Definition of research and philosophy
Why do research
Sample and Findings
Research is the art of looking for knowledge or solutions to a new or an already existing problem. People do research in every aspect of life to make their lives better and to come up with new ideas that will help solve problems. Some people do research for fun because they like proving theories and trying new things. Research entails a process, which need to be adhered to come up with the desired results that can solve a problem. Research conducted seriously because conclusions, rules and policies are because of well-conducted research. Therefore, there is no room for errors in research. I am going to analyze a journal paper to show how several steps are to be adhered to achieve the goals given by a particular organization. In this paper am analyzing a paper called the stock market’s pricing of customer satisfaction by Lttner, Lacker and Taylor (2009) which establishes the relationship between share price and customer satisfaction. The first thing to note is to write the title well so that and one can get what the researcher wanted to explain as well as the theme of the research.
This is a summary of the body and gives the claim that the researchers are trying to put across Sigh (2008). From the paper, anybody with no clue about the paper gets it from the abstract. The abstract has provided a map of what the paper entails and one cannot fail to know the direction of the paper. , “The broad purpose of these studies is to investigate the stock market’s valuation of customer satisfaction. However, a key focus is on whether customer satisfaction information predicts long-run returns”, (Lttner, Lacker & Taylor, 2009). This directly provides the outlay of the whole paper and one can easily notice it. It proved the map to guide the reader throughout the paper. The abstract is important in every aspect of the paper and be written well to articulate with the whole paper.
The introduction gives the background of the research problem and contains the research question well stated. From the paper, the author says that in the recent past, market participants have ignored the fact that customer satisfaction affects price of the shares directly and indirectly. He continues to substantiate that the research has tried to evaluate market share valuation. We can realize that this made the researcher to conduct a research in order to find the underlying cause of this and hence be able to prove that customer satisfaction has an impact on the share price. The paper also take the chance also to reveal where the data was generated from, that is, American Consumer Satisfaction Index (ACSI).
The background of study
The background is as important as the whole research project and will be the backbone because it holds everything together. At this part, one will try to look for prior research done by other writes using other means. Someone else could have done the same research and the writer might want to get an insight of what the whole results may entail. You might also want to know the preliminary results to guide you in formulation of your hypothesis at this point. A good hypothesis will give good results and determine the type of data collection and analysis structure in general. Lttner, Lacker and Taylor (2009) give us a clue of what to be expected and the influence of the result by the data collected. He also gives the empirical studies as; “absent all three of these conditions, empirical studies may find significant associations between marketing measures such as the ACSI and operating or stock market performance” (Lttner, Lacker & Taylor, 2009 p 10). He also explains the decision of all the players in the market, that is, their reaction and perception to the general role played by customer satisfaction in determining the long run prices. He also takes a note to caution about assumption of causation.
This is the process of selecting units or any other phenomenon from a population study Lohr, (2009). This is mostly done where the population under study is excessively large and a sample is just arrived at systematically or randomly so that it can be easily studied and results be deduced from them with minimal errors, Wikipedia (2011). The author had a population of 1795 because he mainly used secondary data, that is, American Consumer Satisfaction Index (ACSI). The data was adequate because it mined from data collected continuously for many years, which could make the results valid. The author also uses the whole population since it was readily available. They were careful though to use just the active companies in trade. They also wanted to improve on previous studies by collecting more data to validate their claim by getting correct amount of data, our final sample consists of 1,450 firm-year observations; which is substantially larger than the samples in related studies. This gives them an upper hand compared to the previous studies. The data had also taken for a longer time (years) and this means that it is probably a longitudinal research, which mostly yields good, results John and Christensen (1941). It is also best suited because they are also looking for the long term and short-term effect of customer satisfaction on the share prices. A standard econometric technique acquired from accounting and finance literature is best suited for the kind of data that is they are be analyzing. The problem that they seem to encounter is the uniformity. Some firms are larger but they are in the same scale of measure, and this may lead to outliers that might not auger well with the results of the research (Lttner, Lacker & Taylor, 2009). The data is then analyzed and test of significance done to see if they make sense where the p values play a key role in determining their significance level. This is paramount if one is answering the hypothesis. The results presented are in long term and short-term basis. According to the authors, this will provide the best and a true picture and avoid mix up in the process.
From this, it is evident that sampling is of much importance when one wants to come up with the desired results. Prior research should not influence the outcome of the results. Prior results could have had errors and as much as we have to get literature review from those results, it is important to keep in mind their validity. It is for this reason that Lttner, Lacker and Taylor, (2009) try to put across that “we also include firm size (measured using the log of the firm’s market Capitalization), the firm’s book-to-market ratio (an inverse proxy for the firm’s growth opportunities), and indicators for the firm’s industry membership as additional controls” (p. 20). This shows all loopholes in prior research that they discovered could have brought about errors in the report and they want to evade it.
Conclusion is the last drawings about the research, sigh (2008). It is more like a song where the last tone satisfies the listener. In research, one tries to make the reader know that you support your thesis and get to answer any pending questions in those involved with the paper either directly or indirectly. At this point one states the research hypothesis and puts across points that are going to be of explanatory purposes. Findings on the research are crucial and the reader should be able to get it. Wrong methodology, sampling and design will lead to disappointing results.
Lttner, Lacker and Taylor, (2009) at the end prove that market share and customer satisfaction are closely related. They also conclude that market reacts positively to the announcement of higher announcement of ACSI. “The result is value-relevant in that it is incrementally predictive of future operating performance, and could therefore be important to managers attempting to improve share price” Lttner, Lacker and Taylor, (2009 p. 14). This answers the question a reader will have in mind while reading, that is, what the results mean to the business and what needs are required to improve on standard in order to gain more in terms of share price and market share.