Understand . . . What business research is and how it differs from business decision support systems and business intelligence systems. Trends affecting business research and the emerging hierarchy of business decision makers. The distinction between good business research and research that falls short of professional quality. The nature of the research process.
See the text Instructors Manual (downloadable from the text website) for ideas for using this research-generated statistic.
Business research plays an important role in an environment that emphasizes measurement. Return on investment (ROI) is the calculation of the financial return for all business expenditures and it is emphasized more now than ever before. Business research expenditures are increasingly scrutinized for their contribution to ROMI.
Business research is a systematic inquiry that provides information to guide business decisions. The text definition is provided in the slide. Ask students to offer examples of types of decision-making situations that could be addressed using business research.
Use this ad to talk about the different types of risk that organizations face. Students usually have no difficulty identifying financial/economic risk, but must stretch to identify other types of risks. Some of these include social risks (preserving their reputation), physical risk (represented by dangers to living things: product recalls in pet food and human food, pharmaceuticals, etc. provide examples.), environmental risk (preserving the organization’s relationship with their physical environment), technological risk (falling behind—or having the opportunity to leap ahead—of their competition).
Selecting business strategies and tactics often drive research. A business strategy is defined as the general approach an organization will follow to achieve its business goals. A strategy might describe how an organization can best position itself to fulfill customer needs or establish a general approach to gaining brand equity. Haagen-Daz positioned itself with its super-premium ice-cream strategy. Business tactics are specific, timed activities that execute a business strategy. Haagen-Daz designed its ice-cream to be rich and creamy with flavors like “Peanut Butter Fudge Chunk.” It packaged the ice cream in pint size containers with signature gold and burgundy colors. It distributes the ice cream in grocery stores and franchised stores.
When elements of data are organized for retrieval, they collectively constitute a business decision support system (DSS). This data is often shared over an intranet or an extranet. An intranet is a private network that is contained within an enterprise and is not available to the public at large. It may consist of many interlinked local area networks. It typically includes connections through one or more computers to the Internet. The main purpose of an intranet is to share company information and computing resources among internal audiences. An extranet is a private network that uses the Internet protocols and the public telecommunication system to share an organization’s information, data, or operations with external suppliers, vendors, or customers. An extranet can be viewed as the external portion of a company’s intranet. A business intelligence system (BIS) is designed to provide ongoing information about events and trends in the technological, economic, political and legal, demographic, cultural, social, and competitive areas.
Exhibit 1-1 Exhibit 1-1 shows some sources of business intelligence. Sources of government information include speeches by elected officials, recordings of public proceedings, press releases, and agency websites. Sources of competitive information include presentations at conferences, literature searches, press releases, syndicated industry studies, web sites, clipping services, and business research. Sources of economic information include literature searches and government reports. Sources of cultural and social information include syndicated studies, public opinion organizations, business research, and government reports. Sources of technological information include patent filings, web sites, syndicated industry studies, presentations at conferences, literature searches, and clipping services. Sources of demographic information include syndicated studies, government reports, and business research. Remind your students that they have an extensive list of business sources on the CD that accompanied their textbook. It’s a valued resource that will be useful if you assign projects within your course structure.
Exhibit 1-3 Minute Maid is an example of a top-tier research organization. Ask students: “Why?”
Eastman Kodak has an internal research department.
Business research is only valuable when it helps management make better decisions. A study may be interesting, but if it does not help improve decision-making, its use should be questioned. Research could be appropriate for some problems, but insufficient resources may limit usefulness.
Exhibit 1-4 Exhibit 1-4 introduces the research process model used throughout the text and the PowerPoint slides. Instructors are encourage to give it a brief overview here, as a more detailed look is offered in chapter 4, and individual stages are discussed in subsequent chapters.
Exhibit 1a-1, far left part Exhibit 1a-1 illustrates who conducts business research. First, researchers may be internal or external. Internal researchers are “in-house.”
Exhibit 1a-1, External External research suppliers can be further classified into business research firms, communication agencies, consultants, and trade associations. Each of these will be further developed in the following slides.
