Short Notes on

Business Research
1. What is Business Research?
The application of the scientific method in searching for the truth about business phenomena. These
activities include defining business opportunities and problems, generating and evaluating ideas,
monitoring performance, and understanding the business process (Zikmund).
A process of determining, acquiring, analyzing, synthesizing, and disseminating relevant business
data, information, and insights to decision makers in ways that mobilize the organization to take
appropriate business actions that, in turn, maximize business performance.
(Cooper and Schindler, Business Research Methods, 11th ed.).

The primary purpose of research is to reduce the level of risk of a marketing decision
Business research provides information to guide business decisions.

2. Types of Business Research

a) Basic business research (sometimes referred to as pure research):Basic research is driven purely by curiosity and a desire to expand our knowledge. This type of
research tends not to be directly applicable to the real world in a direct way, but enhances our
understanding of the world around us.
For instance, a great deal of basic research addresses employee motivation. How can managers best
encourage workers to dedicate themselves toward the organizations goals? From such research, we
can learn the factors that are most important to workers and how to create an environment where
employees are most highly motivated. This basic research does not examine the problem from any
single organizations perspective.

Basic Business Research: - Summary

Not necessarily problem oriented
Discovery of new theory / refinement of existing theory.
Ex :- Studies on:- impact of culture on marketing
success,

impact

of

organizational

environment

on

employee motivation

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b) Applied business research is conducted to address a specific business decision for a specific
firm or organization. It is used to answer a specific question that has direct applications to the
world. This is the type of research that solves a problem.

Applied research is carried on to find solution to a real life

problem requiring an action or policy decision.
Problem oriented
Action directed
It seeks an immediate and practical result
Ex: Marketing research carried on for developing a new
market

Basic vs Applied Business Research

Applied business research seeks to facilitate managerial decision

making. It is directed toward a specific managerial decision in a particular
organization. Applied research seeks to discover solutions for immediate
problems or opportunities
Basic or pure research seeks to increase knowledge of theories and
concepts. It has little direct or immediate impact on action, performance, or
policy decisions.

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3. Managerial value of business research

4. The decision-making process associated with the development and implementation of a

business strategy involves four inter- related stages:
Identifying problems or opportunities
Diagnosing and assessing problems or opportunities:After an organization recognizes a problem or identifies a potential opportunity, business
research can help clarify the situation. If there is a problem, they need to specify what happened
and why. If an opportunity exists, they may need to explore, refine, and quantity the
opportunity. If multiple opportunities exist, research may be conducted to set priorities.
Selecting and implementing a course of action:After the alternative courses of action have been clearly identified, business research is often
conducted to obtain specific information that will aid in evaluating the alternatives and in
selecting the best course of action. For example, suppose Harley-Davidson is considering
establishing a dealer network in either China or India. In this case, business research can be
designed to gather the relevant information necessary to determine which, if either, course of
action is best for the organization.
Evaluating the course of action
After a course of action has been implemented, business research may serve as a tool to tell
managers whether or not planned activities were properly executed and if they accomplished
what they were expected to accomplish. In other words, managers may use evaluation research
to provide feedback for evaluation and control of strategies and tactics:Page 3 of 56

Evaluation research is the formal, objective measurement and appraisal of the extent a given
activity, project, or program has achieved its objectives. In addition to measuring the extent to
which completed programs achieved their objectives or whether continuing programs are
presently performing as projected, evaluation research may provide information about the
major factors influencing the observed performance levels.
Performance-monitoring research is a specific type of evaluation research that regularly,
perhaps routinely, provides feedback for the evaluation and control of recurring business
activity. For example, most firms continuously monitor wholesale and retail activity to ensure
early detection of sales declines and other anomalies.

arches are an evaluation research, but not all evaluation researches are performance monitoring research.
luation research running program / planned/projected / monitor
, program , running program /

5. The determination of the need for research centers on:a) Time Constraints
b) Availability of Data
c) Nature of the Decision
d) Benefits versus Costs

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6. Define Information, Data, and Intelligence.

Data are simply facts, figures or recorded measures of certain phenomena (things or events). It is
unorganized.
When data are processed, interpreted, organized, structured or presented so as to make them
meaningful or useful, they are called information. Data are formatted (structured) to support decision
making or define the relationship between two facts.
Business intelligence is the subset of data and information that actually has some explanatory power
enabling effective managerial decisions to be made.

myconceptslab.com

iness to make sound business decisions. BI monitors the operations of a company intelligently. BI

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So, there is more data than information, and more information than intelligence.

https://www.scribd.com/doc/96936298/Business-Research-Methods-Lecutre-Notes-ALL-UNITS
http://www.slideshare.net/lalsivaraj/types-of-business-research-methods
www.diffen.com/difference/Data_vs_Information
http://www.businessdictionary.com/definition/business-intelligence-BI.html
http://www.tutor2u.net/business/reference/marketing-promotion-what-are-push-and-pull-strategies
http://www.businessdictionary.com/definition/theory.html
http://slideplayer.com/slide/6354943/
http://www.slideshare.net/RahulKaurav/unit-i-research-methodology

http://study.com/academy/lesson/what-is-test-marketing-definition-types-examples.html

http://www.businessdictionary.com/definition/problem.html#ixzz4EET30NdM

7. The Characteristics of Valuable Information

Relevance is the characteristics of data reflecting how pertinent these particular facts are to the
situation at hand. Put another way, the facts are logically connected to the situation. Relevant data are
facts about things that can be changed, and if they are changed, it will materially alter the situation. So,
this simple question becomes important:
Will a change in the data coincide with a change in some important outcome?
Data quality is the degree to which data represent the true situation. High-quality data are accurate,
valid, and reliable. High-quality data represent reality faithfully.
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Timeliness means that the data are current enough to still be relevant. Computer technology has
redefined standards for timely information. For example, if a business executive at Home Depot wishes
to know the sales volume of any store worldwide, detailed information about any of thousands of
products can be instantly determined.
Information completeness refers to having the right amount of information. Managers must have
sufficient information about all aspects of their decisions. For example, a company considering
establishing a production facility in Eastern Europe may plan to analyze four former Soviet-bloc
countries. Population statistics, GDP, and information on inflation rates may be available on all four
countries. However, information about unemployment levels may be available for only three of the
countries. If information about unemployment or other characteristics cannot be obtained, the
information is incomplete.

