2-1

Chapter 2
Thinking Like A
Researcher

McGrawHill/Irwin

2006 The McGraw-Hill Companies, Inc., All Rights

Reserved.

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Learning Objectives
Understand
the need for sound reasoning to enhance
business research results
the terminology used by professional
researchers employing scientific thinking
what you need to formulate a solid
research hypothesis

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The Scientific Method

Direct
Direct observation
observation
Clearly
Clearly defined
defined variables
variables
Clearly
Clearly defined
defined methods
methods
Empirically
Empirically testable
testable
Elimination
Elimination of
of alternatives
alternatives
Statistical
Statistical justification
justification
Self-correcting
Self-correcting process
process

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Researchers

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

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Synovate
Curiosity is
necessary to be a
good business
researcher

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Sound Reasoning
Types of Discourse

Exposition

Deduction

Argument

Induction

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Deductive Reasoning
Inner-city
Inner-city household
household
interviewing
interviewing is
is especially
especially
difficult
difficult and
and expensive
expensive
This
This survey
survey involves
involves
substantial
substantial inner-city
inner-city
household
household interviewing
interviewing
The
The interviewing
interviewing in
in this
this
survey
survey will
will be
be especially
especially
difficult
difficult and
and expensive
expensive
2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

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Inductive Reasoning
Why didnt 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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Exhibit 2-1 Why Didnt

Sales Increase?

Deduction

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Exhibit 2-2 Tracys

Performance

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Language of Research
Concepts
Concepts

Constructs

Models
Models

Terms
Terms used
used
in
in research
research
Theory
Theory

Conceptual
Conceptual
schemes
schemes
Operational
Operational
definitions
definitions

Variables
Propositions/
Propositions/
Hypotheses
Hypotheses

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Language of Research

Success
of
Research

Clear conceptualization
of concepts

Shared understanding
of concepts

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Exhibit 2-3 Job Redesign

Constructs and Concepts

3-13

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Operational Definitions
How can we define the variable class level of students?

Freshman
Sophomore
Junior
Senior

< 30 credit hours

30-50 credit hours
60-89 credit hours
> 90 credit hours

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What Is A Variable?

Act

Event

Variable
Variable

Characteristic

Trait

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Types of Variables
Dichotomous
Dichotomous

Male/Female
Male/Female
Employed/
Employed/Unemployed
Unemployed

Discrete
Discrete

Ethnic
Ethnicbackground
background
Educational
Educationallevel
level
Religious
Religiousaffiliation
affiliation

Continuous
Continuous

Income
Income
Temperature
Temperature
Age
Age

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Exhibit 2-4 Independent

and Dependent Variables
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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Moderating Variables (MV)

The switch to commission from a salary
compensation system (IV) will lead to
increased sales productivity (DV) per
worker, especially among younger 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)

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)

The switch to a commission compensation
system (IV) will lead to higher sales
productivity (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
Hypotheses
Brand Manager Jones (case) has a
higher-than-average achievement
motivation (variable).
Generalization

Brand managers in Company Z (cases)

have a higher-than-average achievement
motivation (variable).

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Hypothesis Formats
Descriptive
In Detroit, our potato
chip market share
stands at 13.7%.
American cities are
experiencing budget
difficulties.

Research Question
What is the market
share for our potato
chips in Detroit?
Are American cities
experiencing budget
difficulties?

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Relational Hypotheses
Correlational
Young 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.

Causal
An 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 stores
private brand products.

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The Role of Hypotheses

Guide
Guide the
the direction
direction of
of the
the study
study

Identify
Identify relevant
relevant facts
facts
Suggest
Suggest most
most appropriate
appropriate research
research
design
design
Provide
Provide framework
framework for
for organizing
organizing
resulting
resulting conclusions
conclusions

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Characteristics of Strong
Hypotheses

Adequate
Adequate
AA
Strong
Strong
Hypothesis
Hypothesis
Is
Is

Testable
Testable
Better
Better
than
than rivals
rivals

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Exhibit 2-6 Theory of the

Product Life Cycle

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Exhibit 2-7 A Distribution

Network Model

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Exhibit 2-8
The Role of Reasoning

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Key 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
Dependent
Extraneous
Independent
Intervening
Moderating