Exhibit 1a-1, Business Research Firms Business research firms may be full-service or specialty-based. Full-service firms conduct all phases of research from planning to insight development. They may offer custom projects tailored to a client’s needs and/or proprietary work. Proprietary methodologies are programs or techniques that are owned by a single firm. Exhibit 1-5 lists some of the world’s largest business research firms. Specialty firms establish expertise in one or a few research methodologies . They represent the largest number of research firms and tend to dominate the small research firms operated by a single research firm or a very small staff. Syndicated data providers track the change of one or more measures over time, usually in a given industry. Some research firms offer omnibus studies that combine one or a few questions from several business decision makers who need information from the same population.
Many research companies offer proprietary services for different types of research. Conceptor uses a representative sample of 150 consumers to view new product concepts.
Syndicated Data Providers provide comparable performance and opinion data. When firms want to evaluate themselves against others in their industry, they turn to syndicated data providers. Exhibit 1-6 provides some examples of Syndicated Data Providers.
Exhibit 1a-3 lists some syndicated data providers, their service, and what their service measures.
Firms specializing in methodology conduct only one type of research such as survey research, customer satisfaction research or ad copy testing. Firms specializing in process contribute to only one portion of the research process such as sample recruitment, telephone interviewing, or fielding Web surveys. Firms specializing by industry become experts in one or a few industries such as pharmaceutical research or telecommunications research. Firms specializing by participant group become experts in a particular participant group such as Latino-Americans. Firms specializing by geographic region operate in only one region of a country, for example, the Midwest or the Southwest, or a city, like New York.
Exhibit 1a-1, consultants & Trade Associations All consultants are involved in extensive secondary data research for their clients and may also be major influencers in research design. Trade associations generally do not conduct or supply research services, but rather commission research that supports their missions.
This chapter explains the ethical issues faced by researchers.
See the text Instructors Manual (downloadable from the text website) for ideas for using this research-generated statistic.
In April 2001, Procter and Gamble notified its competitor Unilever that more than 80 discarded documents detailing Unilever’s marketing plan for its hair care business had been collected by P&G information agents. Unilever sought financial restitution and restrictions on P&G’s marketing activities, but the two companies settled out of court.
Three organizations offering codes specifically for researchers are the Marketing Research Association (MRA), the American Marketing Association (AMA), and the Council for American Survey Research Organizations (CASRO). The logos in the slide are linked to the respective organization’s website where you can view the codes of ethics.
See the text Instructors Manual (downloadable from the text website) for ideas for using this research-generated statistic.
Exhibit 2-1 highlights the many ethical issues that arise at all stages of the research process.
Research must be designed so that a participant does not suffer physical harm, discomfort, pain, embarrassment, or loss of privacy. This slide lists the three guidelines researchers should follow to protect participants. When discussing benefits, the researcher should be careful not to overstate or understate the benefits. Informed consent means that the participant has given full consent to participation after receiving full disclosure of the procedures of the proposed study.
Exhibit 2-2 illustrates the informed consent procedures used by the Indiana Center for Survey Research. The components highlighted in its procedures are listed in the slide.
Special consideration is necessary when researching the behavior and attitudes of children. Besides providing informed consent, parents are often interviewed during the selection process to ensure that the child is mature enough and has the verbal and physical capabilities necessary.
Deception occurs when the participants are only told part of the truth or when the truth is fully compromised. Deception can take two forms. One form relates to disguising nonresearch activities as opinion or business research. For instance, research might be used to collect data that are used to sell merchandise. Personal information could be collected for illegal purposes. Sometimes researchers use deception as part of a research design. It involves camouflaging the true research objects or the identity of the sponsor. This form of deception is used to prevent biasing respondents or to protect the confidentiality of a third party. Some researchers believe that deception should never occur. It is generally accepted in the industry that the benefits to be gained by appropriate research design-based deception should be balanced against the risks to the participants.
In situations where participants are intentionally or accidentally deceived, they should be debriefed once the research is complete. Debriefing describes the goals of the research, as well as the truth and reasons for any deception. Results are shared after the study is complete. Participants who require any medical or psychological follow-up attention will receive it during the debriefing process.
For researchers to fully address participants’ right to privacy, they must also 1) inform participants of their right to refuse to answer any questions or participate in the study; 2) obtain prior permission to interview or observe participants; and 3) limit the time required for participation to limit the amount of information collected to only that which is deemed critical.
