ResearchMethodology - Purpose & Methods

RESEARCH
METHODOLOGY
(Business Research Methods)
MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan 1

Business Research Problems
When analyzing business problems, three things must be
considered:
 Managers and decision-makers have total certainty

about the underlying problem situation (rare in practice)
 Managers and decision-makers have little or no
information about the problem situation on which to
proceed on and the objectives and alternatives are either
not, or are very vaguely defined (extreme cases)
 Managers and decision-makers grasp the general
nature of the objectives they desire to realize, but lack
sufficient information on the nature of the underlying
business problem situation
The Problem Definition
Before descriptive, quantitative research is undertaken, it

is essential that there is an insight into the underlying
business problem situation, otherwise, invalid
conclusions can result which be worthless at best and
potentially damaging to the organization in the worst
case
After a problem has been “discovered”, it must be

“defined” so that the objectives of the research are clear
and realizable

The Problem Definition Process
The problem definition process involves the following
interrelated steps:
• Ascertaining the decision-maker’s objectives

• Understanding the problem background
• Isolating and identifying the problem (not the symptoms)
• Determining the unit of analysis
• Determining the relevant variables
• Stating the research questions (hypotheses) and
research objectives
The Problem Definition Process:
Ascertaining the Decision-Maker’s Objectives
 The objectives should be stated to the researcher in
clear and measurable terms
 In practice many managers are not able to clearly

articulate research objectives
 Problem of lack of sufficient and important information on

the underlying business problem and consequently on
the formulation of research objectives

Understanding the Problem Background
 In cases where adequate information on a problem
situation is available, managers can play an important
role by helping researchers gain insight
 In cases where adequate information on a problem

situation is not available, a situation analysis should first
be undertaken with a view to familiarizing both managers
and decision-makers with the decision area and related
organizational, environmental and other aspects. This is
usually done using exploratory research
Isolating and Identifying the Problem
 Sometimes the “problem” identified is only the symptom!
 Differentiating symptoms from problems is not an easy

undertaking and often requires extensive exploratory
research and the gathering of background information
 Expert judgment and creativity must be excercized

Isolating and Identifying the Problem (Example)
Organization – Neighbourhood swimming association in a medium-
sized city
Symptoms – Declining membership observed for years and a new

recreational park with swimming facilities opened in the city some years
back
Problem Definition (Symptom-based) – Residents prefer the

recreational park’s swimming facilities
True Problem – Demographic changes have resulted in fewer younger

people interested in using the neighbourhood swimming association

Determining the Unit of Analysis
Who are the desired research subjects?
• Whole Organization
• Departments
• Work Groups
• Individual Employees
Research problems can sometimes be analyzed using

more than one unit of analysis

Determining the Relevant Variables
All key variables should be identified in the problem definition
Stage. Variables can be classified as being:
 Continuous – They have an infinite number of possible

values (e.g. sales volume)
 Categorical – They can have a limited number of distinct
values (e.g. gender)
 Dependent – They are to be predicted or explained (e.g.
hourly wage rate)
 Independent – They influence dependant variables (e.g.
years of work experience)
Research Questions (Hypotheses) and Objectives (1)
Problem definition efforts result in statements of research

questions and research objectives. These add clarity to the
research undertaking and gives managers, researchers and
all others concerned an understanding of the approach being
used
Research questions should be as specific as possible and be

answered with the aid of hypotheses which, by definition, are
empirically testable

Research Questions (Hypotheses) and Objectives (2)
Research objectives explain the purpose of the research in

measurable terms and define standards of what the research
should accomplish
Research objectives indicate the information needed by a

manager to make a decision
See Exhibit 6.4 in Zikmund’s book Business Research

Methods on p. 100

The Research Proposal
The research proposal is:
• A written statement of the research design

• Includes an explanation of the research study’s purpose and the
problem definition
• Outlines the research methodology and procedures that will be
utilized throughout the research study
• Includes information on cost and deadlines
Research proposals must be as specific and clear as possible about

what is to be achieved and how it is to be achieved. Questionnaires
and other supporting documents should be attached for reference
For an example of a research proposal, see Zikmund’s

book on Business Research Methods, p. 105
A Note on Exploratory Research
 Exploratory research is a means for acquiring a deeper and hence
more useful understanding of a business or management problem
 Exploratory research does not intend to answer research questions

conclusively, rather, it is a preliminary step towards undertaking more
substantive research
 Exploratory research usually provides qualitative data, not quantitative

data
 Exploratory research has serious limitations which cannot be

overlooked or ignored by any serious researcher. It is subjective and
harbours two dangers: (1) A promising idea may be rejected because
exploratory data shows it to be ‘undesirable’ and (2) ideas which
appear promising in the exploratory stage may be accepted without
undertaking further research to establish their desirability
The Purposes of Exploratory Research
 Situation Diagnosis – Analyze the dimensions of the research
problem and set the stage for subsequent research and priorities
Example: What are current important issues of employee concern or

what are the possible explanations for decreasing employee
motivation?
 Screening – Exploratory research is used to select the best

possible alternatives given the existence of constraints such as
budget limitations
 Discovering New Ideas – Through its techniques, exploratory

research can help generate new, previously unthought of ideas
which may interest managers
 Example: Employees suggest convenient ways of increasing factory

production or propose new products and services
Tools and Techniques of Exploratory Research (1)
Concept Testing – This is about testing something that is being

used as a proxy for a new (or modified) product, service or program
 Test persons are usually presented with a stimulus or

description of an idea and are asked if they like it, would use it
etc.
 Concept testing can help an organization conserve resources by

not wasting them on schemes shown to be unpopular through
concept testing
Example: The Del Monte corporation used concept testing to

determine whether consumers would be interested in purchasing
unrefrigerated, shelf-stable yoghurt
Experience Surveys – Conversation or interviews with
knowledgeable persons and experts, inside or outside
the organization, who have some previous experience
with the problem area in question
Secondary Data Analysis – Analysis of already existing

data and literature on a similar problem field can yield
clues and interesting background information on the
problem field under study
Example: Evaluation of an organization’s training

programs - Are comparative studies available for the
industry in question?
Case Studies – Using information and experiences gained from a
similar problem situation
 Advantages - An entire organization can be investigated in detail

and considerable information can be obtained from interviewees
 Disadvantages - Potential difficulty in acquiring the cooperation

of, and information from, the person or organization under study,
and also because generalizing can be counterproductive.
Moreover, to gain the maximum benefit from case studies
requires very alert, creative, flexible, intelligent and motivated
interviewers

