Chapter 1Chapter 1
Research Research
in Businessin Business
McGraw-Hill/IrwinBusiness Research Methods, 10e
Copyright © 2008 by The McGraw-Hill Companies, Inc. All Rights Reserved.
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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.
Learning Objectives
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PulsePoint: Research Revelations
23 The percent of firms planning significant hiring who plan to hire highly-educated professionals.
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Research Should Help Respond to Change
“Enterprises have long recognized the need
to better sense and respond to business change.
What’s 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
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•A process of determining, acquiring,analyzing, synthesizing, and disseminatingrelevant business data, information, andinsights to decision makers in ways thatmobilize the organization to take appropriate business actions that, in turn, maximize business performance
Business Research Defined
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Research Should Reduce Risk
The primary purpose of
research is to reduce the
level of risk of a marketing
decision
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What’s Changing in Business that Influences Research
Critical Scrutiny of Business
Computing Power & Speed
Computing Power & Speed
Battle for Analytical
Talent
Battle for Analytical
Talent
FactorsFactors
Information Overload
Shifting Global
Economics
Shifting Global
Economics
Government Intervention
Government Intervention
Technological Connectivity
Technological Connectivity
New Research
Perspectives
New Research
Perspectives
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Computing Power and Speed
Real-time Access
Real-time Access
FactorsFactors
Lower-cost Data
Collection
Powerful Computation
Powerful Computation
Better Visualization
Tools
Better Visualization
Tools
Integration of Data
Integration of Data
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Business Planning Drives Business Research
Organizational Mission
BusinessStrategies
BusinessTactics
Business Goals
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Business Decisions and Research
Häagen-Dazs Tactics– Super premium – Dozens of flavors– Small packages– Signature colors on
packaging– Available in franchise
and grocery stores
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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
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Sources of Business Intelligence
Business Intelligence
Government/Regulatory
Economic
Competitive
Demographic
Technological Cultural/Social
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Hierarchy of Business Decision Makers
Visionaries
Intuitive Decision Makers
Standardized Decision Makers
Visionaries
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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?
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Information Value Chain
Characteristics
Data collection/ transmission
Data interpretation
Models
Decisionsupport systems
Data management
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Characteristics of Good Research
Clearly defined purposeClearly defined purpose
Detailed research processDetailed research process
Thoroughly planned designThoroughly planned design
High ethical standardsHigh ethical standards
Limitations addressedLimitations addressed
Adequate analysisAdequate analysis
Unambiguous presentationUnambiguous presentation
Conclusions justifiedConclusions justified
CredentialsCredentials
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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
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Proprietary Research
Decision Analyst, Inc. uses Internet-based concept testingcalled Conceptor to examine new product concepts
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Syndicated Services
Nielsen Media Researchprovides audience data for television programs like Court TV
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Some Syndicated Data Providers
• AC Nielsen• Scarborough• Millward Brown• Nielsen Media Research• Roper ASW• CSA TMO• Yahoo!• ORC International
• DoubleClick• Nielsen/NetRatings• Taylor Nelson Sofres
Intersearch• J.D. Power Associates• MediaMark• Simmon (SMRB)• BRMB• Information Resources Inc.
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Specialty Business Research Firms
Methodology
Process
Industry
Participant group
Geographic Region
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Trade Associations
NHRANHRA
CASROCASRO
MRAMRA
ESOMARESOMAR
BRABRA
AMAAMA
WAOBRPWAOBRP
MPAMPA
NABNAB
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Key Terms
• Custom Researcher• Full-service researcher• Specialty researcher
• Syndicated data provider• Omnibus researcher• Omnibus study
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Information Revolution
1960
U.S. DODcommissionsforerunner of
Internet
1964 OCR shows
promise
1968Word processing first demonstrated
1971First CATI
surveyconducted
1972Optical laser disk revealed
1973UPC bar-code
scanningintroduced
1975Microsoft
is born
1979First
VisiCalc ships
1964 IBM
introduces model 360
1968SPSS created
1971Intel introduces first
microprocessor
1973Basic ideas of Internet created
1976 Apple I released
1980Apple owns
50% ofpc market
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Information Revolution
1980
1981IBMPC
released
1987 First
Internetsurvey
1990sOCR used for
data entry
1993WWW experiences
3,400X growth in service traffic
1994Greenfield Online
Introducesonline focus group
2001Online survey
software widelyavailable
2002Web-conferencing
Softwareintroduced
1987 IRI conductsfirst scanner
tracking study
1991WWW
developed1996
Internet World Exposition
held2002
High-speedchip technology
for servers
200774.9% inUS haveInternet access
2003Wal-Mart commits
To use RFID
2008