been developed over time through shared usage. We have acquired them through personal experience. If we lived in another society, we would hold many of the same concepts (though in a different language). Some concepts, however, are unique to a particular culture and are not readily translated into another language. Ordinary concepts make up the bulk of communication even in research, but we often run into difficulty trying to deal with an uncommon concept or a newly advanced idea. One way to handle this problem is to borrow from other languages (for example, gestalt) or to borrow from other fields (for example from art, impressionism). The concept of gravitation is borrowed from physics and used in marketing in an attempt to explain why people shop where they do. The concept of distance is used in attitude measurement to describe degree of variability between the attitudes of two or more per- sons. Threshold is used effectively to describe a concept in perception studies; velocity is a term borrowed by the economist from the physicist. Borrowing is not always practical, so we sometimes need to adopt new meanings for words (make a word cover a different concept) or develop new labels (words) for concepts. The recent broadening of the meaning of model is an example of the first instance; the development of concepts such as sibling and status-stress are examples of the second. When we adopt new meanings or develop new labels, we begin to develop a specialized jargon or terminology. Researchers in medicine, the physical sciences, and related fields frequently use terms that are unintelligible to outsiders. Jargon no doubt contributes to efficiency of communication among specialists, but it excludes everyone else. Importance to Research Concepts are basic to all thought and communication, yet in everyday use we pay little attention to the problems encountered in their use. In research, special problems grow out of the need

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for concept precision and inventiveness. We design hypotheses using concepts. We devise measurement concepts by which to test these hypothetical statements. We gather data using these measurement concepts. We may even invent new concepts to express ideas. The success of research hinges on (1) how clearly we conceptualize and (2) how well others understand the concepts we use. For example, when we survey people on the question of tax equity, the questions we use need to tap faithfully the attitudes of the respondents. Attitudes are abstract, yet we must attempt to measure them using carefully selected concepts. The challenge is to develop concepts that others will clearly understand. We might, for example, ask respondents for an estimate of their family's total income. This may seem to be a simple, unambiguous concept, but we will receive varying and confusing answers unless we restrict or narrow the concept by specifying: Time period, such as weekly, monthly, or annually. Before or after income taxes. For head of family only or for all family members. For salary and wages only or also for dividends, interest, and capital gains. Income in kind, such as free rent, employee discounts, or food stamps.

Constructs
Concepts have progressive level of abstract that is, the degree to which the concept? does or does not have something objective to refer to. Table is an objective concept. We can point to a table, and we have images of the characteristics of all tables in our mind. An abstraction like personality is much more difficult to visualize. Such abstract Concepts are often called Constructs. A construct is an image or abstract idea specifically invented for a given research and/or theory-building purpose. We build constructs by combining the simpler, more concrete concepts, especially when the idea or image we intend to convey is not subject to direct observation. When Jason and Myra tackle Mind Writers research study, they will struggle with the construct of satisfied service customers. Concepts and constructs are easily confused. Consider this example: Heather is a human resource analyst at Cad Soft, an architectural software company that employs technical writers to write product manuals, and she is analyzing task attributes of a job in need of redesign. She knows the job description for technical writer consists of three components: presentation quality, language skill, and job interest. Her job analysis reveals even more characteristics. Exhibit 2-4 illustrates some of the concepts and constructs Heather is dealing with. The concepts at the bottom of the exhibit (format accuracy, manuscript errors, and key boarding speed) are the most concrete and easily measured. We are able to observe keyboarding speed, for example, and even with crude measures agree on what constitutes? slow and fast keyboarders. Keyboarding speed is one concept in the group that

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defines a construct that the human resource analyst calls "presentation quality." Presentation quality is a nonexistent entity, a "constructed type." It is used to communicate the combination of meanings presented by the three concepts. The analyst uses it as a label for the concepts she has found empirically to be related. Concepts in the next level in Exhibit 2-4 are vocabulary, syntax, and spelling. The analyst also finds them to be related. They form a construct that she calls "language skill." She has chosen this term because these three concepts together define the lan- guage requirement in the job description. Language skill is placed at a higher level of abstraction in the exhibit because two of the concepts that comprise it, vocabulary and syntax, are more difficult to observe and their measures are more complex. The analyst has not yet measured the last construct, "job interest." It is the least observable and most difficult to measure. It will likely be composed of numerous concepts many of which will be quite abstract. Researchers sometimes refer to such entities as hypothetical constructs because they can be inferred only from the data; thus, they are presumed to exist but must await further testing. If research ultimately shows the concepts and constructs in this example to be interrelated, and if the propositions that specify the connections can be supported, the researcher will have the beginning of a conceptual scheme. In graphic form it would depict the relationships among the knowledge and skill requirements necessary to clarify the job redesign effort.

