Q Types of Business Research

Business research is undertaken to reduce uncertainty and focus decision making

exploratory research is conducted during the early stages of decision making. At this point, the
decision situation is usually highly ambiguous and management is very uncertain about what
actions should, or even could, be taken. When management is aware of the problem but lacks
some knowledge, descriptive research is usually conducted. Causal research requires sharply
defined problems.

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?”

1. Exploratory 2. Descriptive 3. Causal

Matching the particular decision situation with the right type of research is important
in obtaining useful research results
Problem Discovery and Problem
exploratory research
Conducted to clarify ambiguous situations or discover ideas that may be potential
business opportunities. As the name implies, exploratory research is not intended to
provide conclusive evidence from which to determine a particular course of action. In
this sense, exploratory research is not an end unto itself. Usually exploratory research
is a first step, conducted with the expectation that additional research will be needed
to provide more conclusive evidence. Exploratory research is particularly useful in new
product development.eg sony Honda robot technogly. Descriptive research often helps
describe market segments.
descriptive research
Describes characteristics of objects, people, groups, organizations, or environments; tries to
“paint a picture” of a given situation. by addressing who, what, when, where, and how
questions Unlike exploratory research, descriptive studies are conducted after the researcher
has gained a firm grasp of the situation being studied. eg

• 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

Eg.

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

causal research
Allows causal inferences to be made; seeks to identify causeand-effect relationships. If a
decision maker knows what causes important outcomes like sales, stock price, and employee
satisfaction, then he or she can shape firm decisions in a positive way. Causal inferences are
very powerful because they lead to greater control. Causal research seeks to identify causeand-
effect relationships. When something causes an effect, it means it brings it about or makes it
happen. The effect is the outcome. Rain causes grass to get wet. Rain is the cause and wet grass
is the effect. The different types of research discussed here are often building blocks—
exploratory research builds the foundation for descriptive research, which usually establishes
the basis for causal research. Thus, before causal studies are undertaken, researchers typically
have a good understanding of the phenomena being studied. Because of this, the researcher
can make an educated prediction about the cause-and-effect relationships that will be tested.
Although greater knowledge of the situation is a good thing, it doesn’t come without a price.
Causal research designs can take a long time to implement. Also, they often involve intricate
designs that can be very expensive

CAUSALITY

how will implementing a new employee training program change job performance? Causal
research attempts to establish that when we do one thing, another thing will follow.

causal inference A conclusion that when one thing happens, another specific thing will follow

One of three criteria for causality; deals with the time order of events—the cause must occur
before the effect. 2nd criteria is when a change in the cause occurs, a change in the outcome
also is observed. One of three criteria for causality; means any covariation between a cause and
an effect is true and not simply due to some other variable.

Q.STARTE Research objects and

questions
research process begins with research objectives. Research objectives are the goals to be
achieved by conducting research. In consulting, the term deliverables is often used to describe
the objectives to a research client. The genesis of the research objectives lies in the type of
decision situation faced. The objectives may involve exploring the possibilities of entering a new
market. Alternatively, they may involve testing the effect of some policy change on employee
job satisfaction. Different types of objectives lead to different types of research designs. In
applied business research, the objectives cannot really be determined until there is a clear
understanding of the managerial decision to be made. This understanding must be shared
between the actual decision maker and the lead researcher. We often describe this
understanding as a problem statement. In general usage, the word problem suggests that
something has gone wrong. This isn’t always the case before research gets started. Actually, the
research objective may be to simply clarify a situation, define an opportunity, or monitor and
evaluate current business operations. The research objectives cannot be developed until
managers and researchers have agreed on the actual business “problem” that will be addressed
by the researc

Our hypotheses should be logically derived from and linked to our research objectives

Decision Statement ;What should be the retail price for product X?

Research objective;Forecast sales for product X at three different prices.

Hypothes;is Sales will be higher at $5.00 than at $4.00 or at $6.99.

Exploratory research

can be used to help identify and clarify the decisions that need to be made. These preliminary research
activities can narrow the scope of the research topic and help transform ambiguous problems into well-
defined ones that yield specific research objectives. By investigating any existing studies on the subject,
talking with knowledgeable individuals, and informally investigating the situation, the researcher can
progressively sharpen the focus of the research. After such exploration, the researcher should know
exactly which data to collect during the formal phases of the project and how to conduct the project

secondary data

As a general rule, researchers should first investigate previous research to see whether or not others
may have already addressed similar research problems. Initially, internal research reports should be
searched within the company’s archives outside company eg census of poluplation and online

.case study .experience survay

pilot study A small-scale research project that collects data from respondents similar to those to be
used in the full study. Almost all consumers take a test drive before buying a car. A pilot study serves a
similar purpose for the researcher. It can serve as a guide for a larger study or examine specific aspects
of the research to see if the selected procedures will actually work as intended.

