bus 321 science methodology lectured by prof. dr. lütfihak alpkan gebze institute of technology...
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BUS 321Science Methodology
Lectured by
Prof. Dr. Lütfihak Alpkan
Gebze Institute of Technology
Main Textbook: William G. Zikmund’s
Business Research Methods
WEEK DATE TEACHING PLAN
1 24. 09 Introduction
2 01. 10 Ch. 1: The Role of Business Research
3 08.10 Ch. 3: Theory Building
4 15.10 Ch. 4: The Business Research Process
5 22. 10 Ch. 5: Ethical Issues in Business Research
7 05. 11 General overview
8 12. 11 MIDTERM EXAM 1
9 19. 12 Ch. 6: Problem Definition and Research Proposal
10 26. 12 Ch. 7: Exploratory Research and Qualitative Analysis
11 03. 12 Ch. 8: Secondary Data
12 10. 12 Ch. 9: Survey Research
13 17. 12 General overview
14 24.12 MIDTERM EXAM 2
BusinessResearch Methods
William G. Zikmund
Chapter 1:
The Role of Business Research
Chapter 1: The Role of Business Research
1. Business Research Defined
2. Business Research Types
3. The Role of Research in Decision-making Process
4. Determining When to Conduct Business Research
5. Major Topics for Research in Business
6. Basic Methods of Research
•Business research is the systematic and objective process of generating information to reduce uncertainty.
•Business research is conducted to provide valid and reliable answer(s) to already posed research questions.
•It facilitates the managerial decision process for all aspects of a business.
1. Business Research Defined
Business Research
• Research information is neither intuitive nor haphazardly gathered.
• Literally, research (re-search) -“search again”
• Business research must be objective
• Detached and impersonal rather than biased
Information
Reduces
Uncertainty
I don’t knowif we
shouldoffer on-sitechild care?
Research Questions “?”
Data versus InformationData versus Information
• Data—the raw facts—record measures of certain phenomena which are necessary to provide
• Information—facts in a form suitable for managers to base decisions on.
Characteristics of Valuable Information
Characteristics of Valuable Information
• Relevance
• Quality
• Timeliness
• Completeness
2. Business Research Types
Basic Research: • Attempts to expand the limits of knowledge.• Not directly involved in the solution to a pragmatic problem.
Applied Research:• Conducted when a decision must be made about a specific real-life problem
Basic Research Example
• Is executive success correlated with high need for achievement?
• Are members of highly cohesive work groups more satisfied than members of less cohesive work groups?
• Do consumers experience cognitive dissonance in low-involvement situations?
Applied Research Examples
• Should McDonalds add Italian pasta dinners to its menu?
• Business research told McDonald’s it should not
• Should Procter & Gamble add a high-priced home teeth bleaching kit to its product line?
• Research showed Crest Whitestrips would sell well at a retail price of $44
3. The Role of Research in the Decision-making Process
Information is vital to conduct a proper decision process for successfully:
• Identifying problems and opportunities
• Diagnosis and assessment
• Selecting and implementing a course of action
• Evaluating the course of action
The Process of Decision Making
• Decision making– The process through which managers and leaders
identify and resolve problems and capitalize on opportunities.
• Problem– A condition that occurs when some aspect of
organizational performance is less than desirable.
• Opportunity– Any situation that has the potential to provide
additional beneficial outcomes.
Seven Steps in the Decision-Making Process
Identifying opportunities and diagnosing problems
Identifying objectives
Generating alternatives
Evaluating alternatives
Choosing implementation strategies
Monitoring and evaluating
Reaching decisions
Step 1: Identifying Opportunities and Diagnosing Problems
• The clear identification of opportunities or the diagnosis of problems that require a decision.
• An assessment of opportunities and problems will only be as accurate as the information on which it is based.
Step 2: Identifying Objectives
• Objectives reflect the results the organization wants to attain. Also called targets, standards or ends.– The quantity and quality of the desired results should be
specified, for these aspects will ultimately guide the decision maker in selecting the appropriate course of action.
– Objectives can be measured on a variety of dimensions (monetary units, output per hour, % of defects, etc.) and whether the objectives are long-term versus short-term.
Step 3: Generating Alternatives
• Once an opportunity has been identified or a problem diagnosed correctly, a manager develops various ways to solve the problem and achieve objectives.
• The alternatives can be standard and obvious as well as innovative and unique.
Step 4: Evaluating Alternatives
• Determining the value or adequacy of the alternatives generated.
