Chapter 1

Research
in Business

McGraw-Hill/Irwin

Copyright 2011 by The McGraw-Hill Companies, Inc. All Rights Reserved.

Management Dilemma
A problem or opportunity that requires
a management decision.

1-2

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

1-3

Why Study Business Research?

Business
research provides
information to
guide business
decisions

1-4

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

1-5

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

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
1-7

Research Should Reduce Risk

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

1-8

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
1-9

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
1-10

Business Planning Drives

Business Research

Organizational
Mission

Business
Goals

Business
Strategies

Business
Tactics

1-11

Business Decisions and Research

Hagen-Dazs Tactics
Super premium
Dozens of flavors
Small packages
Signature colors on
packaging
Available in franchise
and grocery stores
1-12

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

1-13

Sources of
Business Intelligence
Government/
Regulatory

Demographic

Competitive

Economic

Business
Intelligence

Technological

Cultural/
Social
1-14

Hierarchy of Business Decision

Makers

Visionaries
Visionaries
Standardized
Decision Makers

Intuitive Decision Makers

1-15

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?

1-16

Information Value Chain

Data collection/
transmission

Data
management
Characteristics

Decision
support systems

Data
interpretation
Models

1-17

The Research Process

1-18

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
1-19

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 focuses 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?

Types of Studies Used to do

Research
Reporting
provide a summation of data, often recasting data to achieve a
deeper understanding or to generate statistics for comparison.

Descriptive
Discovers answers to questions who, what, when, where, and how.
May involve data collection and distribution techniques

Explanatory
Goes beyond description & attempts to explain the reasons of
phenomenon that descriptive study only observed.
Correlational study

Predictive
Predicts variables for future such as attitudes, time of year, proximity
of air routes.

Types of Studies

Reporting

Descriptive

Explanatory

Predictive

1-22

Specialty Business Research Firms

Methodology
Process
Industry
Participant group
Geographic Region
1-23