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Chapter 1
Research in Business

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Learning Objectives
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 value of learning business research process skills

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Why Study Business Research?

Business research provides information to guide business decisions

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Business Research Defined

A process of determining, acquiring, analyzing, synthesizing, and disseminating relevant business data, information, and insights to decision makers in ways that mobilize the organization to take appropriate business actions that, in turn, maximize business performance

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Studying Business Research

New Research Perspectives Stakeholder Influence Growth of Internet Greater Computing Power Business as a discipline

Factors
Competition Government Intervention Complex Decisions

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Computer Advances

Data warehousing Storing vast amounts of data in electronic storehouses

Data mining Applying mathematical models to extract meaningful knowledge from data in internal databases

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Business Planning Drives Business Research

Organizational Mission

Business Goals

Business Strategies

Business Tactics

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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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Exhibit 1-1 Sources of Business Intelligence

Government/ Regulatory
Competitive

Demographic

Economic Business Intelligence

Technological

Cultural/ Social

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Business Tactics and Research Hagen-Dazs Tactics

Super premium Dozens of flavors Small packages Signature colors on packaging Available in franchise and grocery stores

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Exhibit 1-2 Hierarchy of Business Decision Makers

Visionaries

Standardized Decision Makers

Intuitive Decision Makers Intuitive Decision Makers

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Exhibit 1-2 Hierarchy of Business Decision Makers

Visionaries

Standardized Decision Makers

Intuitive Decision Makers

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Exhibit 1-2 Hierarchy of Business Decision Makers

Visionaries Visionaries

Standardized Decision Makers

Intuitive Decision Makers

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Exhibit 1-3 Minute Main and Business Research

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Research May Be Unnecessary Can information be applied to a critical decision? Does it improve managerial decisionmaking? Are sufficient resources available?

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Information Value Chain

Data collection/ transmission Characteristics
Decision support systems Models Data interpretation

Data management

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Exhibit 1-8 Characteristics of Good Research

Clearly defined purpose Detailed research process Thoroughly planned design

High ethical standards

Limitations addressed Adequate analysis Unambiguous presentation Conclusions justified Credentials

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Exhibit 1-4 Who Conducts Business Research?

Internal

External

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Eastman Kodak has a worldclass research department

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Exhibit 1-4 Business Research Suppliers

External Research Suppliers Business Research Firms Communication Agencies Consultants Trade Associations

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Business Research Firms

Business Research Firms

Full Service

Specialists

Custom

Methods

Proprietary

Syndicated Data Other

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Proprietary Research

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

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Syndicated Services

Nielsen Media Research provides audience data for television programs like Court TV

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Exhibit 1-6 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
Sales Promotion

Advertising

Direct Business

Public Relations

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Consultants and Trade Associations

Consultants Business General Business Trade Associations General business Business specialties Research specialties

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Trade Associations
NHRA

CASRO
MRA ESOMAR BRA AMA WAOBRP MPA

NAB

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Exhibit 1-4 Who Conducts Research?

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Key Terms
Business intelligence system Business research Control Custom Researcher Data mining Data warehouse Decision support system Extranet Full-service researcher Intranet Management dilemma Omnibus researcher Omnibus Study Proprietary Methodology Return on Investment (ROI) Scientific method Strategy Syndicated data provider Tactics