Decision Problem and Research Problem

The Research Process
Sequence of steps in busieness research
Formulate Problem

• 
  Decision Problem
  
• 
  Research problem
  

Dermine Research Design

• 
  Explorative research
  
• 
  Descriptive research
  
• 
  Cusal research
  

Dermine data Collection Method

• 
  Secondary Data
  
• 
  Primary data
  

Design data Collection Forms

• 
  Quantitative Data
  
• 
  Qualitative Data
  

Design Sample and Collect data

• 
  Sample Frame and sample
  
• 
  Probability versus nonprobability sample
  

Analyze and Interpret Data

• 
  Editing/Quality assurance of data
  
• 
  Coding
  
• 
  Tabulation
  
• 
  Data Analysis
  

Prepare the Research Report (proposal)

• 
  Structure
  
• 
  Scientific Reqirements/Theory/Models
  
• 
  Literature
  

Confer Exhibit 3.1, page 50

Decision Problem and Research Problem
Drivers for problem formulation:

1. 
   Unaticipated change, basically in the environment of the
   

focal firm (suppliers,competitors, customers)

2. 
   Planned change (estimation, effects, outcome)
   
3. 
   Serendipity (random ideas or information)
   

Differetn Problem Levels:

1. 
   Individual orientation, PSYCHOLOGY
   
2. 
   Individual-individual, SOSIAL PSYCHOLOGY
   
3. 
   Individual and group, ORGANIZATION THEORY,
   

ORGANIZATION PSYCHOLOGY

4. 
   Group/department, ORGANIZATION SOCIOLOGY
   
5. 
   Inter-group, ORGANIZATION THEORY
   
6. 
   Group/department and organization, ECONOMIC
   

THEORY, PRINCIPAL-AGENT THEORY, ORGANIZATION THEORY

7) Organization/firm, ECONOMIC THEORY, BUSINESS ADMINISTRATION

8) Firm-firm, ECONOMICS OF ORGANIZATION, ECONOMIC THEORY, GAME THEORY

9) Firm and environment

ECONOMIC THEORY, CONTRACT LAW, INDUSTRIAL ECONOMICS

7)

• 
  Decision Problem:
  

The problem facing the decision maker (organization) for which the research is intended to provide answers or information

• 
  Research Problem:
  

A statement of the decision problem into research terms

• 
  A practical example:
  

Introduction of a new product because sales are below the target

Revision of the target?
Withdraw the product?
Revise some elements in the marketing mix?

Further investigation:

Assumption about ineffective advertising
Lack of awareness among potential users?
Lack of interest among potential users?

The decision problem should focus on what needs to be done?

Bad performance in one specific supplier firm:

• 
  The ability/skills in the supplier firm?
  

• 
  The motivation in the supplier firm to carry out satisfactory services for the purchasing organization
  

• 
  The research problem should aim at providing information which enable the decision maker to take relevant decisions or carry out relevant actions in order to solve the problem
  

Examples of failures:

• 
  Taste of food and drinks
  
• 
  Image of food and drinks
  
• 
  Instant coffee
  

How can you avoid to make wrong specification of the research problem?

• 
  Wait until you have explored the decision problem sufficiently before you state your research problem
  

• 
  The typical research failure is to start the research process by making a proposal stating the methods which is to be used to complete the research
  

• 
  A more fruitful way of doing research is to examine the decision maker’s situation carefully in the first place with focus on:
  

1. 
   The decision maker (organization) and its environment
   
2. 
   Alternative courses of action
   
3. 
   The objective of the decision maker
   
4. 
   The consequences of alternative actions
   

• 
  Start by making a research request step:
  

1. 
   Action: The actions that are contemplated on the basis of the research
   
2. 
   Origin: The events that led to a need for action give a deeper understanding of the decision problem
   
3. 
   Information: The questions which need to be answered in order to take relevant decision
   
4. 
   Use: The way each piece of information will be used to help make the proper decisions
   
5. 
   Target and subgroups: Localize the groups from whom relevant information can be gathered
   
6. 
   Economy: Estimate the time and money that are available for
   

Conducting the research

Example:
Decision problem:

Sales reductions for a specific product group
1. Action:

Drop the product?

Improve marketing mix?

Improve distribution and logistics?

2. 
   Origin:
   

Increased competition?

Recession in the economy?

The product life cycle is in the ending stage?

Turn over and problems in the sales force of the company

Sales development over time?

3. Information:

The information need is determined by the origin of the problem which might narrow your research agenda when you look at the correspondence between action and origin
Suppose that we know that the competitors are winning market shares, that the market size is maintained for the product, and that we are loosing sales volume in specific distribution channels
A marketing and/or logistic problem

4. Use:

What kind of information is relevant now?

Our firm has to pay attention to the actors in a specific distribution channel, e.g. industrial distributors in international markets

Find sales figures for different distribution actors in this channel

Quality rating (bench marking) of the product

Sales promotion support

Prices and margin for the distribution actors

Currency development

Logistic performance, delivery time and lead time and order costs

Integration or long term relationships between dominant actors

in the distribution channel

5: Targets and subgroups

Relevant information and informants:

Within the firm:

Statistics providing sales development figures for product groups and customers/distribution actors

Interviews or focus groups:

Top manager

Marketing manager

Sales manager

Logistic manager
Outside the firm:

Competitors/marketing intelligence

Interviews:

Distributors

Final customers

Consultancy firms

6. Economy:
Start with most available data

Make priorities among the different information sources

Research Proposal:

1. 
   Tentative project title
   

2. 
   Statement of the research problem
   

Describe the general problem under consideration

Why is this problem of any relevance?

Literature, new papers, journals, statement from the case firm/decision maker, some verification is necessary

3. 
   Purpose and limits of the project
   

Focus and purpose of the project should be elaborated in more details

Scope and limitations, what is left out and what is the main focus

Research questions or hypotheses

4. 
   Outline
   

Tentative framework for the entire project

Literature review

Research model

5. 
   Data sources and research methodology
   

Setting for the study

Primary/secondary data

Specification of informants

Data collection

6. 
   Estimated time and scheduling
   

Time schedule for the different stages of the project

7. 
   Cost estimates (research consulting firms)
   

Specification of costs for carrying out the project