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The topics in Chapter 2 are unfamiliar to many students and their abstract nature
makes it desirable to have a detailed discussion of them in class. A single session of
1 1/2 hours may not be adequate to cover these topics, hence, an additional session
is suggested. For additional discussion of constructing operational definitions, see
Bruce Tuckman, Conducting Educational Research, p. 57 ff. Many examples of
operational definitions are found in research publications such as the Academy of
Management Journal, Journal of Applied Psychology, and Journal of Marketing
Research. The supplemental readings at the end of the chapter are especially useful.
KEY TERMS
Key terms are shown in bold, as they appear in the text, throughout the lecture
notes.
Treatment of the topics in Chapter 2 may be organized into the following four sections.
1
2. Concept and Construct Development: The second major focus is an applied research
skill development process. To initiate this, students can propose concepts, develop
constructs, and provide operational definitions for them. Students can give concrete
examples of concepts that are observable and then define them operationally. For
example, they could define the concept of a chair and distinguish it from other pieces
of furniture, such as tables. This can be extended to the concrete problem of
operationally defining various types of chairs, so that someone new to our culture
could conduct a detailed chair inventory in the building. (Be sure to include office type
seating.)
3. Hypotheses: Question 7 is useful for moving from definitions to hypothesis
formulation. Question 8 can also be used, particularly if assigned in advance. Because
this question does not call for the student to specify the implications of the hypotheses,
this additional step should be brought out in class. Questions 7 and 8 expand on the
topics of induction and deduction, and their combination into the double movement of
reflective thought. When these are incorporated into a discussion of inference making,
most students appear to grasp their essential nature more easily.
4. Theory: A key message is that theory and facts are not opposites, or incompatible.
Theory is used to understand and explain facts. A hypothesis may be treated as a
simple theory. By combining a number of independent and moderating variables into
several interrelated explanatory hypotheses, we build better explanatory theories.
Questions 5, 6, 9, and 10 can be tied into this discussion. Question 9 is useful for
elaborating the various categories of variables relevant to theory building, as well as
comparing simple versus more elaborate theories.
You may want to extend this topic by asking students to develop a theory. For
example, construct a theory that will explain the differences in academic success that
various students achieve in a B-school:
Predictive Criterion
Constructs Indicators Variable
Intellectual GMAT
capacity GPA
References
Willingness to GPA
do academic Interview
work Academic
Success in
Program
Time and History
energy Financial
commitment Statement
Acculturation History
Additional Discussion or Project Ideas
The photograph on page 34 shows children who have made paper airplanes. Apply
deductive and inductive reasoning to the image to develop conclusions about what
will happen when they send them flying.
Recreate Exhibit 2-3 on the board in front of the class. With recommendations from
the students, complete the “Job Interest Construct” of the job redesign.
Terms to consider: Prior employment history; aptitude test results.
Write several hypotheses that you have originated on the board; the topic is not
important. Alternatively, have students propose some. Then compare each hypothesis
against the checklist in Exhibit 2-5 in order to determine if it is a strong hypothesis or
a weak one.
Ms. Wines began to collect research knowledge as she investigated why artillery
shells were not exploding when fired from a test cannon. Additionally, the Army
test range had an unusually high death rate among civilians. The deaths were
eventually attributed to scavengers who snuck on the firing range at night and were
harmed by unexploded munitions. Civilians also were conducting a form of
extreme-racing, which also put them in danger. The problem was eventually
eliminated when the Army policed the unexploded rounds before the civilians could
come in contact with them. Wines learned how to solve a problem without using the
traditional educational campaign usually imposed by the Army in such instances.
By learning about local culture and lifestyles, she was able to assist her client with
an equitable solution to a problem.
RESEARCH AND THE SCIENTIFIC METHOD
Every day we reason, with varying degrees of success, and communicate our meaning
in ordinary language or in symbols.
Meanings are conveyed in two types of discourse: exposition or argument.
Exposition consists of statements that describe without attempting to explain.
Argument allows us to explain, interpret, defend, challenge, and explore meaning.
