Business Research Process 2

Exploratory Phase Search Strategy Discovery/ Analysis Secondary Sources Search Strategy Expert Interview Group Discussions Exploration is particularly useful when researchers lack a clear idea of the problems they will meet during the study. Through exploration researchers develop concepts more clearly, establish priorities, develop operational definitions, and improve the final research design. The exploratory phase usually consists of one or more of the search strategies detailed in the slide. Discovery and analysis of secondary data sources include published studies, document analysis, and retrieval of information from organization’s databases. Expert interviews are interviews with those who knowledgeable about the problem or its possible solutions. IDIs are interviews with individuals involved with the problem. Formal or informal group discussions may also be held. Most researchers find a review of secondary sources critical to moving from the management question to the research question. Individual Depth Interviews

Integration of Secondary Data into the Research Process Exhibit 5-1 suggests that exploration of secondary sources can be useful at any stage of the management-research question hierarchy.

Objectives of Secondary Searches Expand understanding of management dilemma Gather background information Identify information to gather Identify sources for and actual questions Identify sources for and actual sample frames This slide details the objectives that should be accomplished during the exploratory research phase of a project. Expand understanding of management dilemma Gather background information Identify information that should be gathered Identify sources for and actual questions that might be used Identify sources for and actual sample frames that might be used

Conducting a Literature Search Define management dilemma Consult books for relevant terms Use terms to search Generally, the exploration phase will begin with a literature search. A literature search is a review of books, journal articles, and professional literature that relate to the management dilemma. This may also include Web-published material. This slide details the five steps of a literature search. The result of a literature search could be a solution to the management dilemma. If so, no further research is necessary. Otherwise, a research proposal is generated. Locate/review secondary sources Evaluate value of each source and content

Researchers often meet to discuss symptoms when developing the management-research question hierarchy. Whiteboard technology makes an easier discussion of symptoms relevant to the management-research question hierarchy

Levels of Information Primary Sources: Memos Letters Interviews Speeches Laws Internal records Secondary Sources: Encyclopedias Textbooks Handbooks Magazines Newspapers Newscasts Tertiary Sources: Indexes Bibliographies Internet search engines Information sources are categorized into three levels. Primary sources are original works of research or raw data without interpretation or pronouncements that represent an official opinion or position. Secondary sources are interpretations of primary data. A firm searching for secondary sources can search either internally or externally, as depicted in Exhibit 5-2. This exhibit is shown on the next slide. Tertiary sources are aids to discover primary or secondary sources or an interpretation of a secondary source.

Integrating Secondary Data Exhibit 5-2 This slide illustrates some of the possible internal and external secondary sources. To verify that students understand each of the types of sources, ask them for examples.

Types of Information Sources Indexes/ Bibliographies Directories Dictionaries Types These are the five types of information sources used most by researchers at this phase of a project. Indexes and bibliographies help one to identify books and journal articles. An index is a secondary data source that helps to identify and locate a single book, journal article, author, etc. from a larger set. A bibliography is an information source that helps locate a single book, article, photograph, etc. Dictionaries are secondary sources that define words, terms, and jargon. Encyclopedias are secondary sources that provide background or historical information about a topic. A handbook is a secondary source used to identify key terms, people, or events relevant to the management dilemma or management question. Directories are reference sources used to identify contact information. Handbooks Encyclopedias

Evaluating Information Sources Purpose Format Scope Evaluation Factors A researcher using secondary sources will want to conduct a source evaluation. Marketers should evaluate and select information sources based on five factors. Purpose is the explicit or hidden agenda of the information source. Scope is the breadth or depth of topic coverage, including time period, geographic limitations, and the criteria for information inclusion. Authority is the level of the data (primary, secondary, tertiary) and the credentials of the source author. Audience refers to the characteristics and background of the people or groups for whom the source was created. Format refers to how the information is presented and the degree of ease in locating specific information within the source. Students often accept web-delivered information as of the same quality as electronic databases. One exercise is to have them view a web-site and present an analysis of it using the five factors. Students are often active participants in blogging, so having them use such a site for analysis might open their eyes. Exhibit 5-3 offers several questions to answer when evaluating web sites on the five factors. Audience Authority

The Evolution of Data Mining Evolutionary Step Investigative Question Enabling Technologies Characteristics Data collection (1960s) “What was my average total revenue over the last five years?” Computers, tapes, disks Retrospective, static data delivery Data access (1980s) “What were unit sales in California last December?” Relational databases (RDBMS), structured query language (SQL), ODBC Retrospective, dynamic data delivery at record level Data navigation (1990s) “What were unit sales in California last December? Drill down to Sacramento.” Online analytic processing (OLAP), multidimensional databases, data warehouses Retrospective, dynamic data delivery at multiple levels Data mining (2000) “What’s likely to happen to Sacramento unit sales next month? Why?” Advanced algorithms, multiprocessor computers, massive databases Prospective, proactive information delivery Exhibit 5-4: Data mining is a type of record analysis. It uses mathematical models to extract meaningful knowledge from integrated databases. This Exhibit discusses the evolution of data mining.

