This document discusses the process of formulating a research problem from an initial management decision problem. It explains that through discussions with experts, reviewing literature, and qualitative surveys, the management problem can be translated into clear research objectives and variables. Key steps include determining the appropriate unit of analysis, variables to study, statement of objectives, and formulation of hypotheses. The end goal is a well-defined research proposal that identifies the question or gap to be examined.

1. CHAPTER-6
FORMULATION OF RESEARCH
PROBLEM
TEXT BOOK: ZIKMUND, W.G., BABIN,B.J.,
CARR,J.C., GRIFFIN,M., (2021) ,BUSINESS
RESEARCH METHODS, 9TH EDITION,
CENGAGE LEARNING

2. 6–2
GOOD DECISIONS START WITH A GOOD
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.

3. Decision problem Research problem
What should be done to increase the
customer base of organic products in the
domestic market
What is the awareness and purchase
intention of health conscious consumers
for organic products
How to reduce turnover What is the impact of shift duties on
turnover intentions
Can the housing and real estate growth
be accelerated
What is the current investment in real
estate and housing
How to improve the supply chain
performance
How does industry leader manages its
supply chain
MANAGEMENT DECISION PROBLEM RESEARCH
PROBLEM

4. 6–4
THE PROBLEM-DEFINITION PROCESS
 Problem
• When there is a difference between the current conditions and a
more preferable set of conditions.
 Problems Mean Gaps
• Business performance is worse than expected business performance.
• Actual business performance is less than possible business
performance.
• Expected business performance is greater than possible business
performance.

5. PROBLEM IDENTIFICATION PROCESS
Management Decision Problem
Discussions
with subject
experts
Review of
existing
literature
Organization
Analysis
Qualitative
analysis
Management Research Problem / Question
Research framework / Analytical model
Statement of Research Objectives
Formulation of Research Hypothesis

6. PROBLEM IDENTIFICATION PROCESS
 Management decision problem: the issue/decision that needs
to be resolved through research
 Discussion with experts: to get the right perspective on the
issue, discussion/dialogue is held with subject/industry
expert.
 Review of literature: the most valuable source of framing the
research question is to review the past work done on related
topic(s).
 Qualitative surveys: primary exploratory loosely structured
surveys to attain the environmental context.

7. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible web site, in whole or in part.
EXHIBIT 6.2THE PROBLEM-DEFINITION
PROCESS
6–7

8. 6–8
UNDERSTAND THE BUSINESS DECISION
 Situation Analysis
 The gathering of background information to familiarize researchers
and managers with the decision-making environment.
 Interview Process
 Develop many alternative problem statements
 Think about possible solutions to the problem
 Make lists
 Be open-minded

9. 6–9
UNDERSTAND THE BUSINESS DECISION
 Identifying Symptoms
 Interrogative techniques
 Asking multiple what, where, who, when, why, and how questions about
what has changed.
 Probing
 An interview technique that tries to draw deeper and more elaborate
explanations from the discussion.

10. 6–10
WRITING MANAGERIAL DECISION STATEMENTS INTO
CORRESPONDING RESEARCH 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.

11. 6–11
DETERMINE THE 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.

12. 6–12
DETERMINE THE RELEVANT VARIABLE
 What is a Variable?
 Anything that varies or changes from one instance to another; can
exhibit differences in value, usually in magnitude or strength, or in
direction.

13.  The research problem also requires identification of the key
variables under the particular study
 Research variables: To carry out an investigation, it becomes
necessary to convert the concepts to be studied into
empirically testable and observable variables
 Dependent variable – variable to be analysed /variable gets
influenced by other variables
 Independent variable – variable that can be stated as
influencing or impacting the dependent variable
TYPES OF RESEARCH VARIABLES

14.  A moderator is a variable that affects the strength of the
relation between the predictor and criterion variable
 Moderator variable is a third party variable that modify the
relationship between an independent variable (IV) and a
dependent variable (DV). Objective of the moderator variable
is to measure the strength of the relationship between the IV
& DV.
 They have the potential to modify the direction and magnitude
of the above stated association.
MODERATING VARIABLE

15.  A mediating variable explains the relation between the
independent (predictor) and the dependent (criterion)
variable. It explains how or why there is a relation between
two variables.
 Intervening variables are the temporal occurrence which
follows the independent variable and precedes the dependent
variable
INTERVENING/MEDIATING VARIABLE

16. GRAPHICAL PRESENTATION

17.  Research objectives are to be formulated according to the
basic thrust areas of the research which are crucial to the
study being conducted
 This section makes active use of verbs such as
1. To find out
2. To determine
3. To establish
4. To measure
STATEMENT OF RESEARCH OBJECTIVES

18.  Any assumption that the researcher makes on the probable
direction of the results that might be obtained on completion
of the research process is termed as a hypothesis
 A hypotheses is any assumption/presupposition that the
researcher makes about the probable direction of the results
that might be obtained on the completion of the research
process
Types
 Descriptive
 Relational
FORMULATION OF RESEARCH HYPOTHESIS

19. 6–19
THE RESEARCH PROPOSAL
 Research Proposal
• A written statement of the research design.
 Uses for the Proposal
• As a planning tool
• As a contract
 Funded Business Research
• Basic research usually performed by academic researchers that is
financially supported by some public or private institution as in
federal government grants.