Scientific Method of Research Process

By
Prof(Dr.) Harsh Vardhan
20/11/2022
 Session Objective

 What is “Scientific Method” of Investigation.

 How to establish the Scientific Method as the model for Business research.
 Identifying problems encountered in trying to fit Business Research to the
scientific model.
 What are the major steps in the Business Research process and how to relate
these to the scientific method.

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 Content
 Reliability & Validity
 Business Research Process
 Types of Information Used by Decision Makers
 Degree of Problem Definition
 Stages in the Business Research Process
 Problem Discovery and Definition :The Iceberg Principle
 The Process of Problem Definition & Examples
 Determine Relevant Variables
 Research Design
 Management Decision Problem & Research Problem
 Research Questions and Hypotheses
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Two general traits characterizing the Scientific Method

Two important characteristics of any measurement procedure

are:
 Reliability
 Validity

Reliability refers to the confidence we can place on the

measuring instrument to give same numeric value when
the measurement is repeated on the same object.
Validity means that our measuring instrument actually
measures the property it is supposed to measure.
Reliability of the instrument does not ensure its validity.
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 Example
 There is an instrument which can measure the number of things a child can
recall from his last day’s activities. If this instrument returns the same value
when implemented on the same child, it is a reliable instrument.
 But if some one claims that it is a valid instrument for measuring IQ level of
the child ,he may be wrong. This instrument may just be measuring the
memory level not the IQ level .
The focus is on:
 Objectivity of the investigator
 Accuracy of measurement
 Continuing and Exhaustive nature of the investigation

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 The Scientific Method
 Scientific Method
 A set of prescribed procedures for
establishing and connecting
theoretical statements about
events, for analyzing empirical
evidence, and for predicting
events yet unknown.
 Techniques or procedures used to
analyze empirical evidence in an
attempt to confirm or disprove
prior conceptions.
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 Suggested Steps
1. Assess relevant existing
knowledge of phenomenon
2. Formulate concepts and
propositions
3. State hypotheses
4. Design research to test the
hypotheses
5. Acquire empirical data
6. Analyze and evaluate data
7. Propose an explanation of the
phenomenon and state new
problems raised by the research
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 6 Difficulties in applying the Scientific
Method to Marketing
 Imprecise measuring devices.
 Influence of measurement process on results
 Investigator involved in the use of results.
 Time pressure for results
 Difficulty in using experiments to test Hypothesis
 Great complexity of subject

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The Business Research Process

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 Types of Information Used by Decision Makers
Types of Information Availability Factor Manipulation Factor

Subjective Very good availability, but based on Selectively interpreted

individual's own experiences, feelings,
or assumptions

Secondary Good availability, but extensive search Information and data structures is
time required manipulated and reinterpreted for
at least a second time

Primary Does not initially exist, must be Data structures must be

created manipulated and interpreted for
first time

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 Uncertainty Influences
The Type Of Research

CAUSAL OR COMPLETELY ABSOLUTE EXPLORATORY

DESCRIPTIVE CERTAIN AMBIGUITY

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 Degree Of Problem Definition

Exploratory Research Descriptive Research Causal Research

(Unaware of Problem) (Aware of Problem) (Problem Clearly Defined)

“Our sales are declining and “What kind of people are buying “Will buyers purchase more of
we don’t know why.” our product? Who buys our our products in a new package?
competitor’s product?”

“ Would people be interested “Which of two advertising

in our new product idea?” “Which features do buyers prefer campaigns is more effective?”
in our product?”

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 Determining When to Conduct Business Research

Time Constraints Availability of Data Nature of the Decision Benefits vs. Costs
Is the Does the
Information
Is sufficient Yes Yes decision of Yes information Yes Conduct
already on
time
hand
strategic value Business
available? or tactical exceed the Research
inadequate?
importance? research cost?

