Business
Research Methods
William G. Zikmund
Chapter 4:
The Business Research Process
Information
• Reduces uncertainty
• Helps focus decision making
Types Of Research
• Exploratory
• Descriptive
• Causal
Uncertainty Influences
The Type Of Research
CAUSAL OR
DESCRIPTIVE
COMPLETELY
CERTAIN
ABSOLUTE
AMBIGUITY
EXPLORATORY
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?”
Exploratory Research
Secondary data
Experience survey
Pilot studies
6
Exploratory Research
• Initial research conducted to clarify and
define the nature of a problem
• Does not provide conclusive evidence
• Subsequent research expected
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
9
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
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
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
Research Stages
• Cyclical process - conclusions generate new
ideas
• Stages can overlap chronologically
• Stages are functionally interrelated
– Forward linkages
– Backward linkages
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 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
Stages In The Research Process
•
•
•
•
•
•
Problem Discovery and Problem Definition
Research Design
Sampling
Data Gathering
Data Processing and Analysis
Conclusions And Report
Problem Discovery And
Definition
•
•
•
•
First step
Problem, opportunity, or monitor operations
Discovery before definition
Problem means management problem
“The formulation of the problem
is often more essential than its
solution”
Albert Einstein
State the research
questions and research
objectives
22
Hypothesis
• A statement
• that can be refuted
• by empirical data
If you do not know where you are going,
any road will take you there.
Secondary
(historical)
Data
Experience
Survey
Pilot
Study
Exploratory
Research
Case
Study
Exploratory Research Techniques
Two Examples
• Secondary data (historical data)
– Previously collected
– Census of population
– Literature survey
• Pilot study
– A number of diverse techniques
Focus Group Interview
Research Design
• Master plan
• Framework for action
• Specifies methods and procedures
Basic Research Methods
•
•
•
•
Surveys
Experiments
Secondary data
Observation
Selecting a Sample
Sample: subset
of a larger population.
SAMPLE
POPULATION
Sampling
• Who is to be sampled?
• How large a sample?
• How will sample units be selected?
Data Gathering Stage
Data Processing and Analysis
Conclusions And Report Writing
• Effective communication of the research
findings
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 Strategy
Defining Problem Results in
Clear Cut Research Objectives
Symptom Detection
Analysis of
the Situation
Problem Definition
Statement of
Research Objectives
Exploratory
Research
(Optional)