1-1

Chapter 1

Research
in Business

McGraw- © 2006 The McGraw-Hill Companies, Inc., All Rights

Hill/Irwin Reserved.
 1-2

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 value of learning business research
process skills
 1-3

Why Study
Business Research?

Business
research provides
information to
guide business
decisions
 1-4

Business Research
Defined
•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
 1-5

Studying Business
Research
New
New Greater
Greater
Growth of
Research
Research Computing
Computing
Internet
Perspectives
Perspectives Power
Power

Stakeholder
Stakeholder Business
Business asas aa
Influence
Influence discipline
discipline
Factors
Factors

Competition Complex
Competition
Decisions

Government
Government
Intervention
Intervention
 1-6

Computer Advances

Data warehousing Data mining

• Storing vast amounts • Applying
of data in electronic mathematical models
storehouses to extract meaningful
knowledge from data
in internal databases
 1-7

Business Planning Drives

Business Research

Organizational Business
Mission Goals

Business Business
Strategies Tactics
 1-8

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 making trends in micro and
• Stored and retrieved via macro-environments
– Intranets
– Extranets
 1-9

Exhibit 1-1 Sources of

Business Intelligence

Government/
Competitive
Regulatory

Demographic Economic
Business
Intelligence

Technological Cultural/
Social
 1-10

Business Tactics and

Research

Häagen-Dazs Tactics
– Super premium
– Dozens of flavors
– Small packages
– Signature colors on
packaging
– Available in franchise
and grocery stores
 1-11

Exhibit 1-2 Hierarchy of

Business Decision Makers

Visionaries

Standardized
Decision Makers

Intuitive
Intuitive Decision
Decision Makers
Makers
 1-12

Exhibit 1-2 Hierarchy of

Business Decision Makers

Visionaries

Standardized
Decision Makers

Intuitive Decision Makers

 1-13

Exhibit 1-2 Hierarchy of

Business Decision Makers

Visionaries
Visionaries

Standardized
Decision Makers

Intuitive Decision Makers

 1-14

Exhibit 1-3 Minute Main

and Business Research
 1-15

Research May Be
Unnecessary
• Can information be applied to a critical
decision?
• Does it improve managerial decision-
making?
• Are sufficient resources available?
 1-16

Information Value Chain

Data collection/ Data

transmission management

Characteristics

Decision Data
support systems interpretation

Models
 1-17

Exhibit 1-8 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
 1-18

Exhibit 1-4 Who Conducts

Business Research?

Internal External
 1-19

Eastman Kodak has a world-

class research department
 1-20

Exhibit 1-4
Business Research Suppliers

External Research Suppliers

Business Research Firms

Communication Agencies

Consultants

Trade Associations
 1-21

Business Research Firms

Business Research Firms

Full Service Specialists

Custom Methods

Syndicated
Proprietary
Data

Other
 1-22

Proprietary Research

Decision Analyst, Inc.

uses Internet-based
concept testing
called Conceptor
to examine new
product concepts
 1-23

Syndicated Services

Nielsen Media
Research
provides audience
data for television
programs like
Court TV
 1-24

Exhibit 1-6 Some

Syndicated Data Providers
• AC Nielsen • DoubleClick
• Scarborough • Nielsen/NetRatings
• Millward Brown • Taylor Nelson Sofres
• Nielsen Media Research Intersearch
• Roper ASW • J.D. Power Associates
• CSA TMO • MediaMark
• Yahoo! • Simmon (SMRB)
• ORC International • BRMB
• Information Resources Inc.
 1-25

Specialty Business
Research Firms

Methodology

Process

Industry

Participant group

Geographic Region
 1-26

Communication Agencies

Sales Advertising
Promotion

Direct Public
Business Relations
 1-27

Consultants and
Trade Associations
• Consultants • Trade Associations
– Business – General business
– General Business – Business
specialties
– Research
specialties
 1-28

Trade Associations
NHRA
NHRA
CASRO
CASRO
MRA
MRA
ESOMAR
ESOMAR
BRA
BRA
AMA
AMA
WAOBRP
WAOBRP
MPA
MPA
NAB
NAB
 1-29

Exhibit 1-4 Who Conducts

Research?
 1-30

Key Terms
• Business intelligence • Intranet
system • Management dilemma
• Business research
• Omnibus researcher
• Control
• Omnibus Study
• Custom Researcher
• Data mining
• Proprietary Methodology
• Data warehouse • Return on Investment
• Decision support system (ROI)
• Extranet • Scientific method
• Full-service researcher • Strategy
• Syndicated data provider
• Tactics