Two types of argument of great importance to research are deduction and induction.
Deduction
Deduction is a form of argument that purports to be conclusive; the conclusion must
follow from the reasons given.
For a deduction to be valid, it must be both true and valid.
Premises (reasons) given for the conclusion must agree with the real world (true).
The conclusion must follow from the premises (valid).
A deduction is valid if it is impossible for the conclusion to be false, if the premises
are true.
Conclusions are not logically justified if one or more premises are untrue, or the
argument form is invalid.
A conclusion may be a true statement, but for reasons other than those given.
Example:
–All employees at BankOne can be trusted to observe the ethical code.
(Premise 1)
– Sara is an employee of BankOne. (Premise 2)
– Sara can be trusted to observe the ethical code. (Conclusion)
If you believe that Sarah can be trusted, you might think this is a sound deduction.
But, this is not a sound deduction unless the form of the argument is valid and the
premises are true.
Because more than a billion dollars each year are lost to employee theft, Premise
1 is in question.
If one premise fails the acceptance test, than the conclusion is not a sound
deduction.
As researchers, we may not recognize how much we use deduction to understand the
implications of various acts and conditions.
Induction
In induction, you draw a conclusion from one or more particular facts or pieces of
evidence.
The conclusion explains the facts, and the facts support the conclusion.
Example: Your firm spends $1 million on a regional promotional campaign and
sales do not increase. This is a fact.
Under such circumstances, one might ask, “Why didn’t sales increase?”
One likely answer is that the promotional campaign was poorly executed.
However, there may be other explanations, such as:
– Retailers did not have sufficient stock
– A trucking strike kept stock from arriving in time
– A hurricane forced store closures during the promotion
The inductive conclusion is an inferential jump beyond the evidence presented.
That is, although one conclusion can explain why there was no sales increase, so
can other conclusions.
Another example: Tracy Nelson, salesperson at the Square Box Company, has the
worst sales records in the company.
–
We might hypothesize that her problem is that she makes too few sales calls.
– Other possible hypotheses include:
a) Her territory lacks the potential of other territories
b) Her sales skills are weak
c) She is losing sales to competitors because she can’t lower prices
d) She may not be capable of selling boxes
– All of these hypotheses have some chance of being true.
– All require further confirmation.
– Confirmation comes with evidence.
The task of research is largely to:
– Determine the nature of the evidence need to confirm or reject the hypothesis
– Design methods by which to discover or measure this evidence
Combining Induction and Deduction
Induction and deduction are used together in research reasoning.
Dewey describes this process as the “double movement of reflective thought.”
Induction occurs when we observe a fact and ask, “Why is this?”
In answer, we advance a tentative explanation (hypothesis).
The hypothesis is plausible if it explains the event or condition (fact) that
prompted the question.
Deduction is the process by which we test whether the hypothesis is capable of
explaining the fact.
The process is shown in Exhibit 2-1.
1. You promote a product, but sales don’t happen. (Fact)
2. You ask, “Why didn’t sales increase?” (Induction)
3. You infer a conclusion… the promotion was poorly executed. (Hypothesis)
4. You use this hypothesis to conclude (deduce) that sales will not increase
during a poorly executed promotion, and you know from experience that this
is true. (Deduction)
This example illustrates that one must be able to deduce the initiating fact from the
hypothesis advanced to explain that fact.
To test a hypothesis, one must be able to deduce from it that other facts than can then
be investigated.
In this example, we deduce that a well-executed promotion will result in increased
sales (deduction). If we run an effective promotion, sales increase (fact).
The double movement of reflective thought is illustrated in Exhibit 2-2.
The initial observation leads to the hypothesis that Tracy is lazy.
This hypothesis leads to two others:
–Laziness results in excessive tardiness.
– Laziness results in fewer customer calls per day.
Both of the secondary hypotheses must be investigated to find out if they are true.
– If they are true, our hypothesis is confirmed.
– If they are found to be false, we must look for another explanation for Tracy’s
poor sales record.
We often develop multiple hypotheses to explain a problem. Then we design a study
to test all the hypotheses at once.