No No No No

Do Not Conduct Business Research

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 FLOW CHART OF BUSINESS RESEARCH
Problem Discovery Problem Selection of
and Definition discovery exploratory research
technique
Sampling
Selection of
exploratory research
technique Probability Nonprobability

Secondary
Experience Pilot Case Collection of
(historical) Data data
survey study study
data Gathering (fieldwork)

Data Editing and

Problem definition
Processing coding
(statement of data
research objectives) and
Analysis
Data
Selection of processing
Research Design basic research
method Conclusions Interpretation
and Report of
findings
Experiment Survey Secondary
Observation
Laboratory Field Intervi Questionn Data Study Report
ew aire

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 Stages in the Research Process

 “The formulation of the problem is often more

essential than its solution” Albert Einstein
 “ A problem well defined is a problem half solved”
 Problem Discovery and Problem Definition
 Research Design & Measures
 Sampling
 Data Gathering
 Data Processing and Analysis
 Conclusions and Report Writing
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 STAGES IN THE RESEARCH PROCESS

Problem Discovery Discovery and

and Definition Definition

Research and so on
Design Conclusions and
Report

Sampling
Data Processing
and Analysis
Data
Gathering
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 Problem Discovery and Definition

 First step
 Problem, opportunity, or monitor operations
 Discovery before definition
 Problem means Management Problem
 Problem Definition
 The indication of a specific business decision area that will
be clarified by answering some research questions.

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 Defining Problem Results in
Clear Cut Research Objectives
Symptom Detection

Analysis of
the Situation
Exploratory
Research
(Optional)
Problem Definition

Statement of
Research Objectives

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 The Process of
Problem Definition
Ascertain the Determine unit of
decision maker’s analysis
objectives

Understand Determine
background of relevant variables
the problem

Isolate/identify State research

the problem, not questions and
the symptoms objectives

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 Ascertain the Decision Maker’s Objectives

 What are Decision maker’s objectives

 Managerial goals expressed in measurable terms.
 Objectives are seldom clearly articulated and given to the researcher. The
decision maker seldom formulates his objectives accurately.
 He is likely to state his objectives which have no operational significance.
 Consequently, objectives usually have to be extracted by the researcher
 Exploratory research can illuminate the nature of the opportunity or
problem & help manager clarify their objectives and decisions.

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 The Iceberg Principle

 The principle indicating that the dangerous part of

many business problems is neither visible nor
understood by the managers.
 A theory suggests that aggregated data can hide
information that is important for the proper
evaluation of the situation

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 Isolate and Identify the Problems, Not
the Symptoms
 Symptoms can be confusing

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 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???? Why???

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 Identification of True Problem
Problem Definition
Organization Symptoms Based on Symptom True Problem

Twenty-year-old Membership has been Neighborhood Demographic changes:

neighborhood declining for years. New residents prefer the Children in this 20-year-
swimming water park with wave expensive water park old neighborhood have
association in a pool and water slides and have negative grown up. Older
major city. established in town a image of swimming residents no longer swim
few years ago. pool. anywhere.

 Demographic Changes: Children have grown up

Women
Salaries need Benefits
Cellular Employees
to be compared Program
Phone complain that
to industry is not suited to
manufacture salaries are
packages Women’s needs
low

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 Examples

 Evaluate the statement of the business problem in

situations mentioned in the next slides.
 Is problem definition vague or clearly defined???

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 Ex 1.
 A farm implement manufacturer:

 Our objective is to learn the most effective form of capitalization so

we can maximize profits.

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 Evaluation
 This problem statement is vague.
 It does not indicate what is meant by “effective capitalization.”
 What exactly does this mean?
 Further maximizing profit should be stated in terms that are
meaningful from a research point of view.
 It would be much better with a more specific objective, such as
to measure ability to generate a certain return on investment.

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 Ex.2.

 An employees’ credit union(welfare association):

 Our problem is to determine the reasons why employees
join the credit union, to determine members’ awareness of
credit union services, and to measure attitudes and beliefs
about how effectively the credit union is operated.

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 Evaluation
 This is a fairly good problem definition.
 It indicates specifically that they want to identify reasons
for joining the credit union.
 It also mentions awareness of services as a criterion,
although many services are not listed.
 It indicates that they will measure attitudes and beliefs
about credit union operations.
 Though it could be more specific, nevertheless, it
provides the reader with a clear idea of the problem
definition and general direction of the research.