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Concept vs. construct

Concepts and constructs are both abstractions. Man, table, tree, insect, etc are abstractions and so are ideas of motivation, beauty, attitude, etc. The difference lies in the nature of "objects" the abstractions are made from: The existence of the objects from which the abstractions are made may be factual or hypothetical. Where factual, the abstraction is a concept (e.g., table) and where the object is hypothetical or inferential, the abstraction is a construct (e.g., motivation). Again, a concept is an idea and construct is, well, constructed. its made. the idea of a construct is a concept, and a construct in psychology, and also sociology, is something that is made up by a society (doesn't mean its true or not true, but it is MADE by society). for example, class, race, and other types of separations are social constructs, because they don't necessarily exist in the same ways in different societies (democracy here, class system elsewhere). if its different across different situations, cultures, and societies, usually sociology calls it a social construct. constructs can be rules, ideas, etc.

Definition
Confusion about the meaning of concepts can destroy a research study's value without the researcher or client even knowing it. If words have different meanings to the parties involved, then the parties are not communicating well. Definitions are one way to reduce this danger. Researchers struggle with two types of definitions: dictionary definitions and operational definitions. In the more familiar dictionary definition, a concept is defined with a synonym. For example, a customer is defined as a Patron: a patron, in turn, is defined as a customer or client of an establishment; a client is defined as one who employs the services of any professional and, loosely, as a patron of any shop. Circular definitions may be adequate for general communication but not for research. In research, we measure concepts and constructs, and this requires more rigorous definitions.

Operational Definitions
An operational definition is a definition stated in terms of specific criteria fcr testing or measurement. These terms must refer to empirical standards (i.e. we must be able to Count, measure, or in some other way gather the information through our senses). Whether the object to be defined is physical (e.g. a can of soup) of highly abstract (e.g., achievement motivation), the definition must specify the characteristics and how they are to be observed. The specifications and procedures must be so clear that any competent person using them would classify the object in the same way. During her research project with the military, Myra observed numerous shells that, when fired, did not explode on impact. She knew the Army attached the operational definition a shell that does not explode on impact to the construct dud shell. But if asked, Myra would have applied the operational term dud shell only to a shell that, once fired from a cannon, could not be made to

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explode by any amount of manipulation, human or mechanical. Based on her operational definition, the towns residents rarely encountered duds during their excursions onto the firing range. Suppose college undergraduates are classified by class. No one has much trouble understanding such terms as freshman, sophomore, and so forth. But the task may not be that simple if you must determine which students fall in each class. To do this, you need operational definitions. Operational definitions may vary, depending On your purpose and the way you choose to measure them. Here are two different situations requiring different definition of same concepts: 1. you conduct a survey among students and wish to classify their answer by their class levels. You merely ask them to report their class status and you record it. In this case, class is freshman, sophomore, junior, or senior; and you accept the answer each respondent gives as correct. This is a rather casual definition process but nonetheless an operational definition. It is probably adequate even though some of the respondents report inaccurately.

2. You make a tabulation of the class level of students from the university registrars annual report. The measurement task here is more critical, so your operational definition needs to be more precise. You decide to define class levels in terms of semester hours of credit completed by the end of the spring semester and recorded in each student's record in the registrar's office: Freshman Fewer than 30 hours' credit Sophomore 3O,to 59 hours credit Junior 60 to 89 hours' credit Senior 90 or more hours' credit Those examples deal with relatively, concrete concepts but operational definitions are even more critical for treating abstract ideas. Suppose one tries to measure a construct called consumer socialization. We may intuitively understand what this means but attempt to measure it among consumers is difficult. We would probably develop questions on skills, knowledge, and attitudes; or we may use a scale that has already been developed and validated by someone else. This scale then operationally defines the Construct.

Whether you use a definitional or operational definition, its purpose in research is basically the sameto provide an understanding and measurement of concepts. We may need to provide operational definitions for only a few critical concepts, but these will almost always be the definitions used to develop the relationships found in hypotheses and theories.

