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8us|ness kesearch

Cbapter I
Scope and Nature of Business Researcb

Why |s |t |mportant?
8uslness flrms are experlenclng dlfflculLles ln conLlnuously coplng wlLh Lhe
everchanglng envlronmenL forces of Lhe buslness world 1hese are Lhe
lnLernal and exLernal forces lnLernal forces are lnherenL ln Lhe flrm and are
conLrolled by Lhe managemenL (eg producLlon flnanclal personnel
capablllLles) whlle exLernal forces are generally noL conLrolled by Lhe flrm
(eg demography economlc condlLlons soclal and culLural forces pollLlcal
legal Lechnology and lnLermedlarles)
Definition of Business Researcb
urpose of research
1he purpose of research ls Lo obLaln lnformaLlon and deLermlne buslness
opporLunlLles LhaL are feaslble and Lhose LhaL are noL promlslng for Lhe
buslness flrm and Lo provlde esLlmaLes of Lhe opporLunlLles
8us|ness research |s the systemat|c gather|ng record|ng and ana|yz|ng of
data about the prob|ems re|at|ng to the f|nanc|a| product|on and
market|ng of goods and serv|ces
3 lmpL elemenLs of Lhls deflnlLlon
1 8road ln scope
2 Lmphaslzes Lhe sysLemaLlc meLhod
3 uaLa are ob[ecLlvely and accuraLely gaLhered recorded analyzed and
kesearch def|ned
cetcblet to seek ot seotcb(olJ lteocb)
teoqolo tepllcotloo of tbe seotcb

J teosoos wby seek/seotcb
1 lot mote exploootloos
2 lot vetlfloble ttotb
J 1o moke Jlscovetles
Cool of seotcbloq to become cettolo of tbe occotteoce ot exlsteoce of o
cettolo pbeoomeooo
*ut Cteqotlo 2oto
llllploo scleotlst
loveoteJ tbe wotkoble wooJeo mlctoscope
*wooJeo mlctoscope tepllcotes tbe steelbollt oppototos
(l7000 compoteJ to l100000)

AccotJloq to ocyclopeJlo of tbe 5oclol 5cleoces
keseorch is the monipu/otion of thinqs concepts or symbo/s for the
purpose of qenero/itinq to extend correct or verify know/edqe whether
thot know/edqe oids in the construction of o theory or in the proctice of on

CooJ (2002)
kesearch |s |dea||y the carefu| unb|ased |nvest|gat|on of a prob|em based
|nsofar as poss|b|e upon demonstrab|e facts and |nvo|v|ng ref|ned
d|st|nct|ons |nterpretat|ons and usua||y some genera||zat|ons

5bow (1990)
esearch ls a long Lheme from 2 Lo 6000 words asslgned ln mosL college
courses whlch requlre ouLslde readlng Such paper ls deslgned Lo be more
Lhan a reporL lLs purpose ls Lo make a careful lnvesLlgaLlon of some sub[ecL
and Lo presenL and lnLerpreL Lhe source maLerlal ln Lhe llghL of Lhe
researcher's flndlngs

Ielt1990 clteJ by lloto 2002
esearch ls Lhe acL of dlscoverlng more of whaL you wanL Lo know lL ls also
Lhe process of sysLemaLlzlng avallable lnformaLlon on your favorlLe or on a
Loplc you are curlous abouL 1hrough Lhe process of research you are able
Lo conLrlbuLe new knowledge and dlscoverles Lo Lhe exlsLlng body of
knowledge on a sub[ecL And you make Lhls publlc ln your research paper

colJetoo ooJ Coozoles (1998)
kesearch |s def|ned as a purpos|ve systemat|c and sc|ent|f|c process of
gather|ng ana|yz|ng c|ass|fy|ng organ|z|ng present|ng and |nterpret|ng
data for the so|ut|on of a prob|em for pred|ct|on for |nvent|on for the
d|scovery of truth or for the expans|on or ver|f|cat|on of ex|st|ng
know|edge a|| for the preservat|on and |mprovement of the qua||ty of
human ||fe

5ttlvets (1968) lo bls ottlcle wbot ls CooJ keseotcb?
ood lnqulry (good research) ls a sysLemaLlc defenslble pursulL of resulLs
whlch solve a problem research ls good lf lL consummaLed an ordered
reasonable communlcable search

Sequence of research
1 eneral formaLlon of Lhe problem
2 evlew of formal knowledge abouL Lhe problem
3 rellmlnary observaLlon of Lhe problem areas
4 uevelopmenL or selecLlon of sysLemaLlc ldeas(Lheory) for use ln problem
analysls and developmenL of proposed answers (hypoLheses) Lo Lhe
quesLlons posed by Lhe problem
3 LfforL Lo verlfy Lhe hypoLheses emplrlcally
6 lormulaLlon of concluslons

