RBUS2900 

– Business Research Methods

WHAT ARE WE ACHIEVING TODAY?

 An Overview of the Steps in the Research Process

 Problem Formulation and the Question Hierarchy

 Application of the Question Hierarchy to your Research Proposal

 Research Requirements - What data do I need?

RBUS2900 Lecture 3
BUSINESS RESEARCH METHODS Problem Formulation

OVERVIEW OF THE RESEARCH PROCESS

 BUT first we need to establish if business research is required…

 Is there sufficient time to do the research?

 Does the information needed already exist?
 What is the nature of the decision?
 Does the value of the research exceed its cost?

OVERVIEW OF THE Lecture 3

RESEARCH PROCESS Problem Formulation

THE RESEARCH PROCESS

Research Interpret and

Problem Research
Questions / Data Analysis Report
Identification Design
Hypotheses Findings

Research
Method

PROBLEM FORMULATION & Lecture 3

Measurement
Data
Sampling Ethics THE QUESTION HIERARCHY Problem Formulation
Collection

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QUOTES PROBLEM FORMULATION

“The formulation of a problem is often more essential than its solution,
which may be merely a matter of mathematical or experimental skill.
To raise new questions, new possibilities, to regard old problems from
a new angle requires creative imagination and marks real advances
in science.”
Albert Einstein
“A problem well-stated is a problem half-solved.”
John Dewey
 The chances that a research program will prove useful are directly
related to how well the research objectives correspond to the true
business problem.
 The problem-definition process has three main steps:
 Identify management problem/decision;
 Identify research questions and research objectives; and
 Identify investigative questions.

PROBLEM FORMULATION MANAGEMENT QUESTION

The Question Hierarchy  The management question is action oriented, and represents a
decision that a manager must make and is the problem prompting
the research.
Management Question  A poorly defined management question or problem will misdirect
research efforts.
Research Question  Typically, the information on the surface are symptoms of the
problem. Symptoms are mere evidence that a problem exists.
 Our job as researchers is to look at the symptoms and identify what
Investigative Questions the true problem or opportunity is.

Measurement Question

IDENTIFY THE MANAGEMENT PROBLEM IDENTIFYING THE MANAGEMENT QUESTION

Work with the manager

 The first responsibility of the researcher is to work with the
manager(s) to clearly articulate the management problem whose
symptoms have been observed and then to define precisely the
research problem.
o Why is the information being sought?
o Can the question really be answered?
Source: http://www.abc.net.au/news/2011-11-17/pope-featured-in-bennetton-ad/3676206 o Does the information already exist?
Italian clothing label Benetton withdrew an advertisement using an image of Pope
Benedict kissing an imam on the mouth after the Vatican protested over the label's
latest shock campaign. Benetton says it supports the Unhate Foundation. Benetton said
the purpose of its campaign was "exclusively to fight the culture of hate in every form"

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Use exploratory research

DETERMINE THE VARIABLES OF INTEREST
 If not enough is known about the suspected problem or the
problem is complex, exploratory research can be used to help
precisely define the problem.
 Exploratory research is usually small-scale research undertaken to Problem Consequences &
define the exact nature of the problem and to gain a better Complexity Alternative Courses
of Action
understanding of the environment in which the problem has
occurred.

Review
Define the
Environment & Variables of Interest
Context

Review Environment & Context Problem Complexity

 There are a multitude of possible variables. A key task is to consider  Some problems are relatively easy to identify, whereas others are
the firm environment and industry context to determine which very complex. Some issues that determine how complex a
variables will be helpful. problem is include:
o Situation frequency;
o Dramatic changes;
o Reach of the symptoms; and
o Symptom ambiguity.

Customer Satisfaction

Define the Variables of Interest Consequences & Alternative Courses of Action

 Determining which variables affect

the solution to the research problem. Think through
different Think through the
Choose a
approaches to consequences of
 Determining the degree to which determine which possible findings
particular
approach with a
each variable used for the purposes approach has the
most interest and
to determine
potential issues
particular set of
of the company. likelihood of and opportunities.
variables.
success.
 Determining the functional
relationships between the variables
and which variables are critical to the
solution of the research problem.  Thinking here will lead you to be more aware of potential
strategic recommendations and issues that will guide you
throughout the research process.

