Business Research Methods

Its Everywhere!

Session 1 and 2 - 2017

Dr. Gunjan Malhotra

mailforgunjan@gmail.com
 Learning Objective

Understand the meaning and characteristics of Business Research

To impart knowledge to evaluate and conduct research on
management problems/issues.
To highlight importance of research in management.
What is the relevance of business research in business decisions
 Research - Analytics within an organization
1. Descriptive Analytics The application of simple statistical
techniques that describe what is contained in a set or database.
2. Predictive Analytics An application of advanced
statistical, information software, or operations research
methods to identify predictive variables and build predictive
models to identify trends and relationships not readily
observed in a descriptive analysis.
3. Prescriptive Analytics An application of decision science,
management science, and operations research methodologies
(applied mathematical techniques) to make best use of
allocable resources.
 Analytics Information
Seeks to Answer Past Time Period Present Future
Descriptive What happened in What is happening What will appear to
the past? now based on the happen based on the
past? past?
Predictive How did it happen in What possible trends What is the range
the past? Why did it exist in the data that and likelihood of
happen in the past? can predict or possible outcomes
forecast what course that can happen if
of action should be the current trends or
taken now? forecasts are
allowed?
Prescriptive How best can we How can we optimally How can we
leverage what we apply resources to continuously apply
know from the trends maximize the analytics in the
and forecasts? business performance future to optimize
outcomes in the upcoming business
future? performance
outcomes?

Source: Isson and Harriott (2013)

 Decision

Describe a decision you made in the last one year, such

as buying a car or selecting an apartment or buying a new
computer or business school to attend or first job or marriage,
and describe the steps that you took that were useful in
making important personal decisions.
 CHANGE THE WAY YOU MAKE DECISIONS !
Right data ; Right Modelling and Right Transformation is important

Doing whats right isnt hardknowing whats right is

Lyndon B. Johnson
 Video How it works? Business Analytics
 Video watch
Analytics consider information for the entire enterprise

Which performance factors have the greatest impact on our future

growth and profitability?
How can we anticipate and inference changing market conditions?
If customer satisfaction improved what is the impact on
profitability? Is customer loyalty more important than for instance
our order volume?
How should be optimize investments across your products,
geographies, and marketing channels?
Are managers decisions well aligned with a company strategy, or
are they merely promoting the managers self-interest?
 Data Collectors Face Responsibility

This is a fantastic time to be entering the business

world, because business is going to change more in
the next 10 years than it has in the last 50
BILL GATES, entrepreneur and founder Microsoft.

THUS THE NEED FOR BUSINESS RESEARCH.

 Why study Research?

Research provides you with the knowledge and skills needed for
the fast-paced decision-making environment.
Reduces uncertainty
Helps focus decision making
Establish the association or independence of an action
Determine the distinctiveness of an individual or a group of
activities and the frequency of its (or their) occurrence
 Why should a manager know research?

Facilitates good decision making.

Become discriminating about research findings.
Prevents vested interests
Educates to share pertinent and relevant information with
researcher
Helps take calculative risks with probabilities attached.
Understand the complexity of the variables in organization.
An integral part of professionalization of management.
 Research In Business: Why Study Research?

Research is a diligent enquiry and careful investigation or inquiry or

search for new knowledge through systematic, scientific and analytical
approach in any branch of knowledge. The search of knowledge also
helps to accept, reject, or modify existing facts of knowledge.
Research is simply the process of finding solutions to a problem after a
thorough study and analysis of the situational factors.
Research aims to extend, collect or verify knowledge.
Research is a systematic effort to gain new knowledge (Redman and
Mory, 1923).
Business research provides information to guide business decisions.
 Definition of Business Research
Systematic and organized effort to investigate a specific problem encountered
in the work setting, which needs a solution.
OR
Systematic and organized process of collecting, recording and analyzing data
to aid in business decision making process.
OR
BR is an organized, systematic, data-based, critical, objective, scientific
inquiry or investigation into a specific problem, undertaken with the purpose
of finding answers or solutions to it (Sekaran and Bougie, 2010).
OR
A process of determining, acquiring, analyzing, synthesizing,
and disseminating relevant business data, information, and
insights to decision makers in ways that mobilize the organization
to take appropriate business actions that, in turn, maximize
business performance.
 Research Should Reduce Risk

