RM4.ppt

29 August 2005 MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan 1
RESEARCH
METHODOLOGY
(Business Research Methods)
Week 4

Business Research Problems
When analyzing business problems, three things must be
considered:
 Managers and decision-makers have total certainty
about the underlying problem situation (rare in practice)
 Managers and decision-makers have little or no
information about the problem situation on which to
proceed on and the objectives and alternatives are either
not, or are very vaguely defined (extreme cases)
 Managers and decision-makers grasp the general
nature of the objectives they desire to realize, but lack
sufficient information on the nature of the underlying
business problem situation

The Problem Definition
Before descriptive, quantitative research is undertaken, it
is essential that there is an insight into the underlying
business problem situation, otherwise, invalid
conclusions can result which be worthless at best and
potentially damaging to the organization in the worst
case
After a problem has been “discovered”, it must be
“defined” so that the objectives of the research are clear
and realizable

The Problem Definition Process
The problem definition process involves the following
interrelated steps:
• Ascertaining the decision-maker’s objectives
• Understanding the problem background
• Isolating and identifying the problem (not the symptoms)
• Determining the unit of analysis
• Determining the relevant variables
• Stating the research questions (hypotheses) and
research objectives

The Problem Definition Process:
Ascertaining the Decision-Maker’s Objectives
 The objectives should be stated to the researcher in
clear and measurable terms
 In practice many managers are not able to clearly
articulate research objectives
 Problem of lack of sufficient and important information on
the underlying business problem and consequently on
the formulation of research objectives

Understanding the Problem Background
 In cases where adequate information on a problem
situation is available, managers can play an important
role by helping researchers gain insight
 In cases where adequate information on a problem
situation is not available, a situation analysis should first
be undertaken with a view to familiarizing both managers
and decision-makers with the decision area and related
organizational, environmental and other aspects. This is
usually done using exploratory research

Isolating and Identifying the Problem
 Sometimes the “problem” identified is only the symptom!
 Differentiating symptoms from problems is not an easy
undertaking and often requires extensive exploratory
research and the gathering of background information
 Expert judgment and creativity must be excercized

Isolating and Identifying the Problem (Example)
Organization – Neighbourhood swimming association in a medium-
sized city
Symptoms – Declining membership observed for years and a new
recreational park with swimming facilities opened in the city some years
back
Problem Definition (Symptom-based) – Residents prefer the
recreational park’s swimming facilities
True Problem – Demographic changes have resulted in fewer younger
people interested in using the neighbourhood swimming association

Determining the Unit of Analysis
Who are the desired research subjects?
• Whole Organization
• Departments
• Work Groups
• Individual Employees
Research problems can sometimes be analyzed using
more than one unit of analysis

Determining the Relevant Variables
All key variables should be identified in the problem definition
Stage. Variables can be classified as being:
 Continuous – They have an infinite number of possible
values (e.g. sales volume)
 Categorical – They can have a limited number of distinct
values (e.g. gender)
 Dependent – They are to be predicted or explained (e.g.
hourly wage rate)
 Independent – They influence dependant variables (e.g.
years of work experience)

Research Questions (Hypotheses) and Objectives (1)
Problem definition efforts result in statements of research
questions and research objectives. These add clarity to the
research undertaking and gives managers, researchers and
all others concerned an understanding of the approach being
used
Research questions should be as specific as possible and be
answered with the aid of hypotheses which, by definition, are
empirically testable

Research Questions (Hypotheses) and Objectives (2)
Research objectives explain the purpose of the research in
measurable terms and define standards of what the research
should accomplish
Research objectives indicate the information needed by a
manager to make a decision
See Exhibit 6.4 in Zikmund’s book Business Research
Methods on p. 100

The Research Proposal
The research proposal is:
• A written statement of the research design
• Includes an explanation of the research study’s purpose and the
problem definition
• Outlines the research methodology and procedures that will be
utilized throughout the research study
• Includes information on cost and deadlines
Research proposals must be as specific and clear as possible about
what is to be achieved and how it is to be achieved. Questionnaires
and other supporting documents should be attached for reference
For an example of a research proposal, see Zikmund’s
book on Business Research Methods, p. 105

A Note on Exploratory Research
 Exploratory research is a means for acquiring a deeper and hence
more useful understanding of a business or management problem
 Exploratory research does not intend to answer research questions
conclusively, rather, it is a preliminary step towards undertaking more
substantive research
 Exploratory research usually provides qualitative data, not quantitative
data
 Exploratory research has serious limitations which cannot be
overlooked or ignored by any serious researcher. It is subjective and
harbours two dangers: (1) A promising idea may be rejected because
exploratory data shows it to be ‘undesirable’ and (2) ideas which
appear promising in the exploratory stage may be accepted without
undertaking further research to establish their desirability

