Business Research Methods William G Zikmund Chapter 6

Business Research Methods William G. Zikmund Chapter 6. 1: Problem Definition

Chapter 6. 1: Problem Definition 1. Definition of a Management Problem 2. Definitions of Problem Discovery and Problem Definition 3. The Process of Problem Definition

1. Definition of a Management Problem • Problem: existence of a difference between the current conditions and a more preferable set of future conditions. • Management Problem: a development that necessiates a decision to cope with difficulties and threats, or to exploit opportunities.

Management Problems Mean Performance Gaps – Business performance is worse than expected business performance. – Actual business performance is less than possible business performance. – Expected business performance is greater than possible business performance. 4

2. Definitions of Problem Discovery and Problem Definition • Problem Discovery: getting aware of some symptons of a management problem • Problem Definition: The indication of a specific business decision area that will be clarified by answering some research questions.

Defining Problem Results in Clear Cut Research Objectives Symptom Detection Analysis of the Situation Problem Definition Statement of Research Objectives Exploratory Research (Optional)

3. The Process of Problem Definition Ascertain the decision maker’s objectives Determine research objectives Understand background of the problem Determine the unit of analysis Isolate/identify the problem, not the symptoms Determine relevant variables and state hypotheses

3. 1. Ascertain the Decision Maker’s Objectives • Managerial objectives should be expressed in measurable terms; however, line managers seldom clearly articulate their problems to the researchers. • Researchers should try to understand the problems by interviewing the related managers and collect information from other sources. 8

3. 2. Understand the Background of the Problem • Situation analysis: the informal gathering of background information to familiarize researchers or managers with the decision area. • The Iceberg Principle: the dangerous part of many business problems is neither visible to nor understood by managers. 9

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3. 3. Isolate and Identify the Problems, Not the Symptoms *Identify the Symptoms • by interrogative techniques: Asking multiple what, where, who, when, why, and how questions about what has changed. • by probing : An interview technique that tries to draw deeper and more elaborate explanations from the discussion. *Isolate the Symptoms from the True Problem 11

Symptoms can be confusing • The case of twenty-year-old neighborhood swimming association: • Membership has been declining for years. • Maybe neighborhood residents prefer the expensive water park.

Organization Symptoms Problem Definition True Problem Based on Symptoms Twenty-year-old neighborhood swimming association in a major city. Membership has been declining for years. New water park with wave pool and water slides moved into town a few years ago. Neighborhood residents prefer the expensive water park and have negative image of swimming pool. Demographic changes: Children in this 20 -year-old neighborhood have grown up. Older residents no longer swim anywhere. Beverage manufacturer Consumers prefer taste of competitor’s products Taste of our product needs to be reformulated Old fashioned package is influencing consumers’ taste perceptions.

What Language Is Written on This Stone Found by Archaeologists? The Language is English: “to tie mules to”

3. 4. Determine the Research Objectives • After clarifiyng the situation (current decision need) managerial decision statements should be translated into corresponding research objectives. – Once the decision statement is written, the research essentially answers the question, “What information is needed to address this situation? ” • Research objectives are the deliverables of the research project. “If you do not know where you are going, any road will take you there”

Broad research objectives Statement of business problem Exploratory research (optional) Specific Objective 1 Specific Objective 2 Specific Objective 3 Research Design Results

3. 5. Determine the Unit of Analysis (see also http: //www. socialresearchmethods. net/kb/unitanal. php) • Unit of Analysis indicates what or who should provide the data and at what level of aggregation: Individuals, households, organizations, etc. • In many studies, the family or the firm rather than the individual may be the appropriate unit of analysis; • Then, data collected at the individual level should be aggregated at a higher level to the 17 firm, work group, or familiy.

Examples of Research Objectives and Unit of Analysis • To identify the critical factors affecting clients’ choice of some specific brands. (individual clients) • To identify the future performance of candidates for a specific job offer. (individual candidates) • To establish the reasons for stagnant sales and suggest means by which sales can be increased. (firms) 18

3. 6. Determine the Relevant Variables and Hypotheses • To determine what characteristics of the unit of analysis will be measured by the researchers. • These characteristics may vary within the same unit of analysis. • For instance, Research Objective: to identify the ways of increasing marketing performance. • Unit of analysis: firm • Variable: marketing performance • Different firms’ marketing performance may be 19 different.

Definition of Variable • What is a Variable? – Anything that varies or changes from one instance to another; can exhibit differences in value, usually in magnitude or strength, or in direction. • What is a Constant? – Something that does not change; is not useful in addressing research questions. 20

Types of Variables • Continuous variable – Can take on a range of quantitative values. • Categorical variable – Indicates membership in some group. – Also called classificatory variable. • Dependent variable – A process outcome or a variable that is predicted and/or explained by other variables. • Independent variable – A variable that is expected to influence the dependent variable in some way. 21

Research Questions • In order to achieve research objectives, researchers should develop research questions, and try to answer them through research. • Research questions are about the nature of relations among variables. • Examples of research questions: – What are the reasons of sales decline? – What are the drivers of customer satisfaction? – What are the relations between new designs and customer satisfaction?

Hypothesis • An unsupported proposition to answer a research question to be tested by research • H 1: Decline in the purchasing power of the clients decreases the total sales of the industry. • H 2: New designs increase customer satisfaction.

An exemplary problem definition process • Symptons: our clients are complaining, they seem unhappy and we may loose them. • True Problem: our clients began to percieve our products as low quality but still expensive. • Research objective: to identify the ways to convince our clients about our products’ quality. • Unit of analysis: individual buyers.

An exemplary problem definition process • Variables: customer satisfaction, re-buying intention, product characteristics, customers’ demographics, etc. • Research question: what are the drivers of customer satisfaction, what are the relations among customer perceptions about the product characteristics, customer satisfaction, and re-buying intention? • Hypothesis: old fashioned products are percieved by the young customers as low quality.

Business Research Methods William G. Zikmund Chapter 6. 2: Research Proposal

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

Basic Questions Problem Definition • • What is the purpose of the study? How much is already known? Is additional background information necessary? What is to be measured? How? Can the data be made available? Should research be conducted? Can a hypothesis be formulated?

Basic Questions Basic Research Design • What types of questions need to be answered? • Are descriptive or causal findings required? • What is the source of the data?

Basic Questions Basic Research Design • Can objective answers be obtained by asking people? • How quickly is the information needed? • How should survey questions be worded? • How should experimental manipulations be made?

Basic Questions Selection of Sample • • Who or what is the source of the data? Can the target population be identified? Is a sample necessary? How accurate must the sample be? Is a probability sample necessary? Is a national sample necessary? How large a sample is necessary? How will the sample be selected?

Basic Questions Data Gathering • • Who will gather the data? How long will data gathering take? How much supervision is needed? What operational procedures need to be followed?

Basic Questions Data Analysis • Will standardized editing and coding procedures be used? • How will the data be categorized? • What statistical software will be used? • What is the nature of the data? • What questions need to be answered? • How many variables are to be investigated simultaneously? • Performance criteria for evaluation?

Basic Questions Type of Report • Who will read the report? • Are managerial recommendations requested? • How many presentations are required? • What will be the format of the written report?

Basic Questions Overall Evaluation • • How much will the study cost? Is the time frame acceptable? Is outside help needed? Will this research design attain the stated research objectives? • When should the research be scheduled to begin?