Learning Objectives

Understand . . .
What business research is and how it differs from
business decision support systems and business
intelligence systems.
Trends affecting business research and the
emerging hierarchy of business decision makers.
The distinction between good business research
and research that falls short of professional quality.
The nature of the research process.

Data Collectors Face

Responsibilities

This is a fantastic time to be entering the

business world, because business is going to
change more in the next 10 years than it has in
the last 50.
Bill Gates, entrepreneur and founder
Microsoft

PulsePoint:
Research Revelations

34

The percent of employees who never

consider what their bosses, clients, or
colleagues think before posting to a
blog, discussion forum, or social
network.

Why Study Business Research?

Business
research provides
information to
guide business
decisions

Research Should Help

Respond to Change
Enterprises have long recognized the need

to better sense and respond to business change.

Whats different today is that ubiquitous access
to information and real-time communications
have fostered an always on business culture
where decision making has become a just-in-time
process.

Business Performance Management Forum

Business Research

A process of determining, acquiring,

analyzing, synthesizing, and disseminating
relevant business data, information, and
insights to decision makers in ways that
mobilize the organization to take
appropriate business actions that,
in turn, maximize business performance

Research Should Reduce

Risk

The primary
purpose of
research is to
reduce the level of
risk of a marketing
decision

Whats Changing in Business

that Influences Research
New
New
Research
Research
Perspectives
Perspectives
Computing
Computing
Power
Power &&
Speed
Speed
Battle
Battle for
for
Analytical
Analytical
Talent
Talent

Information
Overload

Factors
Factors

Technological
Technological
Connectivity
Connectivity
Shifting
Shifting
Global
Global
Economics
Economics
Critical
Scrutiny of
Business

Government
Government
Intervention
Intervention

Computing Power and Speed

Lower-cost
Data
Collection
Integration
Integration of
of
Data
Data

Better
Better
Visualization
Visualization
Tools
Tools

Factors
Factors
Real-time
Real-time
Access
Access

Powerful
Powerful
Computation
Computation

Business Planning Drives

Business Research

Organizational
Mission

Business
Goals

Business
Strategies

Business
Tactics

Business Decisions and

Research
Hagen-Dazs Tactics
Super premium
Dozens of flavors
Small packages
Signature colors on
packaging
Available in franchise
and grocery stores

Information Sources
Decision Support
Systems
Numerous elements of
data organized for
retrieval and use in
business decision
making
Stored and retrieved via
Intranets
Extranets

Business Intelligence
Systems
Ongoing information
collection
Focused on events,
trends in micro and
macro-environments

Sources of
Business Intelligence
Government/
Regulatory

Demographic

Competitive

Economic

Business
Intelligence

Technological

Cultural/
Social

Hierarchy of Business Decision

Makers

Visionaries
Visionaries
Standardized
Decision Makers

Intuitive Decision Makers

Minute Maid and Business

Research

P&G has a world-class research

department

When Should Business Research be Undertaken?

Is sufficient time
available?
Yes
Is information
inadequate?

NO

Do not
undertake Business Research

Yes
High importance
of decision?
Yes
Research benefits
greater than costs?

Undertake Business Research

Value and Costs of Undertaking Business

Research
VALUE

COSTS

Decreased Uncertainty

Research Costs

Higher Likelihood of
Correct Decisions

Delay in Making
Business Decisions

Better Business
performance

Disclosure of
Information to Rivals

Higher Profits

Possibility of Error

Better Reputation

The Building Blocks of Research

KNOWLEDGE

Blend of information, experience and in-sights that

provides a framework that can be thoughtfully evaluated
when assessing new information or evaluating
relevant situations

INFORMATION

Determination of relationship amongst data with a

view to facilitating understanding of the phenomena,
their relationships and decision-making
(e.g. past and predicted future sales trends)

DATA

Measurements of phenomena
(e.g. sales statistics of a department store)

Research May Not Be Necessary

Can It Pass These Tests?

Can information be applied to a critical
decision?
Will the information improve managerial
decision making?
Are sufficient resources available?