• Predetermined decision criteria may be used in the evaluation process.
– Quality desired
– Anticipated costs
– Benefits
– Uncertainties
– Risks
Step 5: Reaching Decisions
• Decision making is commonly associated with making a final choice.
• Although choosing an alternative would seem to be a straightforward proposition, in reality the choice is rarely clear-cut.
Step 6: Choosing Implementation Strategies
• The bridge between reaching a decision and evaluating the results.
• The keys to effective implementation are:– Sensitivity to those who will be affected by the
decision.– Proper planning and consideration of the
resources necessary to carry out the decision.
Keys to Effective Implementation of Decisions
Step 7: Monitoring and Evaluating
• No decision-making process is complete until the impact of the decision has been evaluated.
• Managers must observe the impact of the decision as objectively as possible and take further corrective action if it becomes necessary.
4. Determining When to Conduct Business Research
• Time constraints
• Availability of data
• Nature of the decision
• Benefits versus costs
Is sufficient time available before
a managerial decision
must be made?
Is the information already
on handinadequate for making
the decision?
Is the decision of considerable
strategicor tactical
importance?
Does the value of the research
informationexceed the cost of conducting
research?
ConductingBusinessResearch
Do Not Conduct Business Research
Time ConstraintsAvailability
of DataNature of
the DecisionBenefits vs. Costs
Yes YesYesYes
No No No No
When to Conduct Business Research?
Value
•Decreased certainty•Increased likelihood of a correct decision•Improved business performance and resulting higher profits
Costs•Research expenditures•Delay of business decision and possible disclosure of information to rivals•Possible erroneous research results
Value Should Exceed Estimated Costs
5. Major Topics for Research in Business
• General Business Conditions and Corporate Research
• Financial and Accounting Research• Management and Organizational Behavior
Research• Sales and Marketing Research• Information Systems Research• Corporate Responsibility Research
6. Basic Methods of Research
• Surveys
• Experiments
• Secondary data
• Observation
BusinessResearch Methods
William G. Zikmund
Chapter 3:
Theory Building
Chapter 3: Theory Building
1. Definition of Theory
2. Levels of Reality
2.1. Constracts
2.2. Propositions
3. Scientific Method
3.1. Deductive Reasoning
3.2. Inductive Reasoning
1. Definition of Theory
A coherent set of general propositions used as principles of explanation of the apparent relationships of certain observed phenomena.
Two Purposes of Theory:
• Understanding
• Prediction
Theories
Theories are nets cast to catch what we call “the world”: to rationalize, to explain, and to master it. We endeavor to make the mesh ever finer and finer.
Karl R. Popper
2. Levels of Reality
• Abstract level (concepts & propositions): in theory development, the level of knowledge expressing a concept that exists only as an idea or a quality apart from an object.
• Empirical level (variables & hypotheses): level of knowledge reflecting that which is verifiable by experience or observation.
2.1. Concept (or Construct)
• A generalized idea about a class of objects, attributes, occurrences, or processes that has been given a name
• Building blocks that abstract reality
• “leadership,” “productivity,” and “morale”
• “gross national product,” “asset,” and “inflation”
CONCEPTS
OBSERVATION OF OBJECTS AND EVENTS (REALITY)
EmpiricalLevel
AbstractLevel
Concepts are Abstractions of Reality
Vegetation Vegetation
Fruit Fruit
Banana Banana
Reality Reality
Incr
easi
ngly
mor
e ab
stra
ct
A Ladder Of Abstraction For Concepts
Theory Building: A Process Of Increasing Abstraction
Theories Theories
Propositions Propositions
Concepts Concepts
Observation of objectsObservation of objectsand events (reality ) and events (reality ) In
crea
sing
ly m
ore
abst
ract
2.2. Propositions
• Propositions are statements concerned with the relationships among concepts.
• A hypothesis is a proposition that is empirically testable. It is an empirical statement concerned with the relationship among variables.
• A variable is anything that may assume different numerical values.
Always makes four sales calls
a day
Dollar bonus for sales volume
over quota
Concept B(Habits)
Hypothesis at Empirical Level
Concept A(Reinforcement)
Proposition at Abstract Level
3. Scientific Method
The use of a set of prescribed procedures for establishing and connecting theoretical statements about events and for predicting events yet unknown.
© 2002 Southwestern College Publishing. All rights reserved.
1–41
Empirical Evidence help us predict future reality through abstract concepts
3.1. Deductive Reasoning
• The logical process of deriving a conclusion from a known premise or something known to be true. – We know that all managers are human beings.
