This document provides an overview of business research. It defines business research as the systematic process of generating objective information to aid decision making. Business research includes areas like marketing, operations, and motivational research. It must be objective and detached to facilitate managerial decisions. The two main types are basic research, which expands knowledge without solving specific problems, and applied research, which addresses real-life business problems. Factors considered in deciding whether to conduct research include time, data availability, resources, the nature of the decision, and the costs and benefits of the research. Major topics of business research are also outlined.

1. Business
Research Methods
Chapter 1:
Business Research - Introduction

2. Business Research Defined
Business research is defined as the
systematic and objective process of
generating information for aid in
making business decisions.

3. Scope of Business Research
• Used to solve operational and planning
problems - Mktg, HR, Finance, Prod’n
• Major forms of Research –
• Mkt research – understanding mktg
environment
• Operations Research – use of mathematical,
logical and analytical methods to find
optimal solutions
• Motivational research – Why employees,
consumers behave in a particular way

4. Business Research
• Research information is neither intuitive nor
haphazardly gathered.
• Literally, research (re-search) -“search
again”
• Business research must be objective
• Detached and impersonal rather than biased
• It facilitates the managerial decision process
for all aspects of a business.

5. Information
Reduces
Uncertainty
Decision
Making
with more
information

6. “It ain’t the things we don’t know
that gets us in trouble. It’s the
things we know that ain’t so.”
Artemus Ward

7. Business Research Types
Basic research
Applied research

8. Basic Research
Refers to focused, systematic study or investigation
undertaken to discover new knowledge or interpretations
and establish facts or principles in a particular field
• Attempts to expand the limits of knowledge.
• Not directly involved in the solution to a
pragmatic problem.

9. Basic Research Example
• Law of demand and supply, theory of price
• Is executive success correlated with high
need for achievement?
• Are members of highly cohesive work
groups more satisfied than members of less
cohesive work groups?
• Understanding consumer buying process,
consumer learning process
• Do consumers experience cognitive
dissonance in low-involvement situations?

10. "The secret of success is to know something
nobody else knows. "
Aristotle Onassis

11. Applied Research
• Conducted when a decision must be made
about a specific real-life problem

12. Applied Research Examples
• Should McDonalds add Italian pasta dinners
to its menu?
• Business research told McDonald’s it
should not?
• Should Procter & Gamble increase or
decrease the price of ARIEL?
• Examining consumer response to a loyalty
program

13. Scientific Method
• The analysis and interpretation of empirical
evidence (facts from observation or
experimentation) to confirm or disprove
prior conceptions.

14. The Decision-making Process
Associated with the Development
and Implementation of a Strategy
• Identifying problems and opportunities
• Diagnosis and assessment
• Selecting and implementing a course of
action
• Evaluating the course of action

15. Evaluation Research
• Evaluation research is the formal, objective
measurement and appraisal of the extent to
which a given activity, project, or program
has achieved its objectives.

16. Performance-monitoring
Research
• Research that regularly provides feedback
for evaluation and control
• Indicates things are or are not going as
planned
• Research may be required to explain why
something “went wrong”

17. Total Quality Management
(TQM)
• A business philosophy that embodies the
belief that the management process must
focus on integrating customer-driven
quality throughout the organization.

18. TQM
• Stresses continuous improvement of
product quality and service.
• Managers improve durability and enhance
features as the product ages.
• Managers strive to improve delivery and
other services to keep their companies
competitive

19. Business Research decision
•
•
•
•
•
Time constraints
Availability of data
Resource constraints
Nature of the decision
Benefits versus costs

20. Determining When to Conduct
Business Research
Availability of Data
Benefits
Time Constraints
Nature of the Decision vs. Costs
Is sufficient time
Yes
available before
a managerial
decision
Needs to be made?
No
Is the information already
on hand
inadequate
for making
the decision?
No
Yes
Is the decision
Yes
of considerable
strategic
or tactical
importance?
Does the value
of the research Yes
information
exceed the cost
of conducting
research?
No
Do Not Conduct Business Research
No
Conducting
Business
Research

21. Value versus Costs
• Potential Value of a Business Research
Effort Should Exceed Its Estimated Costs

22. Value Should Exceed
Estimated Costs
Costs
Value
•Decreased
uncertainty
•Increased likelihood
of a correct decision
•Improved business
performance and
resulting higher
profits
•Research
expenditures
•Delay of business
decision and
possible disclosure
of information to
rivals
•Possible erroneous
research results

23. Major Topics for Research in
Business
• General Business Conditions and Corporate
Research
• Financial and Accounting Research
• Management and Organizational Behavior
Research
• Sales and Marketing Research
• Information Systems Research
• Corporate Responsibility Research

24. Cross-functional Teams
• Cross-functional teams are composed of
individuals from various organizational
departments such as engineering,
production, finance, and marketing who
share a common purpose.

25. Business Research in the 21st
Century
• Increased globalization
• Growth of the Internet and other
information technologies

26. Global Research
• Business Research is increasingly global
• Market knowledge is essential
• A.C. Nielsen - more that 67% international
business

27. Global Business Research
• General information about country economic conditions and political climate
• Cultural and consumer factors
• Market and competitive conditions demand estimation

28. The Internet
Is Transforming Society
• Time is collapsing.
• Distance is no longer an obstacle.
• Crossing oceans is only a mouse click
away.
• People are connected 24 hours a day, seven
days a week.
• "Instantaneous" information is available.

29. Internet Research
• Seeking facts and figures about an issue
• Surveys on Web sites