Focus group interviews are sometimes used as a pilot study. A focus group interview brings together six
to twelve people in a loosely structured format. The technique is based on the assumption that
individuals are more willing to talk about things when they are able to do so within a group discussion
format. Focus group respondents sometimes feed on each other’s comments to develop ideas that
would be difficult to express in a different interview format

STATING RESEARCH OBJECTIVES

After identifying and clarifying the problem, with or without exploratory

research, the researcher must formally state the research objectives. This
statement delineates the type of research that is needed and what intelligence
may result that would allow the decision maker to make informed choices. The
statement of research objectives culminates the process of clarifying the
managerial decision into something actionable. A written decision statement
expresses the business situation to the researcher and makes sure that managers
and researchers are on the same page. The research objectives try to directly
address the decision statement or statements, as the case may be. As such, the
research objectives represent a contract of sorts that commits the researcher to
producing the needed research. This is why they are expressed as deliverables in
applied business research. These research objectives drive the rest of the
research process. Indeed, before proceeding, the researcher and managers must
agree that the objectives are appropriate and will produce relevant information

PROBLEM DISCOVERY AND DEFINATION

In applied business research, the objectives cannot really be determined until
there is a clear understanding of the managerial decision to be made. This
understanding must be shared between the actual decision maker and the lead
researcher. We often describe this understanding as a problem statement. In
general usage, the word problem suggests that something has gone wrong. This
isn’t always the case before research gets started.. The research objectives cannot
be developed until managers and researchers have agreed on the actual business
“problem” that will be addressed by the research. Managers may only be able to
list symptoms that could indicate a problem. For example, employee turnover is
increasing, but management may not know the exact nature of the problem.
Thus, the problem statement often is made only in general terms; what is to be
investigated is not yet specifically identified

“the formulation of a problem is often more essential than its solution.

. Careful attention to problem definition allows the researcher to set the proper
research objectives. When the purpose of the research is clear, the chances of
collecting the necessary and relevant information, and not collecting surplus
information, will be much greater.

Once a problem area has been discovered, the researcher and management
together can begin the process of precisely defining it.

research design
A master plan that specifies the methods and procedures for collecting and
analyzing the needed information. A research design provides a framework or
plan of action for the research. The researcher also must determine the sources
of information, the design technique (survey or experiment, for example), the
sampling methodology, and the schedule and cost of the research.basic design
techniques for: surveys, experiments, secondary data, and observation.

sampling
Involves any procedure that draws conclusions based on measurements of a
portion of the population.

Although the sampling plan is outlined in the research design, the sampling stage
is a distinct phase of the research process In other words, a sample is a subset
from a larger population. a researcher need not select every item in a population
because the results of a good sample should have the same characteristics as the
population as a whole. Of course, when errors are made, samples do not give
reliable estimates of the population. The first sampling question to ask is “Who is
to be sampled?” The answer to this primary question requires the identification of
a target population. Who do we want the sample to reflect? Defining this
population and determining the sampling units may not be so easyThe next
sampling issue concerns sample size. How big should the sample be? The final
sampling decision is how to select the sampling units. Simple random sampling
may be the best known type, in which every unit in the population has an equal
and known chance of being selected. However, this is only one type of sampling

Data process and analysis

data analysis The application of reasoning to understand the data that have been
gathered

The data gathering stage begins once the sampling plan has been formalized. Data
gathering is the process of gathering or collecting information. Data may be
gathered by human observers or interviewers, or they may be recorded by
machines as in the case of scanner data and Web-based surveys. Obviously, the
many research techniques involve many methods of gathering data. Surveys
require direct participation by research respondents. This may involve filling out a
questionnaire or interacting with an interviewer other form of data gathering are
those in which the subjects do not have to be disturbed for data to be collected.
They may even be unaware that research is going on at all.If an interviewer
phrases questions incorrectly or records a respondent’s statements inaccurately
(not verbatim), major data collection errors will result.

After the fieldwork has been completed, the data must be converted into a
format that will answer the manager’s questions. This is part of the data
processing and analysis stage. Here, the information content will be mined from
the raw data. Data processing generally begins with editing and coding the data.

The editing process corrects problems such as interviewer errors (an answer
recorded on the wrong portion of a questionnaire, for example) before the data
are transferred to the computer.
The rules for interpreting, categorizing, recording, and transferring the data to the
data storage media are called codes. This coding process facilitates computer or
hand tabulation.

Conclusions and Preparing a Report

One of the most important jobs that a researcher performs is communicating the
research results. This is the final stage of the research project, but it is far from
the least important. The conclusions and report preparation stage consists of
interpreting the research results, describing the implications, and drawing the
appropriate conclusions for managerial decisions. . These conclusions should
fulfill the deliverables promised in the research proposal. In addition, it’s
important that the researcher consider the varying abilities of people to
understand the research results Frequently, management is not interested in
detailed reporting of the research design and statistical findings, but wishes only a
summary of the findings. If the findings of the research remain unread on the
manager’s desk, the study will have been useless.