Variables
In practice, the term variable is used as a synonym for construct, or the property being studied. A variable is a symbol of an event, act, characteristic, trait or attribute that can be measured and to which we assign categorical values. For purposes of data entry and analysis, we assign numerical value to a variable based on the variables properties. For example: some variables said to be dichotomous, have only two values,

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reflecting the presence or absence of a property: employed-unemployed or male-female have two values, generally 0 and 1. Variables also take on values representing added categories, such as the demographic variables of race or religion. All such variables that produce data that fit into categories are said to be discrete, since only certain values are possible. An automotive variable, for example, where Chevrolet is assigned a 5 and Honda is assigned a 6, provides no option for a 5.5. Income, temperature, age and a test scores are examples of continuous variables. These variables may take on values within a given range or , in some cases, an infinite set. Ones rest score may range from 0 to 100, his age may be 23.5 and his present income could be $35000. Types of Variables: 1) Independent and Dependent Variables: Independent Variables (IV) synonym may be termed as Predictor Variable. This variable is manipulated by the researcher, and the manipulation causes an effect on the dependent variable. There are often several independent variables and that they are probably at least somewhat Correlated and therefore not independent among themselves. Similarly, the term Criterion Variable is used synonymously with Dependent Variable(DV). This variable is measured, predicted or otherwise monitored and is expected to be affected by manipulation of an independent Variable. In each relationship there is at least one IV and DV. It is normally hypothesized that, in some way, the IV causes the DV to occur. It should be noted, however, that although it is easy to establish whether an IV influences a DV, it is much harder to show that the relationship between an IV and a DV is a causal relationship. 2) Moderating or Interaction Variables: A Moderating or Interaction Variable is a second variable that is included because it is believed to have a significant contributory or contingent effect on the original IV-DV relationship. Whether a given variable is treated as an independent or moderating variable depends on the hypothesis under investigation. If one was interested in studying the impact of the length of the working week, he would make the length of week the IV. If he was focusing on the relationship between age of worker and productivity, he might use working week length as an MV. 3) Extraneous Variables: An almost infinite number of Extraneous Variables (EV) exists that might conceivably affect a given relationship. Some can be treated as IVs or MVs, but most must either be assumed or excluded from the study. An infinite number of variables has little or no effect on a given situation. Most can safely be ignored because their impact occurs in such a random fashion as to have little effect. Others might influence the DV, but their effect is not at the core of the problem. We include them as Control Variables (CVs) in our investigation to ensure that our results are not biased by not including them. EV can also be Confounding Variables (CFVs) to our hypothesized IV-DV relationship.

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4) Intervening Variables: The variables mentioned with regard to causal relationships are concrete and clearly measurable- that is, they can be seen, counted or observed in some way. Sometimes, however, one may not be completely satisfied by the explanations they give. Thus, while we may recognize a four day working week results in higher productivity. We might think that this is not the whole story- that working week length affects some Intervening variables (IVV) that, in turn, results in higher productivity. An IVV is a conceptual mechanism through which the IV and MV might affect the DV. The IVV can be defined as a factor that theoretically affects the DV but can not be observed or has not been measured: its effect must be inferred from the effects of the independent and moderate variables on the observed phenomenon.

PROPOSITIONS AND HYPOTHESES Proposition: A proposition as a statement about observable phenomena (concepts) that may be judge as true or false. Hypothesis: When a proposition is formulated for empirical testing it is called a hypothesis. As a declarative statement about the relationship between two or more variables, a hypothesis is of a tentative and conjectural nature. Hypotheses have also been described as statements in which we assign variables to cases. A case as the entity or thing the hypothesis talks about. A variable is the characteristics, trait, or attribute that, in the hypothesis, is implied to the case. For example, we might create the following hypothesis: Brand manager Jones (case) has a higher-than-average achievement motivation (variable). If our hypothesis was based on more than one case, it would be a generalization. For example: Brand managers in Company Z (cases) have a higher-than-average achievement motivation (variable). Types of Hypothesis Descriptive Hypothesis: Descriptive hypotheses state the existence, size, form, or distribution of some variable. The descriptive hypotheses has several advantages: 1. It encourages researchers to crystallize their thinking about the likely relationships to be found. 2. It encourages them to think about the implications of a supported or rejected finding. 3. It useful for testing statistical significance. Relational Hypothesis: Relational hypotheses are statements that describe a relationship between two variables with respect to some case. For example, Foreign (variable) cars are perceived by Americans consumers (case) to be of better quality (variable) than domestic cars. In this instance, the nature of the relationship between the two variables (country of origin and perceived quality)

