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70 Part Two: Beginning Stages of the Research Process

Chapter Six: Problem Definition: The Foundation of Business Research 69

Part Two

Beginning Stages of the Research Process

Chapter 6

Problem Definition: The Foundation of Business Research

AT-A-GLANCE

I. Introduction

A. Importance of starting with a good problem definition

B. Problem complexity

· Situation frequency

· Dramatic changes

· How widespread are the symptoms?

· Symptom ambiguity

II. The Problem-Definition Process

A. Problems mean gaps

B. The problem-definition process steps

C. Understand the business decision

· Interview process

· Identifying symptoms

D. Identifying the relevant issues from the symptoms

E. Writing managerial decision statements and corresponding research objectives

F. Determine the unit of analysis

G. Determine relevant variables

· What is a variable?

· Types of variables

H. Write research objectives and questions

III. Clarity in Research Questions and Hypotheses

IV. How Much Time Should Be Spent on Problem Definition?

V. The Research Proposal

A. The proposal as a planning tool

B. The proposal as a contract

C. Anticipating outcomes

· Dummy tables

· Example dummy table

LEARNING OUTCOMES

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 dummy tables as part of a research proposal

CHAPTER VIGNETTE: Deland Trucking Has a “Recruitment” Problem

David Deland, the owner of Deland Trucking is concerned about his company’s recruitment costs that have skyrocketed over the last six months. James Garrett, a business research consultant, has been hired by Deland Trucking Company to get a handle on these costs. David thinks it is the increasing costs of advertising, but James wants to look deeper. He compares the driver census data for the last six months and finds the real problem.

SURVEY THIS!

Students are asked to look at the portion of the survey shown and to address the following:

· Identify at least three decision statements that might have driven the construction of this questionnaire.

· Translate each decision statement from above into a research question and the related research hypothesis or hypotheses.

· What would a dummy table look like that might provide the data for these hypotheses?

· What types of companies might be interested in this information?

· Would any nonprofit institutions be interested in this data?

RESEARCH SNAPTSHOTS

· Good Answers, Bad Questions?

Sometimes even the most successful companies make huge blunders that are often based on a misunderstanding of exactly what the brand and/or product means to consumers. Some famous blunders discussed are RJR’s introduction of a smokeless cigarette, Ford’s Edsel, and new Coke. The blame is often placed on the researcher, but hindsight shows that the wrong questions were asked. Management considered Coke as a beverage, not a brand, and thus, they concentrated on taste and ignored the psychological meaning of Coke. The name of the Edsel could have led to its demise, but that name was never tested (but hundreds of others were). Research did not address whether or not taking the “smoke” out of “smoking” is the same thing.

· Poor Questions Result in Poor Research in Japan!

French conglomerate BSN noted that the Japanese were becoming more Westernized and decided to target that country as a priority market for its yogurt. BSN conducted research and the study reported that Japanese consumers were indeed becoming more Westernized in their food choices and eating habits and appeared to offer a strong potential market for yogurts. Sales, however, were disappointing. BSN conducted further research and found that the “Yes/No” questions asked previously were too simplistic and most Japanese consumers were simple too polite to reply “No.” Furthermore, the respondents did not want to offend the researchers by criticizing ads featuring a spoon as an eating utensil. As a result, the data was very misleading and presented an overly optimistic picture of the market.

· Opportunity Is a “Fleeting” Thing

Automobile companies thought Europeans prefer smaller or “light-cars,” so most were slow to enter the SUV market. By 2004, however, European SUV sales reached 16.5 million units, and today, Nissan, Toyota, Land Rover, and Suzuki are major players. Could it be that several prominent automobile companies missed opportunities in Europe because they failed to know how big the market truly was? On the flip side, the SMART car (a tiny car by U.S. standards) has been introduced in the United States. While sales got off to a fast start, they slowed. However, SMART may now be poised to take advantage of an opportunity created by the current $4.00 a gallon gas prices. U.S. producers are turning production toward new entrants like the Chevrolet Volt. Their success may also depend on the exchange rate, which presently makes European entries expensive in the U.S. There might be a SMART SUV in the future.

