Compare and contrast basic and applied business research. Discuss an example of each.
ANS:
Applied business research is conducted to address a specific business decision for a specific firm or
organization. It is relatively specific, and an example might Wendy’s fast food restaurant trying to
determine if its new veggie burger will be successful or Marriott Hotels trying to determine if it should
convert all of their hotels’ pools to saltwater.
Basic business research is conducted without a specific decision in mind, and it usually does not address
the needs of a specific organization. It attempts to expand the limits of knowledge in general, and as such
is not aimed at solving a particular pragmatic problem. For example, a marketing researcher might study
the effects of music on consumption in a restaurant setting, or a financial researcher might study the longterm impact of varying financial options.
Define the scientific method and list the steps involved in implementing it.
ANS:
The scientific method is the way researchers go about using knowledge and evidence to reach objective
conclusions about the real world. In the scientific method, there are multiple routes to developing ideas,
such as through prior knowledge or observation. When the ideas can be stated in researchable terms, we
reach the hypothesis stage. The next step involves testing the hypothesis against empirical evidence (facts
from observation or experimentation). The results either support a hypothesis or do not support a
hypothesis. From these results, new knowledge is acquired.
Discuss the factors that influence whether or not business research is needed.
ANS:
The determination of the need for research centers on:
Time constraints - systematic research takes time, and sometimes the urgency of a situation precludes
the use of research.
Availability of data - when managers lack adequate information, data need to be collected from an
appropriate source in a timely fashion.
Nature of the decision - in general, the more strategically or tactically important the decision, the more
likely it is that research will be conducted.
Benefits versus costs - when deciding whether to make a decision without research or to postpone the
decision in order to conduct research requires examining whether the payoff or rate of return will be
worth the investment, whether the information gained by marketing research will improve the quality of
the marketing decision enough to warrant the expenditure, and whether the proposed research expenditure
is the best us of the available funds.
What is a theory, what are its goals, and why is it useful to business researchers?
ANS:
A theory is a formal, logical explanation of some events that includes predictions of how things relate to
one another. The two purposes of theory are understanding and predicting. Accomplishing the first goal
allows the theorist to gain an understanding of the relationship among various phenomena. Thus a theory
enables us to predict the behavior or characteristics of one phenomenon from the knowledge of another
phenomenon.
Compare and contrast the terms concept and variable and give an example of each.
ANS:
A concept (or construct) is a generalized idea about a class of objects, attributes, occurrences, or
processes that has been given a name. Supervisory behavior or risk aversion are examples of concepts. A
variable is anything that may assume different numerical values and is the empirical assessment of a
concept. For example, supervisory behavior may be assessed through variables such as amount of time
spent training employees, number of employees supervised, and degree to which employees are involved
in decision-making.
How does a hypothesis differ from a proposition?
ANS:
Propositions are statements explaining the logical linkage among certain concepts by asserting a
universal connection between concepts. A hypothesis is a formal statement of an unproven proposition
that is empirically testable.
Discuss how theories are developed.
ANS:
At the abstract, conceptual level, a theory may be developed with deductive reasoning by going from a
general statement to a specific assertion. Deductive reasoning is the logical process of deriving a
conclusion about a specific instance, based on a known general premise or something known to be true.
At the empirical level, a theory may be developed with inductive reasoning, which is the logical process
of establishing a general proposition on the basis of observation of particular facts.
List the steps involved in the application of the scientific method.
ANS:
Assessment of relevant existing knowledge of a phenomenon
Formulation of concepts and propositions
Statement of hypotheses
Design of research to test the hypotheses
Acquisition of meaningful empirical data
Analysis and evaluation of data
Proposal of an explanation of the phenomenon and statement of new problems raised by the research
List the steps in the problem-definition process.
ANS:
 Understand the business situation by identifying key symptoms
 Identify key problem(s) from symptoms
 Write managerial decision statement and corresponding research objectives
 Determine the unit of analysis
 Determine the relevant variables
Write research questions and/or research hypotheses

Explain the difference between research questions and hypotheses.
ANS:
Research questions express the research objectives in terms of questions that can be addressed by
research. For example, a research question might be “Are consumers’ perceptions of food quality, price,
and atmosphere related to customer loyalty?” Hypotheses are more specific than research questions. One
key distinction between research questions and hypotheses is that hypotheses can generally specify the
direction of a relationship. For example, a hypothesis might be stated as, “Food quality perceptions are
related positively to customer commitment toward a restaurant.” At times, a researcher may suspect that
two variables are related but have insufficient theoretical rationale to support the relationship as positive
or negative. In this case, hypotheses cannot be offered. At times in research, particularly in exploratory
research, a proposal can only offer research questions. Research hypotheses are much more specific and
therefore require considerably more theoretical support. In addition, research questions are interrogative,
whereas research hypotheses are declarative.
Compare and contrast exploratory, descriptive, and causal research. Which approach is the best?
ANS:
Exploratory research is conducted to clarify ambiguous situations or discover ideas that may be
potential business opportunities. It is not intended to provide conclusive evidence from which to
determine a particular course of action. In this sense, it is not an end unto itself, and researchers usually
undertake this form of research with the full expectation that more research will be needed to provide
more conclusive evidence.
Descriptive research describes characteristics of objects, people, groups, organizations, or environments.
