04 BRM PowerPoint 2002.pdf - Business Research Methods...

Business
Research Methods
William G. Zikmund
Chapter 4:
The Business Research Process

Information
• Reduces uncertainty
• Helps focus decision making

Decision Making
The process of developing and
deciding among alternative ways of
resolving a problem or choosing from
among alternative opportunities.

Decisions Are Not All the Same: A
Continuum of Decision Making
• Availability of all
information
needed to make
decision -
problem/
opportunity &
outcomes
• Research may
not be needed
• General nature
of desired
objectives
known
• Incomplete
information of
alternatives
• Research needed
to clarify the
nature of
• Nature of
problem unclear
• Vague objectives
• Decision
alternatives not
known
• Research needed
to understand
situation

• Every business situation falls
somewhere on this continuum
• The more important, ambiguous, or
uncertain a situation is, the more
likely it is that additional time must
be spent on business research

Types Of Research
• Exploratory
• Descriptive
• Causal
Particular decision situation is matched
with the right type of research

COMPLETE
CERTAINTY
ABSOLUTE
AMBIGUIT
Y
CAUSAL OR
DESCRIPTIVE
EXPLORATORY
Uncertainty Influences
The Type Of Research

Exploratory Research Descriptive Research Causal Research
(Unaware of Problem) (Aware of Problem) (Problem Clearly Defined)
“Our sales are declining and “What kind of people are buying “Will buyers purchase more of
we don’t know why.” our product? Who buys our our products in a new package?
competitor’s product?”
“Would people be interested “Which of two advertising
in our new product idea?”“What features do buyers prefer campaigns is more effective?”
in our product?”
possible situation
Degree of Problem
Definition

Exploratory Research
• Initial research conducted to clarify
and define the nature of a problem
• Does not provide conclusive
evidence
• Subsequent research expected

Descriptive Research
• Describes characteristics of a population
or phenomenon (Profiling)
• Tries to “paint a picture” of a given
situation by addressing who, what, when,
where, and how questions
• Some understanding of the nature of the
problem (maybe developed in part from
exploratory research)

Descriptive Research
Example
• Weight Watchers average customer
– Women about 40 years old
– Household income of about $50,000
– At least some college education
– Trying to juggle children and a job

Descriptive Research
Example
• Men’s fragrance market
– 1/3 size of women’s fragrance market
– But growing at a faster pace
– Women buy 80 % of men’s fragrances

Descriptive Research
• Accuracy is crucial
–