· Pricing Turbulence

A heavy equipment distributor sought out research because it believed there was an opportunity to increase revenues by raising prices. A research project was conducted that demonstrated how much customer characteristics and environmental characteristics influenced price elasticity and identified market segments based on price elasticity. The research supported the hypotheses that for business segments where delivery time was of critical importance, higher prices can be charged. Similarly, in turbulent international markets, customers were less price sensitive. The company was able to build in customer characteristics into a DSS that automated prices.

OUTLINE

I. INTRODUCTION

· Importance of Starting with a Good Problem Definition

· The chances that a research project will prove useful are directly related to how well the research objectives correspond to the true business “problem.”

· When the client fails to understand their situation, or when they insist on studying an irrelevant problem, the research is very likely to fail even if it is done properly.

· Translating a business situation into something that can be researched begins by coming to a consensus on a decision statement or question.

· A decision statement is a written expression of the key question(s) that a research user wishes to answer.

· The term problem definition is the process of defining and developing a decision statement and the steps involved in translating it into more precise research terminology including a set of research objectives.

· Problem Complexity

· This stage of the research process can be the most complex.

· Factors influencing problem complexity include:

· Situation Frequency – cyclical, routine problems are easier to define.

· Dramatic changes – when sudden change in the business situation takes place, it can be easier to define the problem.

· How Widespread are the Symptoms? – the more scattered any symptoms are, the more difficult it is to put them together into some coherent problem statement.

· Symptom Ambiguity – the greater the ambiguity of the symptoms, the more difficult it is to define the problem.

II. THE PROBLEM DEFINITION PROCESS

· Problems Mean Gaps

· A problem occurs when there is a difference between the current conditions and a more preferable set of conditions (i.e., a gap exists between the way things are now and the way that things could be better).

· A gap can come about in a number of ways:

1. Business performance is worse than expected (e.g., sales, profits, margins are below targets set by management).

2. Actual business performance is less than possible business performance (note that realization of this gap first requires that management have some idea of what is possible).

3. Expected business performance is greater than possible business performance.

· The Problem-Definition Process Steps

1. Understand the business situation – identify the key symptoms.

2. Identify key problem(s) from symptoms.

3. Write managerial decision statement and corresponding research objectives.

4. Determine the unit of analysis.

5. Determine the relevant variables.

6. Write research questions and/or research hypotheses.

· Understand the Business Decision

· A situation analysis involves the gathering of background information to familiarize researchers and managers with the decision-making environment.

· Often requires exploratory research.

· The situation analysis begins with an interview between the researcher and management.

· Interview Process

· Researcher should be granted access to all individuals who have specific knowledge or insight of the situation.

· It is important that the researcher not blindly accept a convenient problem definition for expediency’s sake.

· Helpful hints that can be useful in the interview process include:

1. Develop many alternative problem statements.

2. Think about potential solutions to the problem.

3. Make lists – use free association and interrogative techniques (i.e., asking multiple what, where, who, when, why, and how questions).

4. Be open-minded.

· Identifying Symptoms

· Probing is an interview technique that tries to draw deeper and more elaborate explanations from the discussion with key decision makers.

· One of the most important questions to ask – “What has changed?” (i.e., customers, competitors, internal conditions of the company and in the external environment).

· Then, the researcher should probe to identify potential causes of the change.

· Identifying the Relevant Issues from the Symptoms

· Exhibit 6.4 illustrates how symptoms can be translated into a problem and then a decision statement.

· Writing Managerial Decision Statements and Corresponding Research Objectives

· Decision statements should capture objectives in a way that invites multiple solutions.

· At this point, the researcher is starting to visualize what will need to be measured and what type of study will be needed.

· Each research objective should state a corresponding, potential result(s) of the research project.

· The researcher should reach a consensus agreement with the decision maker regarding the overall decision statement(s) and research objectives before proceeding.

