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Understanding Terms

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Understanding Business Research Terms and Concepts: Part 2

Which type of research design— exploratory, descriptive, or causal—is appropriate for the following examples? Explain why.

• The goal of this research is to discover the real nature of the problem and to suggest new possible solutions or new ideas.

Exploratory – The specific question has not been defined, the individual doing the research is still defining the question and possible answers.

• A food manufacturer wants to know the demographics of people who purchase organic foods.

Descriptive – One of the primary focuses of descriptive research is to estimate portions of the population that have certain characteristics. I believe that purchasing organic foods is a characteristic of some people.

• A firm is considering hiring American celebrity Paris Hilton to endorse its products.

Causal – The idea behind this is that a celebrity endorsement will “cause” an increase in sales.

• British Airways would like to test in-flight Internet services on one of its regular flights from New York to Tokyo. The company charges $30 one week and $15 the next week.

Causal – The airline is trying to see if a $15 increase or decrease in cost of service is cause for people not to purchase. If 29 people on flight A purchase service at $15, and only 3 on flight B purchase service at $30, it may show that an increase in cost is a “cause” to not purchase service.

• This type of study attempts to discover answers to the following questions: who, what, when, where, or how much.

Descriptive – Descriptive research is formal and structured in a way that answers specific questions, such as, who, what, where, when, why, or how much.

• A manufacturer investigates whether consumers will buy a new pill that replaces eating a

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