Information Value Chain

Data collection/
transmission

Data
management
Characteristics

Decision
support systems

Data
interpretation
Models

The Research Process

Characteristics of
Good Research
Clearly
Clearly defined
defined purpose
purpose
Detailed
Detailed research
research process
process
Thoroughly
Thoroughly planned
planned design
design
High
High ethical
ethical standards
standards
Limitations
Limitations addressed
addressed
Adequate
Adequate analysis
analysis
Unambiguous
Unambiguous presentation
presentation
Conclusions
Conclusions justified
justified
Credentials
Credentials

Categories of Research

Applied

Basic (Pure)

Basic and Applied Research

Basic Research aims to expand the frontiers of science and knowledge by
verifying or disproving the acceptability of a given theory or attempting to
discover more about a certain concept (non-specificity)
Example: How does motivation affect employee performance?
Applied Research focusses on a real-life problem or situation with a view
to helping reach a decision how to deal with it (Specificity)
Example: Should Corporation X adopt a paperless office
environment?

Typical Users of Business Research Methods

Businesses and Corporations

Public-Sector Agencies
Consulting Firms
Research Institutes
Non-Governmental Organizations
Non-Profit Organizations
Independent Researchers and Consultants

Common Business Research Methods &

Techniques

Surveys
Interviews
Observation
Experiments
Archival and Historical Data
Qualitative Analysis
Quantitative Analysis

Fields Where Business Research is Often Used (1)

General Business Conditions and
Corporate Research
Short- & Long-Range Forecasting,
Business and Industry Trends
Global Environments
Inflation and Pricing
Plant and Warehouse Location
Acquisitions
Management and Organizational
Behaviour Research
Total Quality Management
Morale and Job Satisfaction
Leadership Style
Employee Productivity
Organizational Effectiveness
Structural ssues
Absenteeism and turnover
Organizational Climate

Financial and Accounting Research

Forecasts of financial interest rate
trends,
Stock,bond and commodity value
predictions
capital formation alternatives
mergers and acquisitions
risk-return trade-offs
portfolio analysis
impact of taxes
research on financial institutions
expected rate of return
capital asset pricing models
credit risk
cost analysis

Fields Where Business Research is Often Used (2)

Information Systems Research

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

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

Types of Studies

Reporting

Descriptive

Explanatory

Predictive

Key Terms
Applied research
Business intelligence
system (BIS)
Business research
Control
Decision support
system
Descriptive studies
Explanatory Studies

Management dilemma
Predictive studies
Pure research
Reporting studies
Return on Investment
(ROI)
Scientific method
Strategy
Tactics

Appendix 1a
How the Research
Industry Works

Who Conducts Business

Research?

Some Organizations Use

Internal Research Sources

Some Organizations Use

External Research Sources

Business Research Firms

Consultants and
Trade Associations

Trade Associations
NHRA
NHRA
CASRO
CASRO
MRA
MRA
ESOMAR
ESOMAR
BRA
BRA
AMA
AMA
WAOBRP
WAOBRP
MPA
MPA
NAB
NAB

Many Firms Conduct Research

Chapter 1
Addendum
Research Timeline

1-41

Information Revolution

1971
First CATI
survey
conducted

1964
OCR
shows
promise
U.S. DOD
commissions
forerunner of
Internet

1968
Word processing
first demonstrated

1973
UPC bar-code
scanning
introduced

1972
Optical laser
disk revealed

1975
Microsoft
is born

1979
First
VisiCalc
ships

1960

1980
1964
IBM
introduces
model 360

1968
SPSS created

1971
Intel introduces first
microprocessor

1973
Basic ideas of
Internet created

1980
Apple owns
50% of
pc market
1976
Apple I
released

Information Revolution

1987
First
Internet
survey
1981
IBMPC
released

1993
WWW experiences
3,400X growth
in service traffic

1990s
OCR used for
data entry

2001
Online survey
software widely
available

1994
Greenfield Online
Introduces
online focus group

2003
Wal-Mart commits
To use RFID

2002
Web-conferencing
Software
introduced

2010

1980
1987
IRI conducts
first scanner
tracking study

1991
WWW
developed

1996
Internet
World Exposition
held

2002
High-speed
chip technology
for servers

2009
76.3% in
US have
Internet
access