1. The Research ProcessThe Research ProcessThe Research ProcessThe Research Process
ABDM4064 BUSINESS RESEARCHABDM4064 BUSINESS RESEARCH
by
Stephen Ong
Principal Lecturer (Specialist)
Visiting Professor, Shenzhen
2. 4–2
LEARNING OUTCOMESLEARNING OUTCOMESLEARNING OUTCOMESLEARNING OUTCOMES
1. Classify business research as either exploratory
research, descriptive research, or causal research
2. List the major phases of the research process and
the steps within each
3. Explain why proper “problem definition” is
essential to useful business research
4. Know how to recognize problems
5. Translate managerial decision statements into
relevant research objectives
6. Translate research objectives into research
questions and/or research hypotheses
After studying this chapter, you should
3. 4–3
Types of Business ResearchTypes of Business Research
Business research can be classified on the basis of
technique (e.g. experiments, surveys, or observation
studies) or purpose.
Classifying research on the basis of its purpose, it
can be broken into three categories:
(1) exploratory,
(2) descriptive, and
(3) causal.
4. 4–4
Exploratory ResearchExploratory Research
It is conducted to clarify ambiguous situations or
discover ideas that may be potential business
opportunities.
It is not intended to provide conclusive evidence
from which to determine a particular course of
action.
It is not an end unto itself – usually it is conducted
with the expectation that more research will be
needed to provide more conclusive evidence.
It is particularly useful in new product development.
5. 4–5
Descriptive ResearchDescriptive Research
It describes characteristics of objects, people,
groups, organizations or environments.
It addresses who, what, when, where, and how
questions.
It often helps describe market segments.
It is conducted with a considerable understanding of
the situation being studied.
Diagnostic analysis
Seeks to diagnose reasons for market
outcomes and focuses specifically on the
beliefs and feelings consumers have about
and toward competing products.
6. 4–6
Descriptive Research (cont’d)Descriptive Research (cont’d)
Examples
The average Weight Watchers’ customer
Is a female about 40 years old
Has a household income of about $50,000
Has at least some college education
Is trying to juggle children and a job
Characteristics of leaders
Empathetic
Resourceful
Ability to delegate
7. 4–7
Causal ResearchCausal Research
It allows causal inferences to be made.
It seeks to identify cause-and-effect relationships.
When something causes an effect, it means it brings
it about or makes it happen; the effect is the
outcome.
It usually follows exploratory and descriptive
research and, therefore, the researchers are quite
knowledgeable about the subject.
8. Causal Research (cont’d)Causal Research (cont’d) Causal research attempts to establish that when we
do one thing, another thing will follow – a causal
inference is just such a conclusion.
A causal inference can only be supported when
very specific causal evidence exists, and the three
critical pieces of causal evidence are:
Temporal Sequence – deals with the time
order of events; having an appropriate
causal order of events means the cause
must occur before the effect.
i.e. the cause must occur before the effect.
E.g. chef changed, sales dropped after that
change.
4–8
9. Concomitant Variation – occurs when two
events “covary,” meaning they vary
systematically and a when a change in the
cause occurs, a change in the outcome also
is observed.
Changes in income level will lead to changes in the
spending.
Nonspurious Association – any covariation
between a cause and an effect is true and not
simply due to some other variable.
E.g. introduction of compulsory attendance in
lecture leads to improved attendance in lecture.
4–9
11. 4–11
Causal Research - Degrees ofCausal Research - Degrees of
CausalityCausality Absolute Causality
The cause is necessary and sufficient to
bring about the effect.
E.g. rain - wet floor
Conditional Causality
A cause is necessary but not sufficient to
bring about an effect.
Rain – wet floor – broken leg
Contributory Causality
A cause need be neither necessary nor
sufficient to bring about an effect.
Weakest form of causality.
Rain – wet floor – quarrel between couples
12. 4–12
Causal Research - ExperimentsCausal Research - Experiments
Experiment
A carefully controlled study in which the researcher
manipulates a proposed cause and observes any
corresponding change in the proposed effect.
Experimental variable
Represents the proposed cause and is controlled
by the researcher by manipulating it.
Manipulation
The researcher alters the level of the variable in
specific increments.
Test-market
An experiment that is conducted within actual
market conditions.
15. 15
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 our
we don’t know why.” our product? products in a new package?