Exhibit 2-3 identifies the seven basic principle that companies must comply with to be granted immunity from legal action under the EU’s directive. These seven principles are: Notice: Companies must notify consumers/participants about what information is being collected, how that information will be used, who that information will be shared with, and how individuals can contact the organization with inquiries or complaints. Choice : Consumers/participants must be provided with an opt-out mechanism for any secondary uses of data and for disclosures to third parties. For sensitive information, participants must opt in before providing data that will be shared. Access : Individuals must have access to personal information that the organization holds and be able to correct, amend, or delete information where it is in accurate, except where the burden or expense of providing access would be disproportionate to the risks to the individual’s privacy. Security : Organizations must take reasonable precautions to protect personal information from loss, misuse, and unauthorized access, disclosure, alteration, and destruction. Onward transfer: Companies disclosing personal data to a third party must adhere to the notice and choice principles. A third party must subscribe to the safe-harbor principles. Data integrity: Reasonable steps must be taken to ensure that data collected are reliable, accurate, complete, and current. Enforcement : Companies must ensure there are readily available and affordable independent mechanisms to investigate consumer complaints.
See the text Instructors Manual (downloadable from the text website) for ideas for using this research-generated statistic.
Exhibit 3-1 Exhibit 3-1 illustrates some of the concepts and constructs relevant to job redesign. The concepts at the bottom of the exhibit (format accuracy, manuscript errors, and keyboarding speed) are the most concrete and easily measured. Keyboarding speed is one just concept in the group that defines a construct that the human resource analyst calls Presentation Quality . It is not directly observable like keyboarding speed. It is a term used to communicate (a label) the combination of meanings presented by the three concepts. Concepts at the next level are vocabulary, syntax, and spelling. As they are related, the analyst groups them into a construct she calls language skill . Language skills is placed at a higher level of abstraction in the exhibit because two of the concepts that comprise it, vocabulary and syntax, are more difficult to observe and measure. The construct of job interest is not yet measured nor are its components specified. Researchers often refer to such constructs as hypothetical constructs because they are inferred only from the data—they are presumed to exist but no measure tests whether such constructs actually exist. If research shows the concepts and constructs in this example to be interrelated, and if the connections can be supported, then the analyst has the beginning of a conceptual scheme. One exercise you can try is to have students attempt to identify the concepts/constructs in the hypothetical construct…job interest, and discuss which elements are truly measurable…and how.
Operational definitions are definitions stated in terms of specific criteria for testing or measurement. The specifications must be so clear that any competent person using them would classify the objects in the same way. If a study of college students required classifying students by class level, a definition of each category would be necessary. Students could be grouped by class level based on self-report, number of years in school, or number of credit hours completed. Credit hours is the most precise measure.
Exhibit 3-2 Exhibit 3-2 presents the commonly used synonyms for independent and dependent variables. An independent variable is the variable manipulated by the researcher to cause an effect on the dependent variable. The dependent variable is the variable expected to be affected by the manipulation of an independent variable.
Moderating variables are variables that are believed to have a significant contributory or contingent effect on the originally stated IV-DV relationship. Whether a variable is treated as an independent or as a moderating variable depends on the hypothesis. Examples of moderating variables are shown in the slide.
Extraneous variables are variables that could conceivably affect a given relationship. Some can be treated as independent or moderating variables or assumed or excluded from the study. If an extraneous variable might confound the study, the extraneous variable may be introduced as a control variable to help interpret the relationship between variables. Examples are given in the slide.
An intervening variable (IVV) is a factor that affects the observed phenomenon but cannot be measured or manipulated. It is a conceptual mechanism through which the IV and MV might affect the DV.
A proposition is a statement about observable phenomena that may be judged as true or false. A hypothesis is a proposition formulated for empirical testing. A case is the entity or thing the hypothesis talks about. When the hypothesis is based on more than one case, it would be a generalization. Examples are provided in the slide.
A descriptive hypothesis is a statement about the existence, size, form, or distribution of a variable. Researchers often use a research question rather than a descriptive hypothesis. Examples are provided in the slide. Either format is acceptable, but the descriptive hypothesis has three advantages over the research question. Descriptive hypotheses encourage researchers to crystallize their thinking about the likely relationships. Descriptive hypotheses encourage researchers to think about the implications of a supported or rejected finding. Descriptive hypotheses are useful for testing statistical significance.