It addresses who, what, when, where, why, and how questions. Unlike exploratory research, descriptive
studies are conducted with a considerable understanding of the situation being studies.
Causal research allows causal inferences to be made. Exploratory and/or descriptive research usually
precedes causal research. In causal studies, researchers typically have a good understanding of the
phenomena being studied and can make an educated prediction about the cause and effect relationships
that will be tested.
No single method is the “best.” The most appropriate type and the amount of research needed are
determined in part by how much uncertainty surrounds the marketing situation motivating the research.
Exploratory research is conducted during the early stages of decision making, whereas descriptive and
causal research are often conducted in the later stages.
Compare and contrast the three degrees of causality.
ANS: There are three degrees of causality: absolute, conditional, contributory. Absolute causality
means the cause is necessary and sufficient to bring about the effect. Although this is a very strong
inference, it is impossible to think that we can establish absolute causality in the behavioral sciences.
While managers may like to be able to draw absolute conclusions, they can often make very good
decisions based on less powerful inferences. Conditional causality means that a cause is necessary but
not sufficient to bring about an effect. This is a weaker causal inference than absolute causality.
Contributory causality is the weakest form of causality, but it is still a useful concept. This degree of
causality means that a cause need be neither necessary nor sufficient to bring about an effect. However,
causal evidence can be established using the three factors (temporal sequence, concomitant variation, and
nonspurious association). For any outcome, there may be multiple causes. So, an event can be a
contributory cause of something so long as the introduction of the other possible causes does not
eliminate the correlation between it and the effect.
List the stages in the selection of a sample.
ANS:
Before taking a sample, researchers must make several decisions. While these decisions are presented as
a series of sequential stages, the order of the decisions does not always follow this sequence. These
stages are:
 Define the target population
 Select a sampling frame
 Determine if a probability or nonprobability sampling method will be chosen
 Plan procedure for selecting sampling units
 Determine sample size
 Select actual sampling units
 Conduct fieldwork
Name and describe the types of nonprobability sampling.
ANS:
Nonprobability sampling is a sampling technique in which units of the sample are selected on the basis of
personal judgments or convenience, and there are four types discussed in the chapter:
(1) Convenience sampling - obtaining people or units that are conveniently available.
(2) Judgment sampling - also called purposive sampling; an experienced individual selects the sample
based on his or her judgment about some appropriate characteristics required of the sample member.
(3) Quota sampling - ensures that the various subgroups in a population are represented on pertinent
sample characteristics to the exact extent that the investigators desire.
(4) Snowball sampling - involves using probability methods for an initial selection of respondents and
then obtaining additional respondents through information provided by the initial respondents.
Name and describe the types of probability sampling.
ANS:
Probability sampling techniques are:
(1) Simple random sampling - assures each element in the population of an equal chance of being
included in the sample.
(3) Systematic sampling - a starting point is selected by a random process and then every nth number on
the list is selected.
(3) Stratified sampling - simple random subsamples that are more or less equal on some characteristic
are drawn from within each stratum of the population.
(4) Cluster sampling - the primary sampling unit is not the individual element in the population but a
large cluster of elements and clusters are selected randomly.
(5) Multistage area sampling - involves using a combination of two or more probability sampling
techniques.
Discuss the three factors required to specify sample size.
ANS:
Three factors are required to specify sample size:
(1) Variance, or heterogeneity, of the population - this refers to the standard deviation of the
population. Only a small sample is required if the population is homogeneous. As heterogeneity
increases, so must sample size.
(2) Magnitude of acceptable error, or the confidence interval - indicates how precise the estimate
must be.
(3) Confidence level - typically use the 95 percent confidence level. This, however, is an
arbitrary decision based on convention; there is nothing sacred about the 0.05 chance level.
Describe the role and job requirements of fieldworkers.
ANS:
Fieldworkers gather research information and data in the field. The activities they perform vary
substantially. Various field interviewing services and full-service research agencies perform all
manner of personal surveys including central location telephone interviewing, mall intercepts,
and other forms of fieldwork. Normally, interviewers should be healthy, outgoing, and of
pleasing appearance--that is, well groomed and tailored. An essential part of the interviewing
process is establishing rapport with the respondent.
List the skills to cover when training inexperienced interviewers.
ANS:
Training inexperienced interviewers should include:
(1) How to make initial contact with the respondent and secure the interview
(2) How to ask survey questions
(3) How to probe
(4) How to record responses
(5) How to terminate the interview
Discuss the activities involved in the management of fieldworkers.
ANS:
Fieldwork management is an essential part of the research process. One activity in the
management of fieldworkers is conducting a briefing session for experienced
interviewers. Regardless of a fieldworker’s level of experience, they always need to be informed
about the individual project. This briefing includes the background of the sponsoring
organization, sampling techniques, asking of questions, callback procedures, and other matters
specific to the particular project. Any special instructions should also be covered during the
training session. The briefing session also covers the sampling procedure, especially since a
number of research projects allow the interviewer to be at least partially responsible for selecting
the sample. Finally, managers must supervise fieldworkers to minimize errors. Direct
supervision of their work is necessary to ensure that the techniques communicated in the training
sessions are implemented in the field. This supervision includes sampling verification, reducing
interviewer cheating, and verification by reinterviewing.