Who buys our 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?”
possiblesituation
Degree of ProblemDegree of Problem
DefinitionDefinition
16. 4–16
EXHIBIT 4.EXHIBIT 4.44 Characteristics of Different Types of Business ResearchCharacteristics of Different Types of Business Research
Uncertainty Influences the Type of Research Conducted
17. 4–17
Stages in the ResearchStages in the Research
ProcessProcess
Process stages:
1. Defining the research objectives
2. Planning a research design
3. Planning a sample
4. Collecting the data
5. Analyzing the data
6. Formulating the conclusions and preparing
the report
Forward linkage—earlier stages influence later stages.
Backward linkage—later stages influence earlier stages.
19. EXHIBIT 4.EXHIBIT 4.66
FlowchartFlowchart
of theof the
BusinessBusiness
ResearchResearch
ProcessProcess
Note: Diamond-shaped boxes indicate stages in the research process in which a choice of one or more techniques
must be made. The dotted line indicates an alternative path that skips exploratory research.
20. 4–20
Stages in the Research ProcessStages in the Research Process
1. Defining the Research Objectives1. Defining the Research Objectives
It is the beginning of the research process.
Research objectives are the goals to be achieved by
conducting research.
In consulting, the term deliverables is often used to
describe the objectives to a research client.
In applied business research, the objectives cannot be
listed until there is an understanding of the decision
situation, which must be shared between the actual
decision maker and the lead researcher.
This understanding is often described as a problem
statement.
A research proposal is a document in which the problem is
stated.
This is a process of discovery rather than confirmation.
21. Stages in the Research ProcessStages in the Research Process
1. Defining the Research Objectives1. Defining the Research Objectives
Defining the research problem
An orderly definition of the research problem lends a
sense of direction to the investigation.
Properly defining a problem can be more difficult than
solving it.
Defining the decision situation must precede the
research objectives.
Best place to begin a research project is at the end;
that is, knowing what is to be accomplished determines
the research process.
4–21
22. Stages in the Research ProcessStages in the Research Process
1. Defining the Research Objectives1. Defining the Research Objectives
Exploratory Research
Exploratory Research can be used to help identify the
decisions that need to be made.
Once done, the researcher should know exactly which
data to collect during formal phases of the project and
how to conduct the project.
Researchers can employ techniques from four basic
categories to obtain insights and gain a clearer idea of
the problem:
previous research,
pilot studies,
case studies, and
experience surveys
4–22
23. 4–23
Exploratory ResearchExploratory Research
TechniquesTechniques
Previous Research
Literature review
A directed search of published works, including
periodicals and books, that discusses theory and
presents empirical results that are relevant to the
topic at hand.
Pilot Studies
A small-scale research project that collects data from respondents
similar to those to be used in the full study.
Pretest
A small-scale study in which the results are only
preliminary and intended only to assist in design of a
subsequent study.
Focus Group
A small group discussion about some research topic led
by a moderator who guides discussion among the
participants.
24. Stages in the Research ProcessStages in the Research Process
1. Defining the Research Objectives1. Defining the Research Objectives
Stating Research Objectives
After identifying and clarifying the problem, the
researcher must formally state the research
objectives.
This statement delineates the type of research
that is needed and what intelligence may result
that would allow the decision maker to make
informed choices.
Represents a contract of sorts that commits the
researcher to producing the needed research.
Note: You can refer to Topic 1 for the example
4–24
25. ExampleExample
Research idea Research
Questions
Research
Objectives
Using team
briefing in
orientation
program
1. Why have
organisations
introduced team
briefing?
1. To identify
organisations’
objectives for
team briefing.
2. Has team briefing
been effective?
2. To describe the
extent to which
the effectiveness
criteria for team
briefing being met.
1–25
26. Stages in the Research ProcessStages in the Research Process
1. Defining the Research Objectives1. Defining the Research Objectives
Linking Decision Statements, Objectives, and
Hypotheses
Hypotheses should be logically derived
from and linked to the research objectives.
27. 4–27
EXHIBIT 4.EXHIBIT 4.77 Example Decision Statements, Research Objectives, andExample Decision Statements, Research Objectives, and
Research HypothesesResearch Hypotheses
28. 4–28
Stages in the Research ProcessStages in the Research Process
2. Planning the Research2. Planning the Research DesignDesign
Research Design
A master plan that specifies the methods
and procedures for collecting and
analyzing the needed information.
Basic design techniques for descriptive
and causal research:
Surveys
Experiments
Secondary data
Observation
29. Stages in the Research ProcessStages in the Research Process
2. Planning the Research Design2. Planning the Research Design
Determination of which method should be chosen
depends on:
objectives of the study
available data sources
urgency of the decision
cost of obtaining data
Most common method is the survey.
