Geng Cui, Professor

Faculty of Business, Lingnan University

Lecture1 Introduction to Research

Pedagogy

Inter-disciplinary and multi-method

Problem-oriented (from disciplines)

Multiple approaches: lecture, reading, guests, proposal

Self-motivated, active learning (reading, leading, presenting)

Interactive (group discussion, learning from each other)

Experiential (write your own proposal)

Reasons and Goals for Research

What is Research?

Research is a diligent search, studious inquiry, investigation or experimentation aimed at the discovery of new facts and findings.

Research involves the collection of information, interpretation of facts, and revision of existing theories or laws in the light of new facts or evidence.

Reasons and Goals for Research

Types of researchDescriptive research

Describe phenomena and is not particularly concerned with understanding why behaviour is the way it is.

Starting point of a research project into phenomena (known as an exploratory study) of which we know very little(manipulation of online reviews).

Explanatory researchDescribes phenomena and attempts to explain why behaviour is the way it is

(often theory driven).

Enables us to understand the very nature of what we are actually looking at.

Reasons and Goals for Research

Types of researchPredictive researchNot only to explain behaviour but to predict future behaviour given a change

in any of the explanatory variables relevant to a particular phenomenon.If we can understand physical or human phenomena then we will be in a

much better position to predict their future paths and possibly even to change them.

In practice, most research work will include aspects of all three research ‘types’.

Reasons and Goals for Research

In the business arena, research tends to be undertaken in order to achieve one or more of the following objectives:Gain a competitive advantageTest new products and servicesSolve a management/organisational problemProvide information which may help to avoid future business problems Forecast future salesBetter understand shifts in consumer attitudes and tastesEnhance profitabilityReduce costs by optimizing operations and use of resourcesEnable management to prioritise strategic options for the future

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Diversified strategic vs. focused one

Topics of research in business disciplines

Manufactured Opinions: The Effects of Online Review Manipulations on Consumer Suspicion and Product Sales

Posting strategically: The consumer as an online media planner

Analytic Solution for the Nucleolus of a Three-Player Cooperative Game

Option-Implied Volatilities and Stock Returns: Evidence from Industry-Neutral Portfolios

Research Process

Step 1 : Problem Definition

Step 2 : Literature Review and Identifying the research gaps

Step 3 : Research Design Formulation

Step 4 : Fieldwork or Data Collection

Step 5 : Data Preparation and Analysis

Step 6 : Report Preparation and Presentation

Types of Research

Applied Research: business

Basic Research

Scientific Research: Who decides what is scientific? The community ofscientists: Galileo (Thomas Kuhn: Scientific Revolutions): world view,ontology, epistemology, determinism, agnostic

Empirical Research (positivism)

Theoretical Research (OR, game-theoretical)

Qualitative Research

Quantitative Studies

Behavioral science, data mining, artificial intelligence

Accounting: behavioural (survey) vs. market based (secondary data)

Ph.D• Theory-driven• Intellectual contribution, knowledge generation,• Publish! (or Perish)

Professor• Teaching• Career researcher, at research universities• Publishing in peer review journals• Academic leadership and scholarship

MPhil• Applied research, theory driven, empirical study• Taking courses, research proposal, topic defense• Conducting the study, write the thesis, findings seminar, thesis exam

SelectedResearch Career Descriptions

Analyst• Handles details in execution of project• Designs & pretests questionnaires• Conducts preliminary analysis of data

Junior Analyst• Secondary data analysis• Edits and codes questionnaires• Conducts preliminary analysis of data

Director•Handles selection, training, supervision of projects, client relationship

Senior Analyst (Data Scentist)• Participates in the development of projects• Carries out execution of assigned projects• Coordinates the efforts of analyst, junior analyst, & other personnel in the development of research design

and data collection• Prepares final report

Fig. 1.5 cont.

Statistician/Data Processing• Serves as expert on theory and application on

statistical techniques• Oversees experimental design, data processing,

and analysis

SelectedResearch Career Descriptions

Research Proposal

Introduction: identification of problems, rationale, goals, and objectives

(symptoms vs. problems vs. potential causes)Literature review: major research streams, findings, theories, identify the research gaps, or totally new research, Theoretical/Research framework and hypotheses (propositionsResearch design: sample, method, testProposed analyticsExpected results

• Samples of proposals and completed projects

Proper Definition of the Research Problem

Research Problem

Broad Statement

Specific Components

Fig. 2.3

Management Decision Problem Vs. Research Problem

Management Decision Problem Research Problem

Should a new product be To determine consumer preferences

introduced? and purchase intentions for the

proposed new product (BI)

Should the advertising To determine the effectiveness

campaign be changed? of the current advertising

campaign (awareness, liking, recall, comprehension, relation)

Should the price of the To determine the price elasticity

brand be increased? of demand and the impact on sales

and profits of various levels of price changes =(s2-s2)/s1

/(p2-p1)/p1

Department Store Project

Problem DefinitionIn the department store project, the marketing research problem is to determine therelative strengths and weaknesses of Sears, vis-à-vis other major competitors, withrespect to factors that influence store patronage.Specifically, research shouldprovide information on the following questions.

