Introduction to Business Research Assistant Professor Dr. Chanin Yoopetch
Business Research Defined Business research is defined as the systematic and objective process of generating information for aid in making business decisions. - Including financial research, operational research, Marketing research
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.
I don’t know if we should offer on-site child care? InformationReducesUncertainty
“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 vddf
Business Research Types Basic research Applied research
Basic Research • Attempts to expand the limits of knowledge. • Not directly involved in the solution to a pragmatic problem.
Basic Research Example • 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? • Do consumers experience cognitive dissonance in low-involvement situations?
"The secret of success is to know something nobody else knows. " Aristotle Onassis
Applied Research • Conducted when a decision must be made about a specific real-life problem
Applied Research Examples • Should McDonalds add Italian pasta dinners to its menu? • Business research told McDonald’s it should not? • Should Procter & Gamble add a high-priced home teeth bleaching kit to its product line? • Research showed Crest Whitestrips would sell well at a retail price of $44
ScientificMethod • The analysis and interpretation of empirical evidence (facts from observation or experimentation) to confirm or disprove prior conceptions.
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
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.
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”
Determining When to Conduct Business Research • Time constraints • Availability of data • Nature of the decision • Benefits versus costs
Determining When to Conduct Business Research Availability of Data Benefits vs. Costs Conducting Business Research Time Constraints Nature of the Decision Is sufficient time available before a managerial decision must be made? Is the infor- mation already on hand inadequate for making the decision? Is the decision of considerable strategic or tactical importance? Does the value of the research information exceed the cost of conducting research? Yes Yes Yes Yes No No No No Do Not Conduct Business Research
Value versus Costs • Potential Value of a Business Research Effort Should Exceed Its Estimated Costs
Value Should Exceed Estimated Costs Costs Value • Research expenditures • Delay of business decision and possible disclosure of information to rivals • Possible erroneous research results • Decreased certainty • Increased likelihood of a correct decision • Improved business performance and resulting higher profits
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
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.
Business Research in the 21st Century • Increased globalization • Growth of the Internet and other information technologies
Global Research • Business Research is increasingly global • Market knowledge is essential • A.C. Nielsen - more that 67% international business
Global Business Research • General information about country - economic conditions and political climate • Cultural and consumer factors • Market and competitive conditions - demand estimation
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" has a new meaning.
Internet Research • Seeking facts and figures about an issue • Surveys on Web sites
Redefining Marketing Research The American Marketing Association (AMA) redefined Marketing Research as: The function which links the consumer, the customer, and public to the marketer through INFORMATION
Used to identify and define market opportunities and problems Generate, refine, and evaluate marketing performance Monitor marketing performance Improve understanding of marketing as a process Redefining Marketing Research Information
Definition of Marketing Research Marketing research is the systematic and objective • identification • collection • analysis • dissemination • and use of information for the purpose of improving decision making related to the • identification and • solution of problems and opportunities in marketing.
Market Research • Specifies the information necessary to address these issues • Manages and implements the data collection process • Analyzes the results • Communicates the findings and their implications
Classification of Marketing Research Problem Identification Research • Research undertaken to help identify problems which are not necessarily apparent on the surface and yet exist or are likely to arise in the future. Examples: market potential, market share, image, market characteristics, sales analysis, forecasting, and trends research. Problem Solving Research • Research undertaken to help solve specific marketing problems. Examples: segmentation, product, pricing, promotion, and distribution research.
Problem Identification Research Problem Solving Research Market Potential Research Market Share Research Market Characteristics Research Sales Analysis Research Forecasting Research Business Trends Research Segmentation Research Product Research Promotion Research Distribution Research A Classification of Marketing Research Marketing Research
PRODUCT RESEARCH SEGMENTATION RESEARCH • Test concept • Determine optimal product design • Package tests • Product modification • Brand positioning and repositioning • Test marketing • Control score tests • Determine the basis of segmentation • Establish market potential and responsiveness for various segments • Select target markets • Create lifestyle profiles: demography, media, and product image characteristics Problem Solving Research
PROMOTIONAL RESEARCH • Optimal promotional budget • Sales promotion relationship • Optimal promotional mix • Copy decisions • Media decisions • Creative advertising testing • Evaluation of advertising effectiveness • Claim substantiation $ALE 0.00% APR PRICING RESEARCH • Pricing policies • Importance of price in brand selection • Product line pricing • Price elasticity of demand • Initiating and responding to price changes Problem Solving Research
DISTRIBUTION RESEARCH Determine… • Types of distribution • Attitudes of channel members • Intensity of wholesale & resale coverage • Channel margins • Location of retail and wholesale outlets Problem Solving Research
Research Process Step 1: Problem Definition Step 2: Development of an Approach to the Problem Step 3: Research Design Formulation Step 4: Fieldwork or Data Collection Step 5: Data Preparation and Analysis Step 6: Report Preparation and Presentation
Customer Groups Consumers Employees Shareholders Suppliers Uncontrollable Controllable Environmental Marketing Factors Variables Marketing • Economy • Technology • Laws & Regulations • Social & Cultural Factors • Political Factors • Product • Pricing • Promotion • Distribution Research Marketing Assessing Providing Decision Information Information Making Needs Marketing Managers • Market Segmentation • Target Market Selection • Marketing Programs • Performance & Control The Role of Marketing Research
RESEARCH SUPPLIERS EXTERNAL INTERNAL LIMITED SERVICE FULL SERVICE Branded Products and Services Field Services Syndicate Services Internet Services Coding and Data Entry Services Customized Services Standardized Services Data Analysis Services Analytical Services Marketing Research Suppliers & Services