Course: 0192I - Research

Methodology

Introduction to Research
Methodology
Week 1

REFERENCES
Zikmund, Babin, Carr, and Griffin.
(2009).
Business Research Methods. 8th edition.
Thomson
South-Western.
ISBN
:
9780324320626.

Bina Nusantara University

(1) INTRODUCTION

Bina Nusantara University

This chapter focuses on the

relationship between business
research and managerial decision
making.
Business success is determined
directly
by
the
quality
of
decisions made by key personnel.

INTRODUCTION
Researchers contribute to decision making in several key ways
Helping to better define the current situation
Defining the firmdetermining how consumers, competitors,
and employees view the firm
Providing ideas for enhancing current business practices
Identifying new strategic directions
Testing ideas that will assist in implementing business
strategies for the firm
Examining how correct a certain business theory is in a given
situation

Bina Nusantara University

INTRODUCTION

Go College??
Or Not go to
College??

The student may seek out data,

usually in the form of advice provided
by parents, guidance counselors,
other students, or various media
sources. These data may be critical in
reaching decisions.
Indeed, the answers to each of these
questions shape a students future,
influence the way he or she is viewed
by others, and ultimately determine
how successful he or she will be.

Bina Nusantara University

INTRODUCTION
Likewise, businesses face decisions that shape
the future of the organization, its employees,
and its customers. In each case, the decisions
are brought about as the firm either seeks to
capitalize on some opportunity or to reduce
any potential negative impacts related to some
business problem.
3

Bina Nusantara University

INTRODUCTION
A business opportunity is a situation that makes some potential
competitive advantage possible. The discovery of some
underserved segment presents such an opportunity.
A business problem is a situation that makes some significant
negative consequence more likely.
A decision making is the process of developing and deciding
among alternative ways of resolving a problem or choosing from
among alternative opportunities.
A symptomp is observable cues that serve as a signal of a
problem because they are caused by that problem.

Bina Nusantara University

INTRODUCTION
Complete certainty means that the decision
maker has all information needed to make an
optimal decision.
Uncertainty means that the manager grasps
the general nature of desired objectives, but
the
information
about
alternatives
is
incomplete.
Ambiguity means that the nature of the
problem itself is unclear
3

Bina Nusantara University

INTRODUCTION

Bina Nusantara University

10

(2) TYPES OF BUSINESS

RESEARCH

Bina Nusantara University

Business research can be

classified on the basis of
either technique or purpose.
The
following
section
introduces the three types of
business research:
1. Exploratory
2. Descriptive
3. Causal

11

TYPES OF BUSINESS RESEARCH

Exploratory research is conducted to clarify
ambiguous situations or discover potential business
opportunities.
As the name implies, the major purpose of descriptive
research is to describe characteristics of objects,
people, groups, organizations, or environments.
Causal research seeks to identify cause-and-effect
relationships. When something causes an effect, it
means it brings it about or makes it happen. The effect
is the outcome.

Bina Nusantara University

12

TYPES OF BUSINESS RESEARCH

Ideally, managers want to know how a change in one event
will change another event of interest. As an example, how
will implementing a new employee training program change
job performance?
Causal research attempts to establish that when we do one
thing, another thing will follow. A causal inference is just
such a conclusion.
Three critical pieces of causal evidence are:
1. Temporal Sequence
2. Concomitant Variance
3. Nonspurious Association

Bina Nusantara University

13

TYPES OF BUSINESS RESEARCH

Temporal sequence deals with the time order of events.
In other words, having an appropriate causal order of
events, or temporal sequence, is one criterion for causality.
Concomitant variation occurs when two events covary
or correlate, meaning they vary systematically.
Nonspurious

association

means

any

covariation

between a cause and an effect is true, rather than due to

some other variable.

Bina Nusantara University

14

TYPES OF BUSINESS RESEARCH

In summary, causal research should do all of the
following:
1.Establish the appropriate causal order or sequence of

events.
2.Measure the concomitant variation between the

presumed cause and the presumed effect.

3.Examine the possibility of spuriousness by considering

the presence of alternative plausible causal factors.

Bina Nusantara University

15

TYPES OF BUSINESS RESEARCH

Degrees of
Causality
Absolute causality means the cause is necessary
and sufficient to bring about the effect.
Conditional causality means that a cause is
necessary but not sufficient to bring about an effect.
Contributory causality is the weakest form of
causality, but it is still a useful concept

Bina Nusantara University

16

TYPES OF BUSINESS RESEARCH

Experiments
Business experiments hold the greatest potential for
establishing cause-and-effect relationships.
An experiment is a carefully controlled study in which the
researcher manipulates a proposed cause and observes
any corresponding change in the proposed effect. An
experimental variable represents the proposed cause
and is controlled by the researcher by manipulating it.
Manipulation means that the researcher alters the level
of the variable in specific increments.
A test-market is an experiment that is conducted within
actual business conditions.
Bina Nusantara University

17

TYPES OF BUSINESS RESEARCH

So, which form of researchexploratory, descriptive, or
causalis appropriate for the current situation?

Bina Nusantara University

18

(3) STAGES IN THE RESEARCH

PROCESS

Bina Nusantara University

19

Bina Nusantara

20

QUESTIONS
1. List five ways that business research can contribute to
effective business decision making.
2. Define business opportunity, business problem, and
symptoms. Give an example of each as it applies to a
university business school.