The primary
purpose of
research is to
reduce the level
of risk of a
marketing
decision
Environments that affect Research in Business

Economic
Environment
Competitive Political
Environment and Legal
Environment
Business Customer
Strategy Value and
Behavior

Technological Social
Environment Environment
Natural
Environment
Whats Changing in Business that Influences Research

New
Information Technological
Research
Overload Connectivity
Perspectives
Computing Shifting
Power & Global
Speed Economics
Factors
Battle for Critical
Analytical Scrutiny of
Talent Business
Government
Intervention
 Research May Not Be Necessary

Can It Pass These Tests?

Can information be applied to a critical
decision?
Will the information improve managerial
decision making?
Are sufficient resources available?
Characteristics of Good Research
Clearly defined purpose
Detailed research process
Thoroughly planned design
High ethical standards
Limitations addressed
Adequate analysis
Unambiguous presentation
Conclusions justified
Credentials
 Types of Business Research

Basic/Pure/Fundamental research
Deals with the theoretical aspects of knowledge

Applied/Action research
Deals with the problems to be solved
 Basic/Pure/Fundamental Research

Generating scientific knowledge for future use.

Intended to expand the boundary of knowledge or to verify the
acceptability of a given theory.
To enhance the understanding of certain problems that commonly
occur in organizational settings , and seek method of solving them.
 Applied/Action/Policy-Oriented Research

Undertaken to solve existing problems.

With the intention of applying the results of the findings to solve
specific problems currently being experienced by the organization.
Undertake to answer questions about specific problems, or ,
To make decision about particular course of action or policy
decision.
Current problem faced by the manager in the work setting,
demanding a timely solution.
Conducted when a decision must be made about a specific real-life
problem.
 Use of Research for Manager
Decision making.
Knowledge of research not only helps the researcher to look at the
researcher in creative ways but also knowledge helps in other ways.
Interact effectively with the research consultant.
You as a manager can differentiate between a good and bad study
published in professional journals.
If desired you can undertake to solve a research problem.
Helps in decision making:
Gathering critical issues.
Analyzing data
Implementing right course of action.
Identify critical issues
 Internal Researchers

Advantages
Better acceptance from staff
Knowledge about organisation
Would be an integral part of implementation and evaluation of the research
recommendations.
Disadvantages
Less fresh ideas
Power politics could prevail
Possibility not valued as experts by staff
 External Researchers
Advantages
Divergent and convergent thinking
Experience from several situations in different types of
organizations.
Better technical training, usually.
Disadvantages
Takes time to know and understand the organizational system
Rapport and cooperation from staff not easy
Not available for evaluation after implementation
costs
BUSINESS RESEARCH PROCESS
Overview of Research Process

Why should we do research?

What research should be done?
Is it worth doing the research?
How should the research be designed to achieve the research
objectives?
What will we do with the research?
 Business Research Process

Identification and defining the problem Problem identification

Developing an approach to the problem - Theoretical framework
Formulating a research design - Hypotheses
Tool construction
Doing field work or collecting Data Data Collection
Preparing and analyzing data - Data analysis
Preparing and presenting a report Conclusion - Generalization
 The Research Process Hierarchy

6 Management Decision
5 Measurement Questions
4 Investigative Questions
3 Research Questions
2 Management Questions
1 Management Dilemma
 Management Dilemma

The symptom of an actual problem

Not difficult to identify a dilemma, however
choosing one to focus on may be difficult
 Management Questions

Choice of purposes or objectives

Control the situation

The management question does not specify what kind

of research is to be done.
The questions are broad.
 Research Questions

The research question is the hypothesis of choice

that best states the objective of the research study.

Verify hypotheses with quality tests

Determine what evidence answers the various

questions and hypothesis

Set the scope of your study

 Investigative Questions

Questions the researcher must answer

to satisfactorily arrive at a conclusion
about the research question
 Measurement Questions

The questions we actually ask or

extract from respondents
 Other Processes in the Hierarchy

Exploration
Recent developments
Identification of those involved in the area
Accounts of successful ventures and failures by others
in the field
 The process of Problem Definition
Ascertain the decision makers objectives
Understand the background of the problem
Identify the problem rather than its symptoms
Specify the unit of the analysis
Determine the variables
State the research questions/hypothesis
 THINKING
LIKE
A
RESEARCHER
Research and Attitudes

Brand communities play a pivotal role for a

brand connecting with its consumers, and as
one of our Never Ending Friending focus group
respondent notes: I want brands to be my
friends, which means that consumers would
like to have common ideas, conversations and
benefits delivered to them on their own terms.