8. Define knowledge and knowledge management

Knowledge is a blend of previous experience, insight, and data that forms organizational memory.
It provides a framework that can be thoughtfully applied when assessing a business problem. Business
researchers and decision makers use this knowledge to help create solutions to strategic and tactical
problems. Thus, knowledge is a key resource and a potential competitive advantage.
Knowledge management is the process of creating an inclusive, comprehensive, easily accessible
organizational memory; which can be called the organizations intellectual capital. The purpose of
knowledge management is to organize the intellectual capital of an organization in a formally
structured way for easy use.

9. Business research can be described in many ways. One way is to categorize research based on
the four possible functions it serves in business:
1. Foundationalanswers basic questions:- What business should we be in?
2. Testingaddresses things like new product concepts or promotional ideas:- How effective will
they be?
3. Issuesexamines how specific issues impact the firm:- How does organizational structure impact
employee job satisfaction and turnover?
4. Performancemonitors specific metrics including financial statistics like profitability and delivery
times. They are critical in real-time management and in what-if types of analyses examining the
potential impact of a change in policy.

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10. Define DSS, CRM, Database, Data Warehousing, Data Wholesaler, EDI, Internet, and Host
A Decision Support System (DSS) is a system that helps decision makers confront problems through
direct interaction with computerized databases and analytical software programs. The purpose of a
decision support system is to store data and transform them into organized information that is easily
accessible to managers.

Customer Relationship management (CRM):

A CRM system is the part of the DSS that addresses exchanges between the firm and its customers. It
brings together information about customers including sales data, market trends, marketing promotions
and the way consumers respond to them, customer preferences, and more.

lationships with them by providing the most suitable products and enhanced customer service.
and satisfaction of the customers' stated and unstated needs and wants.

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ges between the firm and its customers. It brings together information about customers including sales data,

A database is a collection of raw data arranged logically and organized in a form that can be stored and
processed by a computer. A customer mailing list is one type of database.

Data warehousing is the process allowing important day-to-day operational data to be stored and
organized for simplified access. More specifically, a data warehouse is the multitiered computer
storehouse of current and historical data. Data warehouse management requires that the detailed data
from operational systems be extracted, transformed, placed into logical partitions (for example, daily
data, weekly data, etc.), and stored in a consistent manner.
Data wholesalers:- are Companies that put together consortia of data sources into packages that are
offered to municipal, corporate, and university libraries for a fee.
Electronic data Interchange (EDI):-Type of exchange that occurs when one companys computer
system is integrated with another companys system.
The Internet is a worldwide network of computers that allows users access to data, information, and
feedback from distant sources. It functions as the worlds largest public library, providing access to a
seemingly endless range of data. Many people believe the Internet is the most important
communications medium since television.
A host is where the content for a particular Web site physically resides and is accessed. For example,
Forbes magazines Internet edition is located at http://forbes.com. The com indicates this domain is a
commercial site. Educational sites end in eduLouisiana Tech can be reached at
http://www.latech.edu and Bradley University can be accessed at http://www.bradley.edu. The United
States Marine Corps can be found at http://www.marines.mil (the mil indicating military) and many
government sites, such as the U.S. House of Representatives, end with gov, as in
http://www.house.gov and http://census.gov. Many nonprofit organizations end in org, as in
http://www.ams-web.org , the Web home for the Academy of Marketing Science. Web addresses
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outside the United States often end in abbreviations for their country such as ca, de, or uk for
Canada, Germany (Deutschland), and the United Kingdom, respectively.

11.
The World Wide Web (WWW) refers specifically to that portion of the Internet made up of servers that
support a retrieval system that organizes information into documents called Web pages. World Wide
Web documents, which may include graphic images, video clips, and sound clips, are formatted in
programming languages, such as HTML (Hyper Text Markup Language) and XML (Extensible
Markup Language) that allow for displaying, linking, and sharing of information on the Internet.

Parties that furnish information on the World Wide Web are called content providers.

Uniform Resource Locator (URL) is a Web site address that Web browsers recognize.
A search engine is a computerized directory that allows anyone to search the World Wide Web for
information based on a keyword search. A keyword search takes place as the search engine searches
through millions of Web pages for documents containing the keywords. Some of the most
comprehensive and accurate search engines are:
Yahoo!

http://www.yahoo.com

Google

http://www.google.com

Hotbot

http://www.hotbot.com

Go network

http://www.go.com

Excite

http://www.excite.com

Lycos

http://www.lycos.com

Ask Jeeves

http://www.ask.com

WebCrawler

http://www.webcrawler.com

Environmental scanning entails all information gathering designed to detect changes in the external
operating environment of the firm.

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Data and information can be delivered to consumers or other end users via either pull technology or
push technology.
Pull technology Consumers request information from a Web page and the browser then determines a
response; the consumer is essentially asking for the data.
Push technology
Sends data to a users computer without a request being made; software is used to guess what
information might be interesting to consumers based on the pattern of previous responses.

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and trade promotion activities to create consumer demand for a product: it takes the product to the customer - the custo
ct to retailers > retailers promote product to consumers

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r distribution channels. An example of this would be selling insurance or holidays directly. With this type of strategy, cons
t manufacturers, such as Nokia, promote their products via retailers such as Carphone Warehouse. For example, ofering
otional tools for companies such as Nokia.

sing and consumer promotion to build up consumer demand for a product: it brings the customer to the product - the cus
oduct > wholesalers ask producers for product

Cookies, in computer terminology, are small computer files that record a users Web usage history.
An intranet is a companys private data network that uses Internet standards and technology

12. What is Theory?

A formal, logical explanation of some events that includes predictions of how things relate to one
another (Zikmund).
A set of assumptions, propositions, or accepted facts that attempts to provide a plausible or rational
explanation of cause-and-effect (causal) relationships among a group of observed phenomenon
(Business Dictionary).

13. A concept or construct is a generalized idea about a class of objects, attributes, occurrences, or
processes that has been given a name. Concepts are the building blocks of theory.
In organizational theory, leadership, productivity, and morale are concepts. In the theory of finance,
gross national product, risk aversion, and inflation are frequently used concepts. Accounting concepts
include assets, liabilities, and depreciation. In marketing, customer satisfaction, market share, and
loyalty are important concepts.

