1. Business Research Methods William G. Zikmund
Chapter 4:
The Business Research Process

2. Chapter 4: The Business Research Process
1.Information and Decision Making 2. Types of Research 2.1. Exploratory 2.2. Descriptive 2.3. Causal 3. Stages of the Research Process

3. 1.Information and Decision Making
The key to decision making is:
to recognize the nature of the problem/opportunity,
to identify what type of information is needed,
and how much information is available.
Information reduces the level of certainty in decision making

4. Levels of Certainty in Decision Making
1.Certainty: Necessary information is perfectly available, which is something rare. Under certainty, the exact nature of the problem/opportunity is clear, Objectives to be achieved by an effective decision are set.

5. Certainty: Necessary information to develop alternatives and select the best solution among them is already present Therefore, there is no need to make research for understanding the situation and making prediction.

6. 2. Uncertainty: Necessary information is somewhat available, which is something usual. Under uncertainty, the exact nature of the problem/opportunity is clear, Objectives to be achieved by an effective decision are set.

7. Uncertainty: However, necessary information to develop alternatives and select the best solution among them is incomplete. Therefore, research is needed to enlarge our incomplete understanding of the situation and to be able to make better predictions than managerial guesses.

8. 3. Ambiguity: Almost no information is available, which is something rare. Under ambiguity, the exact nature of the problem/opportunity is not clear, Objectives to be achieved by an effective decision are not set yet.

9. Ambiguity: Necessary information to develop alternatives and select the best solution among them is incomplete. Therefore, research is extremely needed to enlarge our understanding and to be able to make predictions.

10. 2. Types of Research
Exploratory
Descriptive
Causal

11. Uncertainty Influences the Type of Research
COMPLETE
CERTAINTY
ABSOLUTE
AMBIGUITY
UNCERTAINTY
NO RESEARCH AT ALL
CAUSAL RESEARCH
DESCRIPTIVE RESEARCH
EXPLORATORY RESEARCH

12. Degree of Problem Definition
Exploratory Research Descriptive Research Causal Research
(Unaware of Problem) (Aware of Problem) (Problem Clearly Defined)
“Our sales are declining and “What kind of people are buying “Will buyers purchase more of
we don’t know why.” our product? Who buys our our products in a new package?
competitor’s product?”
“Would people be interested “Which of two advertising
in our new product idea?” “What features do buyers prefer campaigns is more effective?”
in our product?”
possible situation

13. 2.1. Exploratory Research Secondary data Experience survey
Pilot studies

14. Exploratory Research
Initial research conducted to clarify and define the nature of a problem
Does not provide conclusive evidence
Subsequent research expected

15. 2.2. Descriptive Research
Describes characteristics of a population or phenomenon
Some understanding of the nature of the problem

16. I keep six honest serving men, (they taught me all I knew), their names are
what,
and why,
and when,
and how,
and where
and who.”
--Rudyard Kipling

17. 2.3. Causal Research
Conducted to identify cause and effect relationships

18. Identifying Causality
A causal relationship is impossible to prove.
Evidence of causality:
1. The appropriate causal order of events
2. Concomitant variation--two phenomena vary together
3. An absence of alternative plausible explanations

19. 3. Stages of the Research Process
Problem Discovery
and Definition
Discovery and
Definition
and so on
Research
Design
Conclusions and
Report
Sampling
Data Processing
and Analysis
Data
Gathering

20. Problem discovery Selection of exploratory research technique
and Definition
Sampling
Selection of
exploratory research
technique
Probability
Nonprobability
Secondary
(historical)
data
Experience
survey
Pilot
study
Case
study
Collection of
data
(fieldwork)
Data
Gathering
Data
Processing
and
Analysis
Editing and
coding
data
Problem definition
(statement of
research objectives)
Data
processing
Selection of
basic research
method
Research Design
Conclusions
and Report
Interpretation of
findings
Experiment
Survey
Observation
Secondary
Data Study
Report
Laboratory
Field
Interview
Questionnaire

21. The Business Research Process
Problem Discovery
Selection of Sample Design
Exploratory Research
Collection of the Data
Selection of the Basic Research Method

22. The Research Process (cont.)
Editing and Coding
Report
Data Processing
Interpretation of the Findings

23. “The formulation of the problem is often more essential than its solution”
Albert Einstein