Module 1 - RM - 2021

Business Research Methods 9e
Zikmund
Babin
1
Carr The Role of Business
Griffin
Research
Chapter 1
The Role of Business Research
©2013 Cengage Learning. All Rights Reserved. May

not be scanned, copied or duplicated, or posted to a
publicly accessible website, in whole or in part.
MODULE 1: Business Research
▪ Meaning, Nature of business research

▪ Applied and basic business research
▪ Scientific method
▪ Managerial values
▪ Why & when is business research needed
▪ Business research in 21st century,
▪ types
▪ Applications
▪ Stages in research process
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
ESPN Hits a Home Run
• ESPN has information in

many databases.
• Business research
integrated it so they
could learn more about
how fans use their
media.
• Gaining intelligence had
bottom-line implications
for their own revenue
and their advertisers'
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 1-4
Module 1
The Role of
Business Research
Introductory case:
“If it Quacks Like a
Duck?”
Business decisions requires intelligence
The Role of Research can provide that Intelligence
Business Case 1: Jelly belly
Research www. Dreambeancontest.com
Case 2: Coffee Industry
Case 3: Organizations internal operations
These examples illustrate the need for information in making informed

business decisions.
The nature of business research
Business research covers wide range of phenomena.
• For managers purpose of research is to
• Provide knowledge regarding the organization
• Market, Economy or Any other area of uncertainty
• Research is the principal tools for answering the practical

questions for finance, HR, & Marketing managers.
• Within organization, a business researcher play different

roles but they share similar research methods.
• Decisions are made with little information for various

reasons.
• BR helps decision makers shift from intuitive information
gathering to systematic & objective investigation.
Business Research Defined
“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 alternate course of actions, and
monitoring employee and organizational
performance.”
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 1–9
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
EXHIBIT 1.1 A Summary of the Scientific Method
Managerial Value of Business Research
• There are only a few business orientations:
• EX: YOPLAIT GOGURT
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.
Ex: sales research at retail stores,
United Airlines’ Omnibus in-flight survey 1–18
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?
Harley-Davidson Goes Abroad
• Consumers in different
countries have different
preferences.
• Even if consumers want it,
government regulations can
make it prohibitive (e.g.,
India).
• Harley is pursuing the U.S.
women’s market for bikes.
Business Class Success?
• Business-class travelers
want comfort, good food,
and convenient boarding,
but the price is hefty.
• Two start-ups offered
“discount” business-class-
only airlines but failed.
• Could more effective
research have determined
that these were not
feasible business
ventures?
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 22
Business Research in the 21st Century
• Communication Technologies
• Always “connected”—time, place, and distance
are irrelevant.
• Changes in computer technology have made

for easier data collection and data analysis.
• Decreases in information acquisition, storage,