Exhibit 3-5 What is the difference between theories and hypotheses? Theories tend to be complex, abstract, and involve multiple variables. Hypotheses tend to be simple, limited-variable statements involving concrete instances. A theory is a set of systematically interrelated concepts, definitions, and propositions that are advanced to explain or predict phenomena. To the degree that our theories are sound and fit the situation, we are successful in our explanations and predictions. The product life cycle, shown in Exhibit 3-5, is an example of a theory.
Exhibit 3-7: Business models are developed through the use of inductive and deductive reasoning. As illustrated in Exhibit 3-7, a business model may originate from empirical observations about market behavior based on researched facts and relationships among variables. Inductive reasoning allows the modeler to draw conclusions from the facts or evidence in planning the dynamics of the model. The modeler may also use existing theory, managerial experience or judgment, or facts.
Exhibit 3-6 A model is a representation of a system constructed to study some aspect of that system or the system as a whole. Models versus Theories a model’s role is to represent or describe A theory’s role is to explain . Models in business research may be descriptive, predictive, and normative. Descriptive models are used for complex systems because they allow for the visualization of numerous variables and relationships. Predictive models forecast future events and facilitate business planning. Normative models are used for control, because they indicate necessary actions. Exhibit 3-6, shown in the slide, is a distribution network model called a maximum flow model used in management science. In this example, a European manufacturer of automobiles needs an increased flow of shipping to its Los Angeles distribution center to meet demand. However the primary distribution channel is saturated and alternatives must be sought. Models allow researchers to specify hypotheses that characterize present or future conditions: the effect of advertising on consumer awareness or intention to purchase, brand switching behavior, an employee training program, or other aspects of business.
The steps followed by business researchers to approach a problem are presented in the slide.
This ad from Synovate reinforces the notion that researchers must be curious. Students can see the Synovate website at www.synovate.com.
Exposition consists of statements that describe without attempting to explain. Argument allows us to explain, interpret, defend, challenge, and explore meaning. There are two types of argument: deduction and induction. Deduction is a form of reasoning in which the conclusion must necessarily follow from the premises given. The next slide provides an example of a deductive argument. Induction is a form of reasoning that draws a conclusion from one or more particular facts or pieces of evidence. Slide 2-8 illustrates an inductive argument.
This slide provides an example of a deductive argument.
This slide provides an example of an inductive argument.
Exhibit 3-8 Induction and deduction can be used together in research reasoning. Induction occurs when we observe a fact and ask, “Why is this?” In answer to this question, we advance a tentative explanation or hypothesis. The hypothesis is plausible if it explains the event or condition (fact) that prompted the question. Deduction is the process by which we test whether the hypothesis is capable of explaining the fact. Exhibit 3-8 illustrates this process.
This chapter provides an overview of the research process and sets the stage for coming chapters.
See the Instructors Manual (downloadable from the text website) for ideas for using this research-generated statistic.
This ad from Greenfield Online suggests that well-executed research can save a company from making a costly mistake on new product introductions.
Managers are increasingly asked to prove that research meets ROI objectives. Conceptually, the value of research is not difficult to determine. It may be judged in terms of the difference between the result of decisions made with the information and the result that would be made without it. This application cannot be measured, though. Option analysis : Managers conduct formal analysis of each alternative research project judged in terms of estimated costs and associated benefits and with managerial judgment playing a major role. Decision theory : The focus is on trying to assess the outcomes of each action. The manager chooses the action that affords the best outcome – the action criteria that meets or exceeds whatever criteria are established. Each criterion is a combination of a decision rule and a decision variable. The decision rule is a criterion for judging the attractiveness of two or more alternatives when using a decision variable. The decision variable is a quantifiable characteristic, attribute, or outcome on which a choice decision will be made. The evaluation of alternatives requires that each alternative is explicitly stated, a decision variable is defined by an outcome that may be measured, and a decision rule is determined by which outcomes may be compared. Prior or Interim Evaluation: In this case, managers decide to control the research expenditure risk by doing a study in stages. Costs are then reviewed at each stage. Ex Post Facto Evaluation: This form occurs after the research is conducted but can be useful in guiding future decisions.