· Determine the Unit of Analysis

· The unit of analysis for a study indicates what or who should provide the data and at what level of aggregation (i.e., individuals, households, organizations, departments, geographical areas, or objects).

· A problem may be investigated at more than one level of analysis.

· Determine Relevant Variables

· What Is a Variable?

· A variable is anything that varies or changes from one instance to another.

· Can exhibit differences in value, usually in magnitude or strength, or in direction.

· It is either observed or manipulated.

· Converse of a variable is a constant (i.e., something that does not change).

· Types of Variables

· Continuous variable – one that can take on a range of values that correspond to some quantitative amount (e.g., sales volume, profits, and margin).

· Categorical variable (a.k.a. classificatory variable) – one that indicates membership in some groups (e.g., male or female, 1, 2, or 3).

· Dependent variable – a process outcome or a variable that is predicted and/or explained by other variables (conventionally represented by the letter Y).

· Independent variable – variable that is expected to influence the dependent variable in some way (conventionally represented by the letter X).

· Dependent variables will not change independent variables.

· Managers and researchers must be careful to identify relevant (i.e., a change in the variable matters) and actionable (i.e., a variable can be controlled by managerial actions) variables.

· Theory should help distinguish relevant from superfluous variables.

· Write Research Objectives and Questions

· Research questions express the research objectives in terms of questions that can be addressed by research.

· Hypotheses are more specific than research questions, and one key distinction is that hypotheses can generally specify the direction of a relationship.

· Research questions are interrogative whereas research hypotheses are declarative.

III. CLARITY IN RESEARCH QUESTIONS AND HYPOTHESES

· A research question is the researcher’s translation of the problem into a specific inquiry.

· Asking specific research questions helps the researcher design a study that will produce useful results.

· A formal hypothesis has considerable practical value in planning and designing research because it forces researchers to be clear about what they expect to find through the study, and it raises crucial questions about data required.

· In cases of a “go/no go” decision, the research involves a managerial action standard that specifies a specific performance criterion upon which a decision can be based.

· Objectives should be limited to a manageable number.

IV. HOW MUCH TIME SHOULD BE SPENT ON PROBLEM DEFINITION?

· Budget constraints usually influence how much effort is spent on problem definition.

· Generally, allowing more time and money will help make sure the research objectives that result are relevant and can demonstrate which influences management should focus on.

V. THE RESEARCH PROPOSAL

· The research proposal is a written statement of the research design.

· Always includes a statement explaining the purpose of the study (in the form of research objectives and deliverables) and a definition of the problem – often in the form of a decision statement.

· Outlines the particular research methodology and details procedures that will be used during each stage of the process.

· Normally includes a schedule of costs and deadlines.

· Becomes the primary communication document between the research doer and the research user.

· The Proposal as a Planning Tool

· Preparation of the proposal forces the researcher to think critically about each stage of the research process.

· Researcher submits the proposal to management for acceptance, modification, or rejection.

· Research clients (management) evaluate the proposal with respect to whether or not it will provide useful information and will do it within a reasonable resource budget.

· The proposal must be explicit about sample selection, measurement, fieldwork, and data analysis.

· Exhibit 6.9 presents an overview of some of the basic questions that managers and researchers typically must answer when planning a research design.

· The Proposal as a Contract

· The written proposal serves as an outside research supplier’s bid to offer a specific service, and clients typically solicit several competitive proposals.

· Wise researchers will not agree to do a research job for which no written proposal exists.

· The proposal is in many ways the same as the final research report without the actual results.

· Both the researcher and the client should sign the proposal indicating agreement on what will be done, thus protecting both party’s interests.

· Funded business research generally refers to basic research usually performed by academic researchers and supported by some public or private institution.

· Anticipating Outcomes

· Dummy Tables

· Placed in research proposals and are exact representations of the actual tables that will show results in the final report, except the results are hypothetical.

· The researcher fills in, or “dummies up,” the tables with likely but fictitious data so that decision makers can determine if this is the information they desire.

· Example Dummy Table

· Exhibit 6.10 shows a dummy table taken from the research proposal for David Deland’s trucking company (see chapter vignette).