THE LANGUAGE OF RESEARCH
When we do research, we seek to know what is, in order to understand, explain, and
predict phenomena.
This requires asking questions.
These questions require the use of concepts, constructs, and definitions.
Concepts
A concept is a generally accepted collection of meanings or characteristics associated
with certain events, objects, conditions, situations, and behaviors.
When you think of a spreadsheet or a warranty card, what comes to mind is not a
single example, but your collected memories of all spreadsheets and warranty
cards.
From this, you extract a set of specific and definable characteristics.
Sources of Concepts
Concepts that are in frequent and general use have been developed over time, through
shared language usage.
These concepts are acquired through personal experience.
That is why it’s often difficult to deal with an uncommon concept or a newly
advanced idea.
One way to handle this problem is to borrow from other languages (gestalt) or to
borrow from other fields (impressionism).
The concept of gravitation, as used to explain why people shop where they do, is
borrowed from physics.
The concept of distance is used to describe the degree of variability between the
attitudes of two or more people.
Threshold is used to describe a concept about the way we perceive.
Sometimes, we must adopt new meanings for words or develop new labels for
concepts.
When we adopt new meanings or develop new labels, we begin to develop a
specialized jargon or terminology.
Jargon contributes to communication efficiency among specialists, but it excludes
everyone else.
Importance to Research
The success of research hinges on:
How clearly we conceptualize, and
How well others understand the concepts we use
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.
Example: If you ask participants for an estimate of their family’s total income:
– What time period are you asking about?
– Should income before or after taxes be included?
– Is this the income of the head of the family, or all family members?
– Is income limited to salary and wages only?
– Does income include free rent, employee discounts, or food stamps?
Constructs
Concepts have progressive levels of abstraction.
Table is an objective concept.
Personality is harder to visualize.
A construct is an image or abstract idea specifically invented for a given research
and/or theory-building purpose.
Constructs are built by combining simpler, more concrete concepts.
When Jason and Myra tackle the MindWriter research study, they will struggle
with the construct of satisfied service customer.
Concepts and constructs are easily confused.
Exhibit 2-3 illustrates the constructs and concepts that Heather is dealing with during
a job redesign.
The bottom tier concepts are the most concrete and easily measured (accuracy,
speed, errors), because they are observable and measurable.
The concepts in the middle tier are more subjective, because “presentation
quality” is subjective and not directly observable.
– It is a combination of three concepts.
– Heather uses it only as a label.
The more difficult it is to observe and measure a concept, the higher it is placed in
the tier.
The top level, Job Interest Construct, has not been constructed.
– Job interest is the least observable and most difficult to measure.
– It will likely be composed of multiple concepts, many of which will be quite
abstract.
– Such entities are sometimes referred to as hypothetical constructs, because
they can only be inferred from the data.
If research shows that the concepts and constructs in this example are interrelated,
and if their connections can be supported, then Heather will have the beginning of
a conceptual scheme.
Definitions
Confusion about the meaning of concepts can destroy the value of a research study,
often without the researcher or client knowing it.
Definitions are one way to reduce this danger.
There are two types of definitions: dictionary definitions and operational
definitions.
In the dictionary definition, a concept is defined with a synonym.
Many dictionary definitions are circular in nature. Therefore, concepts and
constructs require more rigorous definitions.
Operational Definitions
An operational definition is stated in terms of specific criteria for testing or
measurement.
The terms must refer to empirical standards.
The definition must specify the characteristics of the object (physical or abstract)
to be defined, 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.
Example: During her military research project, Myra knew that the Army defined a
dud as “a shell that does not explode on impact.” But Myra would have defined a dud
as “a shell that, once fired from a cannon, could not be made to explode, by any
manipulation, human or mechanical.”
Example: The term freshman may require a more concrete description, such as
“freshman are students with fewer than 30 credit hours.”
It is more difficult to describe a concept such as consumer socialization.
Whether you use a definitional or operational definition, its purpose in research is
basically the same… to provide an understanding and measurement of concepts.
