Methods in Business research chapter 03

Chapter 3Chapter 3

Thinking Like a Thinking Like a ResearcherResearcher

McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All Rights Reserved. 

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Learning ObjectivesLearning Objectives

Understand . . .

The terminology used by professional researchers employing scientific thinking.

What you need to formulate a solid research hypothesis.

The need for sound reasoning to enhance research results.

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Research and AttitudesResearch and Attitudes

“Brand communities play a pivotal role for a brand connecting with its consumers, and as one of our Never Ending Friending focus group respondent notes: “I want brands to be my friends,” which means that consumers would like to have common ideas, conversations and benefits delivered to them on their own terms.”

Judit Nagy vice president, consumer insights

MySpace/Fox Interactive Media

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PulsePoint: PulsePoint: Research RevelationsResearch Revelations

55 The percent of executives who admitted that their companies do not have an official policy for social networks.

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Language of ResearchLanguage of Research

Variables

ModelsModelsTerms usedin research

Constructs

Operationaldefinitions

Operationaldefinitions

Propositions/Hypotheses

Propositions/Hypotheses

Conceptualschemes

ConceptualschemesConceptsConcepts

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Language of ResearchLanguage of Research

Clear conceptualizationof concepts

Shared understandingof concepts

Success of

Research

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Job Redesign Job Redesign Constructs and ConceptsConstructs and Concepts

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Operational DefinitionsOperational Definitions

Freshman

Sophomore

Junior

Senior

< 30 credit hours

30-50 credit hours

60-89 credit hours

> 90 credit hours

How can we define the variable “class level of students”?

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A Variable Is the Property A Variable Is the Property Being StudiedBeing Studied

VariableVariable

EventEvent ActAct

CharacteristicCharacteristic TraitTrait

AttributeAttribute

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Types of VariablesTypes of Variables

DichotomousDichotomousMale/Female

Employed/ UnemployedMale/Female

Employed/ Unemployed

DiscreteDiscreteEthnic backgroundEducational level

Religious affiliation

Ethnic backgroundEducational level

Religious affiliation

ContinuousContinuousIncome

TemperatureAge

IncomeTemperature

Age

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Independent and Dependent Independent and Dependent Variable SynonymsVariable Synonyms

Independent Variable (IV)

Predictor

Presumed cause

Stimulus

Predicted from…

Antecedent

Manipulated

Dependent Variable (DV)

Criterion

Presumed effect

Response

Predicted to….

Consequence

Measured outcome

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Relationships Among Variable Relationships Among Variable TypesTypes

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Relationships Among Variable Relationships Among Variable TypesTypes

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Relationships Among Variable Relationships Among Variable TypesTypes

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Moderating Variables (MV)Moderating Variables (MV)

• The introduction of a four-day week (IV) will lead to higher productivity (DV), especially among younger workers (MV)

• The switch to commission from a salary compensation system (IV) will lead to increased sales (DV) per worker, especially more experienced workers (MV).

• The loss of mining jobs (IV) leads to acceptance of higher-risk behaviors to earn a family-supporting income (DV) – particularly among those with a limited education (MV).

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Extraneous Variables (EV)Extraneous Variables (EV)

• With new customers (EV-control), a switch to commission from a salary compensation system (IV) will lead to increased sales productivity (DV) per worker, especially among younger workers (MV).

• Among residents with less than a high school education (EV-control), the loss of jobs (IV) leads to high-risk behaviors (DV), especially due to the proximity of the firing range (MV).

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Intervening Variables (IVV)Intervening Variables (IVV)

• The switch to a commission compensation system (IV) will lead to higher sales (DV) by increasing overall compensation (IVV).

• A promotion campaign (IV) will increase savings activity (DV), especially when free prizes are offered (MV), but chiefly among smaller savers (EV-control). The results come from enhancing the motivation to save (IVV).

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Propositions and HypothesesPropositions and Hypotheses

Brand Manager Jones (case) has a higher-than-average achievement motivation

(variable).

Brand managers in Company Z (cases) have a higher-than-average achievement

motivation (variable).

Generalization

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Hypothesis FormatsHypothesis Formats

Descriptive Hypothesis

In Detroit, our potato chip market share stands at 13.7%.

American cities are experiencing budget

difficulties.

Research QuestionWhat is the market share for our potato

chips in Detroit?

Are American cities experiencing budget

difficulties?

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Relational HypothesesRelational Hypotheses

CorrelationalYoung women (under 35) purchase fewer units of our product than women who are older than 35.

The number of suits sold varies directly with the level of the business

cycle.

CausalAn increase in family income leads to an

increase in the percentage of income

saved.

Loyalty to a grocery store increases the probability of purchasing that store’s private brand products.

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The Role of HypothesesThe Role of Hypotheses

Guide the direction of the studyGuide the direction of the study

Identify relevant factsIdentify relevant facts

Suggest most appropriate research design

Suggest most appropriate research design

Provide framework for organizing resulting conclusions

Provide framework for organizing resulting conclusions

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Characteristics of Characteristics of Strong HypothesesStrong Hypotheses

A Strong

Hypothesis Is

A Strong

Hypothesis Is

AdequateAdequate

TestableTestable

Better than rivals

Better than rivals

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Theory within ResearchTheory within Research

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The Role of ReasoningThe Role of Reasoning

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A Model within ResearchA Model within Research

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The Scientific MethodThe Scientific Method

Direct observationDirect observation

Clearly defined variablesClearly defined variables

Clearly defined methodsClearly defined methods

Empirically testableEmpirically testable

Elimination of alternativesElimination of alternatives

Statistical justificationStatistical justification

Self-correcting processSelf-correcting process

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ResearchersResearchers

•Encounter problems•State problems•Propose hypotheses•Deduce outcomes•Formulate rival hypotheses•Devise and conduct empirical tests•Draw conclusions

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Curiosity Is the Curiosity Is the Ally of a ResearcherAlly of a Researcher

Synovate’s campaign associates important discoveries in research to a common trait of entrepreneurs: curiosity.

As one of the world’s largest research organizations, it claims curiosity is “what makes us tick.”

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Sound ReasoningSound Reasoning

Exposition Argument

InductionDeduction

Types of Discourse

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Deductive ReasoningDeductive Reasoning

Inner-city household interviewing is especially difficult and expensive

Inner-city household interviewing is especially difficult and expensive

This survey involves substantial inner-city

household interviewing

This survey involves substantial inner-city

household interviewing

The interviewing in this survey will be especially difficult and expensive

The interviewing in this survey will be especially difficult and expensive

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Inductive ReasoningInductive Reasoning

Why didn’t sales increase during our promotional event?

– Regional retailers did not have sufficient stock to fill customer requests during the promotional period

– A strike by employees prevented stock from arriving in time for promotion to be effective

– A hurricane closed retail outlets in the region for 10 days during the promotion

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Why Didn’t Sales Increase?Why Didn’t Sales Increase?

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Tracy’s PerformanceTracy’s Performance

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Key TermsKey Terms

• Argument• Case• Concept• Conceptual scheme• Construct• Deduction• Empiricism• Exposition• Hypothesis

– Correlational– Descriptive– Explanatory– Relational

• Hypothetical construct

• Induction• Model• Operational definition• Proposition• Sound reasoning• Theory• Variable

– Control– Confounding (CFV)– Dependent (DV)– Extraneous (EV)– Independent (IV)– Intervening (IVV)– Moderating (MV)