– If we also know that John Smith is a manager,
– then we can deduce that John Smith is a human being.
3.2. Inductive Reasoning
• The logical process of establishing a general proposition on the basis of observation of particular facts.– All managers that have ever been seen are
human beings;– therefore all managers are human beings.
Assessrelevant existingknowledge
Formulateconcepts &Propositions
Statementof Hypotheses
Design research
Acquire empiricaldata
Analyze &evaluate data
Provide explanation-state newproblem
The Scientific Method: An Overview
Business Research Methods
William G. Zikmund
Chapter 4:
The Business Research Process
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
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
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.
Levels of Certainty in Decision Making
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.
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.
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.
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.
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.
2. Types of Research
• Exploratory
• Descriptive
• Causal
COMPLETECERTAINTY
ABSOLUTEAMBIGUITY
CAUSAL RESEARCH
EXPLORATORY RESEARCH
Uncertainty Influences the Type of Research
UNCERTAINTY
DESCRIPTIVE RESEARCH
NO RESEARCH AT ALL
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?”poss
ible
situ
atio
n
Degree of Problem Definition
57
2.1. Exploratory Research
Secondary data
Experience survey
Pilot studies
Exploratory Research
• Initial research conducted to clarify and define the nature of a problem
• Does not provide conclusive evidence
• Subsequent research expected
2.2. Descriptive Research
• Describes characteristics of a population or phenomenon
• Some understanding of the nature of the problem
60
I keep six honest serving men, (they taught me all I knew), their names are
--Rudyard Kipling
what, and why, and when,
and how,and where and
who.”
2.3. Causal Research
• Conducted to identify cause and effect relationships
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
3. Stages of the Research Process
Problem Discoveryand Definition
ResearchDesign
Sampling
DataGathering
Data Processingand Analysis
Conclusions andReport
Discovery andDefinition
and so on
Problemdiscovery
Problem definition(statement of
research objectives)
Secondary(historical)
data
Experiencesurvey
Pilotstudy
Casestudy
Selection ofexploratory research
technique
Selection ofbasic research
method
Experiment SurveyObservation Secondary
Data StudyLaboratory Field Interview Questionnaire
Selection ofexploratory research
techniqueSampling
Probability Nonprobability
Collection ofdata
(fieldwork)
Editing andcodingdata
Dataprocessing
Interpretationof
findings
Report
DataGathering
DataProcessingandAnalysis
Conclusionsand Report
Research Design
Problem Discoveryand Definition
The Business Research Process
Problem Discovery
Exploratory Research
Selection of the Basic Research Method
Selection of Sample Design
Collection of the Data
The Research Process (cont.)
Editing and Coding
Data Processing
Interpretation of the Findings
Report
“The formulation of the problem is often more essential than its
solution”
Albert Einstein
Business Research Methods
William G. Zikmund
Chapter 5:
Ethical Issues in Business Research
Chapter 5: Ethical Issues in Business Research
1. Definition of Ethics
2. Rights and Obligations of the Respondent
3. Rights and Obligations of the Researcher
4. Rights and Obligations of the Client (User)
5. Types of Ethical Misconduct in Research
1. Definition of Ethics
• Ethics :The established customs, morals, and
fundamental human relationships that exist throughout
the world.
• Ethical Behavior: Behavior that is morally accepted as
good or right as opposed to bad or wrong.
Research Ethics
• General ethical rules apply also to the researchers.
• If a society deems dishonesty to be unethical, then this means that any researcher who behaves dishonestly in the research process is acting unethically.
2. Rights and Obligations of the Respondent
• The obligation to be truthful
• Privacy
• Deception
• The right to be informed
3. Rights and Obligations of the Researcher
• The purpose of research is research
• Objectivity
• Misrepresenting research
• Protect the right to confidentiality of both subjects and clients
• Dissemination of faulty conclusions
• Advocacy research
4. Rights and Obligations of the Client Sponsor (User)
• Ethics between buyer and seller
• An open relationship with research suppliers
• An open relationship with interested parties
• Privacy
• Commitment to research
• Pseudo-pilot studies
5. Types of Ethical Misconduct in Research
(see also www.chem.wayne.edu/information/ethics_presentation.pdf)• Falsification: changing data
• Fabrication: making up data
• Plagiarism: using words or ideas without proper attribution
• Duplication: writing exactly the same parts in different publications
• Slicing: using the results of the same research project in more than one publication
They should be assumed as unethical as lying, cheating, copying, etc.
