2.

2 - Managerial Research Methods

Module 1 - INTRODUCTION TO MANAGEMENT RESEARCH
Definition, Nature and role of Management Research, Types of Research based on
Purpose, Process, Outcome, Nature, Action and Logic, Research concepts, constructs,
propositions and hypotheses, Features of a good Research Study, Research Process, and
Ethical issues.
What is Research?
• Research is the process of finding solutions to a problem after a
thorough study and analysis of the situational factors.
• Managers in organizations constantly engage themselves in studying
and analyzing issues and hence are involved in some form of research
activity as they make decisions at the workplace.
Research and the Manager
• The managers encounter big and small problems on a daily basis,
which they have to solve by making the right decisions.
• In business, research is usually conducted to resolve problematic
issues in the areas of accounting, finance, management, and
marketing.
• Sometimes managers make good decisions and the problem gets
solved.
• Sometimes managers make poor decisions and the problem persists.
• The difference between making good decisions and poor decisions,
lies in how managers go about the decision-making process.
Business Research
• Business research can be described as a systematic and organized
effort to investigate a specific problem encountered in the work
setting, that needs a solution.

• Business research comprises a series of steps designed and executed,

with the goal of finding answers to the issues that are of concern to
the manager in the work environment.
Objectives of Research

• To gain familiarity with a phenomenon or to explore new

ideas.
• To portray accurately the characteristics of a particular
individual, situation or a group.
• To determine the frequency with which something occurs or
with which it is associated.
• To establish a cause and effect relationship and test the
relationship between two variables.
Why is Research Needed / Important / Necessary IN Business?

• EFFCETIVE DECISION MAKING

• UNAVAILABILITY OF PORTABLE SOLUTIONS
• FREQUENTLY CHANGING BUSINESS ENVIRONMENT
• TO EXPLORE NEW MARKETS & OPPORTUNITES
• TO IDENTIFY PROBLEM AREAR etc……
Characteristics of Research

1. Research begins with a problem in the form of a question

in the mind of the researcher.
2. Research demands the identification of a problem, stated
in clear, unambiguous terms.
3. Research requires a plan.
4. Research deals with the main problem through
appropriate sub-problems.
5. Research seeks direction through appropriate
hypotheses and is based upon obvious assumptions.
6. Research deals with facts and their meaning.
7. Research is circular.
Nature of Research

a.BR- As an economic resource

b BR- As a system of authority
c. BR- As an activity of business management
d. BR- As a Team effort
e. BR- AS an art or science
f. BR- As a profession
g. BR- As an interdisciplinary system
Scope & Application in Various
Functions of Business
Management
Scope of Market Research
 1.Advertising Research

a. Motivation research

b. Copy research

c. Media research

d. Studies of advertisement effectiveness

e. other
2. Business economic and corporate research

a. Short range forecasting

b. Long range forecasting
c. Studies of business trends
d. Pricing studies
e. Plant and warehouse location studies
f. product mix studies
g. Acquisition Studies
h. Export and international studies
i. Others
3. Corporate responsibility research
Consumers’ “ rights to know” studies
a.

b. Ecological impact studies

c. Studies of legal constraints
d. Social values and policies studies
e. Others
4. Product research

5. Packaging research
6. Sales and market research

a. Measurement of market potential

b. Market share analysis
c. Sales analysis
d. Establishment of sales quotas & territories
e. Distribution channel studies
f. Test markets
g. Consumer panel operation
h. Sales compensation studies
I Promotional studies
j. Others
Research Design: Definition
• A research design is a framework or blueprint
for conducting the marketing research project.
It details the procedures necessary for
obtaining the information needed to structure
or solve marketing research problems.
 BUSINESS RESEARCH