4 crlLerla for guldlng and [udglng a good lnqulry (SLrlvers)
1 LfflclenL process
2 esulLs are speclflc
3 esulLs are generallzable
4 esulLs are lnLerpreLable

1he Sc|ent|f|c Method
*no fleld can be called sclenLlflc unless and unLll lL ls carrled ouL ln sclenLlflc

CrlLerla of research
1 SclenLlflc
2 SysLemaLlc
3 Cb[ecLlve
4 eproduclble

Applications of Business Researcb

*Slnce buslness problems requlre acLlonorlenLed declslon maklng Lhe mosL sulLed Lype
of research ls app||ed research

Applled research can lmmedlaLely easlly and readlly uLlllzed Lo lmprove buslness
8aslc research does noL seek soluLlon Lo buslness problems raLher seeks baslc

eneral AppllcaLlons of 8uslness esearch
1 8us|ness and Sa|es kesearch
dlrecLed Lo ldenLlfy LargeL markeLs deLermlne behavloral paLLerns
and aLLlLudes of buyers measure markeL demands analyze and
lnLerpreL sales daLa and markeL share and Lo sLudy problems ln
con[uncLlon wlLh selllng acLlvlLles and dlsLrlbuLlon channels
le deflnlng Leenage markeL for soap brand preferences Lravel
hablLs ln relaLlon Lo selllng producLs
2 8us|ness Lconom|cs and I|nanc|a| kesearch
sLudy of buslness cycle and forecasLlng whereln boLh shorLrange
and longrange plans are deLermlned
problems normally relaLed wlLh Lhe funcLlons and responslblllLles
of Lhe managerlal sLaff
companywlde producL llnes producL mlx producL dlverslflcaLlon

3 Market|ng and roduct kesearch
lncludes all LhaL have someLhlng Lo do wlLh producL plannlng and
developmenL brandlng and packaglng
le consumer brand purchase hlsLory and quallLy oplnlons of
compeLlng brands of LooLhpasLe deslgns of coffee producLs among
4 Med|a and advert|s|ng kesearch
lncludes all deallng wlLh Lhe proper selecLlon of adverLlslng Lhemes
copywrlLlng medla selecLlon and analysls accounL managemenL
producLlon of props preparaLlon of ads and budgeLlng
le mosL preferred 1v ads [lngles of compeLlng cola drlnks
S Corporate respons|b|||ty research
covers sLudles on sub[ecLs whlch are ouLslde Lhe commerclal dlmenslon of
selllng of goods and servlces
deals wlLh buslness flrms' soclal responslblllLles Lo Lhe publlc approprlaLe
for fleld of compeLence
le deLermlnaLlon of Lhe publlc knowledge abouL Lhe lmplemenLaLlon of
floaLlng raLe pollcy on Lhe hlllpplne economy consumer demand a sLudy
on Lhe effecLs of value added Lax
6 Nonbus|ness kesearch
covers dlfferenL Lypes of problems encounLered by Lhe governmenL
soclal pollLlcal clvlc and oLher organlzaLlons where buslness research
Lechnlques can be besL applled
le deLermlnaLlon of Lhe posslble causes of mall loss and pllferage ln Lhe
hlllpplnes deLermlnaLlon of oplnlons and aLLlLudes Lowards Lhe Workers'
Welfare lundand Lhelr reasons for conLrlbuLlng publlc preferences for
fuLure mass LransporLaLlon sysLem

*1he baslc ob[ecLlve of buslness research ls Lo asslsL Lhe managers/execuLlves Lo make
beLLer declslons wlLhln scope of Lhelr responslblllLles

ueLalls of 8uslness ManagemenL (SLanLon 1983)
1 naLure and scope of modern buslness concepLs
2 ComposlLlon of Lhe markeL populaLlon consumer lncome and lLs
dlsLrlbuLlon and consumer expendlLures paLLerns
3 sychologlcal deLermlnanLs of buyer behavlor and classlflcaLlons of
4 roducL plannlng and developmenL of exlsLlng and new producLs
3 8randlng packlng labellng and oLher lmagebulldlng feaLures
6 lmporLance of prlce and facLors LhaL lnfluence prlce deLermlnaLlon prlclng
sLraLegles and pollcles
7 Mlddlemen and channels of dlsLrlbuLlon and legal conslderaLlons ln channel
managemenL lmporLance and ma[or Lasks of physlcal dlsLrlbuLlon
8 1he promoLlonal mlx adverLlslng sales promoLlon personal selllng publlc
relaLlons and publlclLy
9 8uslness laws and rules and regulaLlons
10 CLher speclal flelds of buslness servlces nonbuslness orgs and domesLlc
and lnLernaLlonal buslness operaLlons

