Lecture 20 Business Research Methods

1. Lecture 20Business Research Methods By Aziza Munir

2. What we will Learn? • To classify Business research • Business research and decision making • Link decision making alternatives available for researcher at each stage in decision making

3. Decision Making • Decision making is a process of resolving a problem or choosing among alternatives opportunity. • The key to decision making is to recognize the nature of problem or opportunity. • To identify how much information is available and recognize what information is needed. • Every business problem or decision making situation can be classified on a continuum ranging from complete certainty to complete ambiguity

4. Complete Certainty Certainty Absolute Ambiguity

5. Certainty Complete certainty means that the decision maker has all the information that he or she needs. The decision maker knows the exact nature of the business problem or opportunity. Eg an airline may need to know the demographic characteristics of its pilots. The firm knows exactly what information it requires and from where it can find it. If a manager is so completely certain about the problem or opportunity and future outcomes, then research may not be needed at all. However perfect certainty about future is rare

6. Uncertainty It means that all the managers grasp the general nature of the objectives they wish to obtain, but the information about the alternatives is incomplete. Predictions about the forces that will shape future events are educated guesses. under conditions of uncertainty, effective managers recognize potential value in spending additional time gathering information to clarify the nature of problem.

7. Absolute Ambiguity Ambiguity means that the nature of problem to be solved is unclear. The objectives are vague and the alternatives are difficult to decline. This is so far considered as the ost difficult situation of taking decision. As the situation moves farther along the scale towards ambiguity, the need to spend additional time on business research becomes more compelling

8. Types of business research • Business research produces information that reduce uncertainty. • It helps focus decision making • Business researchers exactly know what their problems are and design studies to test specific hypothesis. • Eg a soft drink company introducing a new iced coffee might want to know whether a gold or silver label would make packaging more attractive

9. Eg a manager identifies a drastic increase in absenteeism, which has greatly affected the productivity but not fully aware of all the possible causes of absenteeism

10. Types of research • Because of variety of research activity, it will be helpful to categorize the business research. • Business research can be classified on the basis of either techniques or functions. • Experiments, surveys, and observational studies are common research techniques • Classification on the basis of functions allow us to understand how nature of problem influences the choice of research methods. • The nature of problem indicates if it is:

11. Exploratory research • Descriptive research • Causal research

12. Exploratory Study • Initial research conducted to clarify and define the nature of problem

13. Descriptive research • A research designed to describe characteristics of a population or phenomenon

14. Diagnostic Analysis • Ensuing analysis used to understand findings such as explanations respondents give for a behavior or attitude

15. Causal Research • Research conducted to identify cause and effect relationships among variables where the research statement has already been defined narrowly

16. Combined look of examples

17. Flow chart of research process Problem discovery and Definition Problem Discovery Research Design Selection of basic research method Sampling Selection of Sample Design

18. Problem Discovery Selection of Exploratory Research Technique Secondary Data Pilot Study Experience Survey Case Study Problem Definition (Statement of Research Objectives)

19. Selection of basic research method Survey Interview Questionnare Experiment Lab Feild Observation Secondary data Search Selection of Sample Design

20. Probability Non Probability Data Collection Editing and Coding Data Processing Interpretations Report

21. Problem Definition • The indication of specific business decision area that will be clarified by answering some research questions

22. Secondary Data • Data that have been collected previously for some project other than in hand • Primary data is assembled primarily and specifically for the problem in consideration

23. Pilot Study • Any small scale exploratory research technique that uses sampling but doesnot apply rigorous standards • Serves as a guide for large study • Informal and lacks in precision • Future extensive work is required

24. Research Project • A specific research investigation: that completes or plan to follow research process through identified research objectives

25. Research design

26. Survey / Experiment • Most common method of generating primary data • A research technique in which data is collected through questionnaire • Interviews, personalized or self administered also solves the purpose • Use of experiments allows to analyse the impact of change in one variable over other. • Conducted in controlled environment • Results are restricted in given conditions

27. Sampling • Any procedure that includes small number of items or that uses parts of population to make conclusions regarding whole population. • Sample is a subset of population • Sample should hold a characteristic of providing right estimate of population • Sampling units are catagorized as probability or non probability

28. Data Collection, and investigation • Primary • Secondary means • Questionnaire • Interviews • Observations • Focus group • Empirical work

29. Editing and Coding • Collected data should be converted into the format of answer to decision making • Editing involves checking the data collection forms for omissions, legibility and consistency in classification • It correct problems and errors during research • Coding process facilitates computer or hand tabulations, for verification and analysis

30. Report Generation • Formal document • Communicate research findings • Assumptions and limitations are secified • Proper language and format should be followed • Comprises of necessary tabulations, charts and graphical analysis • Easy to understand and interpret

31. Research Process and Research Program • Research is a continuous process rather one shot approach • An ongoing series of research projects defined to supply an organization’s continuing informational needs

32. Conclusion • Exploratory • Descriptive • Causal Research • Problem definition • Primary and secondary data • Pilot study • Research project • Research design and • Research program