Bina Nusantara University

21

QUESTIONS
3. Consider the following list, and indicate and
explain whether each best fits the definition of a
problem, opportunity, or symptom:
a. A 12.5 percent decrease in store traffic for a
childrens shoe
store in a medium-sized city mall.
b. Walmarts stock price has decreased 25 percent
between 2007 and 2009.

Bina Nusantara University

22

QUESTIONS
c. A furniture manufacturer and retailer in North
Carolina reads a research report indicating
consumer trends toward Australian Jara and Kari
wood. The export of these products is very limited
and very expensive.
d. Marlboro reads a research report written by the
U.S. FDA. It indicates that the number of cigarette
smokers in sub-Saharan Africa is expected to
increase dramatically over the next decade.

5
Bina Nusantara University

23

Bina Nusantara

24

Pictures
1.

2.

3.

https://www.google.com/search?newwindow=1&client=firefox-a&hs=Q35&rls=org.mozilla%3Aen-US
%3Aofficial&biw=1525&bih=690&tbm=isch&sa=1&q=introduction&oq=introducti&gs_l=img.3.0.0l10.875.6
959.0.9058.13.5.0.0.0.0.479.1629.22j2j1.5.0....0...1c.1.32.img..11.2.463.Gpr_YuxZnKo#facrc=_&imgdii=_&imgrc=9ZF74btRipW-tM%3A
%3BnQni_zYpNKJ8fM%3Bhttp%253A%252F%252Fwww.sqlsoldier.com%252Fwp%252Fwp-content
%252Fuploads%252F2013%252F09%252FIntroduction.jpg%3Bhttp%253A%252F%252Fwww.sqlsoldier.com
%252Fwp%252Fsqlserver%252Fintroductiontointegrityinterpretingdbcccheckdbresults%3B336%3B355
https://www.google.com/search?newwindow=1&client=firefox-a&rls=org.mozilla%3Aen-US
%3Aofficial&biw=1525&bih=690&tbm=isch&sa=1&q=student+thinking+cartoon&oq=student+thinking+car
toon&gs_l=img.3..0.48736.49852.0.50268.7.7.0.0.0.0.285.971.2j4j1.7.0....0...1c.1.32.img..6.1.285.8u8ZOFL
Qu3s#facrc=_&imgdii=_&imgrc=PPU4eIlYaITkUM%3A%3Bp8T6ElGWVKpZ6M%3Bhttp%253A%252F
%252Fthumbs.dreamstime.com%252Fz%252Fboy-thinking-2708693.jpg%3Bhttp%253A%252F
%252Fwww.dreamstime.com%252Fstock-photos-boy-thinking-image2708693%3B954%3B1300.
https://www.google.com/search?q=introduction&newwindow=1&client=firefox-a&hs=ZJi&rls=org.mozilla:enUS:official&source=lnms&tbm=isch&sa=X&ei=vRKtUqTGF6jQsASl64H4Ag&ved=0CAkQ_AUoAQ&biw=1525&
bih=690&dpr=0.9#facrc=_&imgdii=_&imgrc=j3TIRQezhZbEFM%3A%3B9n1XV3KCy6cZDM%3Bhttp%253A
%252F%252Fwww.writeawriting.com%252Fwp-content%252Fuploads%252F2011%252F03%252Ftips-onwriting-introduction-intro-newsletter.jpg%3Bhttp%253A%252F%252Fwww.writeawriting.com%252Fbusiness
%252Ftips-writing-introduction-newsletter%252F%3B480%3B480.

Bina Nusantara University

25

Pictures
4.

5.

https://www.google.com/search?q=introduction&newwindow=1&client=firefoxa&hs=ZJi&rls=org.mozilla:enUS:official&source=lnms&tbm=isch&sa=X&ei=vRKtUqTGF6jQsASl64H4Ag&ved=0CAkQ_AUoAQ&biw=1
525&bih=690&dpr=0.9#facrc=_&imgdii=_&imgrc=tWy6wIctIFWp1M%3A%3BqQzFZUT_T1xmyM
%3Bhttp%253A%252F%252Fstatic9.depositphotos.com%252F1695551%252F1212%252Fi
%252F950%252Fdepositphotos_12125093-A-cartoon-style-man-giving-an-introduction.jpg%3Bhttp
%253A%252F%252Fdepositphotos.com%252F12125093%252Fstock-photo-A-cartoon-style-man-givingan-introduction.html%3B864%3B950
https://www.google.com/search?newwindow=1&client=firefox-a&hs=WeN&rls=org.mozilla%3Aen-US
%3Aofficial&biw=1525&bih=690&tbm=isch&sa=1&q=question&oq=question&gs_l=img.3..0l10.573147
4.5733174.0.5734365.8.8.0.0.0.0.643.4023.21j0j3j4.8.0....0...1c.1.32.img..5.3.1132.9njo8lL68YM#facrc=_&imgdii=_&imgrc=Svzi6XmFDj7erM%3A
%3BI5Y5Wgylf9BouM%3Bhttp%253A%252F%252Fwww.hdwallpapersinn.com%252Fwp-content
%252Fuploads%252F2013%252F09%252FMan-With-Question-01.png%3Bhttp%253A%252F
%252Fwww.hdwallpapersinn.com%252Fquestion-person-pictures.html%3B1500%3B1500.

Bina Nusantara University

26