Historical Development of Business Researcb

8uslness esearch ln unlLed SLaLes

no wrlLLen documenL on Lhe beglnnlng of buslness research as an
organlzed buslness acLlvlLy buL deflnlLely of modern orlgln
1879 nW Ayer and Son conducLed a crude buL formal markeL survey Lo
measure markeLs for agrlculLural machlnerles manufacLured by nlcholas
Shepard Company(flrsL aLLempL aL buslness research)
1911 CurlLs ubllshlng Company formed Lhe flrsL buslness research
deparLmenL wlLh Lhe appolnLmenL of Charles arlln as manager of
Commerclal esearch ulvlslon of Lhe AdverLlslng ueparLmenL
1919 ur CS uuncan publlshed whaL was probably Lhe flrsL book on
commerclal research
1929 lederal overnmenL of Lhe uS conducLed Lhe flrsL census of
1930s sampllng problems geL serlous aLLenLlon
baslc research meLhods began Lo emerge
O 1937 esLabllshmenL of Amerlcan 8uslness AssoclaLlon
publlcaLlon of Lhe flrsL Lwo books whlch are useful ln buslness
O 1948 over 200 buslness research flrms had been esLabllshed ln uS

Wbo Does Business Researcb?

. Manufacturers`[ ue`eimine iigh` pi[uuc`_ `[ pi[uuce
. Advertising agencies`[ mea_uie maike` p[`en`ial [i uemanu f[i
pi[uuc` [i clien`_ maike` _haie
. Advertising media `[ mea_uie `he _ize if auuience ieacheu(by
`biaui[e`c.) anu `[ pi[biue uem[giaphic pi[file [f `he auuience
. Retailers and wbolesalers `[ f[ieca_` `[ mea_uie maike` uemanu_
ue`eimina`i[n [f _`[ie l[ca`i[n analy_e_
. Independent business researcb firms `[ a__i_` [`hei fiim_ `[ _[lbe
bu_ine__ pi[blem_
. Covernment agencieslaige_` pi[uucei [f ie_eaich fac`_
. Trade and professional associations `[ c[llec` anu ui__emina`e
[peia`ing ua`a ga`heieu
8. Universities and foundations ueal_ wi`h bi[au ec[n[mic anu
bu_ine__ pi[blem_
9. Utber agencies incluue_ bank_ anu [`hei financial in_`i`u`i[n_ public
u`ili`ie_ anu `ian_p[i`a`i[n c[mpanie_ anu [`hei_ pi[biuing
c[n`inu[u_ _`a`i_`ical inf[ima`i[n iegaiuing au meuia

C[n`iibu`i[n_ [f `he Bu_ine__ Re_eaich anu 0iganizing Re_eaich

Benefi`_ (fi[m bu_ine__ ie_eaich)

. roducLs are prlced ln accordance wlLh demand
. lncreased proflL sales and lncome
. uecreased markeLlng cosLs
. 8aslc reappralsal of flrm's ob[ecLlves and pollcles
. Lngender a progresslve splrlL

Crganlzlng Lhe 8uslness esearch ueparLmenL

depends on Lhe slze of Lhe flrm and lLs organlzaLlonal sLrucLure
ln many large companles research depL ls placed under Lhe markeLlng depL
where Lo organlze Lhe buslness research deparLmenL (ln decenLrallzed flrms)?
O ln corporaLelevel locaLlon greaLer coordlnaLlon and conLrol of corporaLe
research acLlvlLy
O ln dlvlslonal/grouplevel locaLlon allows research personnel Lo acqulre
valuable knowledge regardlng dlvlslonal flnance markeLs producLs
pracLlces and problems
*CrganlzaLlon of 8uslness esearch ueparLmenL ls expecLed Lo be dynamlc and
conLlnuously changlng LhaL depends on Lhe lmporLance and complexlLy of Lhe buslness
research acLlvlLles

Qualifications of Business Researcber
O cuii[u_ha_ que_`i[ning minu
O n[` c[n`en`eu wi`h ligh` an_wei_ bu` ue_iie_ `[ kn[w wha` lie_ behinu
`he pi[blem anu wha` i_ expec`eu `[ f[ll[w
O make_ u_e [f inf[ima`i[n by analy_i_ anu c[iiela`i[n
O mu_` be able `[ ue`eimine fac`_ uig `[ `he e__en`ial_ fi` `he piece_ in`[
place _ee `he wh[le a_ well a_ `he pai`_
O ha_ abili`y `[ `hink bey[nu `he immeuia`e
O analy`ical anu cii`ical `hinkei
O [bjec`ibe
O h[ne_` wi`h wh[m he ueal_
O ha_ abili`y `[ ueal wi`h pe[ple
O w[i`hy [f ie_pec`
O ha_ g[[u _en_e [f hum[i
O en`hu_ia_`ic
O c[[peia`ibe
O `ac`

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