4–29
30. 4–30
Selection of the BasicSelection of the Basic
Research MethodResearch Method
Survey
A research technique in which a sample is
interviewed in some form or the behavior
of respondents is observed and described.
Telephone
Mail
Internet
In person
31. Selection of the Basic ResearchSelection of the Basic Research
MethodMethod Observations
It can be mechanically recorded or observed by
humans.
One advantage of the observation technique is that
it records behaviour without relying on reports from
respondents.
Several things of interest (i.e., attitudes, opinions,
motivations) cannot be observed.
The “Best” Research Design
There is no single best research design.
Several alternatives can accomplish the stated
research objectives.
Ability to select the most appropriate design
develops with experience.
4–31
32. 4–32
Stages in the Research ProcessStages in the Research Process
3.3. Planning a sample
Sampling
Involves any procedure that draws
conclusions based on measurements of a
portion of the population.
Sampling decisions
Who to sample?—target population
What size should the sample be?
How to select the sampling units?
Random sample
Cluster-sample
33. Stages in the Research ProcessStages in the Research Process
5. Gathering Data5. Gathering Data
This is the process of gathering or collecting
information.
It may be gathered by human observers or
interviewers or may be recorded by machines (e.g.,
scanner data).
An unobtrusive method is one in which the subjects
do not have to be disturbed for data to be collected.
However the data are collected, it is important to
minimize errors in the process.
4–33
34. 4–34
Stages in the Research ProcessStages in the Research Process
5. Processing and Analyzing5. Processing and Analyzing
DataData Editing
Involves checking the data collection forms
for omissions, legibility, and consistency in
classification.
Codes
Rules for interpreting, categorizing,
recording, and transferring the data to the
data storage media.
Data analysis
The application of reasoning to understand
the data that have been gathered.
35. 4–35
Stages in the Research ProcessStages in the Research Process
6. Drawing Conclusions and6. Drawing Conclusions and
Preparing a ReportPreparing a Report Steps in communicating the research findings:
Interpreting the research results
Describing the implications
Drawing the appropriate conclusions for managerial
decisions
Reporting requirements
Conclusions fulfill the deliverables promised in the
research proposal
Consider the varying abilities of people to understand the
research results
A clearly-written, understandable summary of the research
findings
36. 6–36
Good Decisions Start with aGood Decisions Start with a
Good Problem DefinitionGood Problem Definition
Importance of Starting with a Good Problem Definition
The chances that a research project will
prove useful are directly related to how well
the research objectives correspond to the
true business problem.
When the client fails to understand their
situation, or when they insist on studying an
irrelevant problem, the research is very likely
to fail even if it is done properly.
Translating a business situation into
something that can be researched begins by
coming to a consensus on a decision
statement or question.
37. 6–37
Good Decisions Start with aGood Decisions Start with a
Good Problem DefinitionGood Problem Definition
Decision Statement
A written expression of the key question(s)
that the research user wishes to answer.
Problem Definition
The process of defining and developing a
decision statement and the steps involved in
translating it into more precise research
terminology, including a set of research
objectives.
38. Problem ComplexityProblem Complexity
Problem definition - this stage of the research process can
be the most complex.
Factors influencing problem complexity include:
Situation Frequency – cyclical, routine
problems are easier to define.
Dramatic changes – when sudden change in
the business situation takes place, it can be
easier to define the problem.
How Widespread are the Symptoms? – the
more scattered any symptoms are, the more
difficult it is to put them together into some
coherent problem statement.
Symptom Ambiguity – the greater the
ambiguity of the symptoms, the more difficult it
is to define the problem.
4–38
40. 6–40
The Problem-Definition ProcessThe Problem-Definition Process
Problems Mean Gaps
A problem occurs when there is a difference
between the current conditions and a more
preferable set of conditions (i.e., a gap exists
between the way things are now and the way that
things could be better).
A gap can come about in a number of ways:
1. Business performance is worse than expected (e.g.,
sales, profits, margins are below targets set by
management).
2. Actual business performance is less than possible
business performance (note that realization of this gap
first requires that management have some idea of what is
possible).
3. Expected business performance is greater than
possible business performance.
42. 6–42
The Problem-Definition ProcessThe Problem-Definition Process
Step 1: Understand the BusinessStep 1: Understand the Business
DecisionDecision
Situation Analysis
A situation analysis involves the gathering
of background information to familiarize
researchers and managers with the
decision-making environment.