· Tables should stand alone and be interpreted by someone who is not an experienced researcher.

· When the final report is compiled, these tables will be included with the results replaced with the actual research results.

QUESTIONS FOR REVIEW AND CRITICAL THINKING/ANSWERS

1. What is a decision statement? How does the focus on an irrelevant decision affect the research process?

A decision statement is a written expression of the key question(s) that a research user wishes to answer. It is the reason that research is being considered. It must be well-stated and relevant or else it can be harmful both because of the wasted resources and because it may misdirect the company in a poor direction.

2. Define problem recognition. How is this process like translating text from one language into another? What role does “probing” play in this process?

Translating a business situation into something that can be researched is somewhat like translating one language into another. It begins by coming to a consensus on a decision statement or question. A decision statement is a written expression of the key question(s) that a research user wishes to answer. The researcher translates this into research terms by rephrasing the decision statement into one or more research objectives. These are expressed as deliverables in the research proposal. The researcher then further expresses these in precise and scientific research terminology by creating research hypotheses from the research objectives. The term problem definition is used to refer to the process of defining and developing a decision statement and the steps involved in translating it into more precise research terminology including a set of research objectives. When attempting to identify symptoms, probing is an interview technique that tries to draw deeper and more elaborate explanations from the discussion. This discussion may involve potential problem causes. This probing process will likely be very helpful in identifying key variables that are prime candidates for study.

3. List and describe four factors that influence how difficult the problem-definition process can be.

Factors that influence how difficult the problem definition process can be are:

a. Situation frequency – the more frequent and routine the situation, the easier it is to identify problems.

b. Dramatic changes – sudden changes in the business situation makes it easier to define the problem.

c. How widespread are the symptoms? – the more scattered any symptoms are, the more difficult it is to put them together into some coherent problem statement.

d. Symptom ambiguity – the more ambiguous the symptoms, the more difficult it is to identify the problem.

4. What are three types of gaps that exist, indicating that research may be needed to assist a business in making some decision?

A problem occurs when there is a difference between the current conditions and a more preferable set of conditions. That is, 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:

a. Business performance is worse than expected business performance.

b. Actual business performance is less than possible business performance.

c. Expected business performance is greater than possible business performance.

5. Examine an article in the Wall Street Journal or similar source that discusses a business situation of a company in the electronics or defense industry. Identify a problem that exists with the company. Develop some research objectives that you believe correspond to the problem.

Students’ answers will vary on this question.

6. What is a situation analysis? How can it be used to separate symptoms from actual problems?

A situation analysis involves the gathering of background information to familiarize researchers and managers with the decision-making environment. It is a way of formally documenting the problem definition process. Gaining an awareness of marketplace conditions and an appreciation of the situation often requires exploratory research. The situation analysis begins with an interview between the researcher and management. Interviews with key decision makers can be one of the best ways to identify key problem symptoms. Once symptoms are identified, then the researcher must probe to identify possible causes of these changes. One of the most important questions that a researcher can ask during these interviews is, “what has changed?” Then, the researcher should probe to identify potential causes of the change.

7. Define unit of analysis in a marketing research context.

The unit of analysis for a study indicates what or who should provide the data and at what level of aggregation. Researchers specify whether an investigation will collect data about individuals (customers, employees, owners, etc.), households (families, extended families, etc.), organizations (businesses, business units), departments (sales, finance, etc.), geographical areas, or objects (products, advertisements, etc.). Researchers who think carefully and creatively about situations often discover that a problem may be investigated at more than one level of analysis.

8. Find some business journal articles that deal with culture and international expansion. Find one that lists some hypotheses. What kinds of decisions might be assisted by the results of testing these hypotheses?

Students’ answers will vary on this question.

