Question 1

List five ways that business research can contribute to effective business decision making.

Answer:

i. Helping to better define the organization's current situation.

ii. Identifying useful decision statements and related research questions.
iii. Defining the firm's meaning on how consumers, competitors, and employees view
the firm.
iv. Providing ideas for product improvements or possible new product development.
v. Testing ideas that will assist in implementing marketing strategy including
innovations.

Question 2

From the following list given below, indicate and explain whether each best fits the definition of
a problem, opportunity, or symptom:

i. A 12.5 percent decrease in store traffic for a children’s shoe store in a medium-sized city mall.

ii. Walmart’s stock price has decreased 25 percent between 2007 and 2009.

iii. A furniture manufacturer and retailer in North Carolina reads a research report indicating
consumer trends toward Australian Jara and Kari wood. The export of these products is very
limited and very expensive.

iv. Marlboro reads a research report written by the U.S. FDA. It indicates that the number of
cigarette smokers in sub-Saharan Africa is expected to increase dramatically over the next
decade.

Answer:
(i) A 12.5 percent decrease in store traffic for a children’s shoe store in a medium-sized
city mall is a symptom because a decrease in store traffic for a children’s shoe store
may cause problem. (problem)
(ii) Walmart’s stock price has decreased 25 percent between 2007 and 2009 is a problem
because dropping 25% in two years is a huge number for the company and this could
cause the company performance to decline. (symptom)
(iii) A furniture manufacturer and retailer in North Carolina reads a research report
indicating consumer trends toward Australian Jara and Kari wood. The export of
these products is very limited and very expensive is a problem because the products
are limited and expensive and the manufacturer is unable import all these products
therefore the manufacturer is hard to make profit. (opportunity)
(iv) Marlboro reads a research report written by the U.S. FDA. It indicates that the
number of cigarette smokers in sub-Saharan Africa is expected to increase
dramatically over the next decade is a opportunity as Marlboro can export more
cigarette to sub-Saharan Africa so that they can make more profit.