The Business Research Process: An Overview Chapter 4 The Business Research Process: An Overview This chapter provides an overview of the research process and sets the stage for coming chapters. McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All Rights Reserved. 

Learning Objectives Understand … That research is decision- and dilemma- centered. That the clarified research question is the result of careful exploration and analysis and sets the direction for the research project.

Learning Objectives Understand . . . How value assessments and budgeting influence the process for proposing research, and ultimately, research design. What is included in research design, data collection, and data analysis. Research process problems to avoid.

Curiosity Drives Research “Learning to ask empowering questions—especially in moments of crisis—is a critical skill that will ultimately shape the meanings you create.” Anthony Robbins founder Robbins Research International, Inc.

PulsePoint: Research Revelations 49 The percent of hiring managers who discovered a lie on a résumé . See the Instructors Manual (downloadable from the text website) for ideas for using this research-generated statistic.

Reduce the level of risk of a business decision. Purpose of Research Reduce the level of risk of a business decision. This ad from Greenfield Online suggests that well-executed research can save a company from making a costly mistake on new product introductions.

Evaluating the Value of Research Option Analysis Decision Theory Prior or Interim Evaluation Managers are increasingly asked to prove that research meets ROI objectives. Conceptually, the value of research is not difficult to determine. It may be judged in terms of the difference between the result of decisions made with the information and the result that would be made without it. This application cannot be measured, though. Option analysis: Managers conduct formal analysis of each alternative research project judged in terms of estimated costs and associated benefits and with managerial judgment playing a major role. Decision theory: The focus is on trying to assess the outcomes of each action. The manager chooses the action that affords the best outcome – the action criteria that meets or exceeds whatever criteria are established. Each criterion is a combination of a decision rule and a decision variable. The decision rule is a criterion for judging the attractiveness of two or more alternatives when using a decision variable. The decision variable is a quantifiable characteristic, attribute, or outcome on which a choice decision will be made. The evaluation of alternatives requires that each alternative is explicitly stated, a decision variable is defined by an outcome that may be measured, and a decision rule is determined by which outcomes may be compared. Prior or Interim Evaluation: In this case, managers decide to control the research expenditure risk by doing a study in stages. Costs are then reviewed at each stage. Ex Post Facto Evaluation: This form occurs after the research is conducted but can be useful in guiding future decisions. Ex Post Facto Evaluation

Research Process Exhibit 4-1: Exhibit 4-1 models the sequence of stages in the research process. It also organizes this chapter and the introduces the remaining chapters in the book. Chapter 5 focuses on clarifying the research question. Chapters 6-14 focus on Stage 3: Research Design and Stage 4: Data Collection Chapter 15 focuses on Stage 4: Data preparation. Chapters 16-19 focus on Stage 5: Data Analysis and Interpretation. Chapter 20 focuses on Stage 6: Reporting. You can find more detail on research proposals and request for proposals (RFPs) in Appendix A.

Stage 1: Clarifying the Research Question Exhibit 4-1 illustrates the research process. This slide focuses on the first stage of the process, clarifying the research question. A useful way to approach the research process is to state the basic dilemma that prompts the research and then try to develop other questions by progressively breaking down the original question into more specific ones. This process can be thought of as the management-research question hierarchy. The process begins at the most general level with the management dilemma. This is usually a symptom of an actual problem, such as rising costs, declining sales, or a large number of defects. This portion of the research process is the focus of chapter 5. Key terms: A management dilemma is an opportunity of problem that the manager has discovered because of one or more symptoms. A management question is a restatement of the manager’s dilemma in question form. A research question is the hypothesis that best states the objective of the research; the question that focuses the researcher’s attention. An investigative question is the question the researcher must answer to satisfactorily answer the research question. A measurement question is the question asked of the participant or the observations that must be recorded. Management-research question hierarchy process begins by identifying the management dilemma

Stage 2: Proposing Research Budget Types Rule-of-thumb Departmental Task From Appendix A. Once the research is defined, the research must be proposed in order to allocate resources to the project. There are three types of budgets in organizations where research is purchased and cost containment is crucial. Rule-of-thumb budgeting involves taking a fixed percentage of some criterion. For example, a percentage of the prior year’s sales revenues may be the basis for determining the business research budget for a manufacturer. Departmental (functional area) budgeting allocates a portion of total expenditures in the unit to research activities. This allows units like human resources and marketing to have the authority to approve their own projects Task budgeting selects specific research projects to support on an ad hoc basis. This is the least pro-active form but permits definitive cost-benefit analysis.