9. List and describe at least four terms that can describe the nature of a variable.

There are several key terms that help describe types of variables. The variance in variables is captured either with numerical differences or by an identified category membership. For example a continuous variable is one that can take on a range of values that correspond to some quantitative amount. Sales volume, profits and margins are common business metrics that represent continuous variables. A categorical variable is one that indicates membership in some group. The term classificatory variable sometimes is used and is generally interchangeable. Categorical variables sometimes represent quantities that take on only a small number of values (i.e., 1, 2, or 3). However, categorical variables more often simply identify membership. For example, people can be categorized as either male or female.

In addition, different terms describe whether a variable is a potential cause or an effect. In descriptive and causal research, the terms dependent variable and independent variable describe different variable types. A dependent variable is a process outcome or a variable that is predicted and/or explained by other variables. An independent variable is a variable that is expected to influence the dependent variable in some way. They are independent in the sense that they are determined outside of the process being studied. That is another way of saying that dependent variables do not change independent variables.

10. For each of the following variables, explain why it should be considered either continuous or categorical:

a. Whether or not a university played in a football bowl game during 2011.

This would be a categorical variable because the answer is either “yes” or “no” to the question of whether or not a university played in a bowl game that year.

b. The average wait time a customer has before being served in a full-service restaurant.

This is a continuous variable that is most likely measured in minutes.

c. Letter grades of A, B, C, D, or F.

Categorical because the grade is any one of those.

d. The job satisfaction of a company’s salespeople.

This could be either categorical (i.e., satisfied/dissatisfied) or continuous (range of satisfaction levels).

e. A consumer’s age.

Continuous and can range from 1 to over 100.

11. Write at least three examples of hypotheses that involve a managerial action statement. Provide a corresponding decision statement for each.

While students’ answers will vary, the hypotheses they provide should be specific and able to be tested empirically. A managerial action standard specifies a specific performance criterion upon which a decision can be based. If the criterion to be measured (e.g., sales or attitude change) turns out to be higher than some predetermined level, management will do A; if it is lower, however, management will do B.

12. What are the major components of a research proposal? How does a research proposal assist the researcher?

The research proposal is a written statement of the research design. It always includes a statement explaining the purpose of the study (in the form of research objectives or deliverables) and a definition of the problem – often in the form of a decision statement. A good proposal systematically outlines the particular research methodology and details procedures that will be used during each stage of the research process. Normally a schedule of costs and deadlines is included in the research proposal. The research proposal becomes the primary communication document between the research doer and the research user. Ways the proposal assists the researcher are that it is a planning tool and serves as a contract between the researcher and client.

13. The chapter provides an example dummy table for the Deland Trucking vignette. Provide another example dummy table that corresponds to this same situation.

While students’ answers will vary on this question, one example is that customers could be surveyed and separated into two groups – first time customers and repeat customers. It could be hypothesized that repeat customers have more favorable attitudes, spend more, and intend to repurchase. The mean differences on responses to these dependent variables can be compared for the two groups (i.e., using ANOVA, which is discussed in a later chapter).

14. Evaluate the following statement of business research problems. For each, provide a decision statement and corresponding research objectives:

a. A farm implement manufacturer: Our objective is to learn the most effective form of advertising so we can maximize product line profits.

This problem statement is vague. It does not indicate what is meant by “effective advertising.” Does this mean media, copy, or dollar expenditures? Further maximizing product line profits should be stated in terms that are meaningful from a research point of view.

It would be much better if a more specific objective was stated, such as to measure ability to generate attention, to obtain believability, to persuade, and to communicate key sales points in the advertising message for a new ad in a specific media vehicle (i.e., an agricultural magazine).

This is an improved problem definition, but it would be even better if the criteria for attention, believability, persuasion, and recall of key copy points were identified in even more specific terms. For example, attention might be identified as unaided or aided recall; persuasion might be identified as change in brand preference, etc.

b. An employees’ credit union: Our problem is to determine the reasons why employees join the credit union, determine members’ awareness of credit union services, and measure attitudes and beliefs about how effectively the credit union is operated.