Judit Nagy
vice president, consumer insights
MySpace/Fox Interactive Media
 Language of Research

Conceptual
Concepts Constructs
schemes

Operational
Models
definitions
Terms used
in research
Theory Variables

Propositions/
Hypotheses
 Language of Research

Clear conceptualization
of concepts
Success
of
Research Shared understanding
of concepts
 Concepts

A concept is a collection of meaning or

characteristics associated with certain events,
objects, conditions, situations and behaviours.
Concepts that are in frequent and general use
have been developed over time, through shared
language usage.
 The challenge is to develop concepts that others
were clearly understand.
Example: If you ask participants for an estimate of their
familys total income:
What time period are you asking about?
Should income before or after tax be included?
Is this the income of the head of the family or all family members?
Is income limited to salary and wages only?
Does income include free rent, employee discounts or food stamps?
 Constructs

Concepts have progressive levels of abstraction.

Table is an objective concept
Personality is harder to visualise
Constructs are built by combining simple, more
concrete concepts.
 Operational Definition

It is a statement of the specific dimensions and elements

through which a concept will become measurable.
 Operational Definitions

How can we define the variable

class level of students?
Freshman < 30 credit hours
Sophomore 30-50 credit hours
Junior 60-89 credit hours
Senior > 90 credit hours
A Variable Is the Property Being Studied

Event Act

Variable

Characteristic Trait

Attribute
 Types of Variables

Male/Female
Dichotomous Employed/ Unemployed

Ethnic background
Discrete Educational level
Religious affiliation

Income
Temperature
Continuous Age
 Independent and Dependent Variable
Synonyms
Independent Variable Dependent Variable
(IV) (DV)
Predictor Criterion
Presumed cause Presumed effect
Stimulus Response
Predicted from Predicted to.
Antecedent Consequence
Manipulated Measured outcome
 Theories

Theories are nets cast to catch what we call the

world: to rationalize, to explain, and to master it.
We endeavor to make the mesh ever finer and finer.
Karl R. Popper
 Theory

A coherent set of general propositions used as

principles of explanation of the apparent
relationships of certain observed phenomena.
Two purposes of theory:
Prediction
Understanding
 Propositions and Hypotheses

Brand Manager Jones (case) has a higher-than-average

achievement motivation (variable).

Generalization
Brand managers in Company Z (cases) have a higher-than-
average achievement motivation (variable).
 Hypothesis Formats

Descriptive Research Question

Hypothesis What is the market
In Detroit, our potato share for our potato
chip market share stands chips in Detroit?
at 13.7%. Are American cities
American cities are experiencing budget
experiencing budget difficulties?
difficulties.
 Relational Hypotheses
Correlational
Young women (under 35)
purchase fewer units of our
product than women who
are older than 35.
The number of suits sold
varies directly with the level
of the business cycle.
Causal
An increase in family
income leads to an increase
in the percentage of income
saved.
Loyalty to a grocery store
increases the probability of
purchasing that stores
private brand products.
 The Role of Hypotheses

Guide the direction of the study

Identify relevant facts

Suggest most appropriate research

design

Provide framework for organizing

resulting conclusions
Characteristics of Strong Hypotheses

Adequate
A
Strong Testable
Hypothesis
Is
Better
than rivals
 What is the difference between
theories and hypotheses?
The difference between theory and hypothesis is the degree of
complexity and abstraction.
Theories tend to be complex, abstract, and involve multiple
variables.
Hypotheses tend to be simple, limited-variable statements
involving concrete instances.
A theory is a set of systematically interrelated concepts, definitions,
and propositions that are advanced to explain or predict
phenomena. To the degree that our theories are sound and fit the
situation, we are successful in our explanations and predictions.
 Models versus Theories

