Exhibit 1-2 illustrates In the middle tier, some decisions are based on business research. In the bottom tier, most decisions are based on past experience or instinct. Decisions are also supported with secondary data searches.
In the middle tier, some decisions are based on business research.
Exhibit 1-2 illustrates the hierarchy of business decision makers. In the bottom tier, most decisions are based on past experience or instinct. Decisions are also supported with secondary data searches. In the middle tier, some decisions are based on business research. In the top tier, every decision is guided by business research. Firms develop proprietary methodologies and are innovative in their combination of methodologies. There is access to research data and findings throughout the organization.
1. research intro.
Hunger of knowledge paved a way for searching information in a systematic way to get answers to questions Purpose of information search may be for satisfying the thirst for knowledge or for solving problems or to test validity of existing knowledge
Research is an endeavor to discover answers to intellectual and practical problems through the application of scientific method. “Researchis a systematized effort to gain new knowledge”. -Redman and Mory. Research is the systematic process of collecting and analyzing information (data) in order to increase our understanding of the phenomenon about which we are concerned or interested.
When search for information is to solve business problems Business Research is a Systematic and objective process of gathering, recording and analyzing data for supporting business decisions
It extends to all the activities of a business organization It covers areas like sales, consumer behaviour, customer retention, customer satisfaction, marketing channel decisions, product research, customer relation, productivity, machine efficiency, return on investment, profitability, expansion etc
Business Intelligence: Itis designed to provide the manager with ongoing information about events and trends in the technological, economic, political & legal, demographic, cultural, social and competitive arenas
1-7 Government/ Competitive RegulatoryDemographic Economic Business Intelligence Technological Cultural/ Social
Strategy: The general approach an organization will follow to achieve its goals A firm may implement more than one strategy at a timeTactics: Specific and timed activities that execute a strategy
Classification on the basis of Application ◦ Pure/Basic Research ◦ Applied Research Classification on the basis of Objectives ◦ Descriptive Research ◦ Explanatory Research ◦ Exploratory Research ◦ Correlational Research Classification on the basis of Inquiry Mode ◦ Quantitative Research ◦ Qualitative Research
The purpose of research is to discover answers through the application of scientific procedures. The objectives are: To gain familiarity with a phenomenon or to achieve new insights into it To portray accurately the characteristics of a particular individual, situation or a group To determine the frequency with which something occurs or with which it is associated with something else To test a hypothesis of a causal relationship between variables
Research is directed towards the solution of a problem Research is based upon observable experience or empirical evidence Research demands accurate observation and description Research involves gathering new data from primary sources or using existing data for a new purpose
Research activities are characterized by carefully designed procedures Research requires expertise i.e., skill necessary to carryout investigation, search the related literature and to understand and analyze the data gathered Research is objective and logical – applying every possible test to validate the data collected and conclusions reached Research is carefully recorded and reported.
Clearly defined purpose Detailed research process Thoroughly planned design High ethical standards Limitations addressed Adequate analysis Unambiguous presentation Conclusions justified Credentials
Help in decision-making and is not a substitute of Decision-Making Provide a number of facts rather than actionable results All problems cannot be researched Provide a set-of guidelines Many a times rely more on intuition and judgment Time and budgetary constraints
Manager requires information to make day to day business decisions Features of Information gathered: ◦ Relevant ◦ Up-to-date ◦ Accurate ◦ Meet needs of the user ◦ Easy to use and understand ◦ Economic ◦ Reliable
Induction andConcepts Constructs deduction OperationalModels definitions Terms used in research Theory Variables Propositions/ Hypotheses
Concepts: Collection of meanings or characteristics which are associated with events, objects, behaviours, situations, condition etc. Ex: Running, Walking, Talking, Identifying a male or female or a horse
Construct: An abstract concept It can be built up by combining the simpler and concrete concepts Ex: motivation, personality, satisfaction
Deduction: Premises are given and from that we draw conclusion It works from the more general to more specific Also called top-down approach Ex: 1) all men are mortal (premise 1) 2) Shyam is a man (premise 2)So we can conclude that, Shyam is mortal False premises will lead to false conclusions
Induction: Specific to general Conclusion is drawn from facts or pieces of evidencesEx: this ice cube is cold.Through experiences, we know that all icecubes are cold The conclusion explains the facts and the facts support the conclusion The nature of Induction is that, the conclusion is only a hypothesis
A variable is a symbol of an event, act, characteristic, trait or attribute that can be measured and to which we assign categorical values Variables can be of three types : ◦ Dichotomous variable ◦ Continuous variable ◦ Discrete variable
Dependent Variable What we measure in the experiment and what is affected during the experimentIndependent Variable A factor that can be varied or manipulated in an experiment and it will affect the dependent variableEx: Sales(DV) and Advertising Expenses(IV)
Moderating Variable It affects the relationship between IV and DVEx: commission from sales (IV) may lead to increased sales productivity(DV), especially into younger workers(MV)Ex: loss of minning jobs (IV) leads to acceptance of higher risk jobs like car racing (DV) to earn a family supporting income, especially due to the limited education of the residents (MV)
Exraneous Variable Any variable other than independent variable that could cause a change in the dependent variableEx: Prior work experience (IV) and Grades in classroom performance (DV) Here, grades can be affected by some other variables like family history of a student, education of parents, interest in the class topic, intelligence of a student etc.
Intervening Variable The factor which theoretically affects the observed phenomenon but cannot be seen, measured or manipulated Motivation, job satisfaction Ex: A promotional campaign (IV) will increase savings activity (DV), this result comes from enhancing the motivation to save
Proposition is a statement about observable phenomena (concept) that may be judged as true of false
Hypothesis: Proposition or question formulated for empirical testing ◦ The effect of the independent variable on the dependent variable An unproven proposition A possible solution to a problem
Types of Hypotheses: ◦ Descriptive Hypothesis ◦ Relational Hypothesis Correlational Hypothesis Causal or Explanatory Hypothesis
The Role of the Hypothesis It guides the direction of the study It defines facts that are relevant and those that are not It suggests which form of research design is likely to be most appropriate It provides framework for organizing the conclusion that result
AdequateAStrong TestableHypothesisIs Better than rivals
Theory: It is a set of systematically interrelated concepts, definitions and propositions that are used to explain and predict phenomena(facts) Hypothesis helps in development of theoryModels: A representation of a system that is constructed to study some aspect of that system or the system as a whole Models can be descriptive, predictive or normative