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tain events, objects, conditions, situations and behaviours. It is generalized/theoretical / universally accepted
invented for a given research and/or theory-building purpose; not necessarily for universally acceptation. For

Ladder of abstraction
Organization of concepts in sequence from the most concrete and individual to the most general.
Abstract level
In theory development, the level of knowledge expressing a concept that exists only as an idea or a
quality apart from an object.
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Empirical level
Level of knowledge that is verifiable by experience or observation.
A Ladder of Abstraction for Concepts

Mizan (Most
concrete)

Human Being

Animal
Latent construct
A concept that is not directly observable or measurable, but can be estimated through proxy measures.
Living Object (Most
general)

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self strongly correlated to that outcome. It is commonly used when direct measures of the outcome are unobs
ariable that cannot be measured or is difcult to measure. The proxy variable can be something that is not of

Propositions
Statements explaining the logical linkage among certain concepts by asserting a universal connection
between concepts.
Hypothesis
Formal statement of an unproven proposition that is empirically testable.
The terms "proposition" and "hypothesis" both refer to the formulation of a possible answer to a
specific scientific question. In particular, a proposition deals with the connection between two existing
concepts. The main difference between the two is that a hypothesis must be testable and measurable,
while a proposition deals with pure concepts for which no laboratory test is currently available.

Empirical testing: - Examining a research hypothesis against reality using data.

Variables: - Anything that may assume different numerical values; the empirical assessment of a
concept.
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Operationalizing: - The process of identifying the actual measurement scales to assess the variables of
interest. Operationalization is the process of strictly defining variables into measurable factors. The
process defines fuzzy concepts and allows them to be measured, empirically and quantitatively.
Deductive reasoning: - The logical process of deriving a conclusion about a specific instance based on
a known general premise or something known to be true.
Inductive reasoning: - The logical process of establishing a general proposition on the basis of
observation of particular facts.

c conclusion. Deductive reasoning is also known as 'top-down reasoning' because it goes from general and works its way
brothers are good at math based on three premises of specific instances: Mine, my friend's and my neighbor's older brot

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referred to as cause and efect reasoning' or 'bottom-up reasoning' because it seeks to prove a conclusion first. This is

Scientific method:A set of prescribed procedures for establishing and connecting theoretical statements about events, for
analyzing empirical evidence, and for predicting events yet unknown; techniques or procedures used to
analyze empirical evidence in an attempt to confirm or disprove prior conceptions.
Steps involved in the application of the scientific method:
1. Assessment of relevant existing knowledge of a phenomenon
2. Formulation of concepts and propositions
3. Statement of hypotheses
4. Design of research to test the hypotheses
5. Acquisition of meaningful empirical data
6. Analysis and evaluation of data
7. Proposal of an explanation of the phenomenon and statement of new problems raised by the research

Business opportunity: - A situation that makes some potential competitive advantage possible.
Business problem: - A situation that makes some significant negative consequence more likely.
Symptoms: - Observable cues that serve as a signal of a problem because they are caused by that
problem.

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Decision making:- The process of developing and deciding among alternative ways of resolving a
problem or choosing from among alternative opportunities. (Selecting a course of action from a set of
alternatives).

Every decision-making situation can be classified based on whether it best represents a problem or an
opportunity and where the situation falls on a continuum from absolute ambiguity to complete
certainty.

Uncertainty
Uncertainty means that the manager grasps the general nature of desired objectives, but the
information about alternatives is incomplete. For instance, a university may understand that there is an
objective of increasing the number of MBA students, but it may not know whether an online, weekend,
or off-site MBA program is the best way to accomplish the objective.

Ambiguity
Ambiguity means that the nature of the problem itself is unclear. Objectives are vague and decision
alternatives are difficult to define. This is by far the most difficult decision situation, but perhaps the
most common.

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Types of Business Research

a) Exploratory research: - conducted to clarify ambiguous situations or discover ideas that may be
potential business opportunities.
b) Descriptive research: - the major purpose of descriptive research is to describe characteristics
of objects, people, groups, organizations, or environments. In other words, descriptive research
tries to paint a picture of a given situation by addressing who, what, when, where, and how
questions.
c) Causal research: - Allows causal inferences to be made; seeks to identify cause and- effect
relationships. When something causes an effect, it means it brings it about or makes it happen.
The effect is the outcome. Rain causes grass to get wet. Rain is the cause and wet grass is the
effect.

Causal inference
A conclusion that when one thing happens, another specific thing will follow.
Three critical pieces of causal evidence are:Page 20 of 56

1. Temporal Sequence
2. Concomitant Variance
3. Nonspurious Association
Temporal sequence deals with the time order of eventsthe cause must occur before the effect.
Concomitant variation occurs when two events co-vary or correlate, meaning they vary
systematically. That is, evidence to the extent of which X and Y occur together or vary together: Every time X occurs, Y follows.
In causal terms, concomitant variation means that when a change in the cause occurs, a change in
the outcome also is observed. Causality cannot possibly exist when there is no systematic variation
between the variables. For example, if a retail store never changes its employees vacation policy, then
the vacation policy cannot possibly be responsible for a change in employee satisfaction. There is no
correlation between the two events. On the other hand, if two events vary together, one event may be
causing the other. If a university increases its number of online MBA course offerings and experiences
a decrease in enrollment in its traditional in-class MBA offerings, the online course offerings may be
causing the decrease. But the systematic variation alone doesnt guarantee it.
Nonspurious Association
Nonspurious association means any covariation between a cause and an effect is true, rather than due
to some other variable.
A nonspurious relationship between two variables is an association, or co-variation, that you cannot
explain with a third variable. A spurious relationship results when the impact of a third variable
explains the effect on both the independent and dependent variables under analysis.
For instance, there is a strong, positive correlation between ice cream purchases and murder ratesas
ice cream purchases increase, so do murder rates. When ice cream sales decline, murder rates also
drop. Do people become murderers after eating ice cream? Should we outlaw the sale of ice cream?
This would be silly because the concomitant variation observed between ice cream consumption and
murder rates is spurious. A third variable is actually important here. People purchase more ice cream
when the weather is hot. People are also more active and likely to commit a violent crime when it is
hot. The weather, being associated with both may actually cause both. Here it is spurious association,
as the third variable weather creates relationship or connection between the two incidents (ice-cream
purchase and murder rate).