Pilot Studies – A small-scale research project which

uses sampling – without the normally rigorous scientific
standards – to generate primary data
The primary data generated from pilot studies are

collected from specific groups (e.g. employees,
consumers, students, voters) and not from experts or
from a case situation
Major components of pilot studies are focus group

interviews, projective techniques and depth studies
Focus Group Interviews – This is an unstructured, free-flowing
interview with a small group of usually six to ten persons, and
presided over by a moderator or interviewer
Focus group interviews are not a question-and-answer session,

rather the group members discuss a topic in some detail in an open
and candid manner
Focus Group Interviews allow group members to express their true

feelings, anxieties, and frustrations, and to express the depth of their
convictions in their own words
Focus group interviews help in screening and refining concepts

Focus Group Interview Advantages – Flexible, brief, easy to

execute, quickly analyzed, inexpensive, useful insights can be
gained, responses which normally wouldn’t come out in a survey
come out in a focus group interview
Focus Group Interview Disadvantages – small discussion group is

not “representative”, one or a few individuals may dominate the
discussion to the exclusion of others, confusion may arise and
arguments may erupt if group too heterogenous, moderator may not
be sufficiently trained

Projective Techniques – The purpose of this is to discover an

individual’s attitudes, motivations and ways of responding
Projective techniques function on the assumption that an individual

will give accurate answer if they ‘project’ their answers onto a third
party, inanimate object or task situation. Projecting onto someone or
something else often overcomes feelings of shyness or
embarrassment which come into play if an individual is asked a
question directly in relation to him or herself
Common projective techniques include the word association test,

sentence completion, the third person technique and thematic
apperception test

Word Association Test – A research subject is presented with a

least of words, one at a time, and asked to respond to each word
with the first word that comes to mind. Both the verbal response and
subject’s hesitation in responding are recorded. Subject has little
time to think for alternatives when presented with a word and this
creates spontaneous answers
Sentence Completion – This technique requires that research

subjects complete partial sentences with the first word or phrase
that comes to their minds
The Third-Person Technique – Research subjects are asked

about the opinions of third persons in regard to other persons,
events and concepts (see also role-playing)
Thematic Apperception Test – Uses a pictorial representation in

which the research topic is featured. Research subjects are asked
to tell what is happening in the picture and what the people in it may
do next
Depth Interview – Intensive and probing questioning of a research

subject in an open and candid atmosphere on a specific topic.
Requires highly skilled interviewer and subjective interpretation of
the data

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RESEARCH

MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan 1

 Managers and decision-makers have total certainty

Before descriptive, quantitative research is undertaken, it

After a problem has been “discovered”, it must be

MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan 3

• Ascertaining the decision-maker’s objectives

 In practice many managers are not able to clearly

 Problem of lack of sufficient and important information on

MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan 5

 In cases where adequate information on a problem

 Sometimes the “problem” identified is only the symptom!

 Differentiating symptoms from problems is not an easy

 Expert judgment and creativity must be excercized

MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan 7

Symptoms – Declining membership observed for years and a new

Problem Definition (Symptom-based) – Residents prefer the

True Problem – Demographic changes have resulted in fewer younger

MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan 8

Research problems can sometimes be analyzed using

MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan 9

 Continuous – They have an infinite number of possible

Problem definition efforts result in statements of research

Research questions should be as specific as possible and be

MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan 11

Research objectives explain the purpose of the research in

Research objectives indicate the information needed by a

See Exhibit 6.4 in Zikmund’s book Business Research

MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan 12

• A written statement of the research design

Research proposals must be as specific and clear as possible about

For an example of a research proposal, see Zikmund’s

 Exploratory research does not intend to answer research questions

 Exploratory research usually provides qualitative data, not quantitative

 Exploratory research has serious limitations which cannot be

Example: What are current important issues of employee concern or

 Screening – Exploratory research is used to select the best

 Discovering New Ideas – Through its techniques, exploratory

 Example: Employees suggest convenient ways of increasing factory

Concept Testing – This is about testing something that is being

 Test persons are usually presented with a stimulus or

 Concept testing can help an organization conserve resources by

Example: The Del Monte corporation used concept testing to

Secondary Data Analysis – Analysis of already existing

Example: Evaluation of an organization’s training

 Advantages - An entire organization can be investigated in detail

 Disadvantages - Potential difficulty in acquiring the cooperation

MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan 18

Pilot Studies – A small-scale research project which

The primary data generated from pilot studies are

Major components of pilot studies are focus group

Focus group interviews are not a question-and-answer session,

Focus Group Interviews allow group members to express their true

Focus group interviews help in screening and refining concepts

Focus Group Interview Advantages – Flexible, brief, easy to

Focus Group Interview Disadvantages – small discussion group is

MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan 21

Projective Techniques – The purpose of this is to discover an

Projective techniques function on the assumption that an individual

Common projective techniques include the word association test,

MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan 22

Word Association Test – A research subject is presented with a

Sentence Completion – This technique requires that research