Data-Mining Process Exhibit 5-5 The data mining process involves five steps: sample, explore, modify, model, and assess. In the sample step, the researcher decides between census data and sample data. Explore involves identifying relationships with the data. In the third step, data are modeled and/or transformed. In the fourth step, a model is developed that explains the data relationships. Finally, the model is tested for accuracy.

Business Research Process

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. 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 begins by identifying the management dilemma

Management-Research Question Hierarchy Exhibit 5-6 The management-research question hierarchy process is designed to move the researcher through various levels of questions, each with a specific function within the overall marketing research process. This multi-step process is illustrated in the slide. An example is provided on the following slide. The role of exploration in this process is depicted in Exhibit 3-4, located on Slide 3-9.

SalePro’s Hierarchy Exhibit 5-7 Declining sales is one of the most common symptoms serving as a stimulus for a research project. SalePro, a large manufacturer of industrial goods, faces this situation. Exploration 1 reveals that sales should not be declining in the South and Northeast. Environmental factors there are as favorable as in the growing regions. Subsequent exploration leads management to believe that the problem is in one of three areas: salesperson compensation, product formulation, or trade advertising. Further exploration (4) has SalePro management narrowing the focus of its research to alternative ways to alter the sales compensation system, which (5) leads to a survey of all sales personnel in the affected regions.

Formulating the Research Question This slide depicts how exploration leads back into the formulation of management questions and research questions. Examples of management questions are provided on the next slide.

Types of Management Questions This table shows examples of management questions that might flow from general questions, some drawn from Exhibit 5-9.

Determine necessary evidence The Research Question Examine variables Break questions down Fine-Tuning Determine necessary evidence Set scope of study A research question best states the objective of the marketing research study. Incorrectly defining the research question is the fundamental weakness in the marketing research process. After the exploration process is complete, the researcher must fine-tune the research question. At this point, the research question will have evolved in some fashion. It will have better focus. In addition to fine-tuning the original question, other research question-related activities should be addressed in this phase to enhance the direction of the project. Examine variables to be studied and assess whether they are operationally defined. Review the research questions to break them down into second and third-level questions. If hypotheses are used, be sure they meet the quality tests. Determine what evidence must be collected to answer the various questions and hypotheses. Set the scope of the study by stating what is not a part of the research question. Evaluate hypotheses

Investigative Questions Performance Considerations Attitudinal Issues   Investigative questions represent the information that the marketing decision maker needs to know. In developing a list of investigative questions, keep these things in mind. Behavioral Issues

MindWriter Project Plan Gantt Chart MindWriter Project Plan A Gantt chart is a common project planning tool that reveals summary tasks, benchmarking milestones, and detailed tasks against a time frame for the overall project. Tasks may be color coded to indicate a particular team member’s responsibilities. Many project-management software packages include Gantt charting. The chart may be used to monitor projects to keep them on time, as well as to alert the client or manager to steps requiring their approval—and what happens to the project’s schedule if approval is not forthcoming when it is needed.

What Is Research Design? Blueprint Plan Guide There are many definitions of research design. Research design is the blueprint for fulfilling research objectives and answering questions. Its essentials include 1) an activity and time-based plan, 2) a plan based on the research questions, 3) a guide for selecting sources and types of information, 4) a framework for specifying the relationships among the study’s variables, and 5) a procedural outline for every research activity. Framework

Design in the Research Process Exhibit 6-1 illustrates design in the research process and highlights the topics covered by the term research design. Subsequent chapters will provide more detailed coverage of the research design topics.

What Tools Are Used in Designing Research? Exhibit 6-2 provides one project management tool: critical path method (CPM). In a CPM chart: The nodes represent major milestones. The arrows suggest the work needed to get to the milestones. More than one arrow pointing to a node indicates all those tasks must be completed before the milestone has been met. Usually a number is placed along the arrow showing the number of days or weeks required for that task to be completed. The pathway from start to end that takes the longest time to complete is called the critical path.