The Research Proposal Written proposals establish Purpose Methods Extent Legally-binding contract Timing Written proposals establish From Appendix A A written proposal is often required and is desirable for establishing agreement on a number of issues. These issues are named in the slide. A research proposal may also be oral. This is more likely when a manager directs his or her own research. Students have an example of an external proposal on their text CD. Obligations Delivery Budgets

Stage 3: Designing the Research

Stage 3: Designing the Research Project Sampling Design Stage 3 encompasses the design of the research project. There are three components to this stage: research design, sampling design, and pilot testing. Research design is the blueprint for fulfilling objectives and providing the insight to answer the management dilemma. There are many methods, techniques, procedures, and protocols possible. Chapter 6 identifies various research designs and Chapters 7-14 discuss specific methodologies. Another step in planning the research project is to identify the target population and determine whether a sample or census is desired. A census is a count of all elements in a population. A sample is a group of cases, participants, events, or records that constitute a portion of the target population. The researcher must determine whether to choose a probability or nonprobability sample. Types of samples, sample frames, how samples are drawn, and the determination of sample size are discussed in Chapters 15. A pilot test is conducted to test weaknesses in the research methodology and the data collection instrument and to provide proxy data for selection of a probability sample. Chapter 14 focuses on instrument development and pilot testing is discussed. Pilot Testing

Stage 4: Data Collection

Collecting Sensitive Data Demands Safeguards Scotts used a healthcare management company to collect sensitive wellness data during annual health assessments to preserve participant confidentiality. Refer to the Snapshot in the teacher’s instruction manual: Scotts is Cultivating Lower Health Care Costs in the Instructor’s Manual.

Data Characteristics Abstractness Verifiability Elusiveness Closeness Stage 4 deals with data collection and preparation. Data may be characterized by their abstractness, verifiability, elusiveness, and closeness to the phenomenon. As abstractions, data are more metaphorical than real. For instance, the growth in GDP cannot be readily observed. Second, data are processed by our senses. When sensory experiences consistently produce the same result, our data are said to be trustworthy. Capturing data is elusive. Secondary data are originally collected to address a problem other than the one which require the manager’s attention at the moment. Primary data are data the research collects to address the specific problem at hand. Closeness

Stage 5: Data Analysis &Interpretation

Steps in Data Analysis and Interpretation Reduce data to manageable size Develop summaries Look for patterns Data analysis usually involves these four actions. Researchers then interpret their findings in light of the research questions and hypotheses. The raw data alone cannot provide the insights necessary to improve decision-making. Motorola and Rock the Vote teamed up during the 2004 presidential election to use cell phone surveys to track young voters’ changing perceptions during the campaign. The PicProfile on this research is on p. 88.   Apply statistical techniques

Stage 6: Reporting the Results

Parts of the Research Report Executive Summary Overview Technical Appendix Implementation Strategies In reporting the results, the researcher should strive to provide insightful information adapted to the client’s needs and to choose words carefully when crafting interpretations, conclusions, and recommendations. The research report should include an executive summary, research overview, implementation strategies, and a technical appendix. The executive summary consists of a synopsis of the problem, findings, and recommendations. The overview of research explains the background, exploratory findings from secondary data, the research design and procedures, and the conclusions. The implementation strategies section expands on recommendations. A technical appendix contains all the materials necessary to replicate the project.

The Research Report Overview Problem’s background Summary of exploratory findings Research design and procedures This slide presents the components of the research overview section of a research report. Conclusions

Research Process Problems to Avoid Ill-defined management problem Unresearchable questions Politically-motivated research Researchers must remain objective. The slide presents common problems in the research process. Unresearchable questions: Not all management questions are researchable and not all research questions are answerable. An ill-defined problem is one that addresses complex issues and cannot be expressed easily or completely. Politically-Motivated Research: Sometimes a research study is intended to win approval for a pet idea or to protect a decision maker. In these cases, it may be more difficult to get support for the most appropriate research design.

Research Process Problems to Avoid Company Database Strip-Mining The Favored-Technique Syndrome Researchers must remain objective. The slide presents common problems in the research process. The favored-technique syndrome occurs when researchers are method-bound. They recast management questions so that it is amenable to their favorite method. Company database strip-mining means that managers may feel that they do not want to collect more data until they have thoroughly evaluated all existing data. While data mining can be a good starting point, it will rarely address all questions related to a specific management dilemma. Not all management questions are researchable and not all research questions are answerable. An ill-defined problem is one that addresses complex issues and cannot be expressed easily or completely. Sometimes a research study is intended to win approval for a pet idea or to protect a decision maker. In these cases, it may be more difficult to get support for the most appropriate research design.

Key Terms Census Management question Data Primary data Secondary data Data analysis Decision rule exploration Investigative questions Management dilemma Management question Management-research question hierarchy Pilot test Research design Research process Research questions Sample Target population