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Business Research
Defined

Introduction to Business Business research is defined as the systematic

Research and objective process of generating information
for aid in making business decisions.
– Including financial research, operational
research, Marketing research

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Business Research
• Research information is neither intuitive nor I don’t know
haphazardly gathered.
Information if we
should
• Literally, research (re-search) -“search again” Reduces offer on-site
child care?
• Business research must be objective Uncertainty
• Detached and impersonal rather than biased
• It facilitates the managerial decision process
for all aspects of a business.

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Business Research Types

“It ain’t the things we don’t know

that gets us in trouble. It’s the Basic research
things we know that ain’t so.”
~Artemus Ward Applied research

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Basic Research Basic Research Example

• Attempts to expand the limits of knowledge.
• Not directly involved in the solution to a
pragmatic problem.
• Is executive success correlated with high
need for achievement?
• Are members of highly cohesive work groups
more satisfied than members of less
cohesive work groups?
• Do consumers experience cognitive
dissonance in low-involvement situations?

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Applied Research
• Conducted when a decision must be made
about a specific real-life problem
"The secret of success is to know
something nobody else knows. "
~Aristotle Onassis

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Applied Research
Scientific Method
Examples
• Should McDonalds add Italian pasta dinners • The analysis and interpretation of empirical
to its menu? evidence (facts from observation or
• Business research told McDonald’s it should experimentation) to confirm or disprove prior
not? conceptions.
• Should Procter & Gamble add a high-priced
home teeth bleaching kit to its product line?
• Research showed Crest Whitestrips would
sell well at a retail price of $44

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The Decision-making Process Associated with

the Development and Implementation of a Evaluation Research
Strategy

• Evaluation research is the formal, objective

• Identifying problems and opportunities measurement and appraisal of the extent to
• Diagnosis and assessment which a given activity, project, or program has
achieved its objectives.
• Selecting and implementing a course of
action
• Evaluating the course of action

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Performance-monitoring Determining When to

Research Conduct Business Research
• Research that regularly provides feedback for • Time constraints
evaluation and control • Availability of data
• Indicates things are or are not going as • Nature of the decision
planned • Benefits versus costs
• Research may be required to explain why
something “went wrong”

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Determining When to
Value versus Costs
Conduct Business Research
Availability of Data Benefits • Potential Value of a Business Research Effort
Time Constraints Nature of the Decision vs. Costs Should Exceed Its Estimated Costs
Is the infor- Does the value
Is sufficient time Is the decision Conducting
Yes mation already Yes Yes of the research Yes
available before of considerable
a managerial
on hand
strategic
information Business
inadequate exceed the cost
decision
for making
or tactical
of conducting Research
must be made? importance?
the decision? research?

No No No No

Do Not Conduct Business Research

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Value Should
Major Topics for Research in
Exceed Business
Estimated Costs
Costs • General Business Conditions and Corporate
Value • Research
expenditures Research
• Decreased
• Delay of business
certainty
decision and • Financial and Accounting Research
• Increased
possible disclosure
likelihood of a
correct decision
of information to • Management and Organizational Behavior
rivals
• Improved business
• Possible erroneous Research
performance and
research results
resulting higher • Sales and Marketing Research
profits
• Information Systems Research
• Corporate Responsibility Research

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Business Research in the 21st

Cross-functional Teams Century

• Cross-functional teams are composed of • Increased globalization

individuals from various organizational • Growth of the Internet and other information
departments such as engineering, technologies
production, finance, and marketing who share
a common purpose.

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Global Research Global Business Research

• Business Research is increasingly global
• Market knowledge is essential
• A.C. Nielsen - more that 67% international
business
• General information about country -
economic conditions and political climate
• Cultural and consumer factors
• Market and competitive conditions -
demand estimation

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The Internet
Is Transforming Society Internet Research
• Time is collapsing. • Seeking facts and figures about an issue
• Distance is no longer an obstacle. • Surveys on Web sites
• Crossing oceans is only a mouse click away.
• People are connected 24 hours a day, seven
days a week.
• "Instantaneous" has a new meaning.

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Redefining Marketing
Research
• The American Marketing Association (AMA)
What is Marketing redefined Marketing Research as:
Research? The function which links the consumer, the
customer, and public to the marketer
through INFORMATION

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Redefining Marketing Research Definition of Marketing Research

Used to identify and Marketing research is the systematic and objective
define market
opportunities and  identification
problems  collection
Generate, refine, and  analysis
evaluate marketing  dissemination
performance
 and use of information
Monitor marketing
performance for the purpose of improving decision making related
to the
Improve understanding  identification and
of marketing as a  solution of problems and opportunities
process in marketing.
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Classification of Marketing
Market Research
Research
• Specifies the information necessary to address Problem Identification Research
these issues • Research undertaken to help identify problems which are
not necessarily apparent on the surface and yet exist or
• Manages and implements the data collection are likely to arise in the future. Examples: market
process potential, market share, image, market characteristics,
sales analysis, forecasting, and trends research.
• Analyzes the results
• Communicates the findings and their Problem Solving Research
implications • Research undertaken to help solve specific marketing
problems. Examples: segmentation, product, pricing,
promotion, and distribution research.

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A Classification of Marketing Research

Problem Solving Research
Marketing Research
SEGMENTATION RESEARCH

 Determine the basis of segmentation

 Establish market potential and
responsiveness for various PRODUCT RESEARCH
Problem Problem Solving
segments  Test concept
Identification Research Research
 Select target markets  Determine optimal product design
 Create lifestyle profiles:  Package tests
demography, media, and
Market Potential Research product image characteristics  Product modification
Segmentation Research
Market Share Research
Product Research  Brand positioning and
Market Characteristics Research repositioning
Sales Analysis Research Promotion Research
Forecasting Research  Test marketing
Distribution Research
Business Trends Research  Control score tests

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Problem Solving Research

Problem Solving Research
PROMOTIONAL RESEARCH
0.00% APR  Optimal promotional budget DISTRIBUTION RESEARCH
 Sales promotion relationship Determine…
 Optimal promotional mix
 Types of distribution
 Copy decisions
 Media decisions  Attitudes of channel members
 Creative advertising testing  Intensity of wholesale & resale coverage
PRICING RESEARCH
 Evaluation of advertising effectiveness
 Pricing policies  Channel margins
 Claim substantiation
 Importance of price in brand selection  Location of retail and wholesale outlets
 Product line pricing
 Price elasticity of demand
 Initiating and responding to price changes
$ALE
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The Role of Marketing Research

Research Process Customer Groups
• Consumers
• Employees
• Shareholders
• Step 1: Problem Definition • Suppliers Uncontrollable
Controllable Environmental
• Step 2: Development of an Approach to the Marketing
Variables
Factors

Problem •Product
Marketing •Economy
Research •Technology
•Pricing
• Step 3: Research Design Formulation •Promotion
•Laws &
Regulations
•Distribution •Social & Cultural
• Step 4: Fieldwork or Data Collection Assessing Providing Marketing Factors
Information Information Decision •Political Factors
• Step 5: Data Preparation and Analysis Needs Making

• Step 6: Report Preparation and Presentation Marketing Managers

• Market Segmentation
• Target Market Selection
• Marketing Programs
• Performance & Control
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Marketing Research Suppliers &

Services
RESEARCH
INTERNAL SUPPLIERS EXTERNAL

FULL SERVICE LIMITED SERVICE

Field Branded
Syndicate Internet Products
Services
Services Services and Services

Standardized Customized Coding and

Services Services Data Entry Data
Services Analytical Analysis
Services Services
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