Chapter 3

THINKING LIKE A RESEARCHER

McGraw-Hill/Irwin Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved.
Learning Objectives

Understand . . .
 The terminology used by professional
researchers employing scientific thinking.
 What you need to formulate a solid
research hypothesis.
 The need for sound reasoning to enhance
research results.

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Research Thought Leaders

“Thought leaders, academics, business authors from the

increasingly merging worlds of psychology, philosophy,
economics, trends, semiotics are powerful forces, that have
the ability to capture the imagination and attention at the
highest level of business. Research needs to define itself
more broadly, embrace the most exciting thinkers into our fold.
We need to infuse our thinking with that of related fields.”
Edward Appleton,
senior European consumer insights manager,
Avery Dennison

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 Language of Research

Conceptual
Concepts Constructs
schemes

Operational
Models
definitions
Terms used
in research
Theory Variables

Propositions/
Hypotheses
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 Language of Research

Clear conceptualization
of concepts
Success
of
Research Shared understanding
of concepts

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Job Redesign

Constructs
and Concepts

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 Operational Definitions

How can we define the variable

“class level of students”?

 Freshman  < 30 credit hours

 Sophomore  30-50 credit hours
 Junior  60-89 credit hours
 Senior  > 90 credit hours

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A Variable: Property Being Studied, or a symbol of an event, act, characteristic, trait or,
attribute that can be measured and to which we assign categorical values.

Event Act

Variable

Characteristic Trait

Attribute

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 Types of Variables

Male/Female
Dichotomous Employed/ Unemployed

Ethnic background
Discrete Educational level
Religious affiliation

Income
Temperature
Continuous Age

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 Independent and Dependent Variable
Synonyms

Independent Dependent
Variable (IV) Variable (DV)
 Predictor  Criterion
 Presumed cause  Presumed effect
 Stimulus  Response
 Predicted from…  Predicted to….
 Antecedent  Consequence
 Manipulated  Measured
outcome 3-16
 Which are the DVs & IVS

Expectation

PSQ

Value Satisfaction Loyalty

PPQ

Image

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Relationships Among Variable Types
(Moderating or, interaction variables)

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IS it a Mediator or Moderator
Caloric Intake
Well-being
Gender
Age
Prior Weight

Exercise Weight Loss

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Relationships Among Variable Types

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Relationships Among Variable Types

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 Moderating Variables (MV)

 The introduction of a four-day week (IV) will lead to higher

productivity (DV), especially among younger workers (MV)

 The switch to commission from a salary compensation

system (IV) will lead to increased sales (DV) per worker,
especially more experienced workers (MV).

 The loss of mining jobs (IV) leads to acceptance of higher-

risk behaviors to earn a family-supporting income (DV) –
particularly among those with a limited education (MV).

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 Extraneous/Control Variables (EV)
With new customers (EV-control), a switch to commission
from a salary compensation system (IV) will lead to increased
sales productivity (DV) per worker, especially among younger
workers (MV).

Among residents with less than a high school education (EV-

control), the loss of jobs (IV) leads to high-risk behaviors
(DV), especially due to the proximity of the firing range (MV).

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 Intervening Variables (IVV)

 The switch to a commission compensation system

(IV) will lead to higher sales (DV) by increasing
overall compensation (IVV).

 A promotion campaign (IV) will increase savings

activity (DV), especially when free prizes are offered
(MV), but chiefly among smaller savers (EV-control).
The results come from enhancing the motivation to
save (IVV).

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 Propositions and Hypotheses

Brand Manager Jones (case) has a higher-than-

average achievement motivation (variable).
Generalization

Brand managers in Company Z (cases) have a higher-

than-average achievement motivation (variable).

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 Descriptive Hypothesis Formats

Descriptive Research
Hypothesis Question
 In Detroit, our  What is the market
potato chip share for our
market share potato chips in
stands at Detroit?
13.7%.  Are American cities
 American cities are experiencing budget
experiencing difficulties?
budget difficulties.
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 Relational Hypotheses Formats
 Correlational
 Young women (under
35) purchase fewer units
of our product than women
who are older than 35.
 The number of suits sold
varies directly with the level
of the business cycle.
 Causal
 An increase in family
income leads to an
increase in the
percentage of income
saved.
 Loyalty to a grocery store
increases the probability
of purchasing that store’s
private brand products.
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The Role of Hypotheses

