BUS 321

Science Methodology
Main Textbook:
William G. Zikmunds
Business Research Methods
Lectured by
Prof. Dr. Ltfihak Alpkan
Gebze Institute of Technology

WEEK DATE

TEACHING PLAN

24. 09

Introduction

01. 10

Ch. 1: The Role of Business Research

08.10

Ch. 3: Theory Building

15.10

Ch. 4: The Business Research Process

22. 10

Ch. 5: Ethical Issues in Business Research

05. 11

General overview

12. 11

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 1

MIDTERM EXAM 2

Business
Research 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

1. Business Research Defined

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.

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

Research Questions ?

Information
Reduces
Uncertainty

I dont know
if we
should
offer on-site
child care?

Data versus Information

Datathe raw factsrecord measures of
certain phenomena which are necessary to
provide
Informationfacts in a form suitable for
managers to base decisions on.

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 McDonalds 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
Reaching decisions
Choosing implementation strategies
Monitoring and evaluating

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

When to Conduct Business Research?

Time Constraints
Is sufficient time
available before
a managerial
decision
must be made?

No

Yes

Availability
of Data

Nature of
the Decision

Is the information
already
on hand
inadequate
for making
the decision?

Is the decision
of considerable
strategic
or tactical
importance?

No

Yes

Benefits
vs. Costs
Yes

Does the value

of the research
information
exceed the cost
of conducting
research?

No

Do Not Conduct Business Research

No

Yes

Conducting
Business
Research

Value Should Exceed

Estimated Costs
Costs
Value
Decreased certainty
Increased likelihood of
a correct decision
Improved business
performance and
resulting higher profits

Research expenditures
Delay of business
decision and possible
disclosure of
information to rivals
Possible erroneous
research results

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

Business
Research 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 are Abstractions of

Reality
Abstract
Level

Empirical
Level

CONCEPTS

OBSERVATION OF OBJECTS
AND EVENTS (REALITY)

Vegetation
Fruit
Banana
Reality

Increasingly more abstract

A Ladder Of Abstraction
For Concepts

Theories
Propositions
Concepts
Observation of objects
and events (reality )

Increasingly more abstract

Theory Building: A Process Of

Increasing Abstraction

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.

Proposition at Abstract Level

Concept A

Concept B

(Reinforcement)

(Habits)

Hypothesis at Empirical Level

Dollar bonus for
sales volume
over quota

Always makes
four sales calls
a day

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.

Empirical Evidence help us predict future reality through

abstract concepts

141
2002 Southwestern College Publishing. All rights reserved.

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.

The Scientific Method:

An Overview
Assess
relevant
existing
knowledge

Acquire
empirical
data

Formulate
concepts &
Propositions

Analyze &
evaluate
data

Statement
of
Hypotheses

Design
research

Provide
explanationstate new
problem

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

Levels of Certainty in Decision Making

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

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

Uncertainty Influences the Type of Research

COMPLETE
CERTAINTY

NO RESEARCH
AT ALL

UNCERTAINTY

CAUSAL
RESEARCH

DESCRIPTIVE
RESEARCH

ABSOLUTE
AMBIGUITY

EXPLORATORY
RESEARCH

Degree of Problem Definition

Exploratory Research
Descriptive Research
Causal Research
(Unaware of Problem)(Aware of Problem)
(Problem Clearly Defined)
possible situation

Our sales are declining and What kind of people are buying Will buyers purchase more of
we dont know why.our product? Who buys our
our products in a new package?
competitors 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?

2.1. Exploratory Research

Secondary data
Experience survey
Pilot studies

57

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

I keep six honest serving men, (they

taught me all I knew), their names are
and
what, and why, and
and where and when,
how,
who.
--Rudyard Kipling

60

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 Discovery
and Definition

Research
Design

Discovery and
Definition

and so on
Conclusions and
Report

Sampling
Data Processing
and Analysis
Data
Gathering

Problem
discovery

Problem Discovery
and Definition

Selection of
exploratory research
technique

Sampling

Selection of
exploratory research
technique

Secondary
(historical)
data

Experience
survey

Probability

Pilot
study

Case
study

Data
Gathering
Data
Processing
and
Analysis

Problem definition
(statement of
research objectives)

Experiment
Laboratory

Conclusions
and Report

Survey
Field

Interview

Collection of
data
(fieldwork)
Editing and
coding
data
Data
processing

Selection of
basic research
method

Research Design

Nonprobability

Questionnaire

Observation

Secondary
Data Study

Interpretation
of
findings

Report

The Business Research Process

Problem
Discovery

Selection of
Sample Design

Exploratory
Research

Collectionofthe
Data

Selection of the
Basic Research
Method

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.

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.

79

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.

Defining Problem Results in

Clear Cut Research Objectives
Symptom Detection
Analysis of
the Situation
Problem Definition
Statement of
Research Objectives

Exploratory
Research
(Optional)

3. The Process of Problem Definition

Ascertain the
decision makers
objectives

Understand
background of
the problem

Isolate/identify
the problem, not
the symptoms

Determine research
objectives

Determine the unit

of analysis

Determine relevant
variables and state
hypotheses

3.1. Ascertain the Decision Makers 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.
83

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.

84

85

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
86

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
competitors
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

Broad
research
objectives

Statement
of business
problem

Exploratory
research
(optional)

Specific
Objective 1

Specific
Objective 2

Specific
Objective 3

Research
Design

Results

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.

92

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)
93

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.

94

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.
95

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.

96

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.

An exemplary problem definition process

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 rebuying intention?
Hypothesis: old fashioned products are percieved
by the young customers as low quality.

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

2. Why Conduct Exploratory

Research?
Diagnosing a situation
Discovering new ideas
Screening alternatives

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 the
mountain, 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
Moderators job is different

4.2. Projective Techniques

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
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
subjects 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 Accuracy
Data Not Consistent with Needs
Inappropriate Units of Measurement
Time Period Inappropriate; Secondary Data may
be Dated

Evaluating Secondary Data

Applicability
to project
objectives

Does the data help to

answer questions
set out in the
problem definition?
Does the data apply to
the time period of
interest?

Does the data apply to

the population of
interest?

Evaluating Secondary Data (continued)

Applicability
to project
objectives

Accuracy
of the data

Do the other terms

and variable
classifications
presented apply?
Are the units of
measurement
comparable?

If possible, go to the
original source of the
data?

Is the cost of data

acquisition worth it?

Accuracy
of the data

Is there a possibility
of bias?

Can the accuracy of

data collection be
verified?

Use data

3. Typical Objectives for

Secondary Data Research Designs
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

3.1. Fact Finding

Aim: to collect descriptive and comparative
information to support decision making.
Comparing companys data with (e.g. total
annual sales) companys competitors data
and/or
Comparing companys present data with
companys own data in other time periods.

3.2. Model Building

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.

3.3. Data Based Marketing (Data Mining)

Aim: to dig through and analyze volumes of
data to discover patterns about a companys
customers, products, and activities.

Practice of maintaining a customer data base

Names
Addresses
Past purchases
Customers responses to companys 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 researchers 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.

Selecting a Sample
Sample:
Subset of a larger population

SAMPLE

Sampling:
POPULATION
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 nonequal, 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
interviewers 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.

Types of Response Bias

Deliberate falsification (consciously false answers)
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)

2.2.2. Administrative Error

Unadvertently or carelessly improper
administration and execution of the research
task
Blunders are:
Confusion
Neglect
Omission

Administrative Error
Data 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