Business
Research Methods
Chapter 6:
Problem Definition
A Sea Horse’s Tale
Problem
discovery
Problem Discovery
and Definition
Sampling
Selection of
exploratory research
technique
Secondary
(historical)
data
Experience
survey
Probability
Pilot
study
Case
study
Data
Gathering
Data
Processing
and
Analysis
Problem definition
(statement of
research objectives)
Experiment
Laboratory
Conclusions
and Report
Survey
Field
Interview
Nonprobability
Collection of
data
(fieldwork)
Editing and
coding
data
Data
processing
Selection of
basic research
method
Research Design
Selection of
exploratory research
technique
Questionnaire
Observation
Secondary
Data Study
Interpretation
of
findings
Report
“The formulation of the problem
is often more essential than its
solution.”
Albert Einstein
Problem Definition
• The indication of a specific business
decision area that will be clarified by
answering some research questions.
Defining Problem Results in
Clear Cut Research Objectives
Symptom Detection
Analysis of
the Situation
Problem Definition
Statement of
Research Objectives
Exploratory
Research
(Optional)
The Process of
Problem Definition
Ascertain the
decision maker’s
objectives
Determine unit of
analysis
Understand
background of
the problem
Determine
relevant variables
Isolate/identify
the problem, not
the symptoms
State research
questions and
objectives
Ascertain the Decision Maker’s
Objectives
• Decision makers’ objectives
• Managerial goals expressed in measurable
terms.
8
The Iceberg Principle
• The principle indicating that the dangerous
part of many business problems is neither
visible to nor understood by managers.
Understand the Background of
the Problem
• Exercising judgment
• Situation analysis - The informal gathering
of background information to familiarize
researchers or managers with the decision
area.
10
Isolate and Identify the Problems,
Not the Symptoms
• Symptoms can be confusing
11
Symptoms Can Be Confusing
Twenty-year-old neighborhood swimming
association:
• Membership has been declining for years.
• New water park -residents prefer the
expensive water park????
• Demographic changes: Children have
grown up
Organization
Twenty-year-old
neighborhood
swimming
association in a
major city.
Symptoms
Membership has been
declining for years.
New water park with
wave pool and water
slides moved into
town a few years ago.
Problem Definition
Based on Symptom
True Problem
Neighborhood
residents prefer the
expensive water
park and have
negative image of
swimming pool.
Demographic changes:
Children in this 20year-old neighborhood
have grown up. Older
residents no longer
swim anywhere.
What Language Is Written on
This Stone Found by
Archaeologists?
TOTI
EMUL
ESTO
The Language Is English: To Tie
Mules To
TOTI
EMUL
ESTO
Problem definition
Creativity techniques
Analytical
Intuitive
Progressive abstraction
Interrogatories (5W’s+H)
Boundary examinations
Associations/Images
Wishful thinking
Brain storming
Analogy/metaphor
Individuals vs. groups
Problem definition
GAP analysis
Unintended
situation
Normal
situation
Problem
definition
Disturbing problems
Ideal
situation
Definition of
opportunities
Entrepreneurial problems
Problem definition
Progressive Abstraction Technique
1. Basic description of the problem
2. Gradually moving towards a higher level of abstraction
(until a usable definition has been reached)
- the problem is automatically extended, new definitions
may show up
- new definitions can be evaluated regarding applicability
- when a higher level of abstraction has been reached, it is
often easier to identify solutions
3. The decision maker/analyst is forced into a systematic
way of searching for substructures and relationships
Problem definition
Boundary examination technique
1. Purpose: to restructure the assumptions and to develop
new ways of looking at the problem
2. Procedure:
•describe the problem, as it looks at the moment
•identify key elements in the definition and examine them to
reveal underlying assumptions
•analyse each assumption and identify its causes and effects
•redefine the problem based on the deeper understanding of
the elements achieved during this process
•3. Advantages:
•provocative definition of the problem
•reveals limits which are difficult to identify
•stresses the need of a flexible definition of the problem
Problem definition
Interrogatories W’s+H
(who, what, where, when, why, how)
1. Purpose: To make sure that all aspects of the problem
has been considered
2. Procedure:
- construct questions for each of the 5 W’s+H
- answer the questions
- evaluate the proposed answers
- if an improvement shows up:
is it cost efficient?
if so change accordingly
Very efficient technique which can be applied in any phases
of the problem definition
Problem definition
Wishful thinking technique
1. Purpose: To isolate the process of defining the problem from
non-recognized but irrelevant alternative assumptions
2. Procedure:
- formulate questions, targets, situations or a problem
- accept that everything is possible
- use imagination to formulate statements like: “I would like to..”
or “If I could choose…”
- examine each statement and apply it as a stimuli
- return to reality and formulate statements like: “Even if I can’t do it,
then I can…”
- repeat the last three steps if needed
Problem definition
Brain storming
1. Purpose: To generate as many ideas as possible
2. Procedure:
- select a problem, which all participants have some knowledge/
experience about
- describe the problem in a neutral way
- write down all suggestions on a board, so everybody can see them
- evaluation must not start until all ideas have been mentioned
- try to force more ideas
- strive for as many ideas as possible so quality can be extracted from
quantity
- accept all ideas - even the most absurd
- stimulate associations and extensions of generated ideas
Determine the Unit of Analysis
• Individuals, households, organizations, etc.
• In many studies, the family rather than the
individual is the appropriate unit of
analysis.
23
Determine the Relevant Variable
• Anything that may assume different
numerical values
24
Types of Variables
•
•
•
•
Categorical
Continuous
Dependent
Independent
Hypothesis
• An unproven proposition
• A possible solution to a problem
• Guess
State the research questions and
research objectives
27
If you do not know where you are going,
any road will take you there.
Broad
research
objectives
Statement of
business
problem
Exploratory
research
(optional)
Specific
Objective 1
Specific
Objective 2
Specific
Objective 3
Research
Design
Results
Influences of definition
Feedback
Specific
Objective I
Statement
of Problem
Exploratory
Research
(Optional)
Broad
Research
Objectives
Specific
Objective II
Specific
Objective III
Research
Design
Results
The Process of
Problem Definition
Ascertain the
decision maker’s
objectives
Determine unit of
analysis
Understand
background of
the problem
Determine
relevant variables
Isolate/identify
the problem, not
the symptoms
State research
questions and
objectives
Basic Questions Problem Definition
•
•
•
•
•
•
•
What is the purpose of the study?
How much is already known?
Is additional background information necessary?
What is to be measured? How?
Can the data be made available?
Should research be conducted?
Can a hypothesis be formulated?
Basic Questions Basic Research Design
• What types of questions need to be
answered?
• Are descriptive or causal findings required?
• What is the source of the data?
Basic Questions Basic Research Design
• Can objective answers be obtained by
asking people?
• How quickly is the information needed?
• How should survey questions be worded?
• How should experimental manipulations be
made?