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DEGREES OF CAUSALITY
i)

ii)

iii)

Absolute causality: - Means the cause is necessary and sufficient to bring about the effect.
For example, a warning label used on cigarette packages claims smoking causes cancer.
Is this true in an absolute sense? Thus, if we find only one smoker who does not eventually
get cancer, the claim is false.
Conditional causality means that a cause is necessary but not sufficient to bring about an
effect. This is a weaker causal inference. One way to think about conditional causality is
that the cause can bring about the effect, but it cannot do so alone. If other conditions are
right, the cause can bring about the effect. Thus, if one smokes and has a genetic
disposition, diet, and lifestyle that promote cancer, smoking could be considered a
conditional cause of cancer. However, if we can find someone who has contracted cancer
and never smoked, the causal inference would be proven wrong.
Contributory causality is the weakest form of causality, but it is still a useful concept. A
cause need be neither necessary nor sufficient to bring about an effect.

Smoking then can be a contributory cause of cancer so long as the introduction of other possible causes
does not cause both smoking and cancer.

Experiment
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A carefully controlled study in which the researcher manipulates a proposed cause and observes any
corresponding change in the proposed effect.

Experimental variable
Represents the proposed cause and is controlled by the researcher by manipulating it.

Characteristics of Good Research

Clearly defined purpose

Detailed research process
Thoroughly planned design
High ethical standards
Limitations addressed
Adequate analysis
Unambiguous presentation
Conclusions justified
Credentials

Business Research Method: Steps Decision making is always a crucial part of any organizational functioning.
In the field of business research, this valuable information is obtained using the following
interrelated steps:
1. Problem or opportunity identification
2. Diagnosing the problem or opportunity
3. Executing business research to explore the solutions
4. Implement presented solutions
5. Evaluate the effectiveness of decision making
1. Problem or Opportunity Identification:Any delay in problem identification and solution implementation; and the opportunity identification
and encashment may become harmful to the organization.
2. Diagnosing the Problem or Opportunity: Organizations present these problems or opportunity scenarios to business researchers.
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 Business researchers actually diagnose the problem or opportunity.

Diagnosing involves exploring the situation to have a better insight about the situation.
3. Executing Business Research to Explore the Solution: After the identification and diagnosis of the problem, business researchers systematically
conduct research to present a solution.

4. Implement Presented Solution: Business researchers conduct research in consultation with the decision makers of the
concerned organization. The findings are presented to the decision maker and he or she
analyzes these findings in the light of his or her decision range.
5. Evaluate the Effectiveness of Decision Making: After taking a decision, its effectiveness is examined. This is sometimes referred to as
evaluation research.

Manipulation
Means that the researcher alters the level of the variable in specific increments.

Test-market
An experiment that is conducted within actual market conditions.

Test marketing is a tool used by companies to provide insight into the probable market success of a
new product, or effectiveness of a marketing campaign. Test marketing can be used by a business to
evaluate factors such as the performance of the product, customer satisfaction or acceptance of the
product, the required level of material support for the full launch, and distribution requirements for a
full launch.
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Page 25 of 56
We offer the following research business stages:

Stages in the Research Process

ting campaign. Test marketing can be used by a business to evaluate factors such as the performance of the product, customer

1. Defining the research objectives

Research objectives:The goals to be achieved by conducting research. Different types of objectives lead to different
types of research designs. In applied business research, the objectives cannot really be determined
until there is a clear understanding of the managerial decision to be made. This understanding must
be shared between the actual decision maker and the lead researcher. We often describe this
understanding as a problem statement. In general usage, the word problem suggests that
something has gone wrong (A perceived gap between the existing state and a desired state, or a
deviation from a norm, standard, or status quo).
Defining the managerial decision situation:In business research, if data are collected before the nature of the problem is carefully thought out,
they probably will not yield useful information.
Thus, defining the decision situation must precede the research objectives.
Once a problem area has been discovered, the researcher and management together can begin the
process of precisely defining it.
Exploratory research
Exploratory research can be used to help identify and clarify the decisions that need to be made;
this research is necessary to define the problem clearly. The business researcher can employ
techniques from four basic categories to obtain insights and gain a clearer idea of the problem:

previous research,
Pilot studies: - A pilot study is a small-scale research project that collects data from
respondents similar to those that will be used in the full study.
case studies, and
Experience surveys.
Stating research objectives
After identifying and clarifying the problem, with or without exploratory research, the researcher
must formally state the research objectives. This statement delineates the type of research that is
needed and what intelligence may result that would allow the decision maker to make informed
choices. The statement of research objectives culminates the process of clarifying the managerial
decision into something actionable.

Linking decision statements, objectives, and hypotheses

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2. Planning a research design:Research design

A master plan that specifies the methods and procedures for collecting and analyzing the needed
information
Selection of the basic research method
Survey: - A research technique in which a sample is interviewed in some form or the
behavior of respondents is observed and described in some way.
Telephone: Mail
Internet
Personal interview (face to face)
Observation
3. Planning a sample:Sampling: - Involves any procedure that draws conclusions based on measurements of a portion of
the population.
4. Collecting the data
The data gathering stage begins once the sampling plan has been formalized. Data gathering is the
process of gathering or collecting information. Data may be gathered by human observers or
interviewers, or they may be recorded by machines as in the case of scanner data and Web-based
surveys.
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 Unobtrusive methods of data gathering: - are those in which the subjects do not have to be
disturbed for data to be collected. They may even be unaware that research is going on at all.
For instance, a simple count of motorists driving past a proposed franchising location is one
kind of data gathering method.
Obtrusive methods: - Surveys require direct participation by research respondents. This may
involve filling out a questionnaire or interacting with an interviewer. In this sense, they are
obtrusive.
5. Processing & analyzing the data
Editing and coding:After the fieldwork has been completed, the data must be converted into a format that will
answer the managers questions. This is part of the data processing and analysis stage. Here, the
information content will be mined from the raw data. Data processing generally begins with
editing and coding the data. Editing involves checking the data collection forms for omissions,
legibility, and consistency in classification. The editing process corrects problems such as
interviewer errors (an answer recorded on the wrong portion of a questionnaire, for example)
before the data are transferred to the computer.
The rules for interpreting, categorizing, recording, and transferring the data to the data storage
media are called codes. This coding process facilitates computer or hand tabulation. If
computer analysis is to be used, the data are entered into the computer and verified.
Data analysis:Data analysis is the application of reasoning to understand the data that have been gathered. In
its simplest form, analysis may involve determining consistent patterns and summarizing the
relevant details revealed in the investigation.
6. Formulating the conclusions and preparing the report.