RESEARCH BASIC RESEARCH APPLIED RESEARCH

DESIGN/
TYPE OF EXPLORATORY
CONCLUSIVE RESEARCH

RESEARCH RESEARCH

DESCRIPTIVE CAUSAL
RESEARCH RESEARCH

CROSS-SECTIONAL DESIGN LONGITUDINAL DESIGN

Types of Business Research
• Research can be undertaken for two different purposes:
1. To solve a current problem faced by the manager in the work
setting. Such research is called applied research.
2. To generate a body of knowledge about how to solve problems
that could be occurred in organizations. This is called basic
research or fundamental research. It is also known as pure
research.
Examples of Applied Research
• Apple’s iPod sales increased by 200% from 2001 to 2008. but the
sales decreased by 6% in 2009. What is the reason for this decrease?
• The question is: what will apple do about this problem?
Examples of Applied Research
• Xerox is insular and isn’t ready for the increasingly competitive, high-
tech world. Xerox still relies on old-fashioned and slow-selling analog
copiers for more than half its revenue and despite its double-digit
growth in digital products and services, its sales rose just 4%.
Examples of Applied Research
• In the Xerox situation, it needs to look into the efficacy of the analog
technology used in copiers and examine what should be done to
increase efficiency and promote its sales.
Examples of Basic Research
• University professors engage in basic research in an effort to understand and
generate more knowledge about various aspects of businesses, such as:
- How to improve the effectiveness of information systems.
- How to integrate technology into the overall strategic objectives of an
organization.
- How to increase the productivity of the employees.
- How to increase the effectiveness of small businesses.
Examples of Basic Research
• These findings later become useful for application in
business situations.
Distinction Between Applied and Basic Research
• The main distinction between applied and basic business research is:
- Applied research is specifically aimed at solving a currently
experienced problem.
- Basic research has a broader objective of generating knowledge and
understanding of phenomena and problems that occur in various
organizational settings.
- Both types of research follow the same steps of systematic inquiry
to arrive at solutions to problems.
RESEARCH DESIGN
• Exploratory research
• A type of research design that has as its primary objective the provision of
insights into and comprehensive of the problem situation confronting the
researcher.
RESEARCH DESIGN
• Exploratory Research
• To formulate a problem of define a problem more
precisely
• To identify alternative course of action
• To develop hypothesis
• To isolate key variables and relationships for further
examination
• To gain insights for developing an approach to the
problem
• To establish priorities for further research
RESEARCH DESIGN
• Conclusive research
• Is designed to assist the decision maker in determining, evaluating, and
selecting the best course of action in a given situation.
• Conclusive research can be used to verify the insights gained from exploratory
research.
Differences Between Exploratory and Conclusive Research
Exploratory Conclusive

Objectives To provide insights and To test specific hypotheses

understanding. and examine relationship

Characteristics Information needed is defined Information needed is

only loosely. clearly defined.
Research process flexible and Research process is formal
unstructured.
and structured.
Sample is small and non-
representative Sample is large and
Analysis of primary data is representative.
qualitative Data analysis is
Findings/Results quantitative.
Tentative Conclusive

Outcome Generally followed by Findings used as input to

further exploratory or decision making.
conclusive research.

Source: Maholtra, (2002). Basic Marketing Research; Applications to Contemporary Issues. Upper Saddle River, New Jersey, USA:
Prentice-Hall, Inc., p.85.
RESEARCH DESIGN
• Descriptive research
• A type of conclusive research that has its major
objectives the description of something—usually
market characteristics or functions.
• Descriptive research seeks to determine the answers to
who,what, when, where and how questions.
RESEARCH DESIGN
• Descriptive research goals
• To develop a profile of a target market
• To estimate the frequency of product use as a basis for
sales forecasts
• To determine the relationship between product use and
perception of product characteristics.
• To determine the degree to which marketing variables
are associated.
RESEARCH DESIGN
• Descriptive research
• Cross-sectional designs
• A type of research design involving the one-time collection of
information from any given sample of population elements.
• Longitudinal designs
• A type of research design involving elements that is measured
repeatedly. The sample remains the same over time, providing
a series of pictures which, when viewed together, portray
both the situation and the changes that are taking place.
RESEARCH DESIGN
• Causal Research
• A type of conclusive research whose major objective is to obtain evidence
regarding the cause-and-effect (causal) relationships.
RESEARCH DESIGN
• Differences between exploratory and conclusive
• Comparison of basic research design
• Three research approaches
 Table 3.3 A Comparison of Basic Research Designs

Exploratory Descriptive Causal

Objectives Discovery of Describe market Determine cause-

ideas and characteristics or and-effect
insights. function. relationship.

