Chapter One

Introduction to Research:
The Role of Business Research

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 Business Research Defined

• Business research is the application of the

scientific method in searching for the truth
about business phenomena.
Research Process
◼ The process includes:

Step 1: Problem Definition

Step 2: Development of an Approach to
the Problem
Step 3: Research Design Formulation
Step 4: Fieldwork or Data Collection
Step 5: Data Preparation and Analysis
Step 6: Report Preparation and
Presentation
 Business Research Defined
• This definition suggests that business
research information is:
▪ not intuitive or haphazardly gathered
▪ accurate and objective
▪ relevant to all aspects of the business
▪ limited by one’s definition of business
• Not-for-profit organizations and
governmental agencies can use research
in much the same was as managers in for-
profit organizations.
 Applied and Basic Business Research
• Applied business research
▪ conducted to address a specific business
decision for a specific firm or organization.
▪ Example:
▪ Should McDonald’s add Italian pasta dinners to its
menu?
▪ Which health insurance plan should a business
provide for its employees?
 Applied and Basic Business Research
▪ Basic business research (also called pure research)
conducted without a specific decision in mind that
usually does not address the needs of a specific
organization.
▪ Attempts to expand the limits of knowledge in
general.
▪ Not aimed at solving a pragmatic problem.

▪ Example:
▪ Do consumers experience cognitive dissonance in
low-involvement situations?
▪ Does employee tenure with a company influence
productivity?
 The Scientific Method
• Scientific Method
The way researchers go about using
knowledge and evidence to reach objective
conclusions about the real world.
The analysis and interpretation of empirical
evidence (facts from observation or
experimentation) to confirm or disprove prior
conceptions
A Summary of the Scientific Method
 Managerial Value of Business Research

• There are only a few business

orientations:
▪ Product-oriented
▪ Production-oriented
▪ Marketing-oriented
Business Orientations
 Managerial Value of Business Research

▪ The decision-making process associated

with the development and
implementation of a business strategy
involves four interrelated stages:
1. Identifying problems and opportunities
2. Diagnosing and assessing problems or
opportunities
3. Selecting and implementing a course of
action
4. Evaluating the course of action
 Evaluating the Course of Actions
• Evaluation Research
▪ The formal, objective measurement and
appraisal of the extent a given activity,
project, or program has achieved its
objectives.
• Performance Monitoring Research
▪ Research that regularly, sometimes
routinely, provides feedback for evaluation
and control of business activity.
 When is Business Research Needed?
• The determination of the need for research
centers on:
1. Time constraints
2. The availability of data
3. The nature of the decision to be made
4. Benefits versus costs (the value of the research
information in relation to costs)
▪ Will the payoff or rate of return be worth the
investment?
▪ Will the information improve the quality of the
managerial decision enough to warrant the
expenditure?
▪ Is the expenditure the best use of the available funds?
Determining When to Conduct
Business Research
 Business Research in the 21st Century
• Communication Technologies
▪ Always “connected”—time, place, and distance are
irrelevant.
▪ Decreases in information acquisition, storage, access,
and transmission costs.
• Global Business Research
▪ Business research is increasingly global.
▪ Must understand the nature of particular markets.
▪ Cross-validation
▪ Verify that the empirical findings from one culture also exist
and behave similarly in another culture.
Preparation for a Career in Research

◼ Take all the business courses you can.

◼ Take courses in statistics and quantitative methods.

◼ Acquire Internet and computer skills. Knowledge of

programming languages is an added asset.

◼ Take courses in psychology and consumer behavior.

◼ Acquire effective written and verbal communication

skills.

◼ Think creatively. Creativity and common-sense

command a premium in marketing research.