Chapter 5 Clarifying the Research Question through Secondary Data and Exploration This chapter explains the use of secondary data sources to develop and formulate research questions. McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All Rights Reserved. 

Learning Objectives Understand... The purpose and process of exploratory research. The two types and three levels of management decision-related secondary sources. The five types of external information and the factors for evaluating the value of a source and its content.

Learning Objectives Understand . . . The process of using exploratory research to understand the management dilemma and work through the stages of analysis necessary to formulate the research question (and, ultimately, investigative questions and measurement questions). What is involved in internal data mining and how internal data-mining techniques differ from literature searches.

Clarifying the Research Question Reduces Information Overload “Companies are certainly aware of data mining, but most companies are not making effective use of the data collected. They are not so good at analyzing it or applying these insights to the business.” Gregory Piatetsky-Shapiro president Kdnuggets

PulsePoint: Research Revelation 33 The percent of financial executives who have full confidence in their current risk strategies. See the text Instructors Manual (downloadable from the text website) for ideas for using this research-generated statistic.

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.

The U.S. Government is the world’s largest source of data The U.S. Government is the world’s largest source of data. This ad promotes access to government data.

Information Sources Types Encyclopedias Directories Handbooks Indexes/ Bibliographies Dictionaries 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.

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 in Business Early use of data mining was still being driven by our search for understanding of customers, as noted by the emphasis on marketing’s use of data mining (green bars). Business also does a lot of data mining in search of greater profitability (financial analysis=yellow bar). Operations use was growing (gold bars). Notably absent was Human Resources use 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. Exhibit 3-2 illustrates the formulation of the research question for MindWriter. 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

Harris Interactive answers “Why?” for its research clients This ad from Harris Interactive promises that if this guy is your customer, you’ll actually understand what makes him tick.

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.

Key Terms Bibliography Bibliographic Database Data Mart Data Mining Data Visualization Data Warehouse Dictionary Directory Encyclopedia Expert interview Exploratory research Handbook Index Individual depth interview Investigative questions Literature search Management question Measurement question Custom-designed Predesigned Primary sources Research questions Secondary sources Source evaluation Purpose Scope Authority Audience Format Tertiary sources

Appendix 5a Bibliographic Database Searches Appendices 5b Advanced Searches This chapter explains the use of secondary data sources to develop and formulate research questions. 5-30

Searching Databases vs. the Web Exhibit 5a-1

Advanced Searching Process Exhibit 5b-2 The basis of searching is understanding how electronic databases are constructed for search. This exhibit is designed to provide the student with a 2-step process for writing advanced query statements using Boolean language. Each database has its own structure so students should always read the material provided by the particular provider about connectors, limiters, truncation symbols, etc. Students should also be encourage to search more than one database using the same search query.

Review of Advanced Search Options Exhibit 5b-1: If you do a day in the library or the computer lab, using this exhibit and the one on the previous slide is a good way to teach the development of query or search statement.