Characteristics Flexible Marked by the Manipulation of one

Versatile prior formulation or more independent
Often the front of specific variables.
end of total hypotheses. Control of other
research design Preplanned and mediating variables.
structured design.
Methods Expert surveys Secondary data Experiments
Pilot surveys Surveys
Case study Panels
Secondary data Observational and
Qualitative other data.
research

Source: Maholtra, (2002). Basic Marketing Research; Applications to Contemporary Issues. Upper
Saddle River, New Jersey, USA: Prentice-Hall, Inc., p.87
TABLE 3.4 Three Research Approaches

Research Purpose Research Questions Hypothesis

Exploratory research

1.What new product What alternative ways Boxed lunches are better
should be developed? are there to provide than other forms.
lunches for school
children?

2.What product appeal What benefits people Constructs unknown

will be effective in seek from the product?
advertising?

3.How can our service What is the nature of Suspect that an image of
be improved? any customer impersonalization is a
dissatisfaction? problem.
 TABLE 3.4 Three Research Approaches (cont.)
Research Purpose Research Questions Hypothesis

Descriptive research

1.How should a new Where do people now Upper-class buyers use

product be distributed? buy similar products? specialty stores, and
middle-class buyers use
department stores.

2.What should be the What kinds of people Older people buy our
target segment? now buy the product, brands, whereas the young
and who buys our married are heavy users of
brands? competitors’.

3.How should our What is our current We are regarded as begin

product be changed? image? conservative and behind
the times.
TABLE 3.4 Three Research Approaches (cont.)
Research Purpose Research Questions Hypothesis
Causal Research

1.Will an increase in What is the relationship For small organizations,

the service staff be between size of service an increase of 50% or
profitable? staff and revenue? less will generate
marginal revenue in
excess of marginal costs.

2.Which advertising What would get people Advertising program A

program for public out of cars and into generates more new
transit should be run? public transit? riders than program B.

3.Should a new budget Will the “no frills” airline The new airfare will attract
or “no frills” class or generate sufficient new sufficient revenue from
airfare be introduced? passengers to offset new passengers.
the loss of revenue
from existing
passengers who switch
from economy class?
Source: Aaker, Kumar, and Day. G. (2001). Marketing Research, 7th Ed. New York, John Wiley & Sons, Inc., p.72
Uses of Exploratory Research
• Formulate a problem or define a problem more precisely
• Identify alternative courses of action
• Develop hypotheses
• Isolate key variables and relationships for further
examination
• Gain insights for developing an approach to the problem
• Establish priorities for further research
Use of Descriptive Research
• To describe the characteristics of relevant groups, such as
consumers, salespeople, organizations, or market areas.
• To estimate the percentage of units in a specified
population exhibiting a certain behavior
• To determine the perceptions of product characteristics
• To determine the degree to which marketing variables
are associated
• To make specific predictions
 Major Types of Descriptive Studies

Descriptive
Studies

Consumer Market
Sales Studies
Perception Characteristic
And Behavior Studies
Studies

• Market Potential • Image • Distribution

• Market Share • Product Usage • Competitive

Analysis
• Sales Analysis • Advertising

• Pricing
Uses of Casual Research
• To understand which variables are the cause
(independent variables) and which variables are
the effect (dependent variables) of a
phenomenon

• To determine the nature of the relationship

between the causal variables and the effect to be
predicted

• METHOD: Experiments
Ethics and Business Research
• Ethics in business research refers to a code of conduct of behavior
while conducting research.
• Ethical conduct applies to the organization and the members that
sponsor the research, the researchers who undertake the research,
and the respondents who provide them with the necessary data.
Ethics and Business Research
• The members that sponsor the research should do it in good faith,
pay attention to what the results indicate, and pursue organizational
rather than self-interest.
• Ethical conduct should also be reflected in the behavior of the
researchers who conduct the investigation, the participants who
provide the data, the analysts who provide the results, and the entire
research team that presents the interpretation of the results and
suggests alternative solutions.
THE RESEARCH PROCESS
 Define Research
Problem &
Research Objective

[II] Review concepts [II] Review previous

and theories research finding

[III]
Formulate Hypothesis

[IV] Design research

(Including Sample
design)
F
FF
[V] Collect data
(Execution)
FF
F
[VI] Analyze Data
(Test Hypothesis) [IX] Report
preparation
F
[VII] Interpretation [VIII] Actionable
and Implications Proposition
 (I) Defining the Research Problem
“A problem well defined is half solved “
Two steps are involved defining the research problem
a. Understanding the problem thoroughly and
b. Rephrasing the same into meaningful terms from
analytical point of view

