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
 Exploratory Research
• Initial research conducted to clarify and
define the nature of a problem
• No conclusive evidence
• Subsequent research expected
• New Product Development
• Eg An entrepreneur working on a unique
startup like an indoor baseball centre
• Sony and Honda- New Robot Technology
Exploratory Research

Secondary data

Literature Review

Pilot studies

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 Descriptive Research
• Describes characteristics of a population or
phenomenon
• Some understanding of the nature of the
problem
• Underlying features of people,
organizations, consumers, communities etc
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

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 Descriptive Research Example
• Heavy Consumers of Organic Food
• Living in Coastal Areas
• Affluent households
• Age: 45-54 (36%) , 18-34(35%),
• NOT brand oriented
 Causal Research
• Conducted to identify cause and effect
relationships
 Causal Research
• How implementing a new employee
training program would affect job
performance?

• Experiments are widely used for causality

 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- Correlation
– 3. An absence of alternative plausible
explanations- Sometimes third variable is
affecting both the variables
Example
 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?”
 Stages of 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
 Research Stages
• Cyclical process - conclusions generate new
ideas
• Stages can overlap chronologically
• Stages are functionally interrelated
– Forward linkages
– Backward linkages
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
survey study study data
data Gathering
(fieldwork)

Data
Editing and
Problem definition Processing
coding
(statement of and
Analysis data
research objectives)

Data
Selection of processing
Research Design basic research
method Conclusions
Interpretation
and Report
of
findings
Experiment Survey
Secondary
Laboratory Field Interview Questionnaire Observation
Data Study 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

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 Research Design
• Master plan
• Framework for action
• Specifies methods and procedures
 Basic Research Methods
• Surveys
• Experiments
• Secondary data
• Observation
 Unit of Analysis
• The level of aggregation of the data
collected. Eg Motivation of Employees-
Individual Level

• Who do you want to study?

• Individuals Vs Organizations Vs Economies
• Consumers Vs Companies? – Give Examples
 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
 Defining Problem Results in
Clear Cut Research Objectives
Symptom Detection

Analysis of
the Situation
Exploratory
Research
(Optional)
Problem Definition

Statement of
Research Objectives