Business Research Methods
William G. Zikmund
Chapter 6.1:
Problem Definition
Chapter 6.1: Problem Definition
1. Definition of a Management Problem
2. Definitions of Problem Discovery and Problem Definition
3. The Process of Problem Definition
1. Definition of a Management Problem
• Problem: existence of a difference between the current conditions and a more preferable set of future conditions.
• Management Problem: a development that necessiates a decision to cope with difficulties and threats, or to exploit opportunities.
79
Management Problems Mean Performance Gaps
– Business performance is worse than expected business performance.
– Actual business performance is less than possible business performance.
– Expected business performance is greater than possible business performance.
2. Definitions of Problem Discovery and Problem Definition
• Problem Discovery: getting aware of some symptons of a management problem
• Problem Definition: The indication of a specific business decision area that will be clarified by answering some research questions.
Statement of Research Objectives
Problem Definition
Defining Problem Results inClear Cut Research Objectives
ExploratoryResearch(Optional)
Analysis of the Situation
Symptom Detection
3. The Process of Problem Definition
Ascertain the decision maker’s objectives
Understand background of the problem
Isolate/identify the problem, not the symptoms
Determine research objectives
Determine relevant variables and state hypotheses
Determine the unit of analysis
83
3.1. Ascertain the Decision Maker’s Objectives
• Managerial objectives should be expressed in measurable terms; however, line managers seldom clearly articulate their problems to the researchers.
• Researchers should try to understand the problems by interviewing the related managers and collect information from other sources.
84
3.2. Understand the Background of the Problem
• Situation analysis: the informal gathering of background information to familiarize researchers or managers with the decision area.
• The Iceberg Principle: the dangerous part of many business problems is neither visible to nor understood by managers.
85
86
3.3. Isolate and Identify the Problems, Not the Symptoms
*Identify the Symptoms
• by interrogative techniques: Asking multiple what, where, who, when, why, and how questions about what has changed.
• by probing :An interview technique that tries to draw deeper and more elaborate explanations from the discussion.
*Isolate the Symptoms from the True Problem
Symptoms can be confusing
• The case of twenty-year-old neighborhood swimming association:
• Membership has been declining for years.
• Maybe neighborhood residents prefer the expensive water park.
Organization Symptoms Problem Definition Based on Symptoms
True Problem
Twenty-year-old neighborhood swimming association in a major city.
Membership has been declining for years. New water park with wave pool and water slides moved into town a few years ago.
Neighborhood residents prefer the expensive water park and have negative image of swimming pool.
Demographic changes: Children in this 20-year-old neighborhood have grown up. Older residents no longer swim anywhere.
Beverage manufacturer
Consumers prefer taste of competitor’s products
Taste of our product needs to be reformulated
Old fashioned package is influencing consumers’ taste perceptions.
What Language Is Written on This Stone Found by Archaeologists?
The Language is English: “to tie mules to”
3.4.Determine the Research Objectives
• After clarifiyng the situation (current decision need) managerial decision statements should be translated into corresponding research objectives.
– Once the decision statement is written, the research essentially answers the question, “What information is needed to address this situation?”
• Research objectives are the deliverables of the research project.
“If you do not know where you are going,any road will take you there”
Statement of business
problem
Exploratory research (optional)
Statement of business
problem
Broad research
objectives
Specific Objective 1
Specific Objective 2
Specific Objective 3
Research Design
Results
92
3.5. Determine the Unit of Analysis (see also http://www.socialresearchmethods.net/kb/unitanal.php)
• Unit of Analysis indicates what or who should provide the data and at what level of aggregation: Individuals, households, organizations, etc.
• In many studies, the family or the firm rather than the individual may be the appropriate unit of analysis;
• Then, data collected at the individual level should be aggregated at a higher level to the firm, work group, or familiy.
93
Examples of Research Objectives and Unit of Analysis
• To identify the critical factors affecting clients’ choice of some specific brands. (individual clients)
• To identify the future performance of candidates for a specific job offer.(individual candidates)
• To establish the reasons for stagnant sales and suggest means by which sales can be increased. (firms)
94
3.6. Determine the Relevant Variables and Hypotheses
• To determine what characteristics of the unit of analysis will be measured by the researchers.• These characteristics may vary within the same unit of analysis.• For instance, Research Objective: to identify the ways of increasing marketing performance.• Unit of analysis: firm• Variable: marketing performance• Different firms’ marketing performance may be different.