It often requires exploratory research.
The situation analysis begins with an
interview between the researcher and
management.
43. 6–43
The Problem-Definition ProcessThe Problem-Definition Process
Step 1: Understand the Business DecisionStep 1: Understand the Business Decision
(cont’d)(cont’d) Interview Process
Researcher should be granted access to all
individuals who have specific knowledge or insight
of the situation.
It is important that the researcher not blindly accept
a convenient problem definition for expediency’s
sake.
Helpful hints that can be useful in the interview
process include:
1. Develop many alternative problem statements.
2. Think about potential solutions to the problem.
3. Make lists – use free association and interrogative techniques
(i.e., asking multiple what, where, who, when, why, and how
questions).
4.Be open-minded.
44. 6–44
Identifying Symptoms
Probing is an interview technique that tries to
draw deeper and more elaborate explanations
from the discussion with key decision
makers.
One of the most important questions to ask –
“What has changed?” (i.e., customers,
competitors, internal conditions of the
company and in the external environment).
Then, the researcher should probe to identify
potential causes of the change.
The Problem-Definition ProcessThe Problem-Definition Process
Step 1: Understand the Business DecisionStep 1: Understand the Business Decision
(cont’d)(cont’d)
46. The Problem-Definition ProcessThe Problem-Definition Process
Step 2: Identify the relevantStep 2: Identify the relevant
issues from the symptomsissues from the symptoms
The symptoms identified should be
translated into a problem and then a
decision statement.
Exhibit 6.4 illustrates how symptoms
can be translated into a problem and
then a decision statement.
4–46
48. 6–48
The Problem-Definition ProcessThe Problem-Definition Process
Step 3: Writing Managerial DecisionStep 3: Writing Managerial Decision
Statements into CorrespondingStatements into Corresponding
Research ObjectivesResearch Objectives
Decision statements must be
translated into 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.
50. 6–50
The Problem-Definition ProcessThe Problem-Definition Process
Step 4: Determine the Unit of AnalysisStep 4: Determine the Unit of Analysis
Unit of Analysis
Unit of analysis indicates what or who should
provide the data and at what level of aggregation.
Individuals (such as customers, employees, and owners)
Households (families, extended families, and so forth)
Organizations (businesses and business units)
Departments (sales, finance, and so forth)
Geographical areas
Objects (products, advertisements, and so forth).
Multi-level analysis studies variables measured at
more than one unit of analysis.
51. The Problem-Definition ProcessThe Problem-Definition Process
Step 5: Determine the RelevantStep 5: Determine the Relevant
VariableVariable
What is a Variable?
A variable is anything that varies or changes
from one instance to another.
It can exhibit differences in value, usually in
magnitude or strength, or in direction.
Converse of a variable is a constant (i.e.,
something that does not change).
What is a Constant?
Something that does not change; is not useful
in addressing research questions.
52. Types of VariablesTypes of Variables
Continuous variable
Can take on a range of
quantitative values.
E.g. Sales, profit,
satisfaction
Categorical variable
Indicates membership
in some group.
Also called
classificatory variable.
E.g. gender, customer
versus non-customers
Dependent variable, Y
A process outcome or
a variable that is
predicted and/or
explained by other
variables.
Independent variable,
X
A variable that is
expected to influence
the dependent variable
in some way.
53. 6–53
EXHIBIT 6.EXHIBIT 6.66 Example Business Decision Situations, Corresponding Research Hypotheses, and VariableExample Business Decision Situations, Corresponding Research Hypotheses, and Variable
DescriptionsDescriptions
55. ExampleExample
Hypothesis: There is a positive relationship
between treatment of employees and
employee loyalty
Dependent variable
Employee Loyalty
Independent variable
Treatment of employee
4–55
56. The Problem-Definition ProcessThe Problem-Definition Process
Step 6: Writing ResearchStep 6: Writing Research
Objectives and QuestionsObjectives and Questions
Research Questions
Express the research objectives in terms
of questions that can be addressed by
research.
Help to develop well-formulated, specific
hypotheses that can be empirically tested.
Help the researcher design a study that
will produce useful results.
57. 6–57
Clarity in ResearchClarity in Research
Questions and HypothesesQuestions and Hypotheses
A research question is the researcher’s translation of the
problem into a specific inquiry.
Asking specific research questions helps the researcher
design a study that will produce useful results.
A formal hypothesis has considerable practical value in
planning and designing research because it forces
researchers to be clear about what they expect to find
through the study, and it raises crucial questions about
data required.