Focus group
A small group discussion about some research topic led by a moderator who guides discussion among
the participants.

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Cross-functional teams
Employee teams composed of individuals from various functional areas such as engineering,
production, finance, and marketing who share a common purpose.

Business ethics
The application of morals to behavior related to the exchange environment.

What is a decision statement:A decision statement is a written expression of the key questions that the research user wishes to
answer. A decision statement captures the researchers understanding of the decision makers
objectives (reasons) for seeking the research. It must be well stated and relevant.

Breakdown of this concept:-

WHAT IT IS:- A written statement,

WHAT IS INSIDE :- It contains written expression of the key question (which pursues
research objective) that the research user wishes to answer,
GOAL:- To capture the researchers understanding of the decision makers objectives
(reasons) for seeking the research.

What is a problem definition:The process of defining and developing a decision statement and the steps involved in translating it
into more precise research terminology including a set of research objectives.

Breakdown of this concept:-

WHAT IT IS:- A process

WHAT THE PROCESS DOES & HOW:- (What) Defines and develops a decision
statement and the steps involved in, (How) translating it into more precise research
terminology, including a set of research objectives.

Problem complexity:Factors influencing how complex a research process can be:i) Situational Frequency:How a particular business situation fluctuates or becomes constant. e.g.:- pricing issues of
airline industry; use of sophisticated demand models; routine activities.

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ii. Dramatic changes:Sudden changes in the business situation can be defined easily; on the other hand; changes
that are subtle (subtle:--especially of a change or distinction; as delicate or precise as to be
difficult to analyze or describe. and that take effect during a long period, can be more difficult to
define.)

iii. How widespread are the systems:The more scattered a symptom is, the more difficult it is to put them together into some problem
statement (or to develop useful research questions)

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iv) System ambiguity:The more ambiguous a symptom is the harder to define decision statement or problem
definition.

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Problem:A problem occurs when there is a difference between the current conditions/actual condition
and a more preferable condition./expected condition. In other words, a gap exists between the
way things are now and a way that the things could be better. The gap can come about in a
number of ways:-

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Situation analysis:The gathering of background information to familiarize researchers and managers with the
decision-making environment.

Breakdown of this concept:-

WHAT IT IS:- gathering of background information

GOAL:- to familiarize researchers and managers,
CONTEXT: - with the decision-making environment. .

The problem definition process steps:1. Understand the business situation:- (Identify key symptoms)
Conducting situation analysis (necessary for problem-definition process)
Type of research needed:- exploratory research; (gaining an awareness of marketplace
conditions and an appreciation of the situation often requires exploratory research.
Researchers sometimes apply qualitative research with the objectives of better problem
definition.
a) Interview process:- The situation analysis begins with an interview between the
researcher and the management. That is, the researcher will enter a dialogue with
the key decision makers of the organizations with a view to understand the situation
clearly. For example:- David Dealand, owner of a trucking business has hired a
business research consultant James Garrett. David is bewildered why his business
was facing recruitment costs and he believed the problem to be recruitment costs.
But researchers should not be tempted to accept the first problem statement offered
by management. Instead of being gullible to ones suggestion, he or she should find
more information and analyze it to draw out the most accurate and trustworthy result.
He or she should go for more and more interview and observation until finding any
satisfactory result. These helpful hints can be useful in the interview process:Develop many alternative problem statements
Think about potential solutions to the problem
Make lists of ideas
Be-open minded.
b) Identifying symptoms:Researchers should not be pleased with only some information, rather they should
watch for further changes and the reasons and factors behind it in details. Probing is
an interview technique that tries to draw deeper and more elaborate explanations from the
discussion. Probing helps to find out the key variables that are prime candidates for study. In
probing researcher asks significant question what has changed? and to investigate that the
researcher checks all statements and reports to track down news about the internal and
external environment, the competitors and customers. For instance in this case, James has
found that the real decision faced is not narrow as a recruiting problem; if the driver retention
could be increased, the need for larger recruitment expenses would stabilize, or even go down.
2. Identifying the relevant issues from the symptoms:From the firms situation, the researcher draw out the possible symptoms of the problem. For
example:-

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3. Writing managerial decision statements and corresponding research

objectives:Decision statement is a written expression of the key questions that the research user wishes to
answer; that is a decision statement captures these objectives that capture in a way that invites
multiple solutions. A problem statement is developed from the symptoms and it must have
solutions; multiple solutions are best to draw out the accurate research objective.

Once the decision statement is written, the researcher essentially answers the question, What
information is needed to address the situation?
In the case of David Tracking, the decision statement should be, In what ways can David
Trucking build driver loyalty so that retention increases and subsequent recruitment cost
decrease?
The research objectives of Deland Trucking can be:Determine what key variables relate to driver loyalty within the company, meaning:i. How does the lower level of pay impact driver retention?
ii. What does the increase in long-haul trucking to do Deland Truckings ability
to increase retention?
Assess the impact of different intervention strategies on driver satisfaction.
4. Determine the unit of analysis:The unit of analysis for a study indicates what or who should provide the data and at what
level aggregation. Researchers specify whether an investigation will collect data about
individuals (such as customers, employees, and owners), households (families, extended

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families, and so forth), organizations (businesses and business units), departments (sales,
finance, and so forth). In studies of home buying, for example, the husband/wife dyad
typically is the unit of analysis rather than the individual because many purchase decisions
are made jointly by husband and wife.
5. Determine relevant variables:a) WHAT IS A VARIABLE?
Variables are anything that varies or changes from one instance to another, can
exhibit differences in value, usually in magnitude or strength, or in direction.
Variables answer the question, what things should be studied to address a
decision statement? So, Identifying key variables and careful study of them are
needed to address a decision statement.

b) CONSTANT:Constant is something that does not change.

Although constants arent useful in addressing research questions and
management isnt very interested in hearing the key to the problem is something
that wont or cant be changed.
But in casual research, it can be important to make sure that some potential
variable is actually held constant while studying the cause and effect between
two other variables.
c) TYPES OF VARIABLES:There are three main types of variables: continuous, discrete, and categorical. Let's look
closer at each one:A continuous variable is one that can take any value between two numbers. A variable that
can take on a range of values that correspond to some quantitative amount.
For example, between 62 and 82 inches, there are a lot of possibilities: one participant might be
64.03891 inches tall, and another person might be 72.67025 inches tall. And there are literally
millions of other possible heights between 62 and 82 inches.
So how do you know if you've got a continuous variable? In general, a continuous variable is
one that is measured, not counted. Height, for example, is measured. Weight is measured.
Temperature, time, distance - all are continuous variables.