Operational definitions may be needed 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
The term variable is often used as a synonym for construct, or the property being
studied.
A variable is a symbol of an event, act, characteristics, trait, or attribute that can
be measured, and to which we assign categorical values.
Variables with only two values are said to be dichotomous (male-female,
employed-unemployed).
In Myra’s research project, shells were either exploded or unexploded.
Income, temperature, age, or a test score are example of continuous variables.
These variables may take on values within a given range, or in some cases, an
infinite set.
Example: Your test score may range from 0 to 100.
The procedure for assigning values to variables is described in Chapter 16.
Moderating Variables
In each relationship, there is at least one independent variable and one dependent
variable.
For simple relationships, all other variables are ignored.
In more complex study situations, moderating variables (MV) may need to be given
consideration.
It is believed to have a significant contributory or contingent effect on the
originally stated IV-DV relationship.
Example: The loss of mining jobs (IV) leads to acceptance of higher-risk
behaviors to earn a family-supporting income—racecar driving or nocturnal
scavenging (DV)—especially due to the proximity of the firing range (MV) and
the limited education (MV) of the residents.
Extraneous Variables
An almost infinite number of extraneous variables (EVs) exist that might affect a
given relationship.
These variables have little or no effect on a given situation.
Most can be safely ignored.
Others may be important, but their impact occurs so randomly that they have little
effect.
– In the example about the effect of a coupon on cereal sales, one would
normally think that the imposition of a local sales tax, the election of a new
mayor, a three-day rainy spell, and so on, would have little effect on cereal
sales.
Other extraneous variables may have a profound impact on a IV-DV relationship.
Example: Myra might think that education level, as it impacts job skills, has an
impact on the selection of income-producing activities.
This notion might lead to the introduction of an extraneous variable as the control
variable.
A control variable is introduced to help interpret the relationship between
variables.
– Example: Among residents with less than a high school education (EV-
control), the loss of high-income mining jobs (IV) leads to acceptance of
higher-risk behaviors to earn a family-supporting income (racecar driving or
nocturnal scavenging (DV), especially due to the proximity of the firing range
(MV).
– In this example, Myra would try to control for employable job skills by
studying the education patterns and prior employment of the scavengers.
Alternatively, one might think that the type of customers would have an effect on
a compensation system’s impact on sales productivity.
– With new customers (EV-control), a switch to commission from a salary
compensation system (IV) will lead to increased sales productivity (DV) per
worker, especially among younger workers (MV).
– In this example, we would attempt to control for type of customers by
studying the effect of the compensation switch within groups having different
types of customers (new versus established).
Intervening Variables
An intervening variable is a conceptual mechanism through which the IV and MV
might affect the DV.
The intervening variable (IVV) may be defined as “that factor which theoretically
affects the observed phenomenon but cannot be seen, measured, or manipulated; its
effect must be inferred from the effects of the independent and moderator variables
on the observed phenomenon.”
In the case of the compensation hypothesis, the intervening variable to be job
satisfaction, giving a hypothesis such as:
The switch to a commission compensation system (IV) will lead to higher sales
productivity (DV) by increasing overall compensation (IVV).
Myra’s research for the army hypothesizes:
Marking duds with kerosene lanterns for same-evening detonation (IV) will
reduce nocturnal scavenging (DV) among poorly educated local residents (MV)
by eliminating the profit motive for such behavior (IVV).
Descriptive Hypotheses
Both of the hypotheses above are examples of descriptive hypotheses.
The state the existence, size, form, or distribution of some variable.
Researchers often use a research question rather than a descriptive hypothesis.
– Descriptive hypothesis: American cities (case) are experiencing budget
difficulties (variable).
– Research question format: Are American cities experiencing budget
difficulties?
Advantages that a descriptive hypothesis has over a research question:
– It encourages researchers to crystallize their thinking about the likely
relationships to be found.
– It encourages them to think about the implications of a supported or rejected
finding.
– It is useful for testing statistical significance.
Relational Hypotheses
Relational hypotheses are statements that describe a relationship between two
variables with respect to some case.
