Running head: BUSINESS RESEARCH METHODS, PART II

Business Research Methods, Part II

BUSINESS RESEARCH METHODS, PART II Business Research Methods, Part II Business research is a systematic inquiry that provides information to guide managers in their decision-making process. It is the process of planning, acquiring, analyzing, and disseminating relevant data and information and insights to decision-makers in ways that mobilize the organization to take appropriate actions that in turn maximize business performance. The objective of this section of the paper is to analyze the collection of data using sample design and appropriate collection methods to maintain the validity of the data. The reasons for sampling include lower cost, greater accuracy of results, greater speed of data

collection, and availability of population elements. According to Cooper and Schindler, the basic idea of sampling is that by selecting some elements in a population, we may draw conclusions about the entire population. A population element is the individual or object which the measurement is taken. In this case, the purchase of a Toyota represents our sample or population. Our data are structured by the following two sets of measurement: the first set will determine the type of cars your family owns in column, how many in owned, and if your family plans to purchase a type of car within the next 12 months. The second group of data will be all the brands of car listed below that your family owns in column A and the brands of cars your family plans to purchase in column B. There are two types of sampling designs: probability sampling and non-probability sampling. To maintain data validity researchers must use a good sample. The ultimate test of a sample design is how well it represents the characteristics of the population it purports to represent. In measurement terms, the sample must be valid. The validity of sample depends on two considerations: accuracy and precision (Cooper & Schindler, 2008).

BUSINESS RESEARCH METHODS, PART II The appropriate sample methods to maintain data validity will be the probability sampling because of the nature of our research and our sampling frame. In this survey, our objective is to determine the maker of and type and quantity of automobile a family owns. In probability sampling, researchers use a random selection of element to reduce or eliminate sampling bias. With probability, sampling it is possible to estimate an error range within which the population parameter is expected to fall.

BUSINESS RESEARCH METHODS, PART II Dear Sir, Maam Thank you and congratulations for your recent purchase of a Toyota! As our valued partner, we would like to know your experience by accomplishing this survey. Your answers will be most helpful in our efforts to further improve our products and services. Sincerely, Toyota USA 1. Please check all type of cars your family owns in column A, how many in column B, and if your family plans to purchase a type of car within the next 12 months in column C. Types Owns Coupe Minivan Sedan Sports Car Sports Utility Vehicle Truck 2. Please check all the brands of car listed below that your family owns in column A and the brands of cars your family plans to purchase in column B. A Brands Acura Audi BMW Cadillac Chevrolet Chrysler Dodge Ford Honda Infiniti Jeep Other: Thank you for your time and safe driving! Owns B Plans to Purchase? A Brands Lexus Lincoln Mazda MercedesBenz Mitsubishi Mercury Nissan Oldsmobile Toyota Volkswagen Volvo Owns B Plans to Purchase? A B How Many? C Plans to Purchase?

BUSINESS RESEARCH METHODS, PART II There are four general types of measurement scales: sorting, ranking, rating, and categorizing (Cooper & Schindler, 2006). Toyotas assessment team used the rating scale to

collect data for all the questions in the survey. The survey data was used to measure what type of car owned, whether a customer will buy within 12 months, and customer satisfaction. The sample design was used to collect the data provides valuable feedback and determines whether customers are satisfied with Toyota. Results, based on responses from more than 2,000 consumers, are indexed on a scale of -0 to 100.

BUSINESS RESEARCH METHODS, PART II Thanks to raves about its quality, size, style and dealer experience, Toyota achieved the highest rating of 69 followed by Honda (68), Lexus (68) and Acura (67) ("Nielsonwire", 2011). The highest satisfaction levels were from Toyota owners. From the data it can be concluded that Toyota has the highest satisfaction of all customer who own Toyota brand car.

The scales look at different types of cars and the satisfaction levels and it has been determined by the data that Toyota has the highest percentage of satisfied employees for the entire company. Creating a positive brand image is importance because most consumers research their purchase decision. Before people buy a new vehicle they are looking to the Web and social media sites, said Julie A. Enzweiler, automotive research director, Nielsen Online ("Nielsonwire", 2011). According to our survey, specific questions allow data to be classified in several measurement scales listed below. Investigating each classification of data will provide analysis of customer preferences when purchasing a vehicle. Nominal: Determination of whether a customer plans to purchase a vehicle within the next or year or not (Buyer or Non-buyer) Ordinal: Determination of satisfaction level of Toyota customer rating based on quality, value, reputation, personal experience, and price. These values are ordered from least-satisfied to mostsatisfied. The customer brand rating of Toyota is also compared to Acura, Lexus, and Honda on the same scale of customer satisfaction. For example, the scale measures from least to greatest: Acura 67% Lexus 68%, Honda 68% Toyota 69% Interval: Determination of satisfaction level of Toyota customers valued on a scale of 0-100% with intervals of 25% along the scale. The intervals represent satisfaction levels of:

BUSINESS RESEARCH METHODS, PART II 0-25% Extremely Dissatisfied 26%-50% Dissatisfied 51%-75% Satisfied 76%-100% Extremely Satisfied The customer brand rating of Toyota is also compared to Acura, Lexus, and Honda. For example, the Lexus rating of 68% satisfied in greater than the Acura rating of 67% satisfied. Honda results in 68% and Toyota leads with the greatest value of 69% satisfied. All of the companies fall into the characteristic of satisfied. Ratio: Determination of ratio of satisfied customers when purchasing Toyota compared to Acura, Lexus, and Honda. In a survey of 2,000 customers the following satisfaction levels are again represented: Acura 67% Lexus 68% Honda 68% Toyota 69% The ratio measurements classify the four car manufacturers among the 2,000 customers interviewed. Each scale provides different levels of information. Identifying which scale of measurement to use when representing data involves choosing which scale will prevent loss of information. Combinations of the measurement scales create a mapping rule that must correlate to the observation or survey.

BUSINESS RESEARCH METHODS, PART II References Cooper, D. R., & Schindler, P. S. (2006). Business research methods (9th ed.). Boston, MA: McGraw Hill/Irwin NielsonWire. (2011). Retrieved from http://blog.nielsen.com/nielsenwire/nielsen-news/autobuzz-toyota-has-strongest-online-advocacy