Chapter 1

Research
in Business

McGraw-Hill/Irwin

Copyright 2008 by The McGraw-Hill Companies, Inc. All

Rights Reserved.

1-2

Why Study Business Research?

Business
research provides
information to
guide business
decisions

1-3

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

1-4

Research Should Reduce Risk

The primary
purpose of
research is to
reduce the
level of risk of
a marketing
decision

Whats Changing in Business

that Influences Research
New
New
Research
Research
Perspectives
Perspectives
Computing
Computing
Power
Power &&
Speed
Speed

Information
Overload

Factors
Factors

Battle
Battle for
for
Analytical
Analytical
Talent
Talent

Technological
Technological
Connectivity
Connectivity
Shifting
Shifting
Global
Global
Economics
Economics
Critical
Scrutiny of
Business

Government
Government
Intervention
Intervention

1-5

1-6

Computing Power and Speed

Lower-cost
Data
Collection
Integration
Integration of
of
Data
Data

Better
Better
Visualization
Visualization
Tools
Tools

Factors
Factors
Real-time
Real-time
Access
Access

Powerful
Powerful
Computation
Computation

Business Planning Drives Business

Research

Organizational
Mission

Business
Goals

Business
Strategies

Business
Tactics

1-7

1-8

Information Sources
Business Intelligence Systems
Ongoing information collection
Focused on events, trends in micro and macroenvironments

1-9

Sources of Business Intelligence

Government/
Regulatory

Demographic

Competitive

Economic

Business
Intelligence

Technological

Cultural/
Social

1-10

Hierarchy of Business Decision Makers

Visionaries
Visionaries
Standardized
Decision Makers

Intuitive Decision Makers

1-11

Eastman Kodak has a world-class research

department

1-12

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?

1-13

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

1-14

Two Categories of Research

Applied

Basic (Pure)

1-15

Four Types of Studies

Reporting

Descriptive

Explanatory

Predictive