McGraw-Hill/IrwinBusiness Research Methods, 10e

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

Chapter 1Chapter 1

Research Research

in Businessin Business

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Why Study Business Research?

Business research provides information to guide business decisions

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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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Information Sources

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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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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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