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 COMPLETELY ABSOLUTE EXPLORATORY
DESCRIPTIVE CERTAIN AMBIGUITY
 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
possible situation

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?”“What features do buyers prefer campaigns is more effective?”
in our product?”
Exploratory
Research
Secondary data

Experience survey

Pilot studies

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 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
Discovery
Definition
and Definition

Research and so on
Conclusions
Design 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
 Selection of
Problem Discovery Problem
exploratory
and Definition discovery research
Sampling technique
Selection
of
exploratory Nonprobab
research Probability
ility
technique

Secondary Collection
Experience Pilot Case
(historical) Data of
survey study study Gathering
data data
(fieldwork)
Data
Editing and
Problem definition Processing
and
coding
(statement of data
Analysis
research objectives)

Data
Selection of processing
basic
Research Design
research Conclusions Interpretati
method and Report on
of
Second findings
Experiment Survey
Observati ary
Laboratory Field Interview Questionnaire on Data Report
Study
The Business Research Process

Problem Discovery Selection of Sample

Design

Exploratory Collection of the

Research Data

Selection of the
Basic Research
Method
The Research Process (cont.)

Editing and Coding Report

Data Processing

Interpretation of
the Findings
 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

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 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.
 Experience Case
Secondary Pilot Study
Survey
(historical) Study
Data

Exploratory
Research
 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 SAMPLE

of a larger population.

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
Exploratory
Research
(Optional)
Problem Definition

Statement of
Research Objectives