This is a fairly good problem definition. It indicates specifically that they want to identify reasons for joining the credit union. It mentions awareness of services as a criterion, although the many services are not listed. It indicates that they will measure attitudes and beliefs about credit union operations. Again this could be more specific; nevertheless, it provides the reader with a clear idea of the problem definition and general direction of the research.

c. The producer of a television show: We have a marketing problem. The program’s ratings are low. We need to learn how we can improve our ratings.

This statement is the equivalent of saying “Our sales are down—we have a problem.” It indicates something is wrong and the most obvious symptom has become apparent, but does not say anything about the true nature of the problem—what is hypothesized as the possible cause of the problem. This is a typical situation where the manager knows something is wrong but has not thought about what the real problem is. The real problem is to learn why people aren’t watching the show, what their likes and dislikes are about the show

d. A soft-drink manufacturer: The marketing problem is that we do not know if our bottlers are more satisfied with us than our competitors’ bottlers are with them.

This is a vague problem statement without any action standard indicated. First, the dimensions of satisfaction must be identified and key issues isolated.

This research objective does not indicate any action standard or any decision alternative. This is a situation where researchers should anticipate outcome. They should ask what the final report should look like by outlining a number of dummy tables. In this way they would know exactly what decision to make when the data is analyzed. At some point the researcher should sit down with management and determine: “If our bottlers are less satisfied we will do __________.”

e. A women’s magazine: Our problem is to document the demographic changes that have occurred in recent decades in the lives of women and to put them in historical perspective; to examine several generations of American women through most of this century, tracking their roles as students, workers, wives, and mothers and noting the changes in timing, sequence, and duration of these roles; to examine at what age and for how long a woman enters various stages of her life: school, work, marriage, childbearing, divorce. This will be accomplished by analyzing demographic data over several generations.

This is an excellent problem definition. This definition indicates that women will be the subject of the research and the demographic data will be gathered from secondary sources. It also indicates that comparisons will be made by different age cohorts.

f. A manufacturer of fishing boats: The problem is to determine sales trends over the past five years by product category and to determine the seasonality of unit boat sales by quarters and by region of the country.

This is a relatively straightforward set of descriptive objectives for a secondary data study. The time period is indicated. Sales volume in units is indicated to be the variable of interest. By indicating unit boat sales, quarters as the time periods, and regions of the country as the geographical unit, the definition is specific.

g. The inventor of a tension-headache remedy (a cooling pad that is placed on the forehead for up to four hours): The purpose of this research is (1) to identify the market potential for the product, (2) to identify what desirable features the product should possess, and (3) to determine possible advertising strategies/channel strategies for the product.

Although this is not a poor statement of the problem, it is too ambitious and it could be more specific. A major disadvantage of this problem statement is that it is too much for a single research study. Determining advertising and channel strategies, product features, and market potential indicates several distinct problems for a program strategy rather than a single project strategy. Identifying market potential and identifying what desirable features the product should possess are both a little vague. One might argue that headache suffers need this product like they need a hole in their heads. It could be argued that consumers want quick pain relief and they don’t find a pad that stays on the top of the head for up to four hours convenient. Will it work better than existing solutions, like two aspirins, is a major question. The research questions might address some more specific issues, such as: is this likely to be a probable purchase relative to the alternatives, is the product likely to be perceived to be new and different, and how would consumers perceive its value if it is marketed at a high price.

15. Comment of the following statements and situations:

a. “The best researchers are prepared to rethink and rewrite their proposals.”

This statement is definitely true. Research proposals are prepared to make sure there is an agreement between the researcher and the manager. In many cases the first proposal is accepted and there is no disagreement. However, after the initial proposal has been submitted it is not uncommon to revise research objectives and/or research designs before the actual research is conducted. In many cases the managers have not clearly identified what information they want. They communicate a vague need to the researchers. When the manager finally sees the research design in black and white with the anticipated outcomes of the research specified, they realize that this is not what they want. In other situations, the researcher misunderstands what the manager wants and designs a study that is not adequate. The best researchers revise their proposals to satisfying their clients’ needs. Researchers, as well as the marketers of products, must satisfy their customers.

b. “The client’s signature is an essential element of the research proposal.”