The Purposes of Exploratory Research
 Situation Diagnosis – Analyze the dimensions of the research
problem and set the stage for subsequent research and priorities
Example: What are current important issues of employee concern or
what are the possible explanations for decreasing employee
motivation?
 Screening – Exploratory research is used to select the best
possible alternatives given the existence of constraints such as
budget limitations
 Discovering New Ideas – Through its techniques, exploratory
research can help generate new, previously unthought of ideas
which may interest managers
 Example: Employees suggest convenient ways of increasing factory
production or propose new products and services

Tools and Techniques of Exploratory Research (1)
Concept Testing – This is about testing something that is being
used as a proxy for a new (or modified) product, service or program
 Test persons are usually presented with a stimulus or description
of an idea and are asked if they like it, would use it etc.
 Concept testing can help an organization conserve resources by
not wasting them on schemes shown to be unpopular through
concept testing
Example: The Del Monte corporation used concept testing to
determine whether consumers would be interested in purchasing
unrefrigerated, shelf-stable yoghurt

Experience Surveys – Conversation or interviews with
knowledgeable persons and experts, inside or outside
the organization, who have some previous experience
with the problem area in question
Secondary Data Analysis – Analysis of already existing
data and literature on a similar problem field can yield
clues and interesting background information on the
problem field under study
Example: Evaluation of an organization’s training
programs - Are comparative studies available for the
industry in question?

Case Studies – Using information and experiences gained from a
similar problem situation
 Advantages - An entire organization can be investigated in detail
and considerable information can be obtained from interviewees
 Disadvantages - Potential difficulty in acquiring the cooperation
of, and information from, the person or organization under study,
and also because generalizing can be counterproductive.
Moreover, to gain the maximum benefit from case studies
requires very alert, creative, flexible, intelligent and motivated
interviewers

Pilot Studies – A small-scale research project which
uses sampling – without the normally rigorous scientific
standards – to generate primary data
The primary data generated from pilot studies are
collected from specific groups (e.g. employees,
consumers, students, voters) and not from experts or
from a case situation
Major components of pilot studies are focus group
interviews, projective techniques and depth studies

Focus Group Interviews – This is an unstructured, free-flowing
interview with a small group of usually six to ten persons, and
presided over by a moderator or interviewer
Focus group interviews are not a question-and-answer session,
rather the group members discuss a topic in some detail in an open
and candid manner
Focus Group Interviews allow group members to express their true
feelings, anxieties, and frustrations, and to express the depth of their
convictions in their own words
Focus group interviews help in screening and refining concepts

Focus Group Interview Advantages – Flexible, brief, easy to
execute, quickly analyzed, inexpensive, useful insights can be
gained, responses which normally wouldn’t come out in a survey
come out in a focus group interview
Focus Group Interview Disadvantages – small discussion group is
not “representative”, one or a few individuals may dominate the
discussion to the exclusion of others, confusion may arise and
arguments may erupt if group too heterogenous, moderator may not
be sufficiently trained

Projective Techniques – The purpose of this is to discover an
individual’s attitudes, motivations and ways of responding
Projective techniques function on the assumption that an individual
will give accurate answer if they ‘project’ their answers onto a third
party, inanimate object or task situation. Projecting onto someone or
something else often overcomes feelings of shyness or
embarrassment which come into play if an individual is asked a
question directly in relation to him or herself
Common projective techniques include the word association test,
sentence completion, the third person technique and thematic
apperception test

Word Association Test – A research subject is presented with a
least of words, one at a time, and asked to respond to each word
with the first word that comes to mind. Both the verbal response and
subject’s hesitation in responding are recorded. Subject has little
time to think for alternatives when presented with a word and this
creates spontaneous answers
Sentence Completion – This technique requires that research
subjects complete partial sentences with the first word or phrase that
comes to their minds
The Third-Person Technique – Research subjects are asked
about the opinions of third persons in regard to other persons,
events and concepts (see also role-playing)

Thematic Apperception Test – Uses a pictorial representation in
which the research topic is featured. Research subjects are asked to
tell what is happening in the picture and what the people in it may do
next
Depth Interview – Intensive and probing questioning of a research
subject in an open and candid atmosphere on a specific topic.
Requires highly skilled interviewer and subjective interpretation of
the data

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