Discrete
Let's say for a moment that instead of height, you want to measure how many siblings a person
has and see if people with more siblings have higher IQs. The number of siblings a person has
is a discrete variable, or a variable that has only certain values. For example, a person isn't
going to have 2.34978 siblings; he will have two or three siblings. Remember, how we said that
continuous variables are measured but not counted? Well discrete variables are counted. The
number of times heads comes up when you toss a coin, number of students present in the
class, number of times a person has attended therapy sessions---these are all discrete
variables.

Discrete vs Continuous Variable:A discrete variable is a variable whose value is obtained by counting. The value is whole
number and not in fractions. Examples: number of students present in the class, number of red
marbles in a jar, number of heads when flipping three coins.

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A continuous variable is a variable whose value is obtained by measuring. The value is in

fractions. Examples: height of students in class, weight of students in class, time it takes to get
to school, distance traveled between classes.

A categorical variable is one that takes on values in a set of categories, as opposed to a

continuous variable, which takes on a range of values along a continuum. The simplest
examples of categorical variables are binary variables with only two possible responses, for
instance yes and no. Categorical variables are most common in the social, biological, and
behavioral sciences, although they can be found in almost any area of application. For example,
the variable of marital status can be described as single, married, divorced, or widowed:
four categories. The variable sex can be described as male or female: ...
Categorical variable indicates membership in some groups.

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The dependent variable is the variable a researcher is interested in. The changes to the
dependent variable are what the researcher is trying to measure with all their fancy techniques.
In our example, your dependent variable is the person's ability to throw a ball. We're trying to
measure the change in ball throwing as influenced by hunger.

An independent variable is a variable believed to affect the dependent variable. This is the
variable that you, the researcher, will manipulate to see if it makes the dependent variable
change. In our example of hungry people throwing a ball, our independent variable is how long
it's been since they've eaten

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To reiterate, the independent variable is the thing over which the researcher has control and is
manipulating. In this experiment, the researcher is controlling the food intake of the participant.
The dependent variable is believed to be dependent on the independent variable.

Probing
An interview technique that tries to draw deeper and more elaborate explanations from the discussion

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Unit of analysis
A study indicates what or who should provide the data and at what level of aggregation.

Dummy tables
Tables placed in research proposals that are exact representations of the actual tables that will show
results in the final report with the exception that the results are hypothetical (fictitious).

What is Phenomenology?
Phenomenology is a philosophical approach to studying human experiences based on the
idea that human experience itself is inherently subjective and determined by the context in
which people live. (Zikmund, Babin, Carr, Griffin)
IN EASY WORDS:-

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Phenomenological research involves trying to understand the essence of a phenomenon by

examining the views of people who have experienced that phenomenon.
Phenomenology is interested in the individual experiences of people. It usually involves
long, in-depth interviews with subjects

For example: - Ethan is a psychologist who is interested in studying how families of autistic
children cope with the difficult news that their child has autism. Here, Ethan has to conduct
phenomenological research which involves trying to understand the essence (kernel, core,
heart) of a phenomenon [here, how parents cope with the news that their children has
autism] by examining the views of people who have experienced that phenomenon [here,
having an interview with the parents of the autistic children).

What is Hermeneutics?
An approach to understand phenomenology that relies on analysis of texts through which a
person tells a story about him or herself.
(Zikmund, Babin, Carr, Griffin)

Hermeneutic unit
Refers to a text passage from a respondents story that is linked with a key theme from within this story
or provided by the researcher

What is Participant-Observation?
Participant-observation is an ethnographic research approach where the researcher

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becomes immersed within the culture that he or she is studying and draws data from his or
her observations.
(Zikmund, Babin, Carr, Griffin)
IN EASY WORDS:Participant observation is a research method in which the researcher actually takes part in
the social phenomenon being studies.
Example:
In a classic study on mental hospitals, researchers had themselves admitted as
patients under false pretenses so that they could observe how patients, including
themselves, were treated by hospital staff.

Grounded Theory:- IN EASY WORDS:Everyone knows that a scientist has to develop a hypothesis before gathering data. But
what if a scientist does it the other way around? Grounded theory answers this question.
Before defining what grounded theory is, go through the example carefully:Heather is a psychologist who is interested in how video games and academics intersect.
She's noticed that when kids play some types of video games a lot, they do better in school,
but when they play other types of video games a lot, they do worse in school. She wonders
why some video games seem to make students smarter and others seem to make them
less smart.
Heather decides to do research into what elements of video games make kids smarter. The
first step in research is to decide what type of research to do. One of the major types of
research is qualitative research, which involves studying non-numerical data for answers to
research questions.
So maybe Heather decides that she wants to examine the games that seem to make kids
better in school. She'll play with them, make notes, and see if she notices patterns in them.
She'll also examine the other video games, the ones that lead to bad grades, to see what's
different between them and the 'good grade' video games.
Heather wants to examine the video games to see why some seem to make kids smarter
and others don't. She knows that she's going to do qualitative research. But what's the next
step?
If you're like most people and have spent many years learning the scientific method, you'll
say that she has to develop a hypothesis, or guess, about what elements might make video
games lead to better grades. For most studies, that's exactly what happens. But Heather
doesn't have any idea what's causing the success of some gamers. She can't even begin to
guess what elements those video games have that others don't. So she decides to do
something different. She decides to gather the data first without a hypothesis, and then
analyze it to come up with a theory about what makes the video games good.

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Imagine that you have a handful of seeds, and you don't know what type of plant they will
sprout (young branch). So you plant them and water them and watch over them. Eventually,
when they sprout up and bloom, you'll know what they are, but you can't tell just by looking
at the seeds. Grounded theory is like that. The data is the seeds, while the theory is the
plant that eventually shows itself.

What is a Case Study?

The documented history of a particular person, group, organization, or event. (Zikmund)
IN EASY WORDS:A case study is an empirical study that investigates a contemporary phenomenon in depth
and with its real-life context (Yin, 2009, p18)

Qualitative business research

Research that addresses business objectives through techniques that allow the researcher to provide
elaborate interpretations of phenomena without depending on numerical measurement; its focus is on
discovering true inner meanings and new insights.
Imagine that your town has implemented a gun buyback program. The city offers to buy used guns from
people, even if those guns are illegal. There are no questions asked. The city hopes that this program will
reduce the number of guns on the street and the amount of gun violence.

