Business
Research Methods
William G. Zikmund
Chapter 4:
The Business Research Process
Chapter 4:
The Business Research Process
1.Information and Decision Making
2. Types of Research
2.1. Exploratory
2.2. Descriptive
2.3. Causal
3. Stages of the Research Process
1.Information and Decision Making
The key to decision making is:
• to recognize the nature of the
problem/opportunity,
• to identify what type of information is needed,
• and how much information is available.
Information reduces the level of certainty in
decision making
Levels of Certainty in Decision Making
1.Certainty:
Necessary information is perfectly available,
which is something rare.
Under certainty, the exact nature of the
problem/opportunity is clear,
Objectives to be achieved by an effective
decision are set.
Certainty:
Necessary information to develop
alternatives and select the best solution
among them is already present
Therefore, there is no need to make research
for understanding the situation and
making prediction.
2. Uncertainty:
Necessary information is somewhat
available, which is something usual.
Under uncertainty, the exact nature of the
problem/opportunity is clear,
Objectives to be achieved by an effective
decision are set.
Uncertainty:
However, necessary information to develop
alternatives and select the best solution
among them is incomplete.
Therefore, research is needed to enlarge
our incomplete understanding of the
situation and to be able to make better
predictions than managerial guesses.
3. Ambiguity:
Almost no information is available, which is
something rare.
Under ambiguity, the exact nature of the
problem/opportunity is not clear,
Objectives to be achieved by an effective
decision are not set yet.
Ambiguity:
Necessary information to develop
alternatives and select the best solution
among them is incomplete.
Therefore, research is extremely needed to
enlarge our understanding and to be able
to make predictions.
2. Types of Research
• Exploratory
• Descriptive
• Causal
Uncertainty Influences the Type of Research
COMPLETE
CERTAINTY
NO RESEARCH
AT ALL
UNCERTAINTY
CAUSAL
RESEARCH
DESCRIPTIVE
RESEARCH
ABSOLUTE
AMBIGUITY
EXPLORATORY
RESEARCH
Degree of Problem Definition
Exploratory Research
(Unaware of Problem)
“Our sales are declining and
we don’t know why.”
“Would people be interested
in our new product idea?”
Descriptive Research
(Aware of Problem)
Causal Research
(Problem Clearly Defined)
“What kind of people are buying “Will buyers purchase more of
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?”
2.1. Exploratory Research
Secondary data
Experience survey
Pilot studies
13
Exploratory Research
• Initial research conducted to clarify and
define the nature of a problem
• Does not provide conclusive evidence
• Subsequent research expected
2.2. 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
16
2.3. 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
3. Stages of the Research Process
Problem Discovery
and Definition
Research
Design
Discovery and
Definition
and so on
Conclusions and
Report
Sampling
Data Processing
and Analysis
Data
Gathering
Problem
discovery
Problem Discovery
and Definition
Selection of
exploratory research
technique
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
Collection of
data
(fieldwork)
Editing and
coding
data
Data
processing
Selection of
basic research
method
Research Design
Nonprobability
Questionnaire
Observation
Secondary
Data Study
Interpretation
of
findings
Report
The Business Research Process
Problem
Discovery
Selection of
Sample Design
Exploratory
Research
Collection of the
Data
Selection of the
Basic Research
Method
The Research Process (cont.)
Editing and
Coding
Data Processing
Interpretation of
the Findings
Report
“The formulation of the problem
is often more essential than its
solution”
Albert Einstein