These statements describe a relationship between two variables with respect to
some case.
Example: Foreign (variable) cars are perceived by American consumers (case) to
be of better quality (variable) than domestic cars.
– The relationship between two variables (country of origin and perceived
quality) is not specified.
Correlational hypotheses state that the variables occur together, in some specified
manner, without implying that one causes the other.
Such weak claims are often made when we believe there are more basic casual
forces that affect both variables, or when we have not developed enough evidence
to claim a stronger linkage.
Sample hypothesis: Young women (under 35 years of age) purchase fewer units
of our product than women who are 35 years of age or older.
Labeling a statement as a correlational hypothesis means that you are making no
claim that one variable causes another variable to change, or to take on different
values.
With explanatory (causal) hypotheses, there is an implication that the existence of,
or a change in, one variable causes (or leads to) a change in another.
Sample hypothesis: An increase in family income (IV) leads to an increase in the
percentage of income saved (DV).
Sample hypothesis: An increase in the price of salvaged copper wire (IV) leads to
an increase in scavenging (DV) on the Army firing range.
In proposing or interpreting causal hypotheses, the researcher must consider the
direction of influence.
– Our ability to identify the direction of influence can depend on the research
design.
The Role of the Hypothesis
Important functions of hypothesis:
It guides the direction of the study.
It identifies facts that are relevant, and those that are not.
It suggests which form of research design is likely to be most appropriate.
It provides a framework for organizing the conclusions that result.
The virtue of the hypothesis is that, if taken seriously, it limits what shall be studied
and what shall not.
Sample hypothesis: Husbands and wives agree in their perceptions of their
respective roles in purchase decisions.
– This hypothesis specifies who shall be studied (married couples), in what
context they will be studied (consumer decision making), and what shall be
studied (their individual perceptions about their roles).
– The nature of this hypothesis and the implications of the statement suggest
that the best research design is a communication-based study (survey or
interview).
– Note: At this time, we have no practical means of ascertaining the perceptions
of people, except to ask them.
A strong hypothesis should fulfill three conditions:
Adequate for its purpose
Testable
Better than its rivals
The conditions for developing a strong hypothesis are developed more fully in
Exhibit 2-5.
Theory
The difference between theory and hypothesis is the degree of complexity and
abstraction.
Theories tend to be complex, abstract, and involve multiple variables.
Hypotheses tend to be simpler, limited-variable statements involving concrete
instances.
Those who are not familiar with research often use the term theory to express the
opposite of fact.
In truth, fact and theory are each necessary for the other to be of value.
Our ability to make rational decisions, as well as to develop scientific knowledge,
is measured by the degree to which we combine theory and fact.
Theories are the generalizations we make about variables and the relationships among
them.
We use these generalizations to make decisions and predict outcomes.
A theory is a set of systematically interrelated concepts, definitions, and propositions
that are advanced to explain and predict phenomena (facts).
Theories are also used in marketing.
The product life cycle has four stages: introduction, growth, maturity, and decline.
In each stage, many concepts, constructs, and hypotheses describe the influences
that change revenue and profit.
– In the growth stage, heavy spending on advertising and promotion may be
made to fuel primary demand (construct).
– High pricing may reflect skimming (concept) to help the company recover
developmental costs.
– Low pricing, or penetration pricing (concept), may be used to build unit
volume.
– Those who buy the product again are called repeat purchasers (concept).
– If the company is unable to attract repeat purchasers, the product may die
(proposition).
– The maturity stage is a good time for the company, in terms of generating
cash (proposition).
– Firms often use extension strategies (constructs) to delay the decline stage of
the product life cycle.
– In the decline stage, “products will consume a disproportionate share of
management time and financial resources, relative to their potential future
worth” (hypothesis).
The challenge for the researcher in this example is to build more comprehensive
theories to explain and predict how modifying the product and other variables (like
the advertising campaign) will benefit the firm.
Models
A model is a representation of a system that is constructed to study some aspect of
that system, or the system as a whole.
Models differ from theories in that a theory’s role is explanation, whereas a model is
a representation.
