Business Research Methods William G Zikmund Chapter 4

Business Research Methods William G. Zikmund Chapter 4: The Business Research Process

Chapter 4: The Business Research Process 1. Information and Decision Making 2. Types of Research 2. 1. Exploratory 2. 2. Descriptive 2. 3. Causal 3. Stages of the Research Process

1. Information and Decision Making The key to decision making is: • to recognize the nature of the problem/opportunity, • to identify what type of information is needed, • and how much information is available. Information reduces the level of certainty in decision making

Levels of Certainty in Decision Making 1. Certainty: Necessary information is perfectly available, which is something rare. Under certainty, the exact nature of the problem/opportunity is clear, Objectives to be achieved by an effective decision are set.

Certainty: Necessary information to develop alternatives and select the best solution among them is already present Therefore, there is no need to make research for understanding the situation and making prediction.

2. Uncertainty: Necessary information is somewhat available, which is something usual. Under uncertainty, the exact nature of the problem/opportunity is clear, Objectives to be achieved by an effective decision are set.

Uncertainty: However, necessary information to develop alternatives and select the best solution among them is incomplete. Therefore, research is needed to enlarge our incomplete understanding of the situation and to be able to make better predictions than managerial guesses.

3. Ambiguity: Almost no information is available, which is something rare. Under ambiguity, the exact nature of the problem/opportunity is not clear, Objectives to be achieved by an effective decision are not set yet.

Ambiguity: Necessary information to develop alternatives and select the best solution among them is incomplete. Therefore, research is extremely needed to enlarge our understanding and to be able to make predictions.

2. Types of Research • Exploratory • Descriptive • Causal

Uncertainty Influences the Type of Research COMPLET E CERTAIN TY NO RESEARCH AT ALL UNCERTAIN TY CAUSAL RESEARCH ABSOLUT E AMBIGUI TY DESCRIPTIVE RESEARCH EXPLORATO RY RESEARCH

Degree of Problem Definition possible situation Exploratory Research (Unaware of Problem) Defined) Descriptive Research (Aware of Problem) Causal (Problem Clearly “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 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? ”

2. 1. Exploratory Research Secondary data Experience survey Pilot studies 13

Exploratory Research • Initial research conducted to clarify and define the nature of a problem • Does not provide conclusive evidence • Subsequent research expected

2. 2. 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 16

2. 3. 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

3. Stages of the Research Process Problem Discovery and Definition Research Design Discovery and Definition and so on Conclusions and Report Sampling Data Processing and Analysis Data Gathering

Problem discovery Problem Discovery and Definition Selection of exploratory research technique Sampling Selection of exploratory research technique Secondary (historical) data Experience survey Pilot study Probability Nonprobability Case study Data Gathering Data Processing and Analysis Problem definition (statement of research objectives) Editing and coding data Data processing Selection of basic research method Research Design Collection of data (fieldwork) Conclusions Interpretation and Report of findings Experiment Laboratory Field Survey Interview Questionnaire Observation Secondary Data Study Report

The Business Research Process Problem Discovery Selection of Sample Design Exploratory Research Collection of the Data Selection of the Basic Research Method

The Research Process (cont. ) Editing and Coding Data Processing Interpretation of the Findings Report

“The formulation of the problem is often more essential than its solution” Albert Einstein