Techniques for preliminary investigation

a. Situation Analysis
b. Informal investigations

Researcher can review two types of literature

a. The conceptual literature
b. The empirical literature
(II) Review of theories, concepts
and previous research finding

•Background of the study

•Research questions
•Formulation of Hypothesis
(III) Development of Working Hypothesis

Working hypothesis is tentative assumption

made in order to draw out and test its logical
or empirical consequences

Approach

1. Discussion with colleagues and experts

2. Examination of data and records
3. Review of the same
4. Exploratory personal investigation which
involves original field interviews
(IV) Research Designs (including sample design)

Research Design is the basic framework which provides

guidelines for the rest of the research work. It is a
map or a blueprint according to which the research is
to be conducted.
Research design categories

a. Exploratory research designs

b. Descriptive research designs

c. Causal research designs

Following points must be considered while selecting any of the research
designs available
1. The means of obtaining the information

2. The availability and skills of the researcher and his

staff

3. Time available

4. Cost factor

5. sampling plan
Sample design

A sample design is a definite plan determined before any data is

actually collected for obtaining a sample from a given population

It provides answer to the following four questions;

1. What sampling unit should be studied ?

2. What should be the sample size?
3. What sample procedure should be used?
4. What contact method should be used
(IV) Data collection
A. Primary Data Collection Tools
1. By observation
2. Through personal interview
3. Through telephone interviews
4. Through Schedules
5. By mailing questionnaire

B. Secondary Data Collection Tools

1. Printed information
2. Already available information in other forms
(V) Analysis of data
The researcher should classify the raw data into some
purposeful and usable categories.
Three operations have to de done before the raw data is
brought in a form to be analyzed further.

a. Coding

b. Editing

c. Tabulation
After successful completion of above operations
following three steps are there to follow to complete
Data analysis

1. Hypothesis Testing
a. Chi Square
b. F- test
c. Z test

2. Generalization

3. Interpretation
(VII) Interpretation and Implications

(VIII) Actionable Implications

(IX) Report Preparation

Language of
Research/Research concepts
Conceptual
Concepts Constructs
schemes

Operational
Models
definitions
Terms used
in research
V
ariables
Propositions/
Hypotheses

3-59
 Clear conceptualization
of concepts
Success
of
Research Shared understanding
of concepts

3-60
Job Redesign
Constructs and Concepts

3-61
Concepts
 A concept is a generally accepted collection of meanings or
characteristics associated with certain events, objects,
conditions, situations, and behaviors. Classifying and
categorizing objects or events that have common
characteristics beyond any single observation creates
concepts.
 We abstract such meanings from our experiences and use
words as labels to designate them. For example, we see a man
passing and identify that he is running, walking, skipping,
crawling, or hopping.

 These movements all represent concepts. We also have

abstracted certain visual elements by which we identify that
the moving object is an adult male, rather than an adult
female or a truck or a horse.
Constructs
• Concepts have progressive levels of abstraction—that is, the degree
to which the concept does or does not have something objective to
refer to.
• Table is an objective concept. We can point to a table, and we have
images of the characteristics of all tables in our mind.
• An abstraction like personality is much more difficult to visualize.
Such abstract concepts are often called constructs.
• A construct is an image or abstract idea specifi cally invented for a
given research and/or theory-building purpose.
The Role of Constructs
• A construct is an abstract idea inferred from specific instances that
are thought to be related.
• Typical marketing constructs are brand loyalty, satisfaction,
preference, awareness, knowledge.
• Research objectives typically call for the measurement of
constructs.
• There are customary methods for defining and measuring
constructs.
Constructs
CONSTRUCT OPERATIONAL DEFINITION
Brand Question: Have you heard of Brand A? ____ Yes ____ No
awareness Measure: Percentage of respondents having heard of the
brand

Recall, Question: Do you recall seeing an advertisement for Brand

recognition of A?
advertising Measure: Percentage who remember seeing a specific ad

Knowledge of Question: Indicate which of Brand A’s features you know

product features about.
Measure: Percentage who know about each feature

Brand familiarity Question: Are you “unfamiliar,” “somewhat familiar,” or “very

familiar” with Brand A?
Measure: Percentage for each familiarity category

Comprehension Question: For each product benefit statement, indicate if you

of product agree or disagree.
benefits Measure: Percentage who agree with each benefit
statement
Constructs
CONSTRUCT OPERATIONAL DEFINITION
Attitudes, feelings Question: Rate Brand A on a 1–5 scale, where 1 =
toward brand “poor” and 5 = “excellent”
Measure: Average rating