95
Definition of Variable
• What is a Variable?– Anything that varies or changes from one
instance to another; can exhibit differences in value, usually in magnitude or strength, or in direction.
• What is a Constant?– Something that does not change; is not useful in
addressing research questions.
96
Types of Variables• Continuous variable
– Can take on a range of quantitative values.
• Categorical variable
– Indicates membership in some group.
– Also called classificatory variable.• Dependent variable
– A process outcome or a variable that is predicted and/or explained by other variables.
• Independent variable
– A variable that is expected to influence the dependent variable in some way.
Research Questions• In order to achieve research objectives,
researchers should develop research questions, and try to answer them through research.
• Research questions are about the nature of relations among variables.
• Examples of research questions:
– What are the reasons of sales decline?
– What are the drivers of customer satisfaction?
– What are the relations between new designs and customer satisfaction?
Hypothesis
• An unsupported proposition to answer a research question to be tested by research
• H1: Decline in the purchasing power of the clients decreases the total sales of the industry.
• H2: New designs increase customer satisfaction.
An exemplary problem definition process
• Symptons: our clients are complaining, they seem unhappy and we may loose them.
• True Problem: our clients began to percieve our products as low quality but still expensive.
• Research objective: to identify the ways to convince our clients about our products’ quality.
• Unit of analysis: individual buyers.
• Variables: customer satisfaction, re-buying intention, product characteristics, customers’ demographics, etc.
• Research question: what are the drivers of customer satisfaction, what are the relations among customer perceptions about the product characteristics, customer satisfaction, and re-buying intention?
• Hypothesis: old fashioned products are percieved by the young customers as low quality.
An exemplary problem definition process
Business Research Methods
William G. Zikmund
Chapter 6.2:
Research Proposal
Research Proposal
• A written statement of the research design that includes a statement explaining the purpose of the study
• Detailed outline of procedures associated with a particular methodology
Basic Questions - Problem Definition
• What is the purpose of the study?• How much is already known?• Is additional background information necessary?• What is to be measured? How?• Can the data be made available?• Should research be conducted?• Can a hypothesis be formulated?
Basic Questions - Basic Research Design
• What types of questions need to be answered?
• Are descriptive or causal findings required?
• What is the source of the data?
Basic Questions - Basic Research Design
• Can objective answers be obtained by asking people?
• How quickly is the information needed?
• How should survey questions be worded?
• How should experimental manipulations be made?
Basic Questions - Selection of Sample
• Who or what is the source of the data?
• Can the target population be identified?
• Is a sample necessary?
• How accurate must the sample be?
• Is a probability sample necessary?
• Is a national sample necessary?
• How large a sample is necessary?
• How will the sample be selected?
Basic Questions - Data Gathering
• Who will gather the data?
• How long will data gathering take?
• How much supervision is needed?
• What operational procedures need to be followed?
Basic Questions - Data Analysis
• Will standardized editing and coding procedures be used?
• How will the data be categorized?
• What statistical software will be used?
• What is the nature of the data?
• What questions need to be answered?
• How many variables are to be investigated simultaneously?
• Performance criteria for evaluation?
Basic Questions - Type of Report
• Who will read the report?
• Are managerial recommendations requested?
• How many presentations are required?
• What will be the format of the written report?
Basic Questions - Overall Evaluation
• How much will the study cost?
• Is the time frame acceptable?
• Is outside help needed?
• Will this research design attain the stated research objectives?
• When should the research be scheduled to begin?
Business Research Methods
William G. Zikmund
Chapter 7:
Exploratory Research and Qualitative Analysis
Chapter 7: Exploratory Research and Qualitative
Analysis
1. Definition of Exploratory Research
2. Why Conduct Exploratory Research?
3. Categories of Exploratory Research
4. Types of Pilot Studies
1. Definition of Explorative Research
• Initial research conducted to clarify and define the nature of a problem
• Does not provide conclusive evidence
• Subsequent research expected
“The cure for boredom is curiosity, there is no cure for curiosity that kills the cat”
Qualitative versus Quantitative Research
• Purpose: preliminary versus conclusive
• Samples: small versus large
• Type of questions: broad range of questioning versus structured questions
• Results: subjective interpretation versus statistical analysis
Diagnosing a situation
Discovering new ideas
Screening alternatives
2. Why Conduct Exploratory Research?
2.1. Diagnosing a situation
Situation analysis: the informal gathering of background information to familiarize researchers or managers with the decision area.