What Tools Are Used in Designing Research? MindWriter Project Plan in Gantt chart format A Gantt chart ( Exhibit 5-11, MindWriter project) is a common project planning tool that reveals summary tasks, benchmarking milestones, and detailed tasks against a time frame for the overall project. Tasks may be color coded to indicate a particular team member’s responsibilities. Many project-management software packages include Gantt charting. The chart may be used to monitor projects to keep them on time, as well as to alert the client or manager to steps requiring their approval—and what happens to the project’s schedule if approval is not forthcoming when it is needed.

Research Design Descriptors Question Crystallization Perceptual Awareness Data Collection Method Descriptors Purpose of Study Experimental Effects Exhibit 6-3 information is presented here in a discussion format. The degree to which the research question has been crystallized Exploratory study Formal study The method of data collection Monitoring Communication Study The power of the researcher to produce effects in the variables under study Experimental Ex post facto The purpose of the study Reporting Descriptive Causal-Explanatory Causal-Predictive The time dimension Cross-sectional Longitudinal The topical scope—breadth and depth—of the study Case Statistical study The research environment Field setting Laboratory research Simulation The participants’ perceptional awareness of the research activity Actual routine Modified routine Research Environment Time Dimension Topical Scope

Degree of Question Crystallization Exploratory Study Loose structure Expand understanding Provide insight Develop hypotheses Formal Study Precise procedures Begins with hypotheses Answers research questions The degree to which the research question has been crystallized or structured is the first descriptor of research design. There are two options. Exploratory studies are used when the research question is still fluid or undetermined. The goal of exploration is to develop hypotheses or questions for future research. Formal studies are used when the research question is fully developed and there are hypotheses to be examined.

Approaches for Exploratory Investigations Participant observation Film, photographs Projective techniques Psychological testing Case studies Ethnography Expert interviews Document analysis Proxemics and Kinesics The objectives of exploration may be accomplished with qualitative and quantitative techniques, but exploration relies more heavily on qualitative techniques. Qualitative techniques are non-quantitative data collection used to increase understanding of a topic. Qualitative refers to the meaning, definition, analogy, model, or metaphor characterizing something, while quantitative assumes the meaning and refers to a measure of it. There are many approaches useful for exploratory investigations of management questions. Several such approaches are listed in the slide. These techniques are expanded upon in Chapter 8.

Desired Outcomes of Exploratory Studies Established range and scope of possible management decisions Established major dimensions of research task An exploratory study is finished when the researchers have achieved the objectives listed in this and the next slide. Defined a set of subsidiary questions that can guide research design

Desired Outcomes of Exploratory Studies (cont.) Develop hypotheses about possible causes of management dilemma Learn which hypotheses can be safely ignored Conclude additional research is not needed or not feasible

Commonly Used Exploratory Techniques Secondary Data Analysis Experience Surveys Focus Groups While there are several types of exploratory techniques possible these are the three techniques with the widest applications for business researchers. Secondary data analysis is also called a literature search. Within secondary data exploration, researchers should start first with an organization’s own data archives. The second source of secondary data is published documents prepared by authors outside the sponsor organization. Experience surveys are semistructured or unstructured interviews with experts on a topic or a dimension of a topic. Focus groups are discussions on a topic involving a small group of participants led by a trained moderator.

Face-to-face interaction—one of the best ways to learn from participants. This ad for Delve, a marketing research firm, points out the importance of primary data.

Experience Surveys What is being done? What has been tried in the past with or without success? How have things changed? Who is involved in the decisions? What problem areas can be seen? Whom can we count on to assist or participate in the research? Experience surveys are sometimes called expert interviews or key informant surveys. Even though the term survey is in the name, it is not a closed-ended, structured survey. Rather, experience surveys are interviews designed to extract as much information as possible from the expert’s knowledge. Broad questions guide the discussion. Several questions that could be used in an experience survey are listed in the slide. Some examples of groups who might be identified for an experience survey include potential car buyers, dealer sales representatives, advertising columnists, and automotive industry analysts.

Focus Groups Group discussion 6-10 participants Moderator-led 90 minutes-2 hours Focus groups are widely used in business research. They are led by a trained moderator and typically include 6-10 participants. Mini-focus groups with just 3 people are increasingly common. The facilitator uses group dynamics principles to focus or guide the group in an exchange of ideas, feelings, and experiences on a specific topic. Focus groups can take place in a variety of settings, but many take place in a focus group room equipped with one-way window and recording devices.