Business Research Methods Problem Definition & Approach

It is action oriented & is concerned with possible actions DM can take Distinction between Management decision problem & Business research problem Management Decision Problem is the problem confronting the decision maker It is action oriented & is concerned with possible actions DM can take It focuses on symptoms -loss of market share for a particular product -Decision problem is how to recover this loss

Business research problem Business research problem asks what information is needed and how it should be obtained It is information oriented It focuses on underlying causes -Causes for loss of market share could be: ineffective ad. campaign, inappropriate segmentation of market, incorrect price strategy, improper distribution better product of the competitor -After exploratory research it is found that problem is caused by inappropriate segmentation of the market -Research problem would be identification & evaluation of an alternative basis for segmenting the market

Distinction between Management decision problem & Business research problem Should a new product be introduced ? Should the ad. Campaign be changed? Should the price of the brand be increased? Business research problem To determine consumer preferences & purchase intentions for proposed product To determine the effectiveness of the current Ad. Campaign Determine price elasticity of demand& its impact on sales &profit

Distinction between Management decision problem & Business research problem What should be done to improve patronage of our store? Business research problem To determine relative strengths & weaknesses of the store vis-a vis other major competitors with respect to factors that influence store patronage

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

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

Research Questions Research questions are refined statements of specific components of the problem They ask what specific information is required w.r.t .problem component They are interrogative in nature State the research questions

Hypothesis Hypothesis goes beyond research questions An unproven proposition or statement of relationships A possible solution to a problem Guess Hypothesis are declarative in nature Can be tested empirically

RESEARCH QUESTION HYPOTHESIS 1) What is the mean income of 1 ) The lower income people heavy-drinkers of beer? consume more beer.   2) What age group of purchasers 2) The age group 35–44 is of product ‘X’ buys ‘X’ the most? the heaviest user. 3) What will be the result on sales of 3) A 20 percent increase in a 20 percent increase in price? price will not lead to a decrease in rupee sales