BRM 9e PPT CH 06 Instructor

6
Problem Definition:
The Foundation of
Business Research
Chapter 4 and 6
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Reserved. May not be scanned, copied or
duplicated, or2013
postedCengage
to a publicly
Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in
accessible website, in whole or in part.
LEARNIN
G
OUTCOM
ES
1. Explain why proper problem definition is

essential to useful business research
2. Know how to recognize problems
3. Translate managerial decision statements
into relevant research objectives
4. Translate research objectives into research
questions and/or research hypotheses
5. Outline the components of a research
proposal
6. Construct dummy tables as part of a
research proposal
2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website,
6-2in
Decision Making Terms

Business opportunity
A situation that makes some potential
competitive advantage possible.
Business problem
A situation that makes some significant
negative consequence more likely.
Symptoms
Observable cues that serve as a signal
of a problem because they are caused
by that problem.
43in
Types of Business Research

Exploratory
Descriptive
Causal
44in
Exploratory Research
Conducted to clarify ambiguous
situations or discover ideas that may
be potential business opportunities.
Initial research conducted to clarify
and define the nature of a problem.
Does not provide conclusive evidence
Subsequent research expected
45in
Descriptive Research
Describes characteristics of objects,
people, groups, organizations, or
environments.
Addresses who, what, when, where, why,
and how questions.
Considerable understanding of the nature
of the problem exists.
Does not provide direct evidence of
causality.
Diagnostic analysis
Seeks to diagnose reasons for market

outcomes and focuses specifically on the
beliefs and feelings consumers have about
and toward competing products.
46in
Causal Research
Research conducted to identify
cause and effect relationships
(inferences).
Evidence of causality:
Temporal sequencethe appropriate
causal order of events.
Concomitant variationtwo phenomena
vary together.
Nonspurious associationan absence of
alternative plausible explanations.
47in
Experiments
Experiment
A carefully controlled study in which the researcher
manipulates a proposed cause and observes any
corresponding change in the proposed effect.
Experimental variable
Represents the proposed cause and is controlled by
the researcher by manipulating it.
Manipulation
The researcher alters the level of the variable in
specific increments.
Test-market
An experiment that is conducted within actual
market conditions.
48in
Defining the Research

Objectives
Research objectives
The goals to be achieved by
conducting research.
Deliverables
The consulting term used to describe
research objectives to a research
client.
49in
Techniques
Previous Research
Literature review
A directed search of published works, including
periodicals and books, that discusses theory and
presents empirical results that are relevant to the topic at
hand.
Pilot Studies
A small-scale research project that collects data from
respondents similar to those to be used in the full study.
Pretest
A small-scale study in which the results are only preliminary
and intended only to assist in design of a subsequent study.
Focus Group
A small group discussion about some research topic led by a
moderator who guides discussion among the participants.
410in
Planning the Research

Design
Research Design
A master plan that specifies the
methods and procedures for collecting
and analyzing the needed information.
Basic design techniques for
descriptive and causal research:
Surveys
Experiments
Secondary data
Observation
411in
Selection of the Basic Research

Method
Survey
A research technique in which a

sample is interviewed in some form or
the behavior of respondents is
observed and described.
Telephone
Mail
Internet
In person
412in
Sampling
Sampling
Involves any procedure that draws
conclusions based on measurements
of a portion of the population.
Sampling decisions
Who to sample?target population
What size should the sample be?
How to select the sampling units?
413in
Gathering Data
Unobtrusive Methods
Methods in which research
respondents do not have to be
disturbed for data to be gathered.
414in
Good Decisions Start with a Good

Problem Definition
Decision Statement
A written expression of the key
question(s) that the research user
wishes to answer.
Problem Definition
The process of defining and
developing a decision statement and
the steps involved in translating it into
more precise research terminology,
including a set of research objectives.
615in
EXHIBIT 6.1
Defining Problems Can Be Difficult
616in
The Problem-Definition
Process
Problem
When there is a difference between the
current conditions and a more
preferable set of conditions.
Problems Mean Gaps

Business performance is worse than
expected business performance.
Actual business performance is less than
possible business performance.
Expected business performance is
greater than possible business
performance.
617in
Poor Questions Result in Poor

Research in Japan!
A French yogurt
manufacturer noted that the
Japanese were becoming
more Westernized.
A survey supported this and
appeared to offer a strong
market potential for yogurt.
Wrong!
The Yes/No question was
too simplistic and most
respondents were too polite
to say No.
They wouldnt offend the
researcher by criticizing ads
featuring a spoon as an
eating utensil.
6-18in
EXHIBIT 6.2
The Problem-Definition Process
619in
Understand the Business