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 Ex.3.
 A woman’s magazine:
 Our problem is to document the demographic changes that
have occurred in recent decades in the lives of women and
to put these in historic perspective; to examine several
generations of Indian women through most of last century,
tracking their roles as student, worker, wife, and mother and
noting the changes in timing, sequence, and duration of
these roles; to examine at what age and for how long a
woman enters various stages of her life: school, work,
marriage, childbearing etc.
 This will be accomplished by analyzing demographic data
over several generations from this perspective.
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 Evaluation

 This is an excellent problem definition.

 Why?
 This definition indicates that women will be the subject of the research
and the demographic data will be gathered from secondary sources.
 It also indicates comparisons will be made by different age charts.

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 Ex.4.

 A soft drink manufacturer:

 The problem is we don’t know if our bottlers are
more satisfied with us than our competitor’s bottlers.

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 Evaluation
 This is a vague problem statement without any indicated action.
 First, the dimensions of satisfaction must be identified and key issues should
be isolated.
 This research objective does not indicate any action or any decision
alternative.
 This is a situation where the researchers should anticipate outcome.
 They should ask what the final report should look like by outlining a number
of dummy tables.
 In this way they would know exactly which decision has to be taken when the
data is analyzed.
 At some point the researcher should sit down with management and
determine: “If our bottlers are less satisfied then what we will do.”

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 Determine the Unit of Analysis

 Individuals, households, organizations, etc.

 In many studies, the family rather than the individual is
the appropriate unit of analysis.

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 Determine Relevant Variable

 Anything that may assume different numerical values.

Examples:
 Demographics: Race, Gender, Age, Income, Education levels, etc.
 Psychographics: Introvert vs. Extrovert, Risk-Taking, Personality, etc.
 Other: Sales, Advertising, Price, Economic Measures, etc.
 Types of Variables
 Categorical
 Continuous
 Dependent
 Independent

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 Hypothesis

 An unproven proposition
 A possible solution to a problem
 Guess

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 Broad Statement of Exploratory
research business research
objectives problem (optional)

Specific Specific Specific

Objective 1 Objective 2 Objective 3

Research
Results
Design

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 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

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 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?

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 Research Design
 Master plan
 Framework for action
 Specifies methods and procedures
 Thus research design is a master plan specifying the methods and
procedures for collecting and analyzing needed information.

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 Basic Research Methods

 Surveys
 Experiments
 Secondary data
 Focus groups
 Observation

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 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?
 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?

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 Sampling

 Subset of Population
 Who is to Be Sampled?
 How Large should be a Sample?
 How will Sample Units be Selected?

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Basic Questions - Selection of Sample

 Who or what is the source of the data?

 Can the target population be identified?
 Is a sample necessary?
 How accurate must the sample be?
 Is Probability sample necessary?
 Is a national sample necessary?
 How large a sample is necessary?
 How will the sample be selected?

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 The Business Research Process
Stage 4 Collect Data
Stage 5 Process & Analyze the Data
 Tasks
 Develop coding procedures
 Enter data into analysis tool (SPSS)
 Edit data
 Perform appropriate analysis procedures

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 Basic Questions - Data Gathering

 Who will gather the data?

 How long will data gathering take?
 How much supervision is needed?
 What operational procedures need to be followed?

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 Basic Questions - Data Analysis

 Will standardized editing and coding procedures be used?

 How will the data be categorized?
 What statistical software will be used?
 What is the nature of the data?
 What questions need to be answered?
 How many variables are to be investigated simultaneously?
 Performance criteria for evaluation?

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 The Business Research Process
Step 6 Communicate Results
Tasks:
 Interpret findings for managers
 Final Research Report
 Oral Presentation

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 Basic Questions -Type of Report

 Who will read the report?

 Are managerial recommendations needed?
 How many presentations are required?
 What will be the format of the written report?

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 Basic Questions - Overall Evaluation

 How much the study cost?

 Is the time frame acceptable?
 Is outside help needed?
 Will this research design attain the stated research objectives?
 When should the research be scheduled to begin?

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Thanks

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