Principles of Business Research

1. Principles of Business Research • Lecturer:Gyöngyi Bugár Research interest: - Portfolio Theory and Investment Decision Making - International Finance - Risk Management Room: B229 (Main Building) 7622. Pécs, Rákóczi str. 80. Tel.: +37 72 501 599/ ext. 3289 E-mail: bugar@ktk.pte.hu

2. Principles of Business Research • How can this module be useful for you? - submitting a dissertation proposal - writing journal papers - presenting on research seminars - preparing a successful Ph.D. • Assessment: the evaluation of the module is based on the dissertation proposal submitted by the students DEADLINE for submission: 30 September, 2010

3. Principles of Business Research • Doing applied research is FUN • For a good quality research YOU should - have a good theoretical knowledge of the subject matter (marketing, finance, etc.) - possess some practical knowledge - know the literature of a particular problem - have a general knowledge of the subject - need to be familiar with the major research approaches (methods) - be CREATIVE in combining the above two sets of knowledge to find the solution

4. Introduction to business research • Scope of business research - for-profit, non-profit business - business functions (production, finance, management, marketing) • A definition of business research: gathering and analyzing data in a systematic manner to aid business decisions • objectivity and business research

5. Introduction to business research • Basic research aims at expanding the boundaries of our knowledge or verifying the acceptability of a given theory. “There is nothing so practical as a good theory.” • Applied research is related to a specific problem to be solved. • Scientific method - set of techniques and procedures - systematic analysis and logical interpretation of evidence • The scientific method is the essence of research.

6. Introduction to business research • Types of business research - exploratory studies− to clarify the nature of the problem (interviews, basic statistical calculations) - descriptive research – to describe the characteristics of a phenomenon (verbal or statistical description with no explanation) - causal research – toestablish cause-and-effect relationships between variables (you should have an expectation, e.g., training and productivity etc.) association is not necessarily causality

7. An overview of the research process • Stages in the research process

8. An overview of the research process

9. An overview of the research process • Problem definition - clear problem definition is not always given even in real business research situations - an issue especially relevant for dissertationresearch A. Problem definition (topic selection) in dissertation research 1. Sources of research topics - work experience - articles in academic/professional journals - professors pointing to a particularly fruitful area - dissertations, journal articles referring to further research work

10. An overview of the research process 2. Some characteristics of a good research topic - a realistic possibility of accessing the topic - achievable in the time available In general you tend to underestimate the time taken to accomplish a piece of research! (many factors not expected initially can be sources of delays) - student capabilities and interest (descriptive versus mathematical skills, etc.) - financial support - value of the research (increases motivation, attracts more attention)

11. An overview of the research process B. Problem definition in business research by exploratory research techniques - efficient research must have clear objectives and definite designs - in case of missing problem definition, exploratory research should be conducted - analyzing existing studies, informal investigation of the situation, talking with knowledgeable individuals to sharpen the concept Techniques for exploratory research - studying secondary data (data collected previously for some other project) - data by the Central Statistical Office - data purchased from some forecasting firm - surveying the literature

12. An overview of the research process - pilot studies - small scale studies with no rigorous standards - interviews, informal information gathering - much creativity and flexibility needed - case studies

13. An overview of the research process • Planning the research design - research design: methods and procedures for collecting and analyzing the required information - It is necessary to determine: - the sources of information - the research technique followed - sampling methodology - schedule, costs - factors in selecting a particular design: - objectives of the study - availability of data - urgency of the decision - cost of obtaining the data

14. An overview of the research process Basic research methods • surveys - a research technique in which information is gathered from a sample of people by using a questionnaire • experiments - study on a small number of people under controlled conditions so that one or more variables can be manipulated in order to test a hypothesis - especially appropriate to test cause-and-effect relationships • research using secondary data - generally requires a greater quantitative sophistication - example: development of a mathematical model to predict sales on the basis of past sales ■observation techniques - recording what can be observed - examples: number of cars passing a site for a proposed gasoline station; recording the time a certain TV program is watched by households

15. An overview of the research process • Selection of the sample - Sampling: any procedure that uses a small number of items (or parts of the population) to make a conclusion regarding the whole population - certain statistical procedures should be followed - a good sample should have the same characteristics as the population as a whole - Issues to be solved in sampling: - identification of the target population (“Who is to be sampled?”) - determining the sample size - selection of sample units - deciding on the sampling technique: probability sample (each member of the population is chosenwith a certain probability) non-probability sample (based on personal judgement - e.g., selection of a typical plant)

16. An overview of the research process • Data collection - as many methods as many research techniques • Editing and coding - editing: checking the data collection forms - coding: determining categories for groups of responses • Analysis • Conclusions, report preparation

17. Summary • Business research: - reduces uncertainty by providinginformation on a given subject • A classification of business research on the basis of its function (purpose) 1. Exploratory research - initial research conducted to clarify and define the nature of a problem - sometimes the general problem is realized but a better understanding is needed before a detailed research Examples: “Absenteeism is increasing and we don’t know why” “would people be interested in our new product idea?” - methods: interviews, basic statistical calculations

18. Summary 2. Descriptive research - research designed to describe the characteristics of a phenomenon - who? what? when? where? how? Examples: “What kind of people prefer Big Mac hamburgers?” “What are the characteristics of students in this class?” - methods: surveys, analysis of already existing data 3. Causal research - research conducted to identify cause-and-effect relationships among variables Examples: “the influence of price and advertising on sales” “Which of two training programs is more effective?” - methods: experiments, econometric analyses

19. Points to discuss: • For each situation below, decide whether the research should be exploratory, descriptive, or causal: - establishing the functional relationship between advertising and sales - investigating reactions to the idea of a new method of defense budgeting - identifying target-market demographics for a shopping center - estimating stock prices for IBM two years in the future - learning how many organizations are actively involved in just-in-time production - learning the extent of job satisfaction in a company • What research design seems appropriate for each of the following studies? - the manufacturer and marketer of flight simulators and other pilot-training equipment wish to forecast sales volume for the next five years - a local chapter of the American Lung Association wishes to identify the demographic characteristics of individuals who donate more than $500 per year

20. Points to discuss: • What research design seems appropriate for each of the following studies? - a corporation wishes to evaluate the quality of its college-recruiting program - an academic researcher wishes to investigate if the United States is losing its competitive edge in world trade - a food company researcher is interested in knowing what types of food are carried in brown-bag lunches to learn if the company can capitalize on this phenomenon

21. Citations related to the topic “I keep six honest serving men, (they taught me all I knew). Their names are What, and Why, and When, and How, and Where, and Who.” (R. Kipling) “The formulation of a problem is often more essential than its solution.” (A. Einstein)