Exhibit 4-1: Exhibit 4-1 models the sequence of stages in the research process. It also organizes this chapter and the introduces the remaining chapters in the book. Chapter 5 focuses on clarifying the research question. Chapters 6-14 focus on Stage 3: Research Design and Stage 4: Data Collection Chapter 15 focuses on Stage 4: Data preparation. Chapters 16-19 focus on Stage 5: Data Analysis and Interpretation. Chapter 20 focuses on Stage 6: Reporting. You can find more detail on research proposals and request for proposals (RFPs) in Appendix A.
Exhibit 4-1 illustrates the research process. This slide focuses on the first stage of the process, clarifying the research question. A useful way to approach the research process is to state the basic dilemma that prompts the research and then try to develop other questions by progressively breaking down the original question into more specific ones. This process can be thought of as the management-research question hierarchy. The process begins at the most general level with the management dilemma. This is usually a symptom of an actual problem, such as rising costs, declining sales, or a large number of defects. This portion of the research process is the focus of chapter 5. Key terms: A management dilemma is an opportunity of problem that the manager has discovered because of one or more symptoms. A management question is a restatement of the manager’s dilemma in question form. A research question is the hypothesis that best states the objective of the research; the question that focuses the researcher’s attention. An investigative question is the question the researcher must answer to satisfactorily answer the research question. A measurement question is the question asked of the participant or the observations that must be recorded.
From Appendix A. Once the research is defined, the research must be proposed in order to allocate resources to the project. There are three types of budgets in organizations where research is purchased and cost containment is crucial. Rule-of-thumb budgeting involves taking a fixed percentage of some criterion. For example, a percentage of the prior year’s sales revenues may be the basis for determining the business research budget for a manufacturer. Departmental (functional area) budgeting allocates a portion of total expenditures in the unit to research activities. This allows units like human resources and marketing to have the authority to approve their own projects Task budgeting selects specific research projects to support on an ad hoc basis. This is the least pro-active form but permits definitive cost-benefit analysis.
Stage 3 encompasses the design of the research project. There are three components to this stage: research design, sampling design, and pilot testing. Research design is the blueprint for fulfilling objectives and providing the insight to answer the management dilemma. There are many methods, techniques, procedures, and protocols possible. Chapter 6 identifies various research designs and Chapters 7-14 discuss specific methodologies. Another step in planning the research project is to identify the target population and determine whether a sample or census is desired. A census is a count of all elements in a population. A sample is a group of cases, participants, events, or records that constitute a portion of the target population. The researcher must determine whether to choose a probability or nonprobability sample. Types of samples, sample frames, how samples are drawn, and the determination of sample size are discussed in Chapters 15. A pilot test is conducted to test weaknesses in the research methodology and the data collection instrument and to provide proxy data for selection of a probability sample. Chapter 14 focuses on instrument development and pilot testing is discussed.
Refer to the Snapshot in the teacher’s instruction manual: Scotts is Cultivating Lower Health Care Costs in the Instructor’s Manual.
Stage 4 deals with data collection and preparation. Data may be characterized by their abstractness, verifiability, elusiveness, and closeness to the phenomenon. As abstractions, data are more metaphorical than real. For instance, the growth in GDP cannot be readily observed. Second, data are processed by our senses. When sensory experiences consistently produce the same result, our data are said to be trustworthy. Capturing data is elusive. Secondary data are originally collected to address a problem other than the one which require the manager’s attention at the moment. Primary data are data the research collects to address the specific problem at hand.
Data analysis usually involves these four actions. Researchers then interpret their findings in light of the research questions and hypotheses. The raw data alone cannot provide the insights necessary to improve decision-making. Motorola and Rock the Vote teamed up during the 2004 presidential election to use cell phone surveys to track young voters’ changing perceptions during the campaign. The PicProfile on this research is on p. 88.
This slide presents the components of the research overview section of a research report.