Examples for situation analysis:•Interviews with employees about their general complaints.• Asking customers’ opinions about the new advertising campaign.
2.2. Discovering new ideas• In business decision making, generating new
business ideas about new products, new investments, etc. is very critical.
• Managers, employees, customers, etc. may be consulted to develop new ideas that would never come to the minds of decision makers.
• For instance, users’ orders and complaints may help decision makers develop new alternative ideas and turn them into new product concepts.
2.3. Screening of alternatives
• In business decision making, determining alternative solutions and then the best ones among them is very critical because of time and money constraints.
• Concept testing is a tool for screening alternative solutions, especially alternative concepts of a new or revised products.
• For instance, after collecting the opinions of the customers about alternative new product concepts, the best one may be determined.
3. Categories of Exploratory Research
• Experience surveys
• Secondary data analysis
• Case studies
• Pilot studies
3.1. Experience Surveys
• Consult with carefully selected knowledgeable experts about a particular problem to clarify the situation, not to develop conclusive evidence.
“If you wish to know the road up themountain, you must ask the man who goes back and forth on it.”
- Zenrinkusi
3.2. Secondary Data Analysis
• Preliminary review of already collected and/or reported information for a purpose other than the project at hand.
• Economical and quick source for background information
• Some sources of already reported information: literature, internet, company reports, etc.
3.3. Case Study Method
• Intense and indepth investigation of one or a few situations similar to the problem via long term observations, interviews and discussions to define the problem at hand .
• Careful study of the order of events as they occur, or relations among individuals or groups.
• Cooperation between the researcher and the subject is a must. Thus, studying rival companies’ cases is almost impossible.
• Generalization from one or a few case studies is very dangerous for decision makers.
3.4. Pilot Study
• Any small scale exploratory study that uses some sort of loose sampling.
• A small number of respondents rather than experienced people are surveyed or interviewed.
• The results will be used in the definition of the problem and also in the design of a further descriptive study.
4. Types of Pilot Studies
• Focus Group Interviews
• Projective Techniques
• In-Depth Interviews
4.1. Focus Group Interviews
Interview Process:• Unstructured• Free flowing• Group interview• Start with broad topic and focus in on specific issues
Group Composition:• 6 to 10 people• Relatively homogeneous• Similar lifestyles and experiences
Outline for a Focus Group
• Establish a rapport
• Begin with broad topic
• Focus in on specific topic
• Generate discussion and interaction
The Focus Group Moderator
• Develops rapport - helps people relax
• Interacts
• Listens to what people have to say
• Everyone gets a chance to speak
• Maintains loose control and focuses discussion
• Stimulates spontaneous responses
Advantages of Online Focus Groups
• Fast
• Inexpensive
• Bring together many participants from wide-spread geographical areas
• Respondent anonymity
• Transcript automatically recorded
Disadvantages of Online Focus Groups
• Less group interaction
• Absence of tactile stimulation
• Absence of facial expression and body language
• Moderator’s job is different
• An indirect means of questioning that enables a respondent to project beliefs and feelings onto a third party, onto an object, or into a task situation
4.2. Projective Techniques
“A man is least himself when he talks in his own person; when given a mask he will tell the truth.”
--Oscar Wilde
Some types of Projective Techniques
• Word association tests
• Sentence completion method
• Third-person technique
• Role playing
• T.A.T.
• Picture frustration version of T.A.T.
4.2.1.Word Association Test
• Subject is presented with a list of words.
• Then, asked to respond, once at a time, with first word that comes to mind.
• This test helps the researcher to grasp the true feelings of the subjects about a specific concept (e.g. a new product name).
• GREEN: Money, Lawn, …………..
• CHEESE: White, Goat, ……………
4.2.2. Sentence Completion Test
•Subject is presented with an incomplete sentence.•Then, asked to complete it with first words that come to mind.•This test helps the researcher to grasp the true beliefs and assumptions of the subjects about a specific issue (e.g. prejudice, discrimination).
A man who wears a suit __________________A boss should not __________________
4.2.3.Thematic Apperception Test (T.A.T.)
•Subject is presented with a series of picture.•Then, asked to describe them.•This test helps the researcher to analyze the content of these descriptions in an effort to clarify a research problem.
4.3. Depth Interview
•A relatively unstructured extensive interview used in the primary stages of the research process in order to get both the surface reactions and subconscious motivations of the subjects.
•The interviewing session may last more than hour.