1. What criteria do households use when selecting department stores?2. How do households evaluate Sears and competing stores in terms of the choice criteria identified in question 1?3. Which stores are patronized when shopping for specific product categories?4. What is the market share of Sears and its competitors for specific product categories?5. What is the demographic and psychological profile of the customers of Sears? Does it differ from the profile of customers of competing stores?

Components of an Approach

Objectives/Theoretical Foundations (theories, e.g., price vs. demand previous works)

Analytical Model (graphic model or flow chart, statistical, econometric or mathematical models

Research Questions

Hypotheses: theory driven(relation between 2 or 3 vars)

Or propositions

Specification of the Information Needed

The Role of Theory in Research

Research Task Role of Theory

1. Conceptualizing

and identifying

key variables

Provides a conceptual foundation and understanding of the basic processes

underlying the problem situation. These processes will suggest key dependent

and independent variables.

2. Operationalizing

key variables

Theoretical constructs (variables) can suggest independent and dependent

variables naturally occurring in the real world.

3. Selecting a

research design

Causal or associative relationships suggested by the theory may indicate whether

a causal or descriptive design should be adopted.

4. Selecting a

sample

The theoretical framework may be useful in defining the population and

suggesting variables for qualifying respondents, imposing quotas, or stratifying

the population

5. Analyzing and

interpreting data

The theoretical framework (and the models, research questions and hypotheses

based on it) guide the selection of a data analysis strategy and the interpretation

6. Integrating

findings

The findings obtained in the research project can be interpreted in the light of

previous research and integrated with the existing body of knowledge.

ModelsAn analytical model is a set of variables and theirinterrelationships designed to represent, in whole or in part,some real system or process.

Y = f(x), Y=a1X1+a2X2+….(linear, nonlinear)

In verbal models, the variables and their relationships arestated in prose form. Such models may be mere restatements ofthe main tenets of a theory. (chart & statements)

Graphical ModelsGraphical models are visual. They are used to

isolate variables and to suggest directions of

relationships but are not designed to provide

numerical results (.e.g, AIDA model)

Awareness

Understanding: Evaluation

Preference

Patronage

Mathematical Models

Mathematical models explicitly specify the relationshipsamong variables, usually in equation form.

Where

y = degree of preference

= model parameters to be estimated

statistically

∑=

+=n

iii xaay

10

aa i,0

Development of Research Questions and Hypotheses

Fig. 2.4

Components of the

Research Questions

Hypotheses

Objective/TheoreticalFramework

AnalyticalModel

Research Problem

Research Questions and Hypotheses

Research questions (RQs) are refined statements of

the specific components of the problem.

Propositions

A hypothesis (H) is an unproven statement or

proposition about a factor or phenomenon that is ofinterest to the researcher. Often, a hypothesis is apossible answer to the research question.

Fields and Research Approches

Accounting and Finance:Data – and theory - driven

Management, marketing, IBBehavioral science,experiment

Survey

Data modeling

CDS, logistics, operations researchData –driven, or theory driven

Cross- or inter-disciplinary research

Academic Writing

Simple

Clear

Style

Format guidelines

References

Integrity and learning from others

Other books

Author Kumar, Ranjit

Title Research methodology : a step-by-step guide for beginners /Ranjit Kumar

Imprint London : SAGE, c2011

Author Gomm, Roger

Title Social research methodology : a critical introduction / RogerGomm

Imprint Basingstoke, Hampshire ; New York : Palgrave Macmillan,2004

Chapter 2Research Methodology

Research Method vs. Research Methodology

Research methodology is the science and philosophy behind all research.It goes into the heart of how we know what we know and allows us to understand the very strict constraints placed upon our concept of what knowledge actually is.

A research method is a way of conducting and implementing research.

They are different!

Approaches to Business and Social Research Quantitative Research

Based on the methodological principles of positivism and neopositivism, and adheres to the standards of a strict research design developed prior to the actual research.

Applied for quantitative measurement and hence statistical analysis is used.

Used in almost every sphere of life, such as in clinical, biological, epidemiological, sociological and business research.

Qualitative ResearchUses a number of methodological approaches based on diverse theoretical principles

(Phenomenology, Hermeneutics and Social Interactionism)

Employs methods of data collection and analysis that are non-quantitative, aims towards the exploration of social relations, and describes reality as experienced by the respondents.