1 business research research process
Click to edit Master subtitle style2/3/13Research in BusinessDr. Huei H Holloman“This is a fantastic time to be entering the business world, because business isgoing to change more in the next 10 years than it has in the last 50.”-- Bill Gates, entrepreneur & founder of Microsoft
2/3/131. Recognize a situation, problem, issue, or opportunitythat needs addressing.2. Understand the significance, scope, magnitude,& feasibility of finding a solution to the situation,problem, issue, or opportunity.3. Identify ethical issues involved in business research.4. Describe the business research process.Objectives
Click to edit theoutline text formatSecond OutlineLevel− Third OutlineLevelFourthOutlineLevel−FifthClick to edit theoutline text formatSecond OutlineLevel− Third OutlineWhy Study Business Research?Business research providesinformation to guide businessdecisionsBR plays an important role in anenvironment that emphasizesmeasurement. E.g.,- ROI: calculation of the financial returnfor all business expenditures(emphasized more now than everbefore).- Business research expenditures areincreasingly scrutinized for theircontribution to ROMI.
2/3/13Research Should Help Respond to Change“Enterprises have long recognized the need to better sense andrespond to business change. What’s different today is thatubiquitous access to information and real-time communicationshave encouraged an ‘always on’ business culture where decisionmaking has become a ‘just-in-time process.’”Business Performance Management Forum
2/3/13What is Business ResearchBusiness research is a systematic inquiry that provides information toguide business decisions.A process of determining, acquiring, analyzing, synthesizing, &disseminating relevant business data, information & insights to decisionmakers in ways that mobilize the organization to take appropriatebusiness actions that, in turn, maximize business performanceQ: What are types of decision-making situations that could be addressedusing business research?
2/3/13Research Should Reduce Risk• The primary purpose of research is to reducethe level of risk of a biz decisionQ: What are risks that organizations usuallyface?– financial/economic risk– social risks (reputation)– physical risk (dangers to living things: productrecalls in pet food & human food,pharmaceuticals– environmental risk (preserving theorganization’s relationship w/ physical
2/3/13Research Business DecisionsQ: What is a business strategy?- the general approach an organization will follow to achieve itsbusiness goals. A strategy might describe how an organization canbest position itself to fulfill customer needs or establish a generalapproach to gaining brand equity.Q: What are business tactics?• Häagen-Dazs Tactics1. Super premium2. Dozens of flavors
Click to edit theoutline text formatSecond OutlineLevel− Third OutlineLevelFourthOutline Level−FifthOutlineLevel2/3/13Information SourcesDecision Support Systems•Numerous elements of dataorganized for retrieval and usein business decision making•Stored and retrieved via• Intranets• ExtranetsBusiness Intelligence Systems•Ongoing information collection•Focused on events, trends inmicro and macro-environments
2/3/13Sources of Business IntelligenceExhibit 1-1 shows some sources of business intelligence.BusinessIntelligenceGovernment/RegulatoryEconomicCompetitiveDemographicTechnologicalCultural/Social
2/3/13Minute Main & Business ResearchExhibit 1-3Minute Maid is an example of a top-tier research organization. Why?
2/3/13P&G has a world-class research department
2/3/13Research Is Necessary & Valuable If & Only If …• It helps management make better decisions.• A study may be interesting, but if it does not help improve decision-making, its use should be questioned.• E.g.,1. Can information be applied to a critical decision?2. Will the information improve managerial decision making?3. Are sufficient resources available?
2/3/13Syndicated ServicesNielsen Media Researchprovides audience data for televisionprograms likeCourt TV
Click to edit theoutline text formatSecond OutlineLevel− Third OutlineLevelFourthOutline Level−FifthOutlineLevel2/3/13Some Syndicated Data Providers•AC Nielsen•Scarborough•Millward Brown•Nielsen MediaResearch•Roper ASW•CSA TMO••DoubleClick•Nielsen/NetRatings•Taylor Nelson SofresIntersearch•J.D. Power Associates•MediaMark•Simmon (SMRB)•
Click to edit theoutline text formatSecond OutlineLevel− Third OutlineLevelFourthOutline Level−FifthOutlineLevel2/3/13Specialty Business Research FirmsMethodologyProcessIndustryParticipant groupGeographic Region
2/3/13Consultants and Trade Associations• All consultants are involved inextensive secondary dataresearch for their clients & mayalso be major influencers inresearch design.• Trade associations generally donot conduct or supply researchservices, but rather commissionresearch that supports theirmissions.
