Business

Research Methods

William G. Zikmund

Chapter 6:
Problem Definition and the
Research Proposal
1. Explain why proper “problem definition” is essential to

useful business research

2. Know how to recognize problems

3. Translate managerial decision statements into relevant

research objectives

4. Translate research objectives into research questions

and/or research hypotheses

5. Outline the components of a research proposal

6. Construct tables as part of a research proposal

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
 Uncertainty Influences the Type
of Research

CAUSAL OR COMPLETELY ABSOLUTE EXPLORATORY

DESCRIPTIVE CERTAIN AMBIGUITY
Problem Discovery and Definition

• First step
• Problem, opportunity, or monitor operations
• Discovery before definition
• Problem means management problem
 Problem Definition
Problems Mean Gaps
A problem occurs when there is a difference between the
current conditions and a more preferable set of conditions. In
other words, a gap exists between the way things are now and
a way that things could be better. The gap can come about in
a number of ways:
•Business performance is worse than expected business
performance. For instance, sales, profits, and margins could
be below targets set by management.

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.

9
 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.

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

For instance, when a firm has a problem with advertising

effectiveness, the possible causes of this problem may be
low brand awareness, the wrong brand image, use of the
wrong media, or perhaps too small a budget.

12
 Determine the Unit of Analysis
• Individuals, households, organizations, etc.
• In many studies, the family rather than the
individual is the appropriate unit of
analysis.

13
Determine the Relevant Variable
A variable is anything that varies or changes
from one instance to
another.
Anything that may assume different
numerical values

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 Types of Variables
Categorical: A variable that indicates membership
in some group. Another term for a categorical variable
because it classifies units into categories. For example,
people can be categorized as either male or female.

Continuous: A variable that can take on a range of values that

correspond to some quantitative amount. For example, Each
attribute of airlines’ services, such as safety, seat comfort,
and baggage handling can be numerically scored in this way.
 Types of Variables
Dependent: A process outcome or a variable that is predicted
and/or explained by other variables.

Independent: A variable that is expected to influence the

dependent variable in some way.

For example, average customer loyalty may be a dependent

variable that is influenced or predicted by an independent variable
such as perceptions of restaurant food quality, service quality, and
customer satisfaction. Thus, a process is escribed by which
several variables together help create and explain how much
customer loyalty exists.
 Research questions
• Research questions express the research objectives in
terms of questions that can be addressed by research. For
example, one of the key research questions involved in the
opening vignette is

Deland Trucking RQ
“Are wages and long-haul distance related to driver loyalty
and retention?
 Hypothesis
• An unproven proposition
• A possible solution to a problem
• Guess

One key research hypothesis for Deland Trucking is “Higher

cents per mile are related positively to driver loyalty.
 Research Proposal
• A written statement of the research design
that includes a statement explaining the
purpose of the study
• Detailed outline of procedures associated
with a particular methodology
 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?
 Basic Questions -
Selection of Sample
• Who or what is the source of the data?
• Can the target population be identified?
• Is a sample necessary?
• How accurate must the sample be?
• Is a probability sample necessary?
• Is a national sample necessary?
• How large a sample is necessary?
• How will the sample be selected?
 Basic Questions -
Data Gathering
• Who will gather the data?
• How long will data gathering take?
• How much supervision is needed?
• What operational procedures need to be
followed?
 Basic Questions -
Data Analysis
• Will standardized editing and coding
procedures be used?
• How will the data be categorized?
• What statistical software will be used?
• What is the nature of the data?
• What questions need to be answered?
• How many variables are to be investigated
simultaneously?
• Performance criteria for evaluation?
 Basic Questions -
Type of Report
• Who will read the report?
• Are managerial recommendations
requested?
• How many presentations are required?
• What will be the format of the written
report?
 Basic Questions -
Overall Evaluation
• How much will the study cost?
• Is the time frame acceptable?
• Is outside help needed?
• Will this research design attain the stated
research objectives?
• When should the research be scheduled to
begin?
 Anticipating Outcomes
• Dummy tables
• Representations of the actual tables that will
be in the findings section of the final report;
used to gain a better understanding of what
the actual outcomes of the research will be.