•The interviewer asks many questions to the subject and probes for elaboration after the subject’s answers.
Disadvantages of Depth Interview
• It takes a lot of time.
• It is based on unstructured discussions, and -if inexperienced- interviewer cannot keep the discussion within the context of the problem at hand.
• Collected information is just the subjective perceptions and interpretations of the interviewer.
Business Research Methods
William G. Zikmund
Chapter 8:
Secondary Data
Chapter 8: Exploratory Research and Qualitative
Analysis
1. Definition of Secondary Data
2. Advantages & Disadvantages of Secondary Data
3. Typical Objectives for Secondary Data Research Designs
4. Classification of Secondary Data
1. Definition of Secondary Data
Data gathered and recorded by someone else prior to and for a purpose other than the current project
Is often:
• Historical
• Already assembled
• Needs no access to subjects
2. Advantages & Disadvantages of Secondary Data
• Advantages: Inexpensive Obtained Rapidly Information is not Otherwise Accessible
• Disadvantages: Uncertain AccuracyData Not Consistent with Needs Inappropriate Units of MeasurementTime Period Inappropriate; Secondary Data may
be Dated
Evaluating Secondary Data
Does the data help to answer questions set out in the problem definition?
Does the data apply tothe time period of interest?
Does the data apply tothe population of interest?
Applicabilityto projectobjectives
Do the other terms and variable classifications presented apply?
Are the units ofmeasurement comparable?
If possible, go to the original source of thedata?
Evaluating Secondary Data (continued)
Applicabilityto projectobjectives
Accuracyof the data
Is the cost of dataacquisition worth it?
Accuracyof the data
Is there a possibility of bias?
Can the accuracy of data collection be verified?
Use data
Fact Finding: •Identifying consumption patterns•Tracking trends
Model building:•Estimating market potential•Forecasting sales•Selecting trade areas and sites
Data Base Marketing (Data Mining):•Development of Prospect Lists•Enhancement of Customer Lists
3. Typical Objectives for Secondary Data Research Designs
Aim: to collect descriptive and comparative
information to support decision making.
• Comparing company’s data with (e.g. total
annual sales) company’s competitors data
and/or
• Comparing company’s present data with
company’s own data in other time periods.
3.1. Fact Finding
Aim: to calculate a dependent variable by using independent variable(s) having specific effects on this dependent variable.
• First, facts about one or more independent variables are collected;
• Then, the effects or ratios of these independent variables on the dependent varible will be specified
• Finally, the dependent variable will be calculated.
3.2. Model Building
3.3. Data Based Marketing (Data Mining)
Aim: to dig through and analyze volumes of data to discover patterns about a company’s customers, products, and activities.
– Practice of maintaining a customer data base– Names– Addresses– Past purchases– Customers’ responses to company’s past efforts– Data from numerous sources
4. Classification of Secondary Data
Data can be classified according to the origin:
• Internal Data
• External Data
4.1. Internal Data
Internal and proprietary data are more descriptive
Examples for internal data:
• Accounting information• Sales information• Backorders or rejected orders• Customer complaints
4.2. External Data
Data created, recorded, or generated by an entity other than the researcher’s organization
Examples for External Data sources:
• Government
• Trade associations
• Newspapers and journals
• Libraries, Books and periodicals
• The Internet
• Vendors and Producers, etc.
Business Research Methods
William G. Zikmund
Chapter 9:
Survey Research
Chapter 9: Survey Research
1. Basic Definitions for surveys
2. Errors in Surveys
3. Classification of Survey Methods
1. Basic Definitions for surveys
Survey: a research technique in which information (primary data) is gathered from a sample of people to make generalizations.
Primary data: data gathered and assembled specifically for the project at hand.
Sample of the survey: respondents who are asked to provide information, assuming that they can represent (possess same features with) a target population.
POPULATIONPOPULATION
SAMPLESAMPLESample: Subset of a larger population
Selecting a Sample
Sampling:
• Who is to be sampled?
• How large a sample?
• How will sample units be selected?
Basic Definitions for sampling (http://www.stats.gla.ac.uk/steps/glossary/sampling.html)
Target population: the group about which the researcher wishes to draw conclusions and make generalizations
Random sampling: selecting a sample from a larger target population where each respondent is chosen entirely by chance and each member of the population has a known, but possibly non-equal, chance of being included in the sample.
Basic Definitions for data collection
Surveys ask respondents (who are the subjects of the research) questions by use of a questionnaire.
Respondent: The person who provides information (primary data) by answering a questionnaire or an interviewer’s questions.