A model is a representation of a system constructed

to study some aspect of that system or the system as
a whole.
Models versus Theories
A models role is to represent or describe
A theorys role is to explain.
 RESEARCH AS A

SCIENTIFIC PROCESS
 The Scientific Method

Direct observation

Clearly defined variables

Curiosity Clearly defined methods

Is the Ally Empirically testable

of a Elimination of alternatives

Researcher Statistical justification

Self-correcting process
 Sound Reasoning

Types of Discourse

Exposition Argument

Deduction Induction
Deductive Reasoning

Inner-city household
interviewing is especially
difficult and expensive

This survey involves

substantial inner-city
household interviewing

The interviewing in this

survey will be especially
difficult and expensive
 Deductive Reasoning

More general to the more specific.

Referred as "top-down" approach.

From theory about of interest to more specific

hypotheses that can be tested. Can be narrowed
down even further with collection of observations
to address the hypotheses. This ultimately leads to
test the hypotheses with specific data -- a
confirmation (or not) of original theories.
Deductive Reasoning
 Inductive Reasoning

Why didnt sales increase during our promotional

event?
Regional retailers did not have sufficient stock to fill customer
requests during the promotional period
A strike by employees prevented stock from arriving in time for
promotion to be effective
A hurricane closed retail outlets in the region for 10 days during the
promotion
 Inductive Reasoning
Moves from specific observations to broader generalizations
and theories.
"bottom up" approach
From specific observations and measures to detect patterns and
regularities, formulate some tentative hypotheses that can be
explore, and finally end up developing some general conclusions or
theories.
Inductive Reasoning
The Scientific Method: An Overview

Assess Formulate Statement

Design
relevant concepts & of
research
existing Propositions Hypotheses
knowledge

Acquire Analyze & Provide

empirical evaluate explanation-
data data state new
problem
 ETHICS
IN
BUSINESS RESEARCH
 Data Collectors Face Responsibilities

[Privacy pragmatists are] often willing to allow people to

have access to, and to use, their personal information
where they understand the reasons for its use, where
they see tangible benefits for so doing, and when they
believe care is taken to prevent the misuse of this
information.
Humphrey Taylor
chairman of The Harris Poll
Harris Interactive.
 Types of Ethical Violations

Violating
Misrepresenting
disclosure
results
agreements

Breaking Deceiving
confidentiality participants

Padded Avoiding
invoices legal liability
 Ethical Approaches

Ethical
Ethical
Deontology
standards Relativism
 Ethical Approaches

Deontology advocates that ethical behavior should be

directed by duties regardless of the positive circumstances
that might result from behavior that is in contradiction to the
duty. Example: Do not lie, even when lying might result in a
positive outcome.
Ethical relativism is based on an individuals sense of
morality. Therefore, each person decides for his or herself
what is ethical behavior.
A middle ground is necessary and provided through ethical
standards of behavior for researchers.
 Example on Ethical approach
Can you handle the truth?

Societys Voice against Unilever Mercury contamination in

Kodaikanal

Video: https://www.youtube.com/watch?v=nSal-ms0vcI
Ethical Treatment of Participants

Explain study benefits

Explain participant
rights and protections

Obtain informed
consent
 Components of Informed Consent

Identify researchers Give good-faith

Describe survey topic estimate of required time
commitment
Describe target sample
State participation is
Identify sponsor voluntary
Describe purpose of State item-non response
research is acceptable
Promise anonymity and Ask for permission
confidentiality
Characteristics of Informed Consent

Competence

Knowledge Elements Voluntary

Informed
Deception

Disguising
non-research
activities

Camouflaging
true research
objectives
Debriefing

Explain any deception

Describe purpose

Share results

Provide follow-up
 Participant Confidentiality

Obtain signed
nondisclosure

Non-
Restrict
disclosure of
access to ID
data subsets

Minimize Reveal only

instruments with written
requiring ID consent
Right to Privacy

Right to refuse

Prior permission to
interview

Limit time required

Confidentiality

Sponsor Nondisclosure

Purpose Nondisclosure

Findings Nondisclosure
 What To Do If Coerced?

Educate Explain
on problems
purpose

Emphasize Terminate
fact-finding relationship
role
 Effective Codes of Ethics

Enforceable Regulate

Specify
Protect
Behavior
 Thank You