Introduction to Business Research

Dr. Tejinderpal Singh

Assistant Professor
University Business School
tejinderubs@gmail.com

Business Problems
1. Our two sales people are doing well, but
the other eight are struggling
2. Where should I aim my marketing
campaign?
3. How will I know if my marketing
campaign is getting a good result?
4. There are not enough customers for my
store.
5. Attrition rate is very high in my
company

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

Business Research Types

Basic
Research
(Pure)

Applied
Research

Meaning

Attempts to expand the

limits of knowledge.
Not directly involved in
the solution to a
pragmatic problem
May not have any
commercial Value

BASIC
RESEARCH

Examples
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?

Meaning

Conducted when a
decision must be
made about a specific
real-life problem
Have commercial
value

APPLIED
RESEARCH

Examples
Should McDonalds add Italian pasta
dinners to its menu?
Business research told McDonalds it
should not?
Should Procter & Gamble add a highpriced home teeth bleaching kit to its
product line?
Research showed Crest Whitestrips would
sell well at a retail price of $44

Business Research Features

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

Managerial Value of Business

Research
Identifying problems or opportunities
Diagnosing and assessing problems or
opportunities
Selecting and implementing a course of
action
Evaluation the course of action

Determining When to Conduct Business

Research
Time constraints
Availability of
data
Nature of the
decision
Benefits versus
costs

Determining When to Conduct Business

Research

Yes
Time Constraints
Is sufficient time
available before
a managerial
decision must
be made?

NO

Availability of
Data

Nature of the
Decision

Is the
information
already on hand
inadequate for
making the
decision?

NO

Yes

Yes

Yes

Benefits vs.
Costs

Is the decision
of considerable
strategic or
tactical
importance?

Does the value

of the research
information
exceed the cost
of conducting
research?

NO

Do Not Conduct Business Research

NO

Conduc
t
Busines
s
Researc
h

Value versus Costs

Potential Value of a Business Research Effort

Should Exceed its Estimated Costs

Value Should Exceed Estimated Costs

Value
Decreased
uncertainty
Increased likelihood
of a correct
decision
Improved business
performance and
resulting higher
profits

Cost
Research
expenditures
Delay of business
decision and
possible disclosure
of information to
rivals
Possible erroneous
research results

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
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Who Conduct Business

Research?

Intern
al

External

Internal
P&G studies its customers - both final
consumers and the trade - through
continuous marketing research and
intelligence gathering. It paints its toll-free
800 number on every product."
Philip Kotler, in Marketing
Management.
"Unlike a lot of other companies, Procter
really does use the research that they do.
They like to listen to their consumers."1
A former employee in the marketing
research department at P&G.

With the setting up of its MR department in

1924, P&G became one of the first
companies in the world to conduct formal
research on consumers' needs and
preferences.

External research suppliers

Business Research Firms

Communication
Agencies
Consultants
Trade Associations

Business
Research
Firms

Full Service

Custom

Proprietary

Specialists

Methods

Syndicated
Data

Other

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

Communication Agencies

Sales
Promotion

Direct
Business

Advertising

Public
Relations

1-24

Consultants and Trade Associations

Consultants
Business
General
Business

Trade
Associations
General
business
Business
specialties
Research
specialties

1-25

Who Conducts Research?

1-26

Internet Research
Seeking facts and figures about an issue
Surveys on Web sites
Web analytics