Questionnaire: a list of structured questions designed by the researchers for the purpose of codifying and analyzing the respondents’ answers scientifically.
Advantages of Surveys: Quick, Inexpensive, Efficient, Accurate, Flexible way of gathering information.
2. Errors in Surveys
2.1. Random Sampling Error
2.2. Systematic Error (sample bias)2.2.1. Respondent error
* Nonresponse bias
* Response bias
2.2.2. Administrative error
* Data processing error
* Sample selection error
* Interviewer error
* Interviewer cheating
2.1. Random Sampling Error
• Even if randomly selected, samples may possess different characteristics than the target population (the likelihood of bias is reduced but still exists)
• This is a statistical fluctuation due to chance variation.
• Then, an important difference occurs between the findings obtained from this sample and the findings obtained from a possible census of the whole target population.
• Consider the hypothetic case in which a study sample could be increased until it was infinitely large; chance variation of the mean, or random error, would be reduced toward zero. These are random errors.
• Systematic errors would not be diminished by increasing sample size.
(Bias in Research Studies, http://radiology.rsna.org/content/238/3/780.full)
2.2. Systematic Error
• Systematic error results from some mistake(s) done in the design and/or execution of the research.
• All types of error -except random sampling error, are included in this definition,
• Sample bias: a persistent tendency for the results of a sample to deviate in one direction from the true value of the population parameter.
• Sample bias can arise when the intended sample does not adequately reflect the spectrum of characteristics in the target population.
2.2.1. Respondent Bias
• A classification of sample bias resulting from some respondent action or inaction
• Nonresponse bias
• Response bias
Nonresponse Error
• Nonrespondents: in almost every survey information from a small or large portion of the sample cannot be collected. These are those people who refuse to respond, or who can not be contacted (not-at-homes)
• Self-selection bias: only those people who are interested strongly with topic of the survey may respond while those who are still within the same sample but indeferent or afraid avoid participating.
• This leads to the over-representation of some extreme positions, but under-representation of others.
Response Bias
• A bias that occurs when respondents tend to answer questions with a certain inclination ot viewpoint that consciously (deliberate falsification) or unconsciously (unconscious misinterpretation) misrepresents the truth.
Reasons of response bias
• Knowingly or unknowingly people who answer questions of the interviewer may feel unconfortable about the truth that they share with others, and change it in their responses.
• They may desire to show themselves as more intelligent, wealthy, sensitive, etc. than they really are.
Acquiescence bias (positive answers)
Extremity bias (exaggerated answers)
Interviewer bias (acceptable answers by the interviewer)
Auspices bias (acceptable answers by the organization)
Social desirability bias (answers creating a favorable impression)
Types of Response Bias
Deliberate falsification (consciously false answers)
2.2.2. Administrative Error
• Unadvertently or carelessly improper administration and execution of the research task
• Blunders are:• Confusion• Neglect• Omission
Administrative ErrorData processing error: incorrect data entry, computer
programming, or other procedural errors during the analysis stage.
Sample selection error: improper sample design (e.g. based on incomplete databases) or sampling procedure execution (e.g. executed in daytime while most of the target population are working)
Interviewer error: mistakes done by the interviewer (e.g. taking wrong or incomplete notes about the answers of the respondents.
Interviewer cheating: filling in fake or false answers indeed not given by the respondents.
3. Classification of Survey Methods
3.1. Structure of the questionnaire:
* whether standardized questions with a limited number of allowable answer -multiple choices
* or unstandardized open ended questions with the possibility of being answered in numerious ways.
3.2. Level of Directness of the questions:
* whether direct/undisguised questions
* or indirect/disguised questions to hide the real purpose of the survey
Classification of Survey Methods
3.3. Time basis of the Survey:Cross-Sectional Study: data on various segments of a target
population are collected at a single moment in time to make comparisons among segments.
Longitudinal Study: data are collected at different times from the similar respondents to compare trends and identify changes.
Panel Study: A longitudinal survey of exactly the same respondents to record (in a diary) their attitudes, behaviors, or purchasing habits over time.
3.4. Communication with the respondents (see chapter 10)
Classification of Survey Methods
3.4. Communication with the respondents:
Qustionnaires administered by an interviewer
* Door-to door interviews
* Mall intercepts
* Telephone interviews
Self-administered questionnaires
* sent by mail, fax, or e-mail
* Internet questionnaires
“Practice is the best of all instructors.”
Publius Syrus