This statement suggests one purpose of a research proposal is to put down in writing exactly what the researcher will do for the client. In other words, when the client signs the proposal, it indicates that this is a contract for the research. For example, it indicates that the client agrees to the number of individuals to be sampled. This aspect of the proposal avoids a potential problem during the presentation of the results, namely having someone who disagrees with the results saying, “Isn’t that sample too small?”

16. You have been hired by a group of hotel owners, restaurant owners, and other people engaged in businesses that benefit from tourism on South Padre Island, Texas. They wish to learn how they can attract a large number of college students to their town during spring break. Define the marketing decision statement.

Answers to this question will vary. However, an answer similar to the following might be expected.

The general purpose of the research will determine the expectations and behavior of college students visiting South Padre Island during spring break. It will determine where students received information (travel agent, friend, advertising, previous visit, etc.) about the area and what made them decide to vacation at South Padre Island. It will identify the mode of transportation used to get to South Padre Island and the nature of the traveling party. It will determine the length of the visitor’s stay and the type of accommodations that are preferred. It will measure what activities (sun bathing, party atmosphere, rock concerts, etc.) were expected and what types of shopping and site-seeing occurred in the area. It will identify how much beer drinking occurred and how much money students spent. The appropriate demographic information (university location, age, etc.) will be obtained and cross classified with the above information.

17. You have been hired by a local Big Brothers and Big Sisters organization to learn how they can increase the number of males who volunteer to become Big Brothers to fatherless boys. Define your research objectives.

Students’ research objectives will vary somewhat. The following objectives could be identified:

• to determine males’ awareness of the Big Brothers and Sisters organization

• to determine males’ awareness of the organization’s need for volunteers

• to determine males’ attitudes toward the organization and its achievements

• to determine males’ willingness to volunteer as Big Brothers

• to identify precise explanations why individuals have not or would not volunteer

• to determine a demographic profile of those most likely to volunteer

RESEARCH ACTIVITIES

1. Examine the web site for International Communications Research ( http://www.icrsurvey.com ). What services do they seem to offer that fall into the problem definition process?

This company offers a wide variety of services, and some fall into the problem definition process. For example, this company can conduct focus groups interviews and in-depth interviews that will help define the problem more clearly.

2. Consider the current situation within your local university music department. Assuming it stages musical productions to which audiences are invited and for which tickets are sold, describe the situation it faces. Prepare a research proposal that would help it address a key decision. Make sure it includes at least one dummy table.

Students’ answers can vary widely on this activity. For example, the department might want to describe audiences in terms of demographic variables. They might want to determine the optimum number of performances to maximize profits (or avoid losses if this is a not-for-profit organization). They might want to determine who their loyal patrons are and what types of productions they are interested in for the future.

CASE 6.1 EZ PASS

Objective: This case can be used to show how a good problem definition leads to a sound research design.

Summary: In the 1990’s, a task force was formed by seven regional transportation agencies to investigate the feasibility and desirability of electronic toll collection (ETC) via small transceivers called tags. The task force was most interested in identifying the ideal configuration of service attributes for each agency’s commuters, and determining how similar or different these configurations might be across agencies. Six questions the task force identified were:

· How many accounts are necessary and what statements will be received?

· How and where does one pay for EZPass?

· What lanes are available for use and how they are controlled?

· Is the tag transferable to other vehicles?

· What is the price of the tag and possible service charge?

· What are other possible uses for the EZPass tag (airport parking, gasoline purchases, and so forth)?

From a researcher’s perspective, it also seemed important to assess commuter demand for the service, but the task force was not convinced that it needed a projection of demand because it was committed to implementing ETC regardless of initial commuter acceptance. The task force viewed its principal role to be investigating commuters’ preferences for how the service should be configured ideally.

Questions

1. Evaluate the problem-definition process. Has the problem been defined adequately so that a relevant decision statement can be written?