Quantitative business research

Business research that addresses research objectives through empirical assessments that involve
numerical measurement and analysis.
Qualitative research is based on opinions, attitudes, beliefs and intentions. This kind of research deals
with questions such as "Why"? "Would?", or "How?"
Qualitative research aims to understand why customers behave in a certain way or how they may
respond to a new product. However, such data can highlight potential issues which can be explored in
quantitative research.
Quantitative research is research based on larger samples and is, therefore, more statistically valid.
Quantitative research is concerned with data and addresses question such as "how many?", "how
often", "who?", "when?" and "where?"
The results of quantitative research will generally be numerical form for example:

35% of customers rate the new product as "attractive"

70% of potential customers use the Internet to buy their hotel accommodation in Dorset
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3 out of 5 customers will buy a new food product after being offered a free in-store sample

Qualitative data
Data that are not characterized by numbers, and instead are textual, visual, or oral; focus is on stories,
visual portrayals, meaningful characterizations, interpretations, and other expressive descriptions.

Quantitative data
Represent phenomena by assigning numbers in an ordered and meaningful way.

Ethnography
Represents ways of studying cultures through methods that involve becoming highly active within that
culture.
Ethnography is a type of qualitative research design aimed at studying cultures and groups from a
unique perspective
Ethnographic research is the observation of groups of people or a culture in the field or, in other words,
in a natural setting.
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The researcher pays attention to the context, artifacts, and environments of the subjects in addition to
their interactions with each other.
The researcher also plays the role of the learner.

When to Use Ethnographies

When searching for meaning of cultural norms and views.

When examining or trying to find reasons for the use of certain behaviors or practices.

When examining social trends and instances, like divorce and illness.

When examining social interaction and encounters.

And when trying to understand the roles of families, relationships, and organizations.

Ethnography is a collection of qualitative methods used in the social sciences that

focus on the close observation of social practices and interactions. These qualitative
methods enable the researcher to interpret and build theories about how and why a
social process occurs. They are particularly useful for elucidating the steps of
processes that have not been well understood, and to create rich descriptions of
peoples experiences.

Participant-observation
Ethnographic research approach where the researcher becomes immersed within the culture that he or
she is studying and draws data from his or her observations.
Participant observation is a qualitative research method in which the researcher not only observes the
research participants, but also actively engages in the activities of the research participants. This requires
the researcher to become integrated into the participants' environment while also taking objective notes
about what is going on. Most researchers who conduct participant observations take on the role that they
are interested in studying.

Focus group interview

An unstructured, free-flowing interview with a small group of around six to ten people. Focus groups
are led by a trained moderator who follows a flexible format encouraging dialogue among respondents.

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Focus groups offer several advantages:

1. Relatively fast
2. Easy to execute
3. Allow respondents to piggyback off each others ideas: Piggyback
A procedure in which one respondent stimulates thought among the others; as this process continues,
increasingly creative insights are possible. In other words, one respondent stimulates thought among
the others and, as this process continues, increasingly creative insights are possible.
A comment by one individual often triggers a chain of responses from the other participants.
4. Provide multiple perspectives:The social nature of the focus group also helps bring out multiple views as each person shares a
particular perspective.
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5. Flexibility to allow more detailed descriptions:The flexibility of focus group interviews is advantageous, especially when compared with the more
structured and rigid survey format. Numerous topics can be discussed and many insights can be
gained, particularly with regard to the variations in consumer behavior in different situations.
6. High degree of scrutiny
A focus group interview allows closer scrutiny in several ways. First, the session can be observed by
several people, as it is usually conducted in a room containing a two-way mirror. The respondents and
moderator are on one side, and an invited audience that may include both researchers and decision
makers is on the other. Second, focus group sessions are generally recorded on audio or videotape.
Later, detailed examination of the recorded session can offer additional insight and help clear up
disagreements about what happened.

Focus blog
A type of informal, continuous focus group established as an Internet blog for the purpose of
collecting qualitative data from participant comments

DISADVANTAGES OF FOCUS GROUPS

First, focus groups require objective, sensitive, and effective moderators. It is very difficult for a
moderator to remain completely objective about most topics. In large research firms, the moderator
may be provided only enough information to effectively conduct the interview, no more.
Second, some unique sampling problems arise with focus groups. Researchers often select focus group
participants because they have similar backgrounds and experiences or because screening indicates that
the participants are more articulate or gregarious than the typical consumer. Such participants may not
be representative of the entire target market. Thus, focus group results are not intended to be
representative of a larger population.

Third, although not so much an issue with online formats where respondents can remain anonymous,
traditional face-to-face focus groups may not be useful for discussing sensitive topics.
A focus group is a social setting and usually involves people with little to no familiarity with each
other. Therefore, issues that people normally do not like to discuss in public may also prove difficult to
discuss in a focus group.

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Fourth, focus groups do cost a considerable amount of money, particularly when they are not
conducted by someone employed by the company desiring the focus group.

Depth interview
A one-on-one interview between a professional researcher and a research respondent conducted about
some relevant business or social topic

Laddering is a term used for a particular approach to probing, asking respondents to compare
differences between brands at different levels. What usually results is that the first distinctions are
attribute-level distinctions, the second are benefit-level distinctions, and the third are at the value or
motivation level. Laddering can then distinguish two brands of skateboarding shoes based on a) the
materials they are made of, b) the comfort they provide, and c) the excitement they create.

Conversations
An informal qualitative data gathering approach in which the researcher engages a respondent in a
discussion of the relevant subject matter.

Field notes
The researchers descriptions of what actually happens in the field; these notes then become the text
from which meaning is extracted.

Free-association technique
This technique involves free association tasks whereby subjects are asked what comes to mind when
they think of the brand without any more specific probe or cue than perhaps the associated product
category (e.g. what does the Rolex name mean to you? or Tell me what comes to mind when you
think of Rolex watches.)