Click to edit theoutline text formatSecond OutlineLevel− Third OutlineLevelFourthOutline Level−FifthOutlineLevel2/3/13Key Terms•Custom Researcher•Full-service researcher•Specialty researcher•Syndicated data provider•Omnibus researcher•Omnibus study
2/3/13Learning Objectives• Understand . . .• What issues are covered in researchethics.• The goal of “no harm” for all researchactivities and what constitutes no harm forparticipant, researcher, and researchsponsor.
2/3/13Learning Objectives• Understand . . .• Differing ethical dilemmas andresponsibilities of researchers, sponsors,and research assistants.• Role of ethical codes of conduct inprofessional associations.
2/3/13PulsePoint:Research Revelation89 The percent of consumer PCsinfected with spyware.
2/3/13Data Collectors Face Responsibilities“[Privacy pragmatists are] often willing to allow people to haveaccess to, and to use, their personal information where theyunderstand the reasons for its use, where they see tangiblebenefits for so doing, and when they believe care is taken toprevent the misuse of this information.”Humphrey Taylorchairman of The Harris Poll®Harris Interactive.
Procter & Gamble•Admits to competitiveintelligence gathering•Contracted BI firm tookdocuments from Unilever trashcontainers•Out-of-court settlementrumored (and reported) at$10m• In April 2001, Procter & Gamblenotified its competitor Unilever that> 80 discarded documentsdetailing Unilever’s marketing planfor its hair care business had beencollected by P&G informationagents.• Unilever sought financial restitution&restrictions on P&G’s marketingactivities, but the two companiessettled out of court.
2/3/13EthicalRelativismDeontologyQ: How would you assess the P&G case using the two ethicalapproaches?Ethical Approaches
Click to edit theoutline text formatSecond OutlineLevel− Third OutlineLevelFourthOutline Level−FifthOutlineLevel2/3/13Ethical Codes of Conduct3 organizations offering codes specifically for researchers:1. Marketing Research Association (MRA)2. American Marketing Association (AMA)3. Council for American Survey Research Organizations (CASRO).
2/3/13PulsePoint:Research Revelation$944The amount, in millions,that employers will losethis year due to employeefraud.
2/3/13Ethical Issues at allStages of theResearch Process
2/3/13Ethical Treatment of Participants3 Guidelines for researchers:1. No Harms: Research must be designed so that a participant does notsuffer physical harm, discomfort, pain, embarrassment, or loss of privacy.2. Truth: When discussing benefits, the researcher should be careful not tooverstate or understate the benefits.3. Informed consent :participant has given full consent to participation afterreceiving full disclosure of the procedures of the proposed study.
Click to edit theoutline text formatSecond OutlineLevel− Third OutlineLevelFourthOutline Level−FifthOutlineLevel2/3/13Components of Informed Consent•Identify researchers•Describe survey topic•Describe target sample•Identify sponsor•Describe purpose of research•Promise anonymity andconfidentiality•Give “good-faith” estimate ofrequired time commitment•State participation is voluntary•State item-non response isacceptable•Ask for permissionExhibit 2-2 illustrates the informed consent procedures used by the IndianaCenter for Survey Research. The components highlighted in its procedures arelisted in the slide.
Click to edit theoutline text formatSecond OutlineLevel− Third OutlineClick to edit theoutline text formatSecond OutlineLevel− Third OutlineLevelFourthOutlineLevel−FifthEthical Responsibilities•Special guidelines•apply to children!•Informed consent meansparental approval.
2/3/13Debriefing• In situations where participants are intentionally or accidentally deceived,they should be debriefed once the research is complete.• Debriefing describes the goals of the research, as well as the truth andreasons for any deception.• Results are shared after the study is complete. Participants who requireany medical or psychological follow-up attention will receive it during thedebriefing process.
2/3/13Right to refuseRight to PrivacyPrior permission to interviewLimit time required
Click to edit theoutline text formatSecond OutlineLevel− Third OutlineLevelFourthOutline Level−FifthOutlineLevel2/3/13Key Terms•Code of ethics•Confidentiality•Debriefing•Deception•Ethics•Informed consent•Nondisclosure–Findings–Purpose–Sponsor•Right to privacy•Right to quality•Right to safety
Click to edit theoutline text formatSecond OutlineLevel− Third OutlineLevelFourthOutline Level−FifthOutlineLevel2/3/13Operational Definitions•Freshman•Sophomore•Junior•Senior•< 30 credit hours•30-50 credit hours•60-89 credit hours•> 90 credit hoursHow can we define the variable“class level of students”?
