Business

Research Methods

Chapter 6:
Problem Definition
Problem Discovery Problem Selection of
and Definition discovery exploratory research
technique
Sampling

Selection of
exploratory research
technique Probability Nonprobability

Secondary
Experience Pilot Case Collection of
(historical) Data
survey study study data
data Gathering
(fieldwork)

Data
Editing and
Problem definition Processing
coding
(statement of and
Analysis data
research objectives)

Data
Selection of processing
Research Design basic research
method Conclusions
Interpretation
and Report
of
findings
Experiment Survey
Secondary
Laboratory Field Interview Questionnaire Observation
Data Study Report
“The formulation of the problem
is often more essential than its
solution.”

Albert Einstein
 Problem Definition
• The indication of a specific business
decision area that will be clarified by
answering some research questions.
 Defining Problem Results in
Clear Cut Research Objectives
Symptom Detection

Analysis of
the Situation
Exploratory
Research
(Optional)
Problem Definition

Statement of
Research Objectives
 The Process of
Problem Definition
Ascertain the Determine unit of
decision maker’s analysis
objectives

Understand Determine relevant

background of the variables
problem

Isolate/identify the State research

problem, not the questions and
symptoms objectives
 Ascertain the Decision Maker’s
Objectives
• Decision makers’ objectives
• Managerial goals expressed in measurable
terms.

7
 The Iceberg Principle

• The principle indicating that the dangerous

part of many business problems is neither
visible to nor understood by managers.
 Understand the Background of
the Problem
• Exercising judgment
• Situation analysis - The informal gathering
of background information to familiarize
researchers or managers with the decision
area.

9
Isolate and Identify the Problems,
Not the Symptoms
• Symptoms can be confusing

10
 Symptoms Can Be Confusing
Twenty-year-old neighborhood swimming
association:
• Membership has been declining for years.
• New water park -residents prefer the
expensive water park????
• Demographic changes: Children have
grown up
 Problem Definition
Organization Symptoms Based on Symptom True Problem

Twenty-year-old Membership has been Neighborhood Demographic changes:

neighborhood declining for years. residents prefer the Children in this 20-
swimming New water park with expensive water year-old neighborhood
association in a wave pool and water park and have have grown up. Older
major city. slides moved into negative image of residents no longer
town a few years ago. swimming pool. swim anywhere.
What Language Is Written on
This Stone Found by
Archaeologists?

TOTI
EMUL
ESTO
The Language Is English: To Tie
Mules To

TOTI
EMUL
ESTO
 Problem definition
Creativity techniques

Analytical Intuitive

Progressive abstraction Associations/Images

Interrogatories (5W’s+H) Wishful thinking
Boundary examinations Brain storming
Analogy/metaphor

Individuals vs. groups

 Problem definition
GAP analysis
Unintended Normal Ideal
situation situation situation

Problem Definition of
definition opportunities

Disturbing problems Entrepreneurial problems

 Problem definition
Progressive Abstraction Technique
1. Basic description of the problem
2. Gradually moving towards a higher level of abstraction
(until a usable definition has been reached)
- the problem is automatically extended, new definitions
may show up
- new definitions can be evaluated regarding applicability
- when a higher level of abstraction has been reached, it is
often easier to identify solutions
3. The decision maker/analyst is forced into a systematic
way of searching for substructures and relationships
 Problem definition
Boundary examination technique
1. Purpose: to restructure the assumptions and to develop
new ways of looking at the problem
2. Procedure:
•describe the problem, as it looks at the moment
•identify key elements in the definition and examine them to
reveal underlying assumptions
•analyse each assumption and identify its causes and effects
•redefine the problem based on the deeper understanding of
the elements achieved during this process
•3. Advantages:
•provocative definition of the problem
•reveals limits which are difficult to identify
•stresses the need of a flexible definition of the problem
 Problem definition
Interrogatories W’s+H
(who, what, where, when, why, how)
1. Purpose: To make sure that all aspects of the problem
has been considered

2. Procedure:
- construct questions for each of the 5 W’s+H
- answer the questions
- evaluate the proposed answers
- if an improvement shows up:
is it cost efficient?
if so change accordingly

Very efficient technique which can be applied in any phases

of the problem definition
 Problem definition
Wishful thinking technique
1. Purpose: To isolate the process of defining the problem from
non-recognized but irrelevant alternative assumptions

2. Procedure:
- formulate questions, targets, situations or a problem
- accept that everything is possible
- use imagination to formulate statements like: “I would like to..”
or “If I could choose…”
- examine each statement and apply it as a stimuli
- return to reality and formulate statements like: “Even if I can’t do it,
then I can…”
- repeat the last three steps if needed
 Problem definition
Brain storming
1. Purpose: To generate as many ideas as possible

2. Procedure:
- select a problem, which all participants have some knowledge/
experience about
- describe the problem in a neutral way
- write down all suggestions on a board, so everybody can see them
- evaluation must not start until all ideas have been mentioned
- try to force more ideas
- strive for as many ideas as possible so quality can be extracted from
quantity
- accept all ideas - even the most absurd
- stimulate associations and extensions of generated ideas
 Determine the Unit of Analysis
• Individuals, households, organizations, etc.
• In many studies, the family rather than the
individual is the appropriate unit of
analysis.

22
Determine the Relevant Variable
• Anything that may assume different
numerical values

23
 Types of Variables
• Categorical
• Continuous
• Dependent
• Independent
 Hypothesis
• An unproven proposition
• A possible solution to a problem
• Guess
State the research questions and
research objectives

26
If you do not know where you are going,
any road will take you there.
Broad research Statement of Exploratory
objectives business research
problem (optional)

Specific Specific Specific

Objective 1 Objective 2 Objective 3

Research
Results
Design
 Influences of definition
Feedback

Specific
Objective I

Broad
Statement Specific Research
Research Results
of Problem Objective II Design
Objectives

Exploratory
Specific
Research
Objective III
(Optional)
 The Process of
Problem Definition
Ascertain the Determine unit of
decision maker’s analysis
objectives

Understand Determine relevant

background of the variables
problem

Isolate/identify the State research

problem, not the questions and
symptoms objectives
 Basic Questions -
Problem Definition
• What is the purpose of the study?
• How much is already known?
• Is additional background information necessary?
• What is to be measured? How?
• Can the data be made available?
• Should research be conducted?
• Can a hypothesis be formulated?
 Basic Questions -
Basic Research Design
• What types of questions need to be
answered?
• Are descriptive or causal findings required?
• What is the source of the data?
 Basic Questions -
Basic Research Design
• Can objective answers be obtained by
asking people?
• How quickly is the information needed?
• How should survey questions be worded?
• How should experimental manipulations be
made?