Business Research Methods

William G. Zikmund

Chapter 4:

The Business Research Process

Information

• Reduces uncertainty

• Helps focus decision making

Types Of Research1. Exploratory

– Initial research conducted to clarify and define the nature of a problem

– Does not provide conclusive evidence– Subsequent research expected

2. Descriptive– Describes characteristics of a population or

phenomenon– Some understanding of the nature of the problem

3. Causal– Conducted to identify cause and effect relationships

COMPLETELYCERTAIN

ABSOLUTEAMBIGUITY

CAUSAL ORDESCRIPTIVE

EXPLORATORY

Uncertainty Influences The Type Of Research

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 don’t know why.” our product? Who buys our our products in a new package?

competitor’s 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?”poss

ible

situ

atio

n

Degree of Problem Definition

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

Identifying Causality

• Can NEVER prove causality.• Evidence of causality:

1. The appropriate causal order of events2. Concomitant variation--two phenomena vary

together3. An absence of alternative plausible

explanations

• Often Use Experiments in Causal Research

Stages of the Research Process

Problem Discoveryand Definition

ResearchDesign

Sampling

DataGathering

Data Processingand Analysis

Conclusions andReport

Discovery andDefinition

and so on

Research Stages

• Cyclical process - conclusions generate new ideas

• Stages can overlap chronologically

• Stages are functionally interrelated– Forward linkages– Backward linkages

Problemdiscovery

Problem definition(statement of

research objectives)

Secondary(historical)

data

Experiencesurvey

Pilotstudy

Casestudy

Selection ofexploratory research

technique

Selection ofbasic research

method

Experiment SurveyObservation

SecondaryData StudyLaboratory Field Interview Questionnaire

Selection ofSample Design

Sampling

Probability Nonprobability

Collection ofdata

(fieldwork)

Editing andcodingdata

Dataprocessing

Interpretationof

findings

Report

DataGathering

DataProcessingandAnalysis

Conclusionsand Report

Research Design

Problem Discoveryand Definition

Stages In The Research Process

• Problem Discovery and Problem Definition

• Research Design

• Sampling

• Data Gathering

• Data Processing and Analysis

• Conclusions And Report

“The formulation of the problem is often more essential than its

solution”

Albert Einstein

Problem Discovery And Definition

• First and probably most important step

• Too often neglected leading to costly errors

• Provides direction for the project

• Problem, opportunity, or monitor operations

• Discovery before definition

• Must not mistake symptoms for problem

Exploratory Research Techniques Three Examples

• Secondary data (historical data)– Previously collected for another purpose– Literature survey – Databases (e.g., www.census.gov)

• Pilot study– A number of diverse techniques

• Focus Groups– 6 to 10 people in group dynamics session

State the research questions and research objectives

Hypothesis:

• A statement

• that can be refuted

• by empirical data

Research Design

• Master plan

• Specifies methods and procedures

• Framework for action

Basic Research Methods

• Surveys – Interview– Questionnaire

• Experiments control conditions so that one or more variables can be manipulated to test a hypothesis– Field– Laboratory

• Secondary data• Observation

POPULATIONPOPULATION

SAMPLESAMPLESample: Sample: subsetsubsetof a larger populationof a larger population..

Selecting a Sample

Sampling

• Who is to be sampled?

• How large a sample?

• How will sample units be selected?– Probability Samples – every member of the

population has a known, nonzero probability of being selected

– Nonprobability Samples

Data Gathering Stage

• Focus on error minimization• Pretesting

Data Processing and Analysis

• Editing Checking the data collection

forms for omissions, legibilityand consistency

• Coding Rules for interpreting, categorizing and recording the data

Conclusions And Report Writing

• Effective communication of the research findings

• Usually includes making recommendations

• “What does this mean to management?”

Research Proposal

• A written statement of the research design that includes a statement explaining the purpose of the study.

• Detailed outline of procedures associated with a particular methodology

Research Program vs. Research Project

• Research program – firm’s overall strategy for utilizing business research. Places each research project into company’s strategic plan.

Assignment for Chapter 7: Exploratory Research and

Qualitative Analysis

Using the Ingram Library Databases, Pull and Read the Article, “A Typology of Consumer Responses to Cause-Related Marketing: From Skeptics to Socially Concerned,” by Deborah J. Webb and Lois A. Mohr in the Journal of Public Policy and Marketing, Fall 1998, Volume 17, Issue 2.