2/3/13Moderating Variables (MV)• The introduction of a four-day week (IV) will lead to higherproductivity (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 moreexperienced workers (MV).• The loss of mining jobs (IV) leads to acceptance of higher-riskbehaviors to earn a family-supporting income (DV) – particularlyamong those with a limited education (MV).
2/3/13Extraneous Variables (EV)• With new customers (EV-control), a switch to commission from asalary compensation system (IV) will lead to increased salesproductivity (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 dueto the proximity of the firing range (MV).
2/3/13Intervening Variables (IVV)• The switch to a commission compensation system (IV) will lead tohigher 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 amongsmaller savers (EV-control). The results come from enhancing themotivation to save (IVV).
2/3/13Propositions and Hypotheses• A proposition is a statement about observable phenomena thatmay be judged as true or false.• A hypothesis is a proposition formulated for empirical testing.
2/3/13Hypothesis Formats• A descriptive hypothesis is a statement about the existence, size,form, or distribution of a variable.
Click to edit theoutline text formatSecond OutlineLevel− Third OutlineLevelFourthOutlineLevel−FifthResearchers•Encounter problems•State problems•Propose hypotheses•Deduce outcomes•Formulate rivalhypotheses•Devise and conductempirical tests•Draw conclusions
Click to edit theoutline text formatSecond OutlineLevel− Third OutlineLevelFourthOutlineLevel−FifthCuriosity Is theAlly of a Researcher•Synovate’s campaignassociates importantdiscoveries in researchto a common trait ofentrepreneurs: curiosity.•As one of the world’slargest researchorganizations, it claimscuriosity is “what makesus tick.”
2/3/13Sound ReasoningExposition ArgumentInductionDeductionTypes of Discourse
2/3/13Deductive ReasoningInner-city householdinterviewing is especiallydifficult and expensiveThis survey involvessubstantial inner-cityhousehold interviewingThe interviewing in thissurvey will be especiallydifficult and expensive
2/3/13Inductive Reasoning• Why didn’t sales increase during ourpromotional event?– Regional retailers did not have sufficient stockto fill customer requests during thepromotional period– A strike by employees prevented stock fromarriving in time for promotion to be effective– A hurricane closed retail outlets in the regionfor 10 days during the promotion
2/3/13Learning ObjectivesUnderstand …• That research is decision- and dilemma-centered.• That the clarified research question is theresult of careful exploration and analysisand sets the direction for the research project.
2/3/13Learning Objectives• Understand . . .• How value assessments and budgetinginfluence the process for proposing research,and ultimately, research design.• What is included in research design, datacollection, and data analysis.• Research process problems to avoid.
2/3/13Curiosity Drives Research“Learning to ask empowering questions—especially in moments of crisis—is acritical skill that will ultimately shape themeanings you create.”Anthony RobbinsfounderRobbins Research International, Inc.
2/3/13PulsePoint:Research Revelations49 The percent of hiring managers whodiscovered a lie on a résumé .
Click to edit theoutline text formatSecond OutlineLevel− Third OutlineLevelFourthOutlineLevel−FifthPurpose of Research•Reducethe level ofrisk of abusinessdecision.
2/3/13Evaluating theValue of ResearchOption AnalysisDecision TheoryPrior or Interim EvaluationEx Post Facto Evaluation
Click to edit theoutline text formatSecond OutlineLevel− Third OutlineLevelFourthOutlineLevel−FifthClick to edit theoutline text formatSecond OutlineLevel− Third OutlineStage 1: Clarifying the ResearchQuestion•Management-research question hierarchy processbegins by identifying the management dilemma
Click to edit theoutline text formatSecond OutlineLevel− Third OutlineClick to edit theoutline text formatSecond OutlineLevel− Third OutlineLevelFourthOutlineLevel−FifthStage 2: Proposing Research•Budget Types•Rule-of-thumb•Departmental•Task