Principles of

Business Research

 Lecturer: Gyöngyi Bugár

Research interest:
- Portfolio Theory and Investment
Decision Making
- International Finance
- Risk Management

Room: B229 (Main Building)

7622. Pécs, Rákóczi str. 80.
Tel.: +37 72 501 599/ ext. 3289
E-mail: bugar@ktk.pte.hu
 Principles of
Business Research

 How can this module be useful for

you?
- submitting a dissertation proposal
- writing journal papers
- presenting on research seminars
- preparing a successful Ph.D.

 Assessment:
the evaluation of the module is based on the
dissertation proposal submitted by the
students

DEADLINE for submission:

30 September, 2010
Principles of
Business Research

 Doing applied research is FUN

 For a good quality research

YOU should

- have a good theoretical knowledge of the

subject matter (marketing, finance, etc.)
- possess some practical knowledge
- know the literature of a particular problem
- have a general knowledge of the subject
- need to be familiar with the major
research approaches (methods)
- be CREATIVE in combining
the above two sets of knowledge to
find the solution
Introduction to business
research

 Scope of business research

- for-profit, non-profit business

- business functions (production,
finance, management, marketing)

 A definition of business research:

gathering and analyzing data in a

systematic manner to aid business
decisions

 objectivity and business research

Introduction to business
research

 Basic research
aims at expanding the boundaries of our
knowledge or verifying the acceptability of a
given theory.

“There is nothing so practical as a good theory.”

 Applied research
is related to a specific problem to be solved.

 Scientific method
- set of techniques and procedures
- systematic analysis and logical
interpretation of evidence

 The scientific method is the essence of

research.
Introduction to business
research

 Types of business research

- exploratory studies − to clarify the nature

of the problem (interviews, basic statistical
calculations)

- descriptive research – to describe the

characteristics of a phenomenon (verbal or
statistical description with no explanation)

- causal research – to establish cause-and-

effect relationships between variables
(you should have an expectation, e.g.,
training and productivity etc.)
association is not necessarily causality
An overview of the
research process

 Stages in the research process

An overview of the
research process
An overview of the
research process

 Problem definition
- clear problem definition is not always given
even in real business research situations
- an issue especially relevant for dissertation
research

A. Problem definition (topic selection) in

dissertation research

1. Sources of research topics

- work experience
- articles in academic/professional journals
- professors pointing to a particularly fruitful
area
- dissertations, journal articles referring to
further research work
 An overview of the
research process

2. Some characteristics of a good research topic

- a realistic possibility of accessing the topic

- achievable in the time available

In general you tend to underestimate the time

taken to accomplish a piece of research! (many
factors not expected initially can be sources of
delays)

- student capabilities and interest

(descriptive versus mathematical skills, etc.)
- financial support
- value of the research (increases motivation,
attracts more attention)
An overview of the
research process

B. Problem definition in business research by

exploratory research techniques
- efficient research must have clear objectives
and definite designs
- in case of missing problem definition,
exploratory research should be conducted
- analyzing existing studies, informal
investigation of the situation, talking with
knowledgeable individuals to sharpen the
concept

Techniques for exploratory research

- studying secondary data (data collected
previously for some other project)
- data by the Central Statistical Office
- data purchased from some forecasting
firm
- surveying the literature
An overview of the
research process

- pilot studies
- small scale studies with no rigorous
standards
- interviews, informal information
gathering
- much creativity and flexibility needed
- case studies
An overview of the
research process

 Planning the research design

- research design: methods and procedures for
collecting and analyzing the required
information

- It is necessary to determine:
- the sources of information
- the research technique followed
- sampling methodology
- schedule, costs

- factors in selecting a particular design:

- objectives of the study
- availability of data
- urgency of the decision
- cost of obtaining the data
An overview of the research
process

Basic research methods

 surveys
- a research technique in which information is gathered from a
sample of people by using a questionnaire

 experiments
- study on a small number of people under controlled
conditions so that one or more variables can be manipulated
in order to test a hypothesis
- especially appropriate to test cause-and-effect relationships

 research using secondary data

- generally requires a greater quantitative sophistication
- example: development of a mathematical model to predict
sales on the basis of past sales

■ observation techniques
- recording what can be observed
- examples: number of cars passing a site for a proposed
gasoline station; recording the time a certain TV program is
watched by households
 An overview of the
research process

 Selection of the sample

- Sampling: any procedure that uses a small

number of items (or parts of the population) to
make a conclusion regarding the whole population
- certain statistical procedures should be followed
- a good sample should have the same
characteristics as the population as a whole

- Issues to be solved in sampling:

- identification of the target population
(“Who is to be sampled?”)
- determining the sample size
- selection of sample units
- deciding on the sampling technique:
probability sample (each member of the
population is chosen with a certain
probability)
non-probability sample (based on personal
judgement - e.g., selection of a typical plant)
 An overview of the
research process

 Data collection
- as many methods as many research
techniques

 Editing and coding

- editing: checking the data collection forms
- coding: determining categories for groups of
responses

 Analysis
 Conclusions, report preparation
 Summary

 Business research:
- reduces uncertainty by providing information
on a given subject

 A classification of business research on

the basis of its function (purpose)

1. Exploratory research
- initial research conducted to clarify and
define the nature of a problem
- sometimes the general problem is realized
but a better understanding is needed before a
detailed research
Examples:
“Absenteeism is increasing and we don’t know
why”
“would people be interested in our new product
idea?”
- methods: interviews, basic statistical
calculations
Summary

2. Descriptive research
- research designed to describe the characteristics
of a phenomenon
- who? what? when? where? how?
Examples:
“What kind of people prefer Big Mac hamburgers?”
“What are the characteristics of students in this
class?”
- methods: surveys, analysis of already existing
data

3. Causal research
- research conducted to identify cause-and-effect
relationships among variables
Examples:
“the influence of price and advertising on sales”
“Which of two training programs is more effective?”
- methods: experiments, econometric analyses
Points to discuss:

 For each situation below, decide whether the

research should be exploratory, descriptive,
or causal:

- establishing the functional relationship between

advertising and sales
- investigating reactions to the idea of a new method of
defense budgeting
- identifying target-market demographics for a shopping
center
- estimating stock prices for IBM two years in the future
- learning how many organizations are actively involved
in just-in-time production
- learning the extent of job satisfaction in a company

 What research design seems appropriate for

each of the following studies?

- the manufacturer and marketer of flight simulators and

other pilot-training equipment wish to forecast sales
volume for the next five years
- a local chapter of the American Lung Association
wishes to identify the demographic characteristics of
individuals who donate more than $500 per year
 Points to discuss:

 What research design seems appropriate for

each of the following studies?
- a corporation wishes to evaluate the quality of its
college-recruiting program
- an academic researcher wishes to investigate if the
United States is losing its competitive edge in world
trade
- a food company researcher is interested in knowing
what types of food are carried in brown-bag lunches
to learn if the company can capitalize on this
phenomenon
Citations related to the
topic

“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.”
(R. Kipling)

“The formulation of a problem is often more

essential than its solution.”
(A. Einstein)