Business Research Methods William G. Zikmund

1. Business Research MethodsWilliam G. Zikmund Chapter 4: The Business Research Process

2. Chapter 4: The Business Research Process 1.InformationandDecisionMaking 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 certaintyin decision making

4. Levels of Certainty in Decision Making 1.Certainty: Necessary information is perfectly available, which is something rare. Under certainty, theexact nature of the problem/opportunity is clear, Objectives to be achieved by an effective decision are set.

5. Certainty: Necessaryinformation 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 byan 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 byan 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

11. Uncertainty Influences the Type of Research COMPLETE CERTAINTY ABSOLUTE AMBIGUITY UNCERTAINTY NO RESEARCH AT ALL CAUSAL RESEARCH DESCRIPTIVE RESEARCH EXPLORATORY RESEARCH

12. Degree of Problem Definition 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?” possible situation

13. 2.1. Exploratory Research Secondary data Experience survey Pilot studies

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. I keep six honest serving men, (they taught me all I knew), their names are and when, and how, and why, what, and where and who.” --Rudyard Kipling

17. 2.3. Causal Research • Conducted to identify cause and effect relationships

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 Discovery and Definition and so on Research Design Conclusions and Report Sampling Data Processing and Analysis Data Gathering

20. Selection of exploratory research technique Problem discovery Problem Discovery and Definition Sampling Selection of exploratory research technique Probability Nonprobability Secondary (historical) data Experience survey Pilot study Case study Collection of data (fieldwork) Data Gathering Data Processing and Analysis Editing and coding data Problem definition (statement of research objectives) Data processing Selection of basic research method Research Design Conclusions and Report Interpretation of findings Experiment Survey Observation Secondary Data Study Report Laboratory Field Interview Questionnaire

21. Problem Discovery Selection of Sample Design Exploratory Research Collection of the Data Selection of the Basic Research Method The Business Research Process

22. Editing and Coding Report Data Processing Interpretation of the Findings The Research Process (cont.)

23. “The formulation of the problem is often more essential than its solution” Albert Einstein