Representatives from the Port Authority of New York and New Jersey (who played a leadership role in the task force’s investigation) recognized that setting priorities for service attributes and investigating level-preferences within attributes were critical issues. They did a good job defining the problem

The problem-definition process steps are:

1. Understand the business situation – identify the key symptoms.

2. Identify key problem(s) from symptoms.

3. Write managerial decision statement and corresponding research objectives.

4. Determine the unit of analysis.

5. Determine the relevant variables.

6. Write research questions and/or hypotheses.

The problem, traffic congestion and the concerns regarding implementing a solution across several agencies, was identified, and commuters should be selected as the unit of analysis. The case indicates several well-defined research questions. However, students might argue that this is not the direction the research should take as an assessment of commuter demand for such a service might be required. Finding the answers to the questions posed may be moot if commuters do not desire such as service.

2. What type of research design would you recommend for this project?

Most students will suggest some kind of survey.

3. What research questions might be tested?

Questions regarding attributes related to each research question could be developed, and respondents could rate the importance of each attribute to them when adopting this service.

4. What might a dummy table included in this research proposal look like?

A dummy table could be developed in which the questions are given in the rows, and for each question, aggregate responses on an importance scale could be provided in columns.

CASE 6.2 Cane’s Goes International

Objective: To develop a decision statement.

Summary: Raising Cane’s is a fast-food chicken finger establishment based in Baton Rouge, LA. The restaurants are popular throughout the Gulf South, and Cane’s has recently been approached by people interested in opening Cane’s restaurants in other countries (e.g., Australia, Canada, and Mexico). Cane’s prepares high quality fried chicken fingers and has a limited menu consisting of fingers, fries, slaw, and lemonade.

Questions

1. Write a decision statement for Raising Cane’s.

The problem-definition process steps are:

1. Understand the business situation – identify the key symptoms.

2. Identify key problem(s) from symptoms.

3. Write managerial decision statement and corresponding research objectives.

4. Determine the unit of analysis.

5. Determine the relevant variables.

6. Write research questions and/or hypotheses.

Students are being asked to get to step 3 of this process. While it is unlikely that they can interview management about Cane’s business situation, students can research this industry and the potential for expanding in these countries. A managerial decision statement could be: “Should Cane’s expand into other countries?”

2. Write corresponding research objectives and research questions.

The specific research objectives could entail finding out the market potential in specific countries and research objectives relating to consumer acceptance of this restaurant concept. Students should determine the unit of analysis (e.g., consumers) and the relevant variables in order to develop specific research questions.

3. What role would a proposal play in assisting this research effort and in assisting Cane’s in improving their business situation?

The research proposal is a written statement of the research design. It includes a statement explaining the purpose of the study (in the form of research objectives and deliverables) and a definition of the problem, often in the form of a decision statement. It outlines the particular research methodology and details procedures that will be used during each stage of the research process. Normally a schedule of costs and deadlines is included. It becomes the primary communication document between the researcher and the research user.

One role that a proposal could play in assisting this research effort and Cane’s business situation is that of a planning tool – it forces the researcher to think critically about each stage of the research process. The researcher submits the proposal to management so that they can evaluate the proposed study with particular emphasis on whether or not it will provide useful information within a reasonable resource budget. It also helps managers decide if the proper information will be obtained and if the proposed research will accomplish what is desired.

CASE 6.3 Deland Trucking

Based on the case scenario described throughout this chapter, prepare a research proposal that corresponds to this situation.

The problem-definition process steps that students should follow are:

1. Understand the business situation – identify the key symptoms.

2. Identify key problem(s) from symptoms.

3. Write managerial decision statement and corresponding research objectives.

4. Determine the unit of analysis.

5. Determine the relevant variables.

6. Write research questions and/or hypotheses.

Students’ responses will vary on this exercise, but it they should all agree that a key symptom is the retention of truckers dropping in the last six months. So the problem facing Deland Trucking is that his business performance is worse than expected business performance based on previous years of business. Some of the key problems causing this symptom could include new competitors in the area, a change in their employee compensation or benefit package, economic conditions, or problems with the company’s service that have caused them to lose customers.

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© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.