Intentions to purchase Question: What is the probability that you will buy
Brand A the next time you purchase
this product?
Measure: Average probability

Past purchase or use Question: Have you used Brand A in the past three
months?
Measure: Percentage who have used it

Brand loyalty Question: With your last five purchases of the

product, how many times did you buy Brand A?
Measure: Percentage of times

Satisfaction Question: Rate Brand A on a 1–5 scale, where 1 =

“unsatisfied” and 5 = “very satisfied”
Measure: Average rating
Relationships Among Variable Types

3-80
Relationships Among Variable
Types

3-81
Relationships Among Variable
Types

3-82
Other Types of variable
• Moderating variables are variables that are believed to have a significant
contributory or contingent effect on the originally stated IV-DV relationship.
Whether a variable is treated as an independent or as a moderating
variable depends on the hypothesis. Examples of moderating variables are
shown in the slide.

• Extraneous variables are variables that could conceivably affect a given

relationship. Some can be treated as independent or moderating variables
or assumed or excluded from the study. If an extraneous variable might
confound the study, the extraneous variable may be introduced as a
control variable to help interpret the relationship between variables.
Examples are given in the slide.

• An intervening variable (IVV) is a factor that affects the observed

phenomenon but cannot be measured or manipulated. It is a conceptual
mechanism through which the IV and MV might affect the DV.
Propositions and Hypotheses

• A proposition is a statement about observable phenomena that

may be judged as true or false.

• A hypothesis is a proposition formulated for empirical testing.

• A case is the entity or thing the hypothesis talks about. When

the hypothesis is based on more than one case, it would be a
generalization.
Propositions and Hypotheses
Brand Manager Jones (case) has a
higher-than-average achievement
motivation (variable).

Generalization

Brand managers in Company Z (cases)

have a higher-than-average
achievement motivation (variable).
3-85
Model and research…
• A model is a logical arrangement of constructs and relationships
based on theory or experience
• Hierarchy of Effects
• Unaware-Aware-Knowledge-Liking-Intention-Purchase-
Loyalty
• Importance-Performance Model
• Importance: Performance on attributes
HIERARCHY DESCRIPTION RESEARCH QUESTION (University Estates
STAGE Example)

Unawareness Not aware of your What percentage of prospective student

brand residents are unaware of satellite television?

Awareness Aware of your What percentage of prospective student

brand residents are aware of satellite television?

Knowledge Know something What percentage of prospective student

about your brand residents who are aware of it know that
satellite television (1) has 150 channels, (2)
premium channels, and (3) pay-for-view?

Liking Have a positive What percentage of prospective student

feeling about residents who know something about
your brand satellite television feel negatively, positively,
or neutral about having it in their apartment?

Intention Intend to buy What percentage of prospective student

your brand next residents who are positive about having
satellite television in their apartment intend
to rent an apartment with it?

Purchase* Have purchased What percentage of the market purchased

your brand in the (tried) your brand in the past?
past
What percentage of the market has
Repurchase/ Purchase your purchased your brand more than other 87
Loyalty* brand regularly brands in the last five purchases?
TASK 1:
• H1:
• Overall service quality has a significantly positive effect on user satisfaction.
• 1.1:
• “Tangibles” of services has a significant impact on user satisfaction.
• 1.2:
• “Responsiveness” of services has a significant impact on user satisfaction.
• 1.3:
• “Reliability” of services has a significant impact on user satisfaction.
• 1.4:
• “Assurance” of services has a significant impact on user satisfaction.
• 1.5:
• “Empathy” of services has a significant impact on user satisfaction.
• H2:
• There is a significant difference of degree of importance on every service attribute among users from
different departments.

• 1. To which research problem or research question(s) can be these hypothese connected?

• 2. Which variables would you suggest to measure which constructs?
Task 2:
• Managerial problem is: Low attendance of visitors and
customers in shopping centre

• 1. which research questions can be formulated to this

problem?
• 2. Which concepts and/or constructs are important
for this problem and for the research questions?
• 3. Which hypotheses can be formulated?
• Which variables are connected to the problem and
research questions?