Decision
Situation Analysis
The gathering of background information
to familiarize researchers and managers
with the decision-making environment.
Interview Process
Develop many alternative problem
statements
Think about possible solutions to the
problem
Make lists
Be open-minded
620in
Understand the Business

Decision
Identifying Symptoms
Interrogative techniques
Asking multiple what, where, who, when,
why, and how questions about what has
changed.
Probing
An interview technique that tries to draw
deeper and more elaborate explanations
from the discussion.
621in
EXHIBIT 6.3
What Has Changed?
622in
Writing Managerial Decision

Statements into Corresponding
Research
DecisionObjectives
statements must be
translated into research objectives.
Once the decision statement is
written, the research essentially
answers the question, What
information is needed to address this
situation?
Research objectives are the

deliverables of the research
project.
623in
Determine the Unit of

Analysis
Unit of Analysis
Indicates what or who should provide the
data and at what level of aggregation.
Individuals (such as customers, employees, and
owners)
Households (families, extended families, and so

forth)
Organizations (businesses and business units)

Departments (sales, finance, and so forth)
Geographical areas
Objects (products, advertisements, and so forth).
Multi-level analysis studies variables

measured at more than one unit of analysis.
624in
Determine the Relevant

Variable
What is a Variable?
Anything that varies or changes from
one instance to another; can exhibit
differences in value, usually in
magnitude or strength, or in direction.
What is a Constant?
Something that does not change; is
not useful in addressing research
questions.
625in
Types of Variables
Continuous
variable
Can take on a
range of
quantitative values.
Categorical
variable
Indicates
membership in
some group.
Also called
classificatory
variable.
Dependent variable
A process outcome or
a variable that is
predicted and/or
explained by other
variables.
Independent
variable
A variable that is
expected to influence
the dependent
variable in some way.
626in
Writing Research Objectives and

Questions
Research Questions
Express the research objectives in
terms of questions that can be
addressed by research.
Help to develop well-formulated,
specific hypotheses that can be
empirically tested.
Help the researcher design a study
that will produce useful results.
627in
Clarity in Research Questions and

Hypotheses
Research Questions
The researchers translation of the problem

into a specific inquiry.
Provide input that can be used as a standard for
selecting from among alternative solutions.
Hypotheses
Statements that can be empirically tested.
State what is expected to be found through the
study.
Managerial Action Standard

A specific performance criterion upon which
a decision can be based.
628in
How Much Time Should Be Spent on

Problem Definition?
Budget constraints usually influence
how much effort is spent on problem
definition.
The more important the decision

faced by management, the more
resources should be allocated toward
problem definition.
The time taken to identify the correct
problem is usually time well spent.
629in
EXHIBIT 6.7
Influence of Decision Statement of Marketing Problem

on Research Objectives and Research Designs
630in
The Research Proposal

Research Proposal
A written statement of the research
design.
Uses for the Proposal

As a planning tool
As a contract
Funded Business Research

Basic research usually performed by
academic researchers that is financially
supported by some public or private
institution as in federal government
grants.
631in
Using Dummy Tables to Clarify

Research Objectives
Dummy Tables
Tables placed in research proposals
that are exact representations of the
actual tables that will show results in
the final report with the exception that
the results are hypothetical (fictitious).
Assist in recognizing the types of research
findings necessary to make specific
decisions about anticipated results.
Help identify missing key variables and

irrelevant dependent variables in the
research model.
632in

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2013 Cengage Learning. All Rights

1. Explain why proper problem definition is

Decision Making Terms

Types of Business Research

Seeks to diagnose reasons for market

Defining the Research

and intended only to assist in design of a subsequent study.

moderator who guides discussion among the participants.

Planning the Research

Selection of the Basic Research

A research technique in which a

Good Decisions Start with a Good

Defining Problems Can Be Difficult

Problems Mean Gaps

Poor Questions Result in Poor

The Problem-Definition Process

Understand the Business

Understand the Business

What Has Changed?

Writing Managerial Decision

Research objectives are the

Determine the Unit of

Households (families, extended families, and so

Organizations (businesses and business units)

Multi-level analysis studies variables

Determine the Relevant

Writing Research Objectives and

Clarity in Research Questions and

The researchers translation of the problem

Managerial Action Standard

How Much Time Should Be Spent on

The more important the decision

Influence of Decision Statement of Marketing Problem

The Research Proposal

Uses for the Proposal

Funded Business Research

Using Dummy Tables to Clarify

Help identify missing key variables and

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