© 2006 The McGraw-Hill Companies, Inc., All Rights Reserved.McGraw-Hill/Irwin 3-1 Chapter 3 The Business Research Process: An Overview

3-2 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

3-3 Learning Objectives 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 which research process problems to avoid

3-4 The primary purpose of research is to reduce the level of risk of a business decision

3-5 Exhibit 3-1 The Business Research Process

3-6 Quotation from Albert Einstein “The formulation of a problem is far more often essential than its solution, which may be merely a matter of mathematical or experimental skill. To raise new questions, new possibilities, to regard old problems from a new angle requires creative imagination and marks real advance in science”

3-7 Stage 1 Clarifying the Research Question Management-research question hierarchy Begins with management dilemma

3-8 Symptom of Actual Problem Rising costs The discovery an expensive chemical compound that would increase the efficacy of a drug Increasing tenant move-outs from an apartment complex Declining sales Increasing employee turnover in a restaurant A large number of product defects during the manufacture of an automobile An increasing number of letters and phone complains about post-purchase service

3-9 Exhibit 3-2 Management- Research Question Hierarchy

3-10 Exhibit 3-5 SalePro’s Hierarchy

3-11 Exhibit 3-3 Formulating the Research Question

3-12 Types of Management Questions

3-13 The Research Question Determine necessary evidence Set scope of study Set scope of study Examine variables Examine variables Break questions down Evaluate hypotheses Fine-Tuning

3-14 Performance Considerations © 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Investigative Questions Attitudinal Issues Behavioral Issues

3-15 Harris Interactive answers “Why?” for its research clients

3-16 Stage 2 Proposing Research Exhibit 3-7 Budget Types –Rule-of-thumb –Departmental –Task

3-17 Exhibit 3-6 Gantt Chart MindWriter Project Plan

3-18 Evaluating the Value of Research Option Analysis Decision Theory Prior or Interim Evaluation Ex Post Facto Evaluation

3-19 The Research Proposal Delivery Legally- binding contract Legally- binding contract Obligations Written proposals establish Written proposals establish Methods Timing Budgets Extent Purpose

3-20 Stage 3 Designing the Research Project Designing the Research Project Research Design Research Design Sampling Design Sampling Design Pilot Testing

3-21 Stage 4 Data Collection Data Characteristics Abstractness Verifiability Elusiveness Closeness

3-22 Reducing data to manageable size © 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Stage 5 Data Analysis and Interpretation Developing summaries Looking for patterns Applying statistical techniques

3-23 Stage 6 Reporting the Results Research Report Research Report Executive Summary Executive Summary Research Overview Research Overview Technical Appendix Technical Appendix Implementation Strategies Implementation Strategies

3-24 The Research Overview Problem’s background Summary of exploratory findings Research design and procedures Conclusions

3-25 Research Process Issues The Favored-Technique Syndrome Company Database Strip- Mining Unresearchable Questions Ill-Defined Management Problems Politically Motivated Research

3-26 Key Terms Census Data –Primary data –Secondary data Data analysis Decision rule exploration Investigative questions Management dilemma Management question Management-research question hierarchy Measurement questions Pilot test Research design Research process Research questions Sample