Modeling software has made modeling more inexpensive and accessible.
Models allow researchers and managers to characterize present or future conditions.
A model’s purpose is to increase our understanding, prediction, and control of
environmental complexities.
Exhibit 2-7 is an example of a maximum-flow model used in management science.
Descriptive, predictive, and normative models are found in business research.
Descriptive models are used frequently for more complex systems.
Predictive models forecast future events.
Normative models are used chiefly for control, informing us about what actions
should be taken.
Models may also be static, representing a system at one point in time, or dynamic,
representing the evolution of a system over time.
Models are an important means of advancing theories and aiding decision makers.
However, because the inputs are often unknown, imprecise, or temporal estimates
of complex variables, creating and using models can be a time-consuming
endeavor.
Terms in Review
1. Distinguish among the following sets of items, and suggest the significance of
each in a research context.
The scientific method emphasizes (1) direct observation of phenomena, (2) clearly
defined variables, methods, and procedures, (3) empirically testable hypotheses, (4)
the ability to rule out rival hypotheses, (4) statistical rather than linguistic justification
of conclusions, and (6) the self-correcting process.
3. Below are some terms commonly found in a management setting. Are they
concepts or constructs? Give two different operational definitions for each.
a) First-line supervisor e) Line management
b) Employee morale f) Leadership
c) Assembly line g) Union democracy
d) Overdue account h) Ethical standards
We use theory constantly as we explain why certain events occur or why one
procedure succeeds and another does not. Theory represents an identification of key
causal relationships, which explain outcomes in a variety of situations. It is an effort
to extract the essence of relationships, ignoring less important contextual factors. The
adequacy of a theory comes from its capacity to explain phenomenon in a variety of
contexts and situations and this is referred to as its capacity to “travel.” Often,
theories are too simplistic, and therefore lack explanatory power across situations.
The solution lies in improving the theory, possibly introducing more variables, rather
than rejecting the central concept.
Car Sales (DV) will increase as per capita income increases (IV), as long as low
interest (IVV) increase ease of access to credit among younger (EV) men (EV) and
competitors do not introduce more attractive models (EV), increase advertising (EV),
or increase their discounts (EV).
B. Given that buyer behavior is fickle with respect to ego-involved purchases
(e.g. car), and given the number of uncontrollable extraneous variables, a
model based on the above theory is unlikely to be relevant for any about of
time.
There are a variety of answers to this question. One example might be:
A. Concepts—sales representative, male, female
Constructs—customer defection.
B. Female sales representatives who are more culturally supported in establishing
and maintaining relationships extend that personal behavior into the work place.
Lower customer defections = fewer current customers lost at time of contract
renewal resulting in a smaller customer defection percentage.
Customer defection percentage = the number of customers who do not renew
their contract during the measurement period divided by the total number of
customers at the start of the measurement period.
7. You are the office manager of a large firm. Your company prides itself on its
high-quality customer service. Lately, complaints have surfaced that an
increased number of incoming calls are being misrouted or dropped. Yesterday,
when passing by the main reception area, you noticed the receptionist fiddling
with his hearing aid. In the process, a call came in and would have gone
unanswered if not for your intervention. This particular receptionist had earned
an unsatisfactory review three months earlier for tardiness. Your inclination is
to urge this 20-year employee to retire or to fire him, if retirement is rejected,
but you know the individual is well liked and seen as a fixture in the company.
a) Pose several hypotheses that might account for dropped or misrouted
incoming calls.
b) Using the double movement of reflective thought, show how you would test
these hypotheses.
Hypothesis 1—Receptionist misdirects calls due to his inability to correctly hear the
problem as stated by the caller.
The above hypothesis is induced from the situation described in the problem. From
the hypothesis we must be able to deduce some other factual conditions implied by
this hypothesis. For example:
Fact 1—The complaints of misdirected calls only occur when the 20-year
employee works the reception desk.
Fact 2—A fully hearing employee does not generate complaints of misdirected
calls.
Fact 3—Employee has requested two sick days in the last 3 months for ear-related
infections.