access, and transmission costs.
Business Research in the 21st Century
• Global Business Research
• Business research is increasingly global.
• Must understand the nature of particular markets, and
judge whether they require customized business
strategies. ( ex: British, Dutch & French – color
preference on capsules)
• Cross-validation
◗Verify that the empirical findings from one culture
also exist and behave similarly in another culture.
“Jacques” Daniels
• US distilled spirits have declined as Americans turn to beer or wine
• Brown Forman, parental company of Jack Daniels, have pursued
expansion to international market.
• Research findings:
• Japanese use JD as a dinner
beverage
• Australian’s drink distilled
spirits at home & “Jack and
Cola”
• British like to drink at bars
and restaurants
• Chinese and Indians prefer
“counterfeit” or “knock-
offs” to save money
• Key ways in which researchers contribute to
decision making:
1. Helping to better define the current situation
2. Defining the firm—determining how consumers, competitors,
and employees view the firm
3. Providing ideas for enhancing current business practices
4. Identifying new strategic directions
5. Testing ideas that will assist in implementing business
strategies for the firm
6. Examining how correct a certain business theory is in a given
situation
The types of Research
There are different types of research.
1. Exploratory Research
2. Descriptive Research
3. Applied Research: solution for an immediate problem
4. Basic research or pure/fundamental research: Gathering knowledge for
knowledge sake
5. Conceptual research: philosophers- the researcher should collect the data
to prove or disapprove his hypothesis
6. Causal research: cause and effect relationship between two variables
7. Historical research: study of past records and data - The research has to
depend on the conclusions or inferences drawn in the past
8. Ex-post facto research : “from what is done afterwards” - Empirical
research- relationship that exists between independent and dependent
variable is studied (what has happened & what is happening)
9. Action research: It is undertaken by direct action. It is conducted to solve
problem. Ex: Test marketing a product
10. Evaluation research: how well a planned programme is implemented
11. Library research: This is done to gather secondary data.
Applied research :
Applied research aims at finding a solution for an
immediate problem faced by any business organization. This
research deals with real life situations.
Ex: why have sales decreased during the last quarter?
Market research is an example of applied research. applied
research has practical problem solving emphasis. It brings
out many new facts.
Ex: How to develop a new market for the product?
Pure/fundamental research or Basic research
Gathering knowledge for knowledge sake is known as basic
research. It is not directly involved with practical problems.
It does not have commercial potential. There is no intention
to apply this research in practice.
Tata Institute of Fundamental Research conducts such
studies.
Ex: Theory of Relativity (by Einstein)
Conceptual Research
This is generally used by philosophers. It is related to
some abstract idea or theory. In this type of research,
the researcher should collect the data to prove or
disapprove his hypothesis. The various ideologies are
examples of conceptual research.
Causal Research
causal research is conducted to determine the
cause and effect relationship between two
variables.
ex: Effect of advertisement on sales.
Historical Research
It is a study of past records and data in order to understand the future
trends and development of organization or market. There is no direct
observation. The research has to depend on the conclusions or
inferences drawn in the past.
Ex: Investors in the share market study the past records or prices of
shares which he/she intends to buy. Studying the prices of a
particular company enables the investor to take decision
whether to invest in the shares of a company.
Crime branch police/CBI officers study i.e., the past records or
history of the criminals in order to arrive at some conclusions.
Even though shortcomings of historical research:

1. Reliability - adequacy of information is subjective and open to
question
2. Accuracy of measurement of events is doubtful
3. Verification of records are difficult.
Ex-post Facto Research
In this type, an examination of relationship that exists between
independent and dependent variable is studied. It is also called
Empirical Research. In this method the researcher has no control
over an independent variable.
Ex-post facto literally means “from what is done afterwards”. In this
research, a variable “A” is observed.
Thereafter, the researcher tries to find a causal variable “B” which
caused “A”. It is quite possible that “B” might not have been caused
“A”. In this type of analysis there is no scope for the researcher to
manipulate the variable. The researcher can only report “what has
happened” and “what is happening”.
Action Research
It is undertaken by direct action. It is conducted to solve problem.
Ex: Test marketing a product. Here initially, the geographical location is

identified. A target sample is selected from among the population.
Samples are distributed to selected samples and feedback is
collected from the respondent. This method is most common for
industrial products, where a trial is a must before regular usage of
the products.
Evaluation Research:
This is an example of Applied research. This research is
conducted to find out how well a planned programme is
implemented. Therefore, evaluation research deals with
evaluating the performance or assessment of a project.
Ex: “Rural Employment Programme Evaluation”
Library Research:
This is done to gather secondary data. This includes
notes from the past data or review of the reports
already conducted. This is convenient method whereby
both manpower and time are saved.
Research applications
1. Research applications in Marketing

2. Research applications in Finance
3. Research applications in Human
Resource Management
4. Research applications in Production &
Operations Management
5. Research applications in cross
functional areas
Research applications in marketing
• Market & consumer analysis
• Product research
• Pricing research
• Promotional research
• Place research
Research applications in finance
• Asset pricing, capital markets and
corporate finance
• Financial derivatives and credit risk

modeling research
• Market-based accounting research
• Auditing and accountability

