Chapter 1Chapter 1

Research Research

in Businessin Business

McGraw-Hill/IrwinBusiness Research Methods, 10e

Copyright © 2008 by The McGraw-Hill Companies, Inc. All Rights Reserved.

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Understand . . .• What business research is and how it differs from business decision support systems and business intelligence systems.• Trends affecting business research and the emerging hierarchy of business decision makers.• The distinction between good business research and research that falls short of professional quality.• The nature of the research process.

Learning Objectives

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PulsePoint: Research Revelations

23 The percent of firms planning significant hiring who plan to hire highly-educated professionals.

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Why Study Business Research?

Business research provides information to guide business decisions

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Research Should Help Respond to Change

“Enterprises have long recognized the need

to better sense and respond to business change.

What’s different today is that ubiquitous access

to information and real-time communications

have fostered an ‘always on’ business culture

where decision making has become a ‘just-in-time

process.’”

Business Performance Management Forum

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•A process of determining, acquiring,analyzing, synthesizing, and disseminatingrelevant business data, information, andinsights to decision makers in ways thatmobilize the organization to take appropriate business actions that, in turn, maximize business performance

Business Research Defined

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Research Should Reduce Risk

The primary purpose of

research is to reduce the

level of risk of a marketing

decision

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What’s Changing in Business that Influences Research

Critical Scrutiny of Business

Computing Power & Speed

Computing Power & Speed

Battle for Analytical

Talent

Battle for Analytical

Talent

FactorsFactors

Information Overload

Shifting Global

Economics

Shifting Global

Economics

Government Intervention

Government Intervention

Technological Connectivity

Technological Connectivity

New Research

Perspectives

New Research

Perspectives

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Computing Power and Speed

Real-time Access

Real-time Access

FactorsFactors

Lower-cost Data

Collection

Powerful Computation

Powerful Computation

Better Visualization

Tools

Better Visualization

Tools

Integration of Data

Integration of Data

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Business Planning Drives Business Research

Organizational Mission

BusinessStrategies

BusinessTactics

Business Goals

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Business Decisions and Research

Häagen-Dazs Tactics– Super premium – Dozens of flavors– Small packages– Signature colors on

packaging– Available in franchise

and grocery stores

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Information Sources

Decision Support Systems

• Numerous elements of data organized for retrieval and use in business decision making

• Stored and retrieved via– Intranets– Extranets

Business Intelligence Systems

• Ongoing information collection

• Focused on events, trends in micro and macro-environments

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Sources of Business Intelligence

Business Intelligence

Government/Regulatory

Economic

Competitive

Demographic

Technological Cultural/Social

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Hierarchy of Business Decision Makers

Visionaries

Intuitive Decision Makers

Standardized Decision Makers

Visionaries

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Minute Main and Business Research

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Eastman Kodak has a world-class research department

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Research May Not Be Necessary

Can It Pass These Tests?• Can information be applied to a critical

decision?• Will the information improve managerial

decision making?• Are sufficient resources available?

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Information Value Chain

Characteristics

Data collection/ transmission

Data interpretation

Models

Decisionsupport systems

Data management

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The Business Research Process

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Characteristics of Good Research

Clearly defined purposeClearly defined purpose

Detailed research processDetailed research process

Thoroughly planned designThoroughly planned design

High ethical standardsHigh ethical standards

Limitations addressedLimitations addressed

Adequate analysisAdequate analysis

Unambiguous presentationUnambiguous presentation

Conclusions justifiedConclusions justified

CredentialsCredentials

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Two Categories of Research

Applied Basic (Pure)

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Four Types of Studies

Reporting

Explanatory Predictive

Descriptive

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Key Terms

• Applied research• Business intelligence

system (BIS)• Business research• Control• Decision support

system• Descriptive studies• Explanatory Studies

• Management dilemma• Predictive studies• Pure research• Reporting studies• Return on Investment

(ROI)• Scientific method• Strategy• Tactics

Appendix 1aAppendix 1a

How the How the Research Research

Industry WorksIndustry Works

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Who Conducts Business Research?

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Some Organizations Use Internal Research Sources

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Some Organizations Use External Research Sources

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Business Research Firms

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Proprietary Research

Decision Analyst, Inc. uses Internet-based concept testingcalled Conceptor to examine new product concepts

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Syndicated Services

Nielsen Media Researchprovides audience data for television programs like Court TV

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Some Syndicated Data Providers

• AC Nielsen• Scarborough• Millward Brown• Nielsen Media Research• Roper ASW• CSA TMO• Yahoo!• ORC International

• DoubleClick• Nielsen/NetRatings• Taylor Nelson Sofres

Intersearch• J.D. Power Associates• MediaMark• Simmon (SMRB)• BRMB• Information Resources Inc.

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Specialty Business Research Firms

Methodology

Process

Industry

Participant group

Geographic Region

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Communication Agencies

Direct Business

Public Relations

AdvertisingSales Promotion

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Consultants and Trade Associations

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Trade Associations

NHRANHRA

CASROCASRO

MRAMRA

ESOMARESOMAR

BRABRA

AMAAMA

WAOBRPWAOBRP

MPAMPA

NABNAB

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Many Firms Conduct Research

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Key Terms

• Custom Researcher• Full-service researcher• Specialty researcher

• Syndicated data provider• Omnibus researcher• Omnibus study

Chapter 1 Chapter 1 AddendumAddendum

Research Research TimelineTimeline

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Information Revolution

1960

U.S. DODcommissionsforerunner of

Internet

1964 OCR shows

promise

1968Word processing first demonstrated

1971First CATI

surveyconducted

1972Optical laser disk revealed

1973UPC bar-code

scanningintroduced

1975Microsoft

is born

1979First

VisiCalc ships

1964 IBM

introduces model 360

1968SPSS created

1971Intel introduces first

microprocessor

1973Basic ideas of Internet created

1976 Apple I released

1980Apple owns

50% ofpc market

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Information Revolution

1980

1981IBMPC

released

1987 First

Internetsurvey

1990sOCR used for

data entry

1993WWW experiences

3,400X growth in service traffic

1994Greenfield Online

Introducesonline focus group

2001Online survey

software widelyavailable

2002Web-conferencing

Softwareintroduced

1987 IRI conductsfirst scanner

tracking study

1991WWW

developed1996

Internet World Exposition

held2002

High-speedchip technology

for servers

200774.9% inUS haveInternet access

2003Wal-Mart commits

To use RFID

2008