module 2 Flashcards
(34 cards)
research process 7 steps
Demarcate the business problem (set the boundaries or limits of)
Formulate research questions
Develop the theoretical framework
Choose a research strategy
Collect the data
Analyze the data
Write a report
When does a business problem occur
Despite the connotation of the term problem a business problem does not necessarily have to pertain to a companys difficulty.
A business problem occurs when a company encounters a threat (a difficulty to be eliminated) or an opportunity (a situation that might be improved)
Demarcating a businss problem
A business problem needs to be demarcated or narrowed before it can be researched
Most business problems are highly complex. No single research study can fully examine everything. THe purpose of demarcating a business problem is to focus on a clearly defined portion of the bigger problem
Example
The business problem
Pfizer would like to increase its profits.
is not well demarcated. There are hundreds of paths that Pfizer could consider to increase its profits. For example, new product introductions may increase Pfizer’s profits, but so could acquisitions, or a change in selling strategy. It is impossible to research all possible paths. Hence, the problem is not well demarcated.
An example of a demarcated business problem is
Pfizer would like to know whether soft-selling new drugs to doctors leads to more
prescriptions than hard-selling.
Two types of relevance exist:
1) academic relevance
2) managerial relevance
Academic relevance
When a business problem as already been researched, the answer is already out there, in prior research studies. In such instances, a new research study into the same problem that has little added value and may not be worth the investment (in money and time)
How to tell if something is academically relevant
1) Completely new topic
–> No research available at all, although the topic is important
2) New context
–> Prior researh is available but not in the same context
3) Integrate scattered research
–> E.g. different studies have focused on different IVs / moderators; consequently, their relative importance is not clear
4) Reconcile contradictory research
–> Solve the contradictions through introducing one or more moderators
Managerial relevance
Someone should actually benefit from having the problem studied. A company, a set of companies (e.g. suppliers, retailers, high-tech companies, banks, …), and/or society at large (e.g. the government, consumers, NGOs, …) hsould benefit from the studys results
Managerial relevance (who benefits from having the problem solved)
Managers (brand managers, supply chain managers, accountants, …)
- of one company
- of one industry
- of multiple industries
End users (consumers, investors, tax payers, …)
Public policy makers (government, EU, …)
The central question or problem statement
The central question that a research study aims to anser also referred to as the problem statement
A good problem statement is
1) an open-ended question
2) identifies the studys unit of analysis
3) Is expressed in terms of (i) variables and (ii) relationships
Why/what open ended questions
Is a question that cannot be answered by a simple yes or no. A problem statement has to be phrased as an open eneded question to avoid jumping to conclusions beefore the research has been conducted
A problem statement identifies the unit of analysis (what does this mean)
A problem statement should be clear about the unit of analysis of the study. The unit of analysis is the entity that the study wishes to say something about; it is considered the focus of the study. The entities being studied are typically referred to as the subjects.
What can be the unit of analysis in a business study
Individuals (Consumers, investors or CEOs)
Firms (publicly listed companies, multinationals or SMEs)
Groups (Board of directors, alliances or industries)
things (products brands or shares)
Goegraphical units (cities, regions or countries)
A study’s unit of analysis can be at a lower or a higher level of aggregation: for example
If a study is based on comparing students’ exam grades, then the unit of analysis is the individual student.
If a study is based on comparing the noise level between twenty different lecture halls full of students, then the unit of analysis is the lecture hall (that is, the collective group of students in each hall) rather than the individual student.
If a study compares the average exam grade between several universities, then the unit of analysis is the university.
The problem statement: expressed in terms of variables
Variables are the core of every research study. As the word implies, an important characteristic of a variable is that it varies. This means a variable must have at least two values or levels in a study
Take this headline from the Wall Street Journal:
P&G says prices will keep rising
P&G is reporting on the prices of its brands. Here, “price” is the variable. Its levels might go from 0,01 cents to whatever the price is of a P&G product.
Variables can vary in three ways
1) across subjects
2) over time
3) across subjets and over time
Constant
When someething that could potentially vary only has one level in the study
Variables can vary across subjects (e.g., persons, products, firms, industries, countries, …), at the same point in time.
An example
A researcher would like to test whether advertising is more effective for firms in a service- vs. a product-based industry. The variable “service-based vs. product-based industry” varies across subjects (firms in this case). Whether a firm operates in a service-based industry or a product-based industry does not change over time (well, it might, but that is very rare).
The second way in which a variable can vary is over time, within the same subject (a subject can again be a person, a firm, an industry, a product, …).
An example
In a study on the economic factors that affect firms’ R&D spending over the last ten years, “R&D spending” is a variable that varies over time.
A problem statement expresses:
The relationship between at least two variables.
As such, a question such as:
What percentage of companies pay dividends? does not quality as a problem statement because it only involves one variable (dividend payment)
The most simple problem statement captures how one variable is related to another variable for example: How is package size related to young childrens consumption of sweets
What is the relationship between entrepreneurs’ finance and marketing skills on their
firms’ profitability
Analyze
This is an open ended questions – it cannot be answered by a simple yes or no
The problem statement is expressed in terms of three variables (finance skills, markeing skillls and profitability. all three variables vary across subjects)
The problem statement is expressed in terms of two relationships: (the relationship between finance skills and profitability and the relationsihp between marketing skills and profitability
The unit of analysis is clear: the entrepreneur
Moderating effect
the relationship between two variables that depends on a third variable
Managers are typically not simply interested in the extent to which a variable x is related to another variable y but they want to:
Know the conditions under which x is related to y
For example: if social-media advertising is only related to brand sales for brands with particular characteristics (e.g. low priced brands), managers can allocate their social-media budget accordingly
