Business

Research Methods

William G. Zikmund

Chapter 1:
The Role of Business Research
 Business Research Defined
Literally, research (re-search) means “to search again.”

Business research is the application of the scientific method in

searching for the truth about business phenomena.
These activities include defining business opportunities and
problems, generating and evaluating alternative courses of action,
and monitoring employee and organizational performance.

Business research is more than conducting surveys. This process

includes idea and theory development, problem definition, searching
for and collecting information, analyzing data, and communicating
the findings and their implications.
Business Research Types

Basic research

Applied research
 Basic Research
Basic business research (sometimes referred to as pure research) is
conducted without a specific decision in mind, and it usually does not
address the needs of a specific organization.
Basic research can be used to test the validity of a general business
theory (one that applies to all businesses) or to learn more about a
particular business phenomenon.

For instance:
• a great deal of basic research addresses employee motivation.
How can managers best encourage workers to dedicate themselves
toward the organization’s goals?
• Is executive success correlated with high need for achievement?
 Applied Research
• Applied business research is conducted to
address a specific business decision for a
specific firm or organization.
 Applied Research Examples
• Should McDonalds add Italian pasta dinners
to its menu?
• Business research told McDonald’s it
should not?
• 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
 Scientific Method
The scientific method is the way researchers go about using
knowledge and evidence to reach objective conclusions about the real
world.
The scientific method is the same in social sciences, such as business,
as in physical sciences, such as physics.
In this case, it is the way we come to understand business
phenomena.
Exhibit 1.1 briefly illustrates the scientific method. In the scientific
method, there are multiple routes to developing ideas.
When the ideas can be stated in researchable terms, we reach the
hypothesis stage. The next step involves testing the hypothesis
against empirical evidence (facts from observation or
experimentation). The results either support a hypothesis or do not
support a hypothesis.
From these results, new knowledge is generated.
Scientific Method
 The Decision-making Process
Associated with the Development
and Implementation of a Strategy

• Identifying problems and opportunities

• Diagnosis and assessment
• Selecting and implementing a course of
action
• Evaluating the course of action
 Evaluation Research
• Evaluation research is the formal, objective
measurement and appraisal of the extent to
which a given activity, project, or program
has achieved its objectives.
 Performance-monitoring
Research
• Research that regularly provides feedback
for evaluation and control
• Indicates things are or are not going as
planned
• Research may be required to explain why
something “went wrong”
 Major Topics for Research in
Business
• General Business Conditions and Corporate
Research
• Financial and Accounting Research
• Management and Organizational Behavior
Research
• Sales and Marketing Research
• Information Systems Research
• Corporate Responsibility Research
 Fields Where Research is Often Used – (1)
General Business Conditions and
Financial and Accounting Research
Corporate Research
Forecasts of financial interest rate trends,
• Short- & Long-Range Forecasting,
Stock,bond and commodity value predictions
• Business and Industry Trends
Capital formation alternatives
• Global Environments
Mergers and acquisitions
• Inflation and Pricing
Risk-return trade-offs
• Plant and Warehouse Location
Portfolio analysis
• Acquisitions
Impact of taxes
Research on financial institutions
Expected rate of return
Management and Organizational Capital asset pricing models
Behaviour Research Credit risk
Cost analysis
• Total Quality Management
• Morale and Job Satisfaction
• Leadership Style
• Employee Productivity
• Organizational Effectiveness
• Structural ssues
• Absenteeism and turnover
• Organizational Climate
 Fields Where Business Research is Often Used – (2)
Sales and Marketing Research
• Market Potentials
• Market Share
• Market segmentation
• Market characteristics
• Sales Analysis
• Establishment of sales quotas
• Distribution channels
• New product concepts
• Test markets
• Advertising research
• Buyer behaviour
• Customer satisfaction
• Website visitation rates
Information Systems Research
Knowledge and information needs assessment
Computer information system use and evaluation
Technical suppot satisfaction
Database analysis
Data mining
Enterprise resource planning systems
Customer relationship management systems
Corporate Responsibility Research
Ecological Impact
Legal Constraints on advertising and promotion
Sex, age and racial discrimination / worker equity
Social values and ethics
The business research process
 The business research process
The book is organized into seven parts.
Part 1 is the Introduction, which includes this chapter and four others. This chapte
provided an introduction to business research. The next three chapters of the book giv
students a fuller understanding of the business research environment.
Part 2, Beginning Stages of the Research Process, provides the foundation for busines
research, discussing problem definition and qualitative and secondary research.
The third section of the book, Research Designs for Collecting Primary Data, introduce
survey research, discusses observation as a research technique, and provides an overview
of experimental research. Measurement Concepts,
Part 4 of the book, discusses the measurement of research constructs and questionnair
design.
Part 5, Sampling and Fieldwork, describes the process involved in selecting a researc
sample and collecting data.
Part 6, Data Analysis and Presentation, explains the various approaches to analyzing
the data and describes methods of presentation.
The book concludes with Part 7, Comprehensive Cases with Computerized Databases
which will be integrated throughout the first six parts
 Questions for Review and Critical Thinking
4. Define business research and describe its task.

5. Which of the following organizations are likely to use business

research? Why? How?
a. Manufacturer of breakfast cereals
b. Manufacturer of nuts, bolts, and other fasteners
d. A hospital
e. A company that publishes business textbooks

6. An automobile manufacturer is conducting research in an attempt

to predict the type of car design consumers will desire in the year
2020. Is this basic or applied research? Explain.