Research applications in
Human resources
 Training & development studies
 Selection and staffing studies
 Performance appraisal–design and evaluation
 Organization planning and development
 Incentive and benefits studies
 Emerging areas–critical factor analysis, employer

branding studies
Research applications in
production & operations management
 Operation planning and design
 Demand forecasting and demand estimation
 Process planning
 Project management and maintenance
effectiveness studies
 Logistics and supply chain-design and evaluation
 Quality estimations and assurance studies
Criteria for research
 MUST have: a clearly stated research purpose/ objective
 MUST have: a sequential plan of execution
 MUST have: a logical and explicitly stated justification for
the selected methods
 MUST have: an unbiased and neutral method of conduct
and reporting
 MUST have: complete transparency and ethical
conduction of the research process
 MUST have: provision for being reliable & replicable
Stages in the Research Process
• Process stages:
1. Problem Identification
2. Defining the research objectives
3. Planning a research design
4. Planning a sample
5. Collecting the data
6. Analyzing the data
7. Formulating the conclusions and preparing
the report
EXHIBIT 4.5 Stages of the Research Process
EXHIBIT 4.6 Flowchart of the
Business Research Process
Defining the Research Objectives
• Research objectives
• The goals to be achieved by conducting
research.
• Deliverables
• The consulting term used to describe research
objectives to a research client.
Exploratory Research Techniques
• Previous Research
• Literature review
◗ A directed search of published works, including periodicals and
books, that discusses theory and presents empirical results that are
relevant to the topic at hand.
• Pilot Studies
◗ A small-scale research project that collects data from respondents
similar to those to be used in the full study.
◗ Pretest
 A small-scale study in which the results are only preliminary and
intended only to assist in design of a subsequent study.
◗ Focus Group
 A small group discussion about some research topic led by a moderator
who guides discussion among the participants.
Planning the Research Design
• Research Design
• A master plan that specifies the methods and
procedures for collecting and analyzing the
needed information.
• Basic design techniques for descriptive and
causal research:
◗Surveys
◗Experiments
◗Secondary data
◗Observation
Selection of the Basic Research Method
• Survey
• A research technique in which a sample is
interviewed in some form or the behavior of
respondents is observed and described.
◗Telephone
◗Mail
◗Internet
◗In person
Sampling
• Sampling
• Involves any procedure that draws conclusions
based on measurements of a portion of the
population.
• Sampling decisions
• Who to sample?—target population
• What size should the sample be?
• How to select the sampling units?
Gathering Data
• Unobtrusive Methods
• Methods in which research respondents do not
have to be disturbed for data to be gathered.
Processing and Analyzing Data
• Editing
• Involves checking the data collection forms for
omissions, legibility, and consistency in classification.
• Codes
• Rules for interpreting, categorizing, recording, and
transferring the data to the data storage media.
• Data analysis
• The application of reasoning to understand the data
that have been gathered.
Drawing Conclusions and Preparing a
Report
• Steps in communicating the research findings:
• Interpreting the research results
• Describing the implications
• Drawing the appropriate conclusions for managerial decisions
• Reporting requirements
• Conclusions fulfill the deliverables promised in the research
proposal
• Consider the varying abilities of people to understand the
research results
• A clearly-written, understandable summary of the research
findings
The Research Program Strategy
• Research project
• A single study that addresses one or a small
number of research objectives.
◗Uses specific techniques for solving one-dimensional
problems, such as identifying customer segments,
selecting the most desirable employee insurance plan,
or determining an IPO stock price.
• Research program
• Numerous related studies that come together to
address multiple, related research objectives.
• Because research is a continuous process,
management should view business research at a
strategic planning level.

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Business Research Methods 9e

©2013 Cengage Learning. All Rights Reserved. May

▪ Meaning, Nature of business research

• ESPN has information in

Research www. Dreambeancontest.com

Case 2: Coffee Industry

Case 3: Organizations internal operations

These examples illustrate the need for information in making informed

• Research is the principal tools for answering the practical

• Within organization, a business researcher play different

• Decisions are made with little information for various

• Performance Monitoring Research

• Changes in computer technology have made

• Decreases in information acquisition, storage,

Even though shortcomings of historical research:

Ex: Test marketing a product. Here initially, the geographical location is

1. Research applications in Marketing

• Market & consumer analysis

• Financial derivatives and credit risk

• Market-based accounting research

• Auditing and accountability

 Selection and staffing studies

 Performance appraisal–design and evaluation

 Organization planning and development

 Incentive and benefits studies

 Emerging areas–critical factor analysis, employer

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