McGraw-Hill/IrwinCopyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved. THINKING LIKE A RESEARCHER Chapter 3

3-2 Learning Objectives Understand... The terminology used by professional researchers employing scientific thinking. What you need to formulate a solid research hypothesis. The need for sound reasoning to enhance research results.

3-3 Research Thought Leaders “Thought leaders, academics, business authors from the increasingly merging worlds of psychology, philosophy, economics, trends, semiotics are powerful forces, that have the ability to capture the imagination and attention at the highest level of business. Research needs to define itself more broadly, embrace the most exciting thinkers into our fold. We need to infuse our thinking with that of related fields.” Edward Appleton, senior European consumer insights manager, Avery Dennison

3-4 Language of Research Variables Models Theory Terms used in research Terms used in research Constructs Operational definitions Operational definitions Propositions/ Hypotheses Propositions/ Hypotheses Conceptual schemes Conceptual schemes Concepts

3-5 Language of Research Clear conceptualization of concepts Shared understanding of concepts Success of Research

3-6 Job Redesign Constructs and Concepts

3-7 Operational Definitions Freshman Sophomore Junior Senior < 30 credit hours credit hours credit hours > 90 credit hours How can we define the variable “class level of students”?

3-8 A Variable: Property Being Studied Variable Event Act Characteristic Trait Attribute

3-9 Types of Variables Dichotomous Male/Female Employed/ Unemployed Male/Female Employed/ Unemployed Discrete Ethnic background Educational level Religious affiliation Ethnic background Educational level Religious affiliation Continuous Income Temperature Age Income Temperature Age

3-10 Independent and Dependent Variable Synonyms Independent Variable (IV) Predictor Presumed cause Stimulus Predicted from… Antecedent Manipulated Dependent Variable (DV) Criterion Presumed effect Response Predicted to…. Consequence Measured outcome

3-11 Relationships Among Variable Types

3-12 Relationships Among Variable Types

3-13 Relationships Among Variable Types

3-14 Moderating Variables (MV) The introduction of a four-day week (IV) will lead to higher productivity (DV), especially among younger workers (MV) The switch to commission from a salary compensation system (IV) will lead to increased sales (DV) per worker, especially more experienced workers (MV). The loss of mining jobs (IV) leads to acceptance of higher-risk behaviors to earn a family-supporting income (DV) – particularly among those with a limited education (MV).

3-15 Extraneous Variables (EV) With new customers (EV-control), a switch to commission from a salary compensation system (IV) will lead to increased sales productivity (DV) per worker, especially among younger workers (MV). Among residents with less than a high school education (EV-control), the loss of jobs (IV) leads to high-risk behaviors (DV), especially due to the proximity of the firing range (MV).

3-16 Intervening Variables (IVV) The switch to a commission compensation system (IV) will lead to higher sales (DV) by increasing overall compensation (IVV). A promotion campaign (IV) will increase savings activity (DV), especially when free prizes are offered (MV), but chiefly among smaller savers (EV-control). The results come from enhancing the motivation to save (IVV).

3-17 Propositions and Hypotheses Brand Manager Jones (case) has a higher-than- average achievement motivation (variable). Brand managers in Company Z (cases) have a higher-than-average achievement motivation (variable). Generalization

3-18 Descriptive Hypothesis Formats Descriptive Hypothesis In Detroit, our potato chip market share stands at 13.7%. American cities are experiencing budget difficulties. Research Question What is the market share for our potato chips in Detroit? Are American cities experiencing budget difficulties?

3-19 Relational Hypotheses Formats 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 store’s private brand products.

3-20 The Role of Hypotheses Guide the direction of the study Identify relevant facts Suggest most appropriate research design Provide framework for organizing resulting conclusions

3-21 Characteristics of Strong Hypotheses A Strong Hypothesis Adequate Testable Better than rivals

3-22 Theory within Research

3-23 The Role of Reasoning

3-24 A Model within Research

3-25 The Scientific Method Direct observation Clearly defined variables Clearly defined methods Empirically testable Elimination of alternatives Statistical justification Self-correcting process

3-26 Researchers Encounter problems State problems Propose hypotheses Deduce outcomes Formulate rival hypotheses Devise and conduct empirical tests Draw conclusions

3-27 Why is curiosity important?

3-28 Sound Reasoning ExpositionArgument InductionDeduction Types of Discourse

3-29 Deductive Reasoning Inner-city household interviewing is especially difficult and expensive Inner-city household interviewing is especially difficult and expensive This survey involves substantial inner-city household interviewing This survey involves substantial inner-city household interviewing The interviewing in this survey will be especially difficult and expensive The interviewing in this survey will be especially difficult and expensive

3-30 Deductive Reasoning Apply deductive reasoning to this image. What will happen next?

3-31 Inductive Reasoning Why didn’t 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

3-32 Why Didn’t Sales Increase?

3-33 Tracy’s Performance

3-34 Key Terms Argument Case Concept Conceptual scheme Construct Deduction Empiricism Exposition Hypothesis  Correlational  Descriptive  Explanatory  Relational Hypothetical construct Induction Model Operational definition Proposition Sound reasoning Theory Variable  Control  Confounding (CFV)  Dependent (DV)  Extraneous (EV)  Independent (IV)  Intervening (IVV)  Moderating (MV)

McGraw-Hill/IrwinCopyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved. ADDITIONAL DISCUSSION OPPORTUNITIES Chapter 3

3-36 PicProfile: Shopping & Mobile Phones

3-37 Snapshot: Politicized Definitions The National Academies advises on scientific issues. Created voluntary guidelines for embryonic stem cell research. Comprehensive definition of terms accepted by every researcher. Volatile political issue = no nationwide guidelines Politicians fill the void with own definitions to exploit personal agenda.

3-38 Snapshot: Radio Chips vs. Retinal Scans Prevent cattle-born disease with database of cattle Track cattle from birth to slaughter Theory 1: RFID tag with tracking data in ear-mounted tag Theory 2: retinal scan with tracking data in hand held reader

3-39 Snapshot: Gut Hunches “People usually experience true intuition when they are under severe time pressure or in a situation of information overload or acute danger, where conscious analysis of the situation may be difficult or impossible.”

3-40 Pull Quote: Research Thought Leaders “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

3-41 PulsePoint: Research Revelations 55 The percent of executives who admitted that their companies do not have an official policy for social networks.

3-42 Formulating a Hypothesis Wal-Mart recently decided not to share its unit sales information with IRI, a large syndicated research distributor. After studying the data, Wal-Mart didn’t think it was getting enough value from competitor information in the syndicate. What hypothesis might have driven its research?

McGraw-Hill/IrwinCopyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved. THINKING LIKE A RESEARCHER Chapter 3

3-44 Photo Attributions