The term projective techniques refers to a style of research in which the respondent is asked to
respond to ambiguous or seemingly innocuous stimuli most often pictures. The respondent projects
their unconscious attitudes and motivations onto the stimuli when evaluating the scene, hence the
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projective nature of the techniques. These tests are commonly used in market research in order to
reveal the unconscious associations respondents make with brand images, or to assess the effectiveness
of advertisements.
A thematic apperception test (TAT), sometimes called the picture interpretation technique, presents
subjects with an ambiguous picture(s) and asks the subject to tell what is happening in the picture(s)
now and what might happen next. Hence, themes (thematic) are elicited on the basis of the perceptualinterpretive (apperception) use of the pictures. The researcher then analyzes the contents of the stories
that the subjects relate. A TAT represents a projective research technique.
It is a projective test designed to reveal a person's social drives or needs by their interpretation of a
series of pictures of emotionally ambiguous situations.

Data conversion
The process of changing the original form of the data to a format suitable to achieve the research
objective; also called data transformation.

Market tracking
The observation and analysis of trends in industry volume and brand share over time.

Data mining
The use of powerful computers to dig through volumes of data to discover patterns about an
organizations customers and products; applies to many different forms of analysis.
Generally, data mining (sometimes called data or knowledge discovery) is the process of analyzing
data from different perspectives and summarizing it into useful information - information that can be
used to increase revenue, cuts costs, or both.
Respondents
People who verbally answer an interviewers questions or provide answers to written questions.
A sample survey is a process for collecting data on a sample of observations which are selected
from the population of interest using a probability-based sample design.

Errors in Survey Research

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Random sampling error

A statistical fluctuation that occurs because of chance variation in the elements selected for a sample.
Systematic error
Error resulting from some imperfect aspect of the research design that causes respondent error or from
a mistake in the execution of the research.
Sample bias
A persistent tendency for the results of a sample to deviate in one direction from the true value of the
population parameter.
Respondent error
A category of sample bias resulting from some respondent action or inaction such as nonresponse or
response bias.
Nonresponse error
The statistical differences between a survey that includes only those who responded and a perfect
survey that would also include those who failed to respond.
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Non-respondents
People who are not contacted or who refuse to cooperate in the research.
No contacts
People who are not at home or who are otherwise inaccessible on the first and second contact.

Refusals
People who are unwilling to participate in a research project.

Self-selection bias
A bias that occurs because people who feel strongly about a subject are more likely to respond to
survey questions than people who feel indifferent about it.

Response bias
A bias that occurs when respondents either consciously or unconsciously tend to answer questions with
a certain slant that misrepresents the truth.

Types of Response Bias

Acquiescence bias
A tendency for respondents to agree with all or most questions asked of them in a survey.
Extremity bias
A category of response bias that results because some individuals tend to use extremes when
responding to questions.

Interviewer bias
A response bias that occurs because the presence of the interviewer influences respondents answers.

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Social desirability bias

Bias in responses caused by respondents desire, either conscious or unconscious, to gain prestige or
appear in a different social role.

Administrative error An error caused by the improper administration or execution of the research
task.
Data-processing error
A category of administrative error that occurs because of incorrect data entry, incorrect computer
programming, or other procedural errors during data analysis.
Sample selection error
An administrative error caused by improper sample design or sampling procedure execution.
Interviewer error
Mistakes made by interviewers failing to record survey responses correctly.
Interviewer cheating
The practice of filling in fake answers or falsifying questionnaires while working as an interviewer
Structured question
A question that imposes a limit on the number of allowable responses.

Longitudinal study
A survey of respondents at different times, thus allowing analysis of response continuity and changes
over time.
A longitudinal design is a research study where a sample of the population is studied at intervals to
examine the effects of development. In a longitudinal design, you have a group of people and you study
something about them. Then you collect their contact information. After a set amount of time - be it weeks,
months or years - the participants are called and asked to return.
Tests are re-administered to see what changes are in the participants

Tracking study
A type of longitudinal study that uses successive samples to compare trends and identify changes in
variables such as consumer satisfaction, brand image, or advertising awareness.
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Consumer panel
A longitudinal survey of the same sample of individuals or households to record their attitudes,
behavior, or purchasing habits over time.

Total quality management

A business philosophy that emphasizes market-driven quality as a top organizational priority

Personal interview
Face-to-face communication in which an interviewer asks a respondent to answer questions.

Advantages of Personal Interviews

OPPORTUNITY FOR FEEDBACK

PROBING COMPLEX ANSWERS
LENGTH OF INTERVIEW
COMPLETENESS OF QUESTIONNAIRE
HIGH PARTICIPATION

Disadvantages of Personal Interviews

INTERVIEWER INFLUENCE
LACK OF ANONYMITY OF RESPONDENT
COST

Door-to-Door Interviews and Shopping Mall Intercepts

DOOR TO DOOR INTERVIEWS
Door-to-door interviews
Personal interviews conducted at respondents doorsteps in an effort to increase the participation rate in
the survey.
CALLBACKS
Callbacks
Attempts to re-contact individuals selected for a sample who were not available initially.

MALL INTERCEPT INTERVIEWS

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Mall intercept interviews

Personal interviews conducted in a shopping mall.
Telephone interviews
Personal interviews conducted by telephone, the mainstay of commercial survey research.

Central location Interviewing

Telephone interviews conducted from a central location allowing firms to hire a staff of professional
interviewers and to supervise and control the quality of interviewing more effectively.
Self-administered questionnaires
Surveys in which the respondent takes the responsibility for reading and answering the questions.

A mail survey is a self-administered questionnaire sent to respondents through the mail. This paperand-pencil method has several advantages and disadvantages.

GEOGRAPHIC FLEXIBILITY
COST
RESPONDENT CONVENIENCE
ANONYMITY OF RESPONDENT
ABSENCE OF INTERVIEWER
STANDARDIZED QUESTIONS
TIME IS MONEY
LENGTH OF MAIL QUESTIONNAIRE

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Response rate
The number of questionnaires returned or completed divided by the number of eligible people who
were asked to participate in the survey.

Cover letter
Letter that accompanies a questionnaire to induce the reader to complete and return the questionnaire.

Self-Administered Questionnaires
Forms of Distribution

Using

Other

Drop-off method
A survey method that requires the interviewer to travel to the respondents location to drop off
questionnaires that will be picked up later.

Fax survey
A survey that uses fax machines as a way for respondents to receive and return questionnaires.

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Pretesting
Screening procedure that involves a trial run with a group of respondents to iron out fundamental
problems in the survey design.

Pre-testing is the opportunity to see what questions work well, what questions sound strange, what questions
can be eliminated and what needs to be added. Is the survey too long? Are respondents losing interest? Do they
understand the questions?

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