In cases of a “go/no go” decision, the research involves
a managerial action standard that specifies a specific
performance criterion upon which a decision can be
based.
Objectives should be limited to a manageable number.
58. 6–58
EXHIBIT 6.EXHIBIT 6.77 Influence of Decision Statement of Marketing Problem on ResearchInfluence of Decision Statement of Marketing Problem on Research
Objectives and Research DesignsObjectives and Research Designs
59. 6–59
How Much Time Should BeHow Much Time Should Be
Spent on Problem Definition?Spent on Problem Definition?
Budget constraints usually influence how much
effort is spent on problem definition.
The more important the decision faced by
management, the more resources should be
allocated toward problem definition.
The time taken to identify the correct problem is
usually time well spent.
60. 1 - 60
Further ReadingFurther Reading
ZIKMUND, W.G., BABIN, B.J., CARR, J.C.
AND GRIFFIN, M. (2010) BUSINESS
RESEARCH METHODS, 8TH
EDN, SOUTH-
WESTERN
SAUNDERS, M., LEWIS, P. AND
THORNHILL, A. (2012) RESEARCH
METHODS FOR BUSINESS STUDENTS, 6TH
EDN, PRENTICE HALL.
SAUNDERS, M. AND LEWIS, P. (2012)
DOING RESEARCH IN BUSINESS &
MANAGEMENT, FT PRENTICE HALL.
61. Greenstar : Social FranchiseGreenstar : Social Franchise
in Healthcare (Pakistan)in Healthcare (Pakistan)
Less than 100 Employees
Served 3.0 million patients, with high
quality affordable services to more
poor patients than government clinics
8,000 in Facilities Network
24,000 health professionals trained
in reproductive and family health
issues;
1.3 million people contacted
regarding reproductive health
awareness;
19 family health care products
through 80,000 retail outlets
2nd
largest provider of family planning
services, over 26% of all
contraceptives
62. Vitaloc : Social Enterprise FranchiseVitaloc : Social Enterprise Franchise
http://www.youtube.com/watch?feature=player_embedded&v=GpfLAzk_DOo#!http://www.youtube.com/watch?feature=player_embedded&v=GpfLAzk_DOo#!
Live Music Station to provide
services for pain relief and
healthy lifestyle
Employment of at least 1/3
of staff from disadvantaged
groups, such as middle-aged
unemployed, single mom
To provide small business
for early retirees and laid-off
workers to rebuild their
confidence
64. 1. Product/Service :1. Product/Service :
1.1. Positive reputationPositive reputation
2.2. Customer needCustomer need
3.3. Growing marketGrowing market
4.4. SafeSafe
5.5. Patented/guaranteedPatented/guaranteed
6.6. Self-interestSelf-interest
7.7. Identified with known personalityIdentified with known personality
8.8. Future needFuture need
9.9. Strongly desirableStrongly desirable
65. 2. Process/ Business Format :2. Process/ Business Format :
MarketingMarketing
PromotionPromotion
BrandBrand
recognitionrecognition
ManagementManagement
TrainingTraining
AccountingAccounting
Site selectionSite selection
HeadquartersHeadquarters
controlcontrol
Service/repairsService/repairs
Financial supportFinancial support
Number ofNumber of
franchiseesfranchisees
AdvertisingAdvertising
66. 3. Profitability3. Profitability
ProfitsProfits
RevenuesRevenues
Cost of goods soldCost of goods sold
Labour costsLabour costs
ExpensesExpenses
Return on investmentReturn on investment
Earnings claimEarnings claim
Forecasted revenuesForecasted revenues
Start-up costsStart-up costs
Franchising feeFranchising fee
Royalty fee (%)Royalty fee (%)
Advertising feeAdvertising fee
Other feesOther fees
Termination costsTermination costs
Selling of franchiseSelling of franchise
rightsrights
Renewal rights &Renewal rights &
costscosts
67. 4. People4. People
Franchisor ChairmanFranchisor Chairman
Franchisor PresidentFranchisor President
FranchisorFranchisor
operations executiveoperations executive
Franchisor salesFranchisor sales
executiveexecutive
Other principals orOther principals or
directorsdirectors
Service departmentsService departments
Advertising &Advertising &
promotionspromotions
Finance &Finance &
accountingaccounting
Sales & marketingSales & marketing
Site selectionSite selection
Personnel & trainingPersonnel & training
Manufacturing &Manufacturing &
operationsoperations
Field supportField support
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