Chapter 4: The Business Research Process

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Chapter 4 The Business Research Process
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INFORMATION

• REDUCES UNCERTAINTY
• HELPS FOCUS DECISION MAKING

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TYPES OF RESEARCH

• EXPLORATORY
• DESCRIPTIVE
• CAUSAL

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UNCERTAINTY INFLUENCES THE TYPE OF RESEARCH
CAUSAL OR DESCRIPTIVE
EXPLORATORY
COMPLETELY CERTAIN
ABSOLUTE AMBIGUITY
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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 we dont know why. our product? Who
buys our our products in a new package? compet
itors 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?
possible situation
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EXPLORATORY RESEARCH
Secondary Data Experience Survey Pilot Studies
(Focus Groups)
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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

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DESCRIPTIVE RESEARCH

• DESCRIBES CHARACTERISTICS OF A POPULATION OR
  PHENOMENON
• SOME UNDERSTANDING OF THE NATURE OF THE PROBLEM

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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

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DESCRIPTIVE RESEARCH EXAMPLE

• Mens fragrance market
• 1/3 size of womens fragrance market
• But growing at a faster pace
• Women buy 80 of mens fragrances

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CAUSAL RESEARCH

• CONDUCTED TO IDENTIFY CAUSE AND EFFECT
  RELATIONSHIPS

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IDENTIFYING CAUSALITY
A causal relationship is very difficult 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
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STAGES IN THE RESEARCH PROCESS

• PROBLEM DISCOVERY AND PROBLEM DEFINITION
• RESEARCH DESIGN
• SAMPLING
• DATA GATHERING
• DATA PROCESSING AND ANALYSIS
• CONCLUSIONS AND REPORT

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The Business Research Process
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The Research Process (cont.)
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RESEARCH STAGES

• Cyclical process - conclusions generate new ideas
• Stages can overlap chronologically
• Stages are functionally interrelated
• Forward linkages
• Backward linkages

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Selection of sampling Technique/design
Problem discovery
Problem Discovery and Definition
Sampling
Selection of exploratory research technique
Probability
Nonprobability
Secondary (historical) data
Experience survey
Pilot study
Case study
Collection of data (fieldwork)
Data Gathering
Data Processing and Analysis
Editing and coding data
Problem definition (statement of research
objectives)
Data processing
Selection of basic research method
Research Design
Conclusions and Report
Interpretation of findings
Experiment
Survey
Observation
Secondary Data Study
Report
Laboratory
Field
Interview
Questionnaire
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PROBLEM DISCOVERY AND DEFINITION

• FIRST STEP
• PROBLEM, OPPORTUNITY, OR MONITOR OPERATIONS
• DISCOVERY BEFORE DEFINITION

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State the research questions and research
objectives
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HYPOTHESIS

• A STATEMENT
• THAT CAN BE REFUTED
• BY EMPIRICAL DATA

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Secondary (historical) Data
Exploratory Research
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EXPLORATORY RESEARCH TECHNIQUES - TWO EXAMPLES

• SECONDARY DATA (HISTORICAL DATA)
• Previously Collected
• Census of Population
• Literature Survey
• PILOT STUDY
• A Number of Diverse Techniques

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FOCUS GROUP INTERVIEW
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Focus groups.

• Group dynamics and synergy.
• Small samples.
• Not just open ended but discussion and analysis.

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RESEARCH DESIGN

• MASTER PLAN
• FRAMEWORK FOR ACTION
• SPECIFIES METHODS AND PROCEDURES

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BASIC RESEARCH METHODS
Surveys Experiments Secondary Data
Studies Observations Studies
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Forms of Survey Research
Common Forms of Survey Research
In-Home or Mall
Telephone
E-Mail/ Internet
Mail Survey
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Experiments.

• Causal relationships.
• Lab or field.
• Experimental design, causation and control of
  extraneous factors.

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Observation Research.

• Personal - Mystery shoppers, One-way mirrors.
• Mechanical - Traffic counters.
• Electrical - e.g., video carts, people meters.
• Scanners.

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Selecting a Sample
Sample subset of a larger population.
SAMPLE
POPULATION
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SAMPLING

• WHO IS TO BE SAMPLED
• HOW LARGE A SAMPLE
• HOW WILL SAMPLE UNITS BE SELECTED
• PROBABILITY OR NON-PROBABILITY.

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DATA GATHERING STAGE
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DATA PROCESSING AND ANALYSIS
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CONCLUSIONS AND REPORT WRITING

• EFFECTIVE COMMUNICATION OF THE RESEARCH FINDINGS