2. 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
3. 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
4. 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.
Levels of Certainty in Decision Making
5. 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.
6. 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.
7. 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.
8. 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.
9. 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.
10. 2. Types of Research
• Exploratory
• Descriptive
• Causal
12. 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
we don’t know why.” our product? Who buys our 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?”
Degree of Problem Definition
14. Exploratory Research
• Initial research conducted to clarify and
define the nature of a problem
• Does not provide conclusive evidence
• Subsequent research expected
15. 2.2. Descriptive Research
• Describes characteristics of a population or
phenomenon
• Some understanding of the nature of the
problem
16. 16
I keep six honest serving men, (they taught
me all I knew), their names are
--Rudyard Kipling
what, and why, and when, and how,
and where and who.”
18. 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
19. 3. Stages of the Research Process
Problem Discovery
and Definition
Research
Design
Sampling
Data
Gathering
Data Processing
and Analysis
Conclusions and
Report
Discovery and
Definition
and so on
20. Problem
discovery
Problem definition
(statement of
research objectives)
Secondary
(historical)
data
Experience
survey
Pilot
study
Case
study
Selection of
exploratory research
technique
Selection of
basic research
method
Experiment Survey
Observation
Secondary
Data Study
Laboratory Field Interview Questionnaire
Selection of
exploratory research
technique
Sampling
Probability Nonprobability
Collection of
data
(fieldwork)
Editing and
coding
data
Data
processing
Interpretation
of
findings
Report
Data
Gathering
Data
Processing
and
Analysis
Conclusions
and Report
Research Design
Problem Discovery
and Definition
21. The Business Research Process
Problem Discovery
Exploratory
Research
Selection of the
Basic Research
Method
Selection of
Sample Design
Collection of the
Data
22. The Research Process (cont.)
Editing and Coding
Data Processing
Interpretation of the
Findings
Report
23. “The formulation of the problem
is often more essential than its
solution”
Albert Einstein