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RESEARCH QUESTION
Research Question
 Re-statement of the management question.
 Stated in terms of the precise information necessary to answer the
research problem (i.e. variables that need to be measured).
 Must be as specific and unambiguous as possible. The entire
research effort is geared toward achieving the objectives.
MEASUREMENT QUESTIONS
 The final level of the question hierarchy. They are the questions
you use ‘in the field’ to collect data.
 In surveys, the measurement questions are those that we actually
ask the respondents. They appear on the questionnaire.
 In an observational study, measurement questions are those that
observers must answer about each subject studied.
QUESTION HIERARCHY
APPLICATION
INVESTIGATIVE QUESTIONS
 These are questions researcher must answer to address the general
research question.
 Often stated as hypotheses. Specifies each variable and
relationship that needs to be tested in order to answer the
management question.
RIGHT ANSWER - WRONG QUESTION
SCENARIO
A large distributor buys products from several foreign countries and sells
them to department stores in the Australian market. The distributor is
concerned about consumer perceptions of foreign products sold in the
local market. She believes the Global Financial Crisis has negatively
affected people’s perception of products made in other countries.
Through exploratory research, the distributor understands that country of
origin effects influence consumers’ attitudes, perceptions and even
purchase intentions, of products and brands from different countries. She
wants to understand how country of origin effects influence consumers’
evaluations of brands from other countries (e.g. brands from China) offered
for sale at the department store.
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RESEARCH REQUIREMENTS
SECONDARY DATA
INTERNAL DATA
 Found in accounting/finance
records e.g., sales invoices,
accounts receivables reports,
quarterly sales reports, sales
activity reports.
 Other sources e.g., customer
letters & complaints, past
marketing research studies,
employee exit interviews,
internet.
Advantages
Helps to clarify or redefine the
definition of the problem as part of
the exploratory research process.
Alerts the researcher to potential
problems or difficulties.
Provides necessary background
information and detail for the
research report.
RBUS2900 – Business Research Methods
WHAT DATA DO YOU NEED?
Internal
Secondary
Data
External
Data Type
Qualitative
Lecture 3 Primary Data
Problem Formulation Quantitative
SECONDARY RESEARCH
 Should always be considered first in any data collection procedure
EXTERNAL DATA as it will save time, money and effort.
 Can be a starting point of defining the actual research that needs
 Published data in periodicals, to be conducted.
directories or indexes e.g., ABS
 Digital sources are becoming more recent, relevant, accessible,
 Data compiled by an outside
agency e.g., AC Nielsen and accurate.
Homescan, Roy Morgan Values
Segment
 Data contained in online
databases e.g., academic journals,
newspapers, marketing press and
blogs
Limitations PRIMARY DATA
Lack of Availability - for some research
questions there are no available data.
 Data that is specifically collected for the current research process.
 Collected through 2 methods: Quantitative and Qualitative.
Lack of Relevance - it is not uncommon for
secondary data to be expressed in units or
measures that cannot be used by the
researcher.
Inaccuracy - users should always assess
accuracy. There are a number of potential
sources of error when gathering, coding,
analysing, and presenting data.
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 Qualitative data can be used to :

QUALITATIVE DATA o Identify a problem or opportunity
o Establish information requirements
 Collected via exploratory design methods such as interviews, focus
o Provide insight into factors that influence behaviour
groups, observations, and many other techniques.
o Build theories to explain behaviour or relationships between
 Participants speak and be heard in their own words. constructs
 Transcripts, textual verbatims, videos etc. o Develop measurement scales
 Detailed data are collected from small samples. o Determine preliminary effectiveness of strategies
o Understand behaviour

Advantages Limitations
QUANTITATIVE DATA
Enables economical and timely Findings are usually unable to be
data collection. generalised.
 Collected via descriptive (surveys) and explanatory (experiments)
designs.

Facilitates the collection of rich data Unable to distinguish small differences.  Examples include ratings on scales (customer satisfaction), $
that can inform insights into amount willing to pay, financial data.
behaviour.  Focus is on formalised, standardised questions and predetermined
responses, and large samples.
Provides preliminary insights into Requires a high level of skill from a teach
building models and measurement of researchers.
scales.

 Quantitative data can be used to : Advantages Limitations

o Validating a business problem or opportunity
Broader study, involving greater Much narrower / defined range of
o Conclusive insights into factors that influence phenomena numbers of subjects and topics. topics.
o Theory testing
Techniques are easier to replicate Restricted to concepts that can be
o Testing and assessing measurement scales
recorded in number form.
o Assessing effectiveness of strategies
o Segmenting markets and comparing differences Data is easily stored in a Standardised questions can lead to
condensed number form and may structural bias.
be useful for other purposes (i.e.
baseline).
Can accommodate greater
generalisation, objectivity and
measurement accuracy of the
results.

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THE END