Used in the field of social sciences

Approaches to Business and Social Research

Pure (Theoretical) ResearchUsually used to develop new knowledge that advances our understanding of the real

world

Evaluates concepts and theories and thus attempts to expand the limits of existing knowledge

No obvious commercial value to the discoveries that result from pure research

Applied ResearchConducted when a decision must be made about a specific real-life problem

The principal aim is to improve human conditions

Directly related to social and policy issues

Approaches to Business and Social Research

Longitudinal StudiesInvolves the study of a sample (or cohort) on more than one occasion

Cover a long period of time and follow the sample a repeated number of times (time series)

Unique in its ability to answer questions about causes and consequences, and hence provides a basis for substantiated explanatory theory

Panel study: involves collecting data from the same sample (repeated purchase)

Cohort study: sample a cohort in a selected time period and study them at intervals through timeA cohort is a group of individuals who experience the same event or share the same

characteristics (age group, school class)

Justifying the Scientific Method

Styles of ReasoningInduction and Deduction: not opposite but tend to be complementary

Inductivism observes the ‘world’ and comes to a generalization about it

Deductivism has largely replaced the inductivist method and uses as its basis the establishment of universal laws.

Justifying the Scientific Method

Syllogistic Reasoning (Deductive Logic)

A syllogism is a statement of two related parts from which a conclusion is drawn.Categorical Syllogism

1. All objects A have the property B. Major premise2. Object C belongs to the class of A. Minor premise3. Therefore object C has the property B. Conclusion

Hypothetical Syllogism (三段論法,推論法)1. If A1 and A2, A3, ..., AN are true (Assumptions), then B is true (Prediction).

Major premise (Universal Law)2. If A1 and A2, A3, ..., AN are true . Minor premise (initial conditions) 3. Therefore B is true. Conclusion

Justifying the Scientific Method

Fallacies in Deductive Reasoning Affirming the Consequent:

1. If A1 and A2, A3, ..., AN are true, then B is true.2. B is true.3. Therefore A1 and A2, A3, ..., AN are true.

The rules of formal logic would require (3) to read as: Therefore A1 and A2, A3, ..., AN are not necessarily not-true.

‘After this because of this’: If an event ‘X’ follows an event ‘Y’ then event ‘Y’ caused event ‘X’.

It attempts to presume that an action deliberately taken to achieve an outcome has ‘caused’ that outcome if the outcome actually occurs.

Justifying the Scientific Method

Fallacies in Inductive ReasoningExample:

1. A recession has always followed a ‘boom’ in the business cycle.2. What has happened in the past will continue to happen in the future.3. Therefore there will be a recession after the current ‘boom’ is over.

The minor premise relies on the Principle of Regularity, which is not impossible to know whether it exists.

The material truth of the minor premise can never be demonstrated and therefore a universal statement cannot be logically derived (with certainty).

Justifying the Scientific Method

Falsification and Verification Verification of theory is not possible but falsification is.

1. If A1 and A2, A3, ..., AN are true, then B is true.2. B is false.3. Therefore at least one of A1, ..., AN is false and therefore the theory

encapsulated by them is false.

This means that in arriving at a conclusion which supports a hypothesis we cannot be bullish in our claims of what we have ‘discovered’.

Justifying the Scientific Method

Common fallacies One might make the statement that:1. All unemployment is voluntary.2. Jacky is a member of the unemployed.3. Therefore Jacky is voluntarily unemployed.

Statement 3 is merely an assertion based on the assumption that the major premise is a fact and not a premise! This in fact breaks the formal rules of logic. （Deductive reasoning）

Justifying the Scientific Method

Common fallacies Another example:1. Financial innovations (new products) have always found/created new markets.2. This will always be the case.3. Therefore, more financial innovation will find/create more new markets.

The whole argument rests on a belief that the past is a guide to the future; that there is some principle of regularity or determinism at work. Hence it is the minor premise (statement 2) which is fundamentally flawed in logic. （Inductive reasoning）

Justifying the Scientific Method

Two golden rules

It is not possible to verify a theory, only to falsify it or elements of it. That is, be modestin your claims of what you have found!

Do any of your findings make sense in terms of being logically true (from yourassumptions) but they cannot possibly be materially true?

Research Ethics

If you do not conduct your work in an ethical manner you will fail.

Fraud can come in several forms:Being selective in sampling.Not reporting survey response/participation rates.Deliberately biasing the data collection instruments.Making up data.Falsifying results.Trimming—removing data that does not fit in with your analysis.Biased or inappropriate analysis.Plagiarism