ZIKMUND BABIN

CARR GRIFFIN

Chapter 1
BUSINESS The Role of
MARKET Business Research

RESEARCH
EIGHTH EDITION

©
© 2010
2010 South/Western/Cengage
South/Western/Cengage Learning.
Learning. All
All rights
rights reserved.
reserved. May
May
not
not be
be scanned,
scanned, copied
copied or
or duplicated,
duplicated, or
or posted
posted to
to aa publicly
publicly
accessible
accessible website,
website, in
in whole
whole or
or in
in part.
part.
 LEARNING
LEARNING OUTCOMES
OUTCOMES
After studying this chapter, you should
1. Understand how research contributes to business
success
2. Know how to define business research
3. Understand the difference between basic and applied
business research
4. Understand how research activities can be used to
address business decisions
5. Know when business research should and should not
be conducted
6. Appreciate the way technology and internationalization
are changing business research
© 2010 South-Western/Cengage Learning. All rights reserved. May not be
scanned, copied or duplicated, or posted to a publically accessible
website, in whole or in part. 1–2
 Business Research Defined
• Business research is the application of the
scientific method in searching for the truth about
business phenomena.
• The process includes:
 idea and theory development
 problem definition
 searching for and collecting information
 analyzing data
 communicating the findings and their implications

© 2010 South-Western/Cengage Learning. All rights reserved. May not be

scanned, copied or duplicated, or posted to a publically accessible
website, in whole or in part. 1–3
 Business Research Defined
• This definition suggests that business research
information is:
 not spontaneous or unsystematically 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.

© 2010 South-Western/Cengage Learning. All rights reserved. May not be

scanned, copied or duplicated, or posted to a publically accessible
website, in whole or in part. 1–4
 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?

© 2010 South-Western/Cengage Learning. All rights reserved. May not be

scanned, copied or duplicated, or posted to a publically accessible
website, in whole or in part. 1–5
 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?

© 2010 South-Western/Cengage Learning. All rights reserved. May not be

scanned, copied or duplicated, or posted to a publically accessible
website, in whole or in part. 1–6
 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

© 2010 South-Western/Cengage Learning. All rights reserved. May not be

scanned, copied or duplicated, or posted to a publically accessible
website, in whole or in part. 1–7
 EXHIBIT 1.1 A Summary of the Scientific Method

© 2010 South-Western/Cengage Learning. All rights reserved. May not be

scanned, copied or duplicated, or posted to a publically accessible
website, in whole or in part. 1–8
 Managerial Value of Business Research

• There are only a few business orientations:

 Product-oriented
 Production-oriented
 Marketing-oriented

© 2010 South-Western/Cengage Learning. All rights reserved. May not be

scanned, copied or duplicated, or posted to a publically accessible
website, in whole or in part. 1–9
 EXHIBIT 1.2 Business Orientations

© 2010 South-Western/Cengage Learning. All rights reserved. May not be

scanned, copied or duplicated, or posted to a publically accessible
website, in whole or in part. 1–10
 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

© 2010 South-Western/Cengage Learning. All rights reserved. May not be

scanned, copied or duplicated, or posted to a publically accessible
website, in whole or in part. 1–11
 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.

© 2010 South-Western/Cengage Learning. All rights reserved. May not be

scanned, copied or duplicated, or posted to a publically accessible
website, in whole or in part. 1–12
 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?
© 2010 South-Western/Cengage Learning. All rights reserved. May not be
scanned, copied or duplicated, or posted to a publically accessible
website, in whole or in part. 1–13
 EXHIBIT 1.3 Determining When to Conduct Business Research

© 2010 South-Western/Cengage Learning. All rights reserved. May not be

scanned, copied or duplicated, or posted to a publically accessible
website, in whole or in part. 1–14
 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.

© 2010 South-Western/Cengage Learning. All rights reserved. May not be

scanned, copied or duplicated, or posted to a publically accessible
website, in whole or in part. 1–15
 Ethics in doing research
• When conducting a specific research, the
researcher is required to observe certain code of
conduct or norm of behaviour.
• Ethical behaviour starts with the researcher who
conducts the investigation, the respondents who
provide the information, the analysts who
analyse the results and every team member who
will be involved in the presentation of the
findings and recommendations.

© 2010 South-Western/Cengage Learning. All rights reserved. May not be

scanned, copied or duplicated, or posted to a publically accessible
website, in whole or in part. 1–16
 Ethics in doing research
as researcher, you have responsibilities to the
society, the client of the research and the people
involved in the study.
• To the society
 uphold the moral standards of the research
profession.
 avoid plagiarism, fraud or deceptions.

© 2010 South-Western/Cengage Learning. All rights reserved. May not be

scanned, copied or duplicated, or posted to a publically accessible
website, in whole or in part. 1–17
 Ethics in doing research
• To the client of the research
 ensure that you produce high quality research.
 ensure that all information regarding the research be
treated as private and confidential.

© 2010 South-Western/Cengage Learning. All rights reserved. May not be

scanned, copied or duplicated, or posted to a publically accessible
website, in whole or in part. 1–18
 Ethics in doing research
• To the people involved in the study
 they should not be physically, psychologically and
legally harmed.
 ensure the anonymity of the people involved in the
study.
 Avoid coercion, undue pressure and stress on the
respondents.

© 2010 South-Western/Cengage Learning. All rights reserved. May not be

scanned, copied or duplicated, or posted to a publically accessible
website, in whole or in part. 1–19