This document provides an overview of business research methods. It discusses the role and scope of business research, including how it aids decision making. It defines basic and applied research and gives examples. The document also outlines the research process, including defining problems, designing the research, sampling, data collection, analysis, and reporting. Additionally, it covers developing and verifying theories, and distinguishes between research projects and programs.

1. Business Research
Methods

2. Course Title:
Business Research Methods
Text Book:
 Business Research Methods by William G. Zikmund 7.
edition

3. Ch. 1
THE ROLE OF BUSINESS
RESEARCH

4. SCOPE OF BUSINESS RESEARCH
• Effective decision making.
• Unavailability of portable solutions
• Frequently changing business environment.
• To explore new markets and opportunities
• To identify problem area.

5. Business Research Defined
Business research is defined as the
systematic and objective process of
gathering, recording and analyzing data
for aid in making business decisions.

6. Types of Business
Research

7. Basic research is “experimental and theoretical work undertaken
to acquire new knowledge without looking for long-term
benefits other than the advancement of knowledge.”
 It Attempts to expand the limits of knowledge.
 It is not directly involved in the solution to a pragmatic or real
life problem.
 Basic research is conducted to test theory or to discover more
about a concept.
 It focuses on generating fundamental knowledge
BASIC RESEARCH

8. Basic Research Example
 Is executive success correlated with high need for
achievement?

9. Applied Research
Applied research is research undertaken to solve
practical problems rather than to acquire knowledge for
knowledge sake.
 It is conducted when a decision must be made about a
specific real-life problem.
 Focuses on real-world questions and applications

10. Applied Research Examples
 Should McDonalds add Italian pasta dinners to its menu?
 Business research told McDonald’s it should not?

11. Managerial Value of Business Research
• Product-Oriented firms: Prioritizes decision
making that emphasizes the physical product
design trendiness or technical superiority.
Research focuses on technicians and experts in
the field.
• Production-Oriented firms: Prioritizes efficiency
and effectiveness of the production processes in
making decisions.
Research focuses on line employees, engineers
and other efficiency experts.

12. Managerial Value of Business Research
• Marketing-Oriented firms: Focuses on how the
firm provides value to customers.
Research focuses on customers

13. Managerial Value of Business Research
• Decision making process:
1) Indentifying problems or opportunities:
2) Diagnosing and Assessing problems or
opportunities.
3) Selecting and implementing a course of
action
4) Evaluating the course of action.

14. NEED OF BUSINESS RESEARCH
• Time constraints: If the decision does not need to be taken
immediately then research is needed otherwise not.
• Availability of data: If the required data to conduct the
research is available then research should be conducted
otherwise it is not possible to undertake a research.
• The nature of decision to be made: Deciding about the
need of research also depends upon the nature of the
decision to be made. If the decision is not a routine
decision and needs high investment then research should
be undertaken otherwise not.
• Benefits versus Costs: Deciding about the research also
depends upon the benefits and costs associated with the
underlying project. In order to conduct a research for a
project, the project’s benefit must be higher than its cost.

15. MAJOR TOPICS FOR RESEARCH IN
BUSINESS
• General Business Conditions and Corporate
Research
• Financial and Accounting Research
• Management and Organizational Behavior
Research
• Sales and Marketing Research
• Information Systems Research
• Corporate Responsibility Research

16. CH. 2
THEORY BUILDING

17. THEORY
Goals of theory:
1) Understanding:
2) Predicting
The meaning of Theory:
A coherent set of general propositions used to
explain the apparent relationships among
certain observed phenomena. Theories allow
generalizations beyond individuals facts or
situations.

18. CONCEPT
• A concept (or construct) is a generalized idea
about a class of objects, attributes, occurrences,
or processes that has been given a name.
• Concepts are the building block of a theory
• Concepts abstract reality. That is, concepts are
expressed in words, letters, signs, and symbols
that refer to various events or objects. For
example assets, liabilities, customer equity, raw
material etc.

19. CONCEPT
• Ladder of abstraction
Assets
Plant Machinery
Punch Press
Reality

20. CONCEPT
• Concepts are abstractions of reality
Observations of objects and events (reality)
ConceptsAbstract Level
Empirical level

21. Nature of PROPOSITIONS
• Concepts are the basic units of theory
development. However, theories require an
understanding of the relationship among concepts.
Thus, once reality is abstracted into concepts, the
scientist is interested in the relationship among
various concepts. Propositions are statements
concerned with the logical relationships among
concepts. A proposition explains the logical
linkage among certain concepts by asserting a
universal connection between concepts.

22. The Scientific Method
• Definition: The Scientific Method is a set of prescribed procedures
for establishing and connecting theoretical statements about events
for analyzing empirical evidence and for predicting events yet
unknown.
• Following are the steps involved in the application of the scientific
method
1. Assessment of relevant existing knowledge of a phenomenon
2. Formulation of concepts and propositions
3. Statement of Hypothesis
4. Design of research to test the hypothesis
5. Acquisition of meaningful empirical data
6. Analysis and evaluation of data
7. Proposal of an explanation of the phenomenon and statement of
new problems raised by the research.

23. Theory building is a process of
increasing abstractionIncreasinglymoreabstract
Theories
Propositions
Concepts
Observation of objects and events
(reality)

24. An example of a theory
Labor market conditions,
number of organizations,
personal
characteristics,and other
partial dterminantas of
ease of movement
Perceived ease of
movement (e.g.
expectation of finding
alternatives, unsolicited
opportunities)
Perceived
desirability of
movement (e.g
job satisfaction)
Equity of pay, job
complexity, participation
in decision making and
other partial
determinants of
desirability of movement
Job
performances
Intention to
quit
Voluntary
job
turnover

25. Generation of Theory
• Deductive reasoning: The logical process of deriving a
conclusion about a specific instance based on a known
general premise or something known to be true.
For example: we know that all professors are human
beings. If we also know that Mr. Ahmad is a professor,
then we can deduce that Ahmad is a human being.
• Inductive reasoning: The logical process of establishing
a general proposition on the basis of observation of
particular facts.
For example: All professors that have ever been seen
are human beings; therefore all professors are human
beings.