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is not specified. The first interpretation (unspecified relationship) indicates a correlational relationships; the second (predictable relationship) indicates an explanatory, or causal relationship. There are two types of relational hypothesesa) Correlational hypotheses: It state that the variables occur together in some specified manner without implying that one causes the other. For example, young women (under 35 years of age) purchase fewer units of our product than women who are 35 years of age or older. b) Explanatory (causal) hypotheses: It is an implication that the existence of a change in one variable causes or leads to a change in the other variable. For example, an increase in family income (independent variable) leads to an increase in the percentage of income saved (dependent variable).

The role of hypothesis: In research a hypothesis serves several important roles1. It guides the direction of the study. 2. It identifies facts that are relevant and those that are not. 3. It suggests which form of research design is likely to be most appropriate. 4. It provides a framework for organizing the conclusions that result.

THEORY
Hypotheses play an important role in the development of theory. How theory differs from hypothesis may cause confusion. In general, theories tend to be complex and abstract and to involve multiple variables. On the other hand, hypotheses tend to be more simple, limited-variable statements involving concrete instances. A theory is a set of systematically interrelated concepts, definitions, and propositions that are advanced to explain and predict phenomena (facts). Theories must be sound and fit the situation for successful explanation and predictions. The researcher should build more comprehensive theories to explain and predict how modifying the product and other variables will benefit the firm.

Model
Models allow researchers and managers to characterize present or future conditions, the effect of Advertising on consumer awareness or intention to purchase, a product distribution channel, an employee training, program and many of her aspects of business. Types: There are three models are found in boniness research such as 1. Descriptive Model: descriptive models are used frequently for more complex systems. 2. Predictive Model: Predictive models forecast future events. 3. Normative Model: Normative models are used chiefly for control informing us about what actions should be taken.

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Essential Feature of Scientific Method

The scientific method is practicing in business research, guides our approach to problem solving. The essential features of scientific method are: Direct observation of phenomena. Clearly defined variables, methods and procedures The ability to rule out rival hypotheses. The self-correcting process. Sound Reasoning For Useful Answers: Exposition consists of statements that describe without, defend, challenge, and explore meaning to research are deduction and induction.

Deduction
Deduction is a form of inference that purports to be conclusivethe conclusion must necessarily follow from the reasons given. These reasons are said to imply the conclusion and represent a proof. This is a much stronger and different bond between reasons and conclusions than is found with induction. For a deduction to be correct, it must be both true and valid: Premises (reasons) given for the conclusion must agree with the real world (true) The Conclusion must necessary follow from the premises (valid) A deduction is valid if it is impossible for the conclusion to be false if the premises are true. Logicians have established rules by which one can judge whether a deduction is valid.Conclusions are not logically justified if one or more premises are untrue or the argument form is invalid. A conclusion may still be a true statement, but for reasons other than those given. For example, consider the following simple deduction: For Example Inner city household interviewing is especially difficult and expensive (Premise 1) This survey involves substantial inner-city household interviewing. (Premises 2) The interviewing in this survey will be especially difficult and expensive (conclusion)

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Induction
Inductive argument is radically different. There is no such strength of relationship between reasons and conclusions in induction. In induction you draw a conclusion form one or more particular facts or pieces of evidence. For example, each of the following hypotheses might explain why sales did not increase: Regional retailers did not have sufficient stock to fill customer requests during the promotional period. A strike by the employees of our trucking firm prevented stock from arriving in time for promotion to be effective. A category five hurricane closed all are retail locations in the region for the 10 days during the promotion. Combining Induction and deduction: Induction and deduction are used together in research reasoning. Induction occurs when we observe a fact and ask, why is this?. Deduction is the process by which we test whether the hypothesis is capable of explaining the fact.

For example 1. You promote a product but sales dont increase 2. You ask the question why didnt sales increase?(induction) 3. You infer a conclusion (hypothesis) to answer the question: the promotion was poorly executed. (hypothesis) 4. You use this hypothesis to conclude (deduce) that sales will not increase during a poorly executed promotion. You know from experience that ineffective promotion will not increase sales. (Deduction-1)

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