Guide the direction of the study

Identify relevant facts

Suggest most appropriate

research design

Provide framework for organizing

resulting conclusions

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Characteristics of
Strong Hypotheses

Adequate

A
Strong Testable
Hypothesis
Better
than rivals
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Theory within Research

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The Role of Reasoning

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A Model within Research

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 A Model within Research

Expectation

PSQ

Value Satisfaction Loyalty

PPQ

Image

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 The Scientific Method
(The essential tenets of scientific method are)

Direct observation

Clearly defined variables

Clearly defined methods

Empirically testable

Elimination of alternatives

Statistical justification

Self-correcting process

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Researchers

 Encounter problems
 State problems
 Propose hypotheses
 Deduce outcomes
 Formulate rival
hypotheses
 Devise and conduct
empirical tests
 Draw conclusions

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Why is
curiosity
important?

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Sound Reasoning for useful answers

Types of Discourse

Exposition Argument

Deduction Induction

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Deductive Reasoning

Inner-city household
interviewing is especially
difficult and expensive

This survey involves

substantial inner-city
household interviewing

The interviewing in this

survey will be especially
difficult and expensive
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 Deductive Reasoning

Apply deductive
reasoning to this
image.

What will happen

next?

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 Inductive Reasoning

Why didn’t sales increase during our

promotional event?
 Regional retailers did not have sufficient stock
to fill customer requests during the
promotional period
 A strike by employees prevented stock from
arriving in time for promotion to be effective
 A hurricane closed retail outlets in the region
for 10 days during the promotion

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Why Didn’t Sales Increase?

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Tracy’s Performance

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Key Terms

 Argument  Induction
 Case  Model
 Concept  Operational definition
 Conceptual scheme  Proposition
 Construct  Sound reasoning
 Deduction  Theory
 Empiricism  Variable
 Exposition  Control
 Hypothesis  Confounding (CFV)
 Correlational  Dependent (DV)
 Descriptive  Extraneous (EV)
 Explanatory  Independent (IV)
 Relational  Intervening (IVV)
 Hypothetical construct  Moderating (MV)

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 Assignment from Chapter-1

Maruti has a major problem with unexplained acceleration in several of its top
models in 2011. It closed down production and stopped sales of multiple models.
What types of research might Maruti have conducted to make these decisions?

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 Assignment from Chapter-2

An automobile manufacturer observes the demand for its brand increasing as per
capita income increases. Sales increases also follow low interest rates, which
ease credit condition. Buyer purchase behavior is seen to be dependent on age
and gender. Other factors influencing sales appear to fluctuate almost randomly
(Competitor advertising, competitor dealer discount, introduction of competitor
new models).

a. If sales, and per capita income are positively related, classify all variables as
dependent, independent, moderating, extraneous or intervening.

b. Comment on the utility of a model based on the hypothesis.

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Research studies show that heavy smoker have a higher rate of lung cancer than
do non-smokers, therefore heavy smoker causes lung cancer.

DV: Sales/Demand
IV: Income, low interest rates (ease credit condition),
Extraneous variable: Competitor advertising, competitor dealer discount,
introduction of competitor new models
Moderating (Interaction) Variables: Age and Gender
Mediating (Intervening) variable:

Per capita
Sales/
Income, Low
Demand
interest Rate

Age, Gender

Per capita
Sales/
Income, Low
Demand
interest Rate

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 Chapter 3
ADDITIONAL DISCUSSION OPPORTUNITIES

McGraw-Hill/Irwin Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved.
PicProfile: Shopping & Mobile Phones

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 Snapshot: Gut Hunches

“People usually
experience true intuition
when they are under
severe time pressure
or in a situation of
information overload or
acute danger, where
conscious analysis of the
situation may be difficult
or impossible.”

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PulsePoint: Research Revelations

55
The percent of executives who
admitted that their companies do not
have an official policy for social
networks.

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 Formulating a Hypothesis

Wal-Mart recently decided not to share

its unit sales information with IRI, a
large syndicated research distributor.
After studying the data, Wal-Mart didn’t
think it was getting enough value from
competitor information in the syndicate.
What hypothesis might have driven its
research?

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Photo Attributions
Slide Source
26 Photo by Pegy Greb, USDA-ARS
27 Tetra Images/Getty Images
29 ©George Hammerstein/Corbis
30 Erik Isakson/Blend Images/age fotostock
37 ©Brand X Pictures/PumnchStock
38 Jeff Vanuga, USDA-NRCS
39 Ingram Publishing

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