Hypothesis 2—A faulty switch causes the misrouted calls.
Fact 1—Switch A is tested by placing several sample calls and the calls are
correctly routed.
Fact 2—Switch B is tested by placing several sample calls and the calls are
misdirected.
Bringing Research to Life
8. Identify and classify all the variables in the Army’s dud shell research.
Numerous variables were introduced in the text discussion of BRTL's Army firing
range vignette. Among these:
"danger" warning (EV-control) loss of lucrative mining jobs (EV)
belief in fate (MV) proximity to firing range (MV)
fighter bombing with active artillery (IVV) detonation delay (EV)
kerosene lantern marking (EV) post-fire handling (MV)
price of copper wire (EV) resident education level (EV-control)
profit from scavenged materials (IVV) speed of impact (IV)
nocturnal scavenging of firing range
for copper wire (DV)
9. What was Myra’s hypothesis for the Army’s dud shell research? What was the
Army’s hypothesis?
A. 1. If money supply is the basic economic variable, then economic condition changes
will parallel it with a lag.
2. Economic condition variations lag money supply by 6-12 months.
3. Therefore, money supply is the basic economic variable. (Induction)
B. 1. If smoking causes lung cancer, heavy smokers will have a higher lung cancer rate
than non-smokers.
2. Heavy smokers do have a higher lung cancer rate.
3. Heavy smoking causes lung cancer. (Induction)
1. A research question best states the objective of the marketing research study. Incorrectly
defining the research question is the fundamental weakness in the marketing research process.
2. After the exploration process is complete, the researcher must fine-tune the research question.
At this point, the research question will have evolved in some fashion. It will have better
focus.
3. In addition to fine-tuning the original question, other research question-related activities should
be addressed in this phase to enhance the direction of the project.
1. Examine variables to be studied and assess whether they are operationally defined.
2. Review the research questions to break them down into second and third-level
questions.
3. If hypotheses are used, be sure they meet the quality tests.
4. Determine what evidence must be collected to answer the various questions and
hypotheses.
5. Set the scope of the study by stating what is not a part of the research question.
3. Once the research is defined, the research must be proposed in order to allocate resources to the
project. There are three types of budgets in organizations where research is purchased and cost
containment is crucial.
4. Rule-of-thumb budgeting involves taking a fixed percentage of some criterion. For example, a
percentage of the prior year’s sales revenues may be the basis for determining the business
research budget for a manufacturer.
5. Departmental (functional area) budgeting allocates a portion of total expenditures in the unit to
research activities. This allows units like human resources and marketing to have the authority
to approve their own projects
6. Task budgeting selects specific research projects to support on an ad hoc basis. This is the least
pro-active form but permits definitive cost-benefit analysis.
• Managers are increasingly asked to prove that research meets ROI objectives. Conceptually, the
value of research is not difficult to determine. It may be judged in terms of the difference
between the result of decisions made with the information and the result that would be made
without it. This application cannot be measured, though.
• Option analysis: Managers conduct formal analysis of each alternative research project judged
in terms of estimated costs and associated benefits and with managerial judgment playing a
major role.
• Decision theory: The focus is on trying to assess the outcomes of each action. The manager
chooses the action that affords the best outcome – the action criteria that meets or exceeds
whatever criteria are established. Each criterion is a combination of a decision rule and a
decision variable. The decision rule is a criterion for judging the attractiveness of two or more
alternatives when using a decision variable. The decision variable is a quantifiable
characteristic, attribute, or outcome on which a choice decision will be made. The evaluation
of alternatives requires that
1) each alternative is explicitly stated,
2) a decision variable is defined by an outcome that may be measured, and
3) a decision rule is determined by which outcomes may be compared.
• Prior or Interim Evaluation: In this case, managers decide to control the research expenditure
risk by doing a study in stages. Costs are then reviewed at each stage.
• Ex Post Facto Evaluation: This form occurs after the research is conducted but can be useful in
guiding future decisions.
This slide presents the components of the research overview section of a research report.
Problem’s background
Summary of exploratory findings
Research design and procedures
Conclusions