Chapter 1: Research in

Business

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 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.

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 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

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 PulsePoint:
Research Revelations

34
The percent of employees who never
consider that their bosses, clients, or
colleagues think before posting to a
blog, discussion forum, or social
network.

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 Why Study Business Research?

Business
research provides
information to
guide business
decisions

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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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 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.
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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

New
Information Technological
Research
Overload Connectivity
Perspectives
Computing Shifting
Power & Global
Speed Economics
Factors
Battle for Critical
Analytical Scrutiny of
Talent Business
Government
Intervention
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 Computing Power and Speed

Lower-cost
Data
Collection
Better
Integration of
Visualization
Data
Tools

Factors

Real-time Powerful
Access Computation

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 Business Planning Drives
Business Research

Organizational Business
Mission Goals

Business Business
Strategies Tactics

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 1212Business Decisions and Research

Häagen-Dazs
• 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 •Business Intelligence

Systems Systems
•Numerous elements of •Ongoing information
data organized for collection
retrieval and use in •Focused on events,
business decision trends in micro and
making macro-environments
•Stored and retrieved
via
– Intranets
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 Sources of Business Intelligence

Government/
Competitive
Regulatory

Demographic Economic
Business
Intelligence

Technological Cultural/
Social

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 Hierarchy of Business Decision
Makers

Visionaries
Visionaries

Standardized
Decision Makers

Intuitive Decision Makers

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 Minute Main and Business
Research

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 P&G has a world-class research
department

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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

Data collection/ Data

transmission management

Characteristics

Decision Data
support systems interpretation

Models

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 The Research Process

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 Characteristics of Good Research

Clearly defined purpose

Detailed research process
Thoroughly planned design
High ethical standards
Limitations addressed
Adequate analysis
Unambiguous presentation
Conclusions justified
Credentials
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 Categories of Research

Applied Basic (Pure)

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 Types of Studies

Reporting Descriptive

Explanatory Predictive

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 Key Terms

• Applied research • Management dilemma

• Business intelligence • Predictive studies
system (BIS) • Pure research
• Business research • Reporting studies
• Control • Return on Investment
• Decision support (ROI)
system • Scientific method
• Descriptive studies • Strategy
• Explanatory Studies • Tactics
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 Appendix 1a
•How the Research
Industry Works

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 Who Conducts Business Research?

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 Some Organizations Use
Internal Research Sources

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 Some Organizations Use
External Research Sources

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 Business Research Firms

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 Proprietary Research

Decision Analyst,
Inc. uses Internet-
based concept
testing called
Conceptor to
examine new
product concepts

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 Syndicated Services

Nielsen Media
Research
provides audience
data for television
programs like
Court TV

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 Some Syndicated Data Providers

•AC Nielsen •DoubleClick

•Scarborough •Nielsen/NetRatings
•Millward Brown •Taylor Nelson Sofres
Intersearch
•Nielsen Media
•J.D. Power Associates
Research
•MediaMark
•Roper ASW •Simmon (SMRB)
•CSA TMO •BRMB
•Yahoo! •Information Resources Inc.
•ORC International
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 Specialty Business Research Firms

Methodology

Process

Industry

Participant group

Geographic Region
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 Communication Agencies

Sales Advertising
Promotion

Direct Public
Business Relations

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 Consultants and
Trade Associations

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 Trade Associations

NHRA
CASRO
MRA
ESOMAR
BRA
AMA
WAOBRP
MPA
NAB
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 Many Firms Conduct Research

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 Key Terms

•Custom Researcher
•Full-service researcher
•Specialty researcher
•Syndicated data provider
•Omnibus researcher
•Omnibus study

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 Chapter 1
Addendum

•Research Timeline

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 Information Revolution

1964 1971 1973

First CATI
OCR UPC bar-code
survey
shows scanning 1979
conducted
promise introduced First
U.S. DOD VisiCalc
commissions ships
1968 1972 1975
forerunner of Word processing Optical laser Microsoft
Internet first demonstrated disk revealed is born

1960 1980

1968 1973 1980

1964 SPSS created Basic ideas of Apple owns
IBM Internet created 50% of
introduces pc market
model 360 1971
Intel introduces first 1976
microprocessor Apple I
released

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 Information Revolution

1993 2001
1987 2003
First WWW experiences Online survey
3,400X growth software widely Wal-Mart commits
Internet To use RFID
survey in service traffic available

1981 1994 2002

IBMPC 1990s Greenfield Online Web-conferencing
released OCR used for Introduces Software
data entry online focus group introduced

2010
1980
1991 2009
WWW 1996 76.3% in
1987 developed Internet
IRI conducts US have
World Exposition Internet
first scanner held
tracking study 2002 access
High-speed
chip technology
for servers

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