1 Chapter 3 The Business Research Process An

1 Chapter 3 The Business Research Process: An Overview Mc. Graw-Hill/Irwin © 2006 The Mc. Graw-Hill Companies, Inc. , All Rights Reserved.

2 Learning Objectives Understand • that research is decision- and dilemma-centered • that the clarified research question is the result of careful exploration and analysis and sets the direction for the research project

3 Learning Objectives • how value assessments and budgeting influence the process for proposing research, and ultimately, research design • what is included in research design, data collection, and data analysis • which research process problems to avoid

4 The primary purpose of research is to reduce the level of risk of a business decision

5 Exhibit 3 -1 The Business Research Process

6 Quotation from Albert Einstein “The formulation of a problem is far more often 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 advance in science”

7 Stage 1 Clarifying the Research Question • Management-research question hierarchy • Begins with management dilemma

8 Symptom of Actual Problem • Rising costs • The discovery an expensive chemical compound that would increase the efficacy of a drug • Increasing tenant move-outs from an apartment complex • Declining sales • Increasing employee turnover in a restaurant • A large number of product defects during the manufacture of an automobile • An increasing number of letters and phone complains about post-purchase service

9 Exhibit 3 -2 Management. Research Question Hierarchy

10 Exhibit 3 -5 Sale. Pro’s Hierarchy

11 Exhibit 3 -3 Formulating the Research Question

12 Types of Management Questions

13 The Research Question Break questions down Examine variables Determine necessary evidence Fine-Tuning Set scope of study Evaluate hypotheses

14 Investigative Questions Performance Considerations Attitudinal Issues Behavioral Issues © 2002 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

15 • Harris Interactive answers “Why? ” for its research clients

16 Stage 2 Proposing Research • Exhibit 3 -7 • Budget Types – Rule-of-thumb – Departmental – Task

17 Exhibit 3 -6 Gantt Chart Mind. Writer Project Plan

18 Evaluating the Value of Research Option Analysis Decision Theory Prior or Interim Evaluation Ex Post Facto Evaluation

19 The Research Proposal Purpose Legallybinding contract Methods Written proposals establish Obligations Extent Timing Delivery Budgets

20 Stage 3 Research Designing the Research Project Sampling Design Pilot Testing

21 Stage 4 Data Collection Data Characteristics • Abstractness • Verifiability • Elusiveness • Closeness

22 Stage 5 Data Analysis and Interpretation Reducing data to manageable size Developing summaries Looking for patterns Applying statistical techniques © 2002 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

23 Stage 6 Reporting the Results Research Overview Executive Summary Research Report Technical Appendix Implementation Strategies

24 The Research Overview Problem’s background Summary of exploratory findings Research design and procedures Conclusions

25 Research Process Issues • The Favored-Technique Syndrome • Company Database Strip. Mining • Unresearchable Questions • Ill-Defined Management Problems • Politically Motivated Research

26 Key Terms • Census • Data –Primary data –Secondary data • Data analysis • Decision rule • exploration • Investigative questions • Management dilemma • Management question • Management-research question hierarchy • Measurement questions • Pilot test • Research design • Research process • Research questions • Sample