The Business Research Process

Information
• Reduces uncertainty
• Helps focus decision making
 Types Of Research
• Exploratory
• Descriptive
• Causal
 Uncertainty Influences
The Type Of Research
CAUSAL OR COMPLETELY ABSOLUTE EXPLORATORY
DESCRIPTIVE CERTAIN AMBIGUITY
 Degree of Problem Definition
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
possible situation

we don’t know why.”
“Would people be interested
in our new product idea?”
our product? Who buys our our products in a new package?
competitor’s product?”
“Which of two advertising
“What features do buyers prefer campaigns is more effective?”
in our product?”
Exploratory Research

Secondary data

Experience survey

Pilot studies

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 Exploratory Research
• Initial research conducted to clarify and
define the nature of a problem
• Does not provide conclusive evidence
• Subsequent research expected
 Descriptive Research
• Describes characteristics of a population or
phenomenon
• Some understanding of the nature of the
problem
I keep six honest serving men, (they taught me
all I knew), their names are
what, and why, and when, and how,
and where and who.”
--Rudyard Kipling

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 Descriptive Research Example
• 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
 Descriptive Research Example
• 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
 Causal Research
• Conducted to identify cause and effect
relationships
 Identifying Causality
• A causal relationship is impossible to prove.
• Evidence of causality:
– 1. The appropriate causal order of events
– 2. Concomitant variation--two phenomena
vary together
– 3. An absence of alternative plausible
explanations
 Stages of the Research Process
Problem Discovery Discovery and
and Definition Definition

Research and so on
Design Conclusions and
Report

Sampling
Data Processing
and Analysis
Data
Gathering
 Research Stages
• Cyclical process - conclusions generate new
ideas
• Stages can overlap chronologically
• Stages are functionally interrelated
– Forward linkages
– Backward linkages
Problem Discovery Problem Selection of
and Definition discovery exploratory research
technique
Sampling

Selection of
exploratory research
technique Probability No probability

Secondary
Experience Pilot Case Collection of
(historical) Data
survey study study data
data Gathering
(fieldwork)

Data
Editing and
Problem definition Processing
coding
(statement of and
Analysis data
research objectives)

Data
Selection of processing
Research Design basic research
method Conclusions
Interpretation
and Report
of
findings
Experiment Survey
Secondary
Laboratory Field Interview Questionnaire Observation
Data Study Report
 Problem Discovery And
Definition
• First step
• Problem, opportunity, or monitor operations
• Discovery before definition
• Problem means management problem
 Defining Problem Results in
Clear Cut Research Objectives
Symptom Detection

Analysis of
the Situation
Exploratory
Research
(Optional)
Problem Definition

Statement of
Research Objectives
“The formulation of the problem
is often more essential than its
solution”

Albert Einstein
 State the research
questions and research
objectives

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 Hypothesis
• A statement
• that can be refuted
• by empirical data
If you do not know where you are going,
any road will take you there.
 Experience Case
Secondary Pilot Study
Survey
(historical) Study
Data

Exploratory
Research
 Exploratory Research Techniques
Two Examples
• Secondary data (historical data)
– Previously collected
– Census of population
– Literature survey
• Pilot study
– A number of diverse techniques
Focus Group Interview
 Basic Research Methods
• Surveys
• Experiments
• Secondary data
• Observation
 Selecting a Sample

Sample: subset SAMPLE

of a larger population.

POPULATION
 Sampling
• Who is to be sampled?
• How large a sample?
• How will sample units be selected?
Data Gathering Stage
Data Processing and Analysis
Conclusions And Report Writing
• Effective communication of the research
findings
 Conclusions and Report
• Report must contain executive summary,
introduction, review of past research,
methodology, results, conclusions, and
recommendations.
• Report must contain enough information for
the study to be replicated