26. Verifying theory
• In order to make predictions on the basis of
theory, the theory must be tested and verified
first. Once the theory is verified, we can utilize
it to make predictions.

27. Ch. 3
THE RESEARCH PROCESS

28. • Decision making: The process of resolving a
problem or choosing among alternative
opportunities.
• Every decision-making situation can be
classified based on whether it best represents
a problem or an opportunity and where the
situation falls on continuum from absolute
ambiguity to complete certainty.

29. • Certainty: Complete certainty means that the
decision-maker has all information needed to
make an optimal decision.
• Uncertainty: Uncertainty means that the
manager grasps the general nature of desired
objectives but the information about alternatives
is incomplete.
• Ambiguity: Ambiguity means that the nature of
the problem itself is unclear. Objectives are vague
and decision alternatives are difficult to define.

30. TYPES OF BUSINESS RESEARCH
• Exploratory research: It is conducted to clarify ambiguous situations
or discover ideas that may be potential business opportunities.
Exploratory research is usually conducted when the researcher does not
know much about the problem and needs additional information or
desires new or more recent information.
It is the Initial research conducted to clarify and define the nature of a
problem.
it Does not provide conclusive evidence.
Subsequent research expected.
• Descriptive Research: It describes characteristics of objects, people,
groups, organizations or environments tries to “paint a picture” about
a given situation.

31. TYPES OF BUSINESS RESEARCH
Descriptive research is undertaken to provide
answers to questions of who, what, where,
when, and how.
Describes characteristics of a population or
phenomenon
Some understanding of the nature of the problem

32. TYPES OF BUSINESS RESEARCH
• Causal Research: It allows causal inferences to be made, seeks to
identify cause-and-effect relationships.
• Causal inference: A conclusion that when one thing happens,
another specific thing will follow.
A causal inference can only be supported when very specific
evidence exists. Three critical pieces of causal evidence are:
1) Temporal Sequence: It deals with the time order of events, i.e.
the cause must occur before the effect.
2) Concomitant Variance: It occurs when two events “covary” or
correlate meaning they vary systematically.
3) Nonspurious Association: It means that A cause and an effect is
true and not simply due to some other variable. For example if
murder rates increase with increase in ice cream rates, we cannot
say that there is a causality between the two variables. They may
be under effect of a third variable like weather.

33. Degrees of Causality
• Absolute causality: Means the cause is
necessary and sufficient to bring about the
effect.
• Conditional causality: Means that a cause is
necessary but not sufficient to bring about an
effect.
• Contributory causality: Means the cause need
be neither necessary nor sufficient to bring
about an effect.

34. STAGES IN THE RESEARCH PROCESS
1. Defining the problem
2. Planning a research design
3. Planning a sample
4. Collecting the data
5. Processing and Analyzing the data
6. Formulating the conclusions and preparing
the report

35. 1. Defining the research objectives
• Research objectives: The goals to be achieved by conducting
research.
In order to state and define research objectives, the researcher
should understand the managerial decision to be made which is
called the Problem Statement.
• Defining managerial decision situation:
“A problem well defined is a problem half solved”
• Exploratory research is used to help identify and clarify the
decisions that need to be made.
• Previous research: For the sake of exploratory research, previous
research on the same topic is studied in order to get some help. In
research terminology, it is called
Literature review: A directed search of published works, including
periodicals and books, that discuss theory and presents empirical
results that are relevant to the topic in hand.

36. • Pilot studies: A small-scale research project that collect data from
respondents similar to those to be used in the full study.
Focus group: A small group discussion about some research topic
led by a moderator who guides discussion among the participants.
Group discussion consist of 6-12 people in a loosely structured
format.
• Stating research objectives: After identifying and clarifying the
problem with or without exploratory research, the researcher must
formally state the research objectives.
• Linking decision statements, objectives and hypothesis: Once
decision statements are understood, these are converted into
research objectives. The research objectives are then transformed
to research hypothesis which will then be tested through different
analytical tools.

37. 2. Planning the research design
• Research design: A master plan that specifies the methods
and procedures for collecting and analyzing the needed
information.
• Selection of the basic research method: There are four
basic design techniques for descriptive and causal research:
surveys, experiments, secondary data, and observations.
The objectives of the study, the available data source, the
urgency of the decision and the cost of obtaining the data
will determine which method should be chosen.
• Survey: A research technique in which a sample is
interviewed in some form or the behavior of respondents is
observed and described in some way.

38. 3. Planning a sample
• Sampling: Involves any procedure that draws
conclusions based on measurements of a
portion of the population.
Who is to be sampled? How big should the
sample be? How to select the sample units?
Simple random sampling may be the best
known type, in which every unit in the
population has an equal and known chance of
being selected.

39. 4. Gathering data
• Data gathering is the process of gathering or
collecting information. Data may be gathered
by human observers or interviewers, or they
may be recorded by machines as in the case of
scanner data and web-based surveys.

40. 5. Processing and analyzing data
• Data analysis: The application of reasoning to
understand the data that have been gathered.

41. 6. Drawing conclusions and
preparing a report
• Communicate the research results.
• The conclusions and report preparation stage
consists of interpreting the research results,
describing the implications, and drawing the
appropriate conclusions for managerial
decisions.

42. Research Project vs Research Program
• Research project: A single study that
addresses one or a small number of research
objectives.
• Research program: Numerous related studies
that come together to address multiple,
related research objectives.