Chapter 1 Research in Business Mc GrawHillIrwin Business

Chapter 1 Research in Business Mc. Graw-Hill/Irwin Business Research Methods, 10 e Copyright © 2008 by The Mc. Graw-Hill Companies, Inc. All Rights Reserved.

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 nature of the research process.

3 Why Study Business Research? Business research provides information to guide business decisions

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 4

5 Research Should Reduce Risk The primary purpose of research is to reduce the level of risk of a marketing decision

6 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

What’s Changing in Business that Influences Research New Research Perspectives Computing Power & Speed Information Overload Factors Battle for Analytical Talent Technological Connectivity Shifting Global Economics Critical Scrutiny of Business Government Intervention 7

8 Computing Power and Speed Lower-cost Data Collection Integration of Data Better Visualization Tools Factors Real-time Access Powerful Computation

Business Planning Drives Business Research Organizational Mission Business Goals Business Strategies Business Tactics 9

10 Business Decisions and Research Häagen-Dazs Tactics – Super premium – Dozens of flavors – Small packages – Signature colors on packaging – Available in franchise and grocery stores

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

12 Sources of Business Intelligence Government/ Regulatory Demographic Competitive Economic Business Intelligence Technological Cultural/ Social

13 Hierarchy of Business Decision Makers Visionaries Standardized Decision Makers Intuitive Decision Makers

14 Minute Main and Business Research

Eastman Kodak has a world-class research department 15

16 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?

17 Information Value Chain Data collection/ transmission Data management Characteristics Decision support systems Data interpretation Models

18 The Business Research Process

19 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

20 Two Categories of Research Applied Basic (Pure)

21 Four Types of Studies Reporting Descriptive Explanatory Predictive

22 Key Terms • Applied research • Business intelligence system (BIS) • Business research • Control • Decision support system • Descriptive studies • Explanatory Studies • • • Management dilemma Predictive studies Pure research Reporting studies Return on Investment (ROI) • Scientific method • Strategy • Tactics

Appendix 1 a How the Research Industry Works Mc. Graw-Hill/Irwin Business Research Methods, 10 e Copyright © 2008 by The Mc. Graw-Hill Companies, Inc. All Rights Reserved.

24 Who Conducts Business Research?

Some Organizations Use Internal Research Sources 25

Some Organizations Use External Research Sources 26

27 Business Research Firms

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

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

30 Some Syndicated Data Providers • • AC Nielsen Scarborough Millward Brown Nielsen Media Research Roper ASW CSA TMO Yahoo! ORC International • Double. Click • Nielsen/Net. Ratings • Taylor Nelson Sofres Intersearch • J. D. Power Associates • Media. Mark • Simmon (SMRB) • BRMB • Information Resources Inc.

31 Specialty Business Research Firms Methodology Process Industry Participant group Geographic Region

32 Communication Agencies Sales Promotion Advertising Direct Business Public Relations

Consultants and Trade Associations 33

34 Trade Associations NHRA CASRO MRA ESOMAR BRA AMA WAOBRP MPA NAB

35 Many Firms Conduct Research

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

Chapter 1 Addendum Research Timeline Mc. Graw-Hill/Irwin Business Research Methods, 10 e Copyright © 2008 by The Mc. Graw-Hill Companies, Inc. All Rights Reserved.

38 Information Revolution 1971 First CATI survey conducted 1964 OCR shows promise U. S. DOD commissions forerunner of Internet 1968 Word processing first demonstrated 1973 UPC bar-code scanning introduced 1972 Optical laser disk revealed 1975 Microsoft is born 1979 First Visi. Calc ships 1960 1964 IBM introduces model 360 1968 SPSS created © 2008 Mc. Graw-Hill Companies, Inc. All Rights Reserved. 1971 Intel introduces first microprocessor 1973 Basic ideas of Internet created 1980 Apple owns 50% of pc market 1976 Apple I released

39 Information Revolution 1993 WWW experiences 3, 400 X growth in service traffic 1987 First Internet survey 1981 IBMPC released 1990 s OCR used for data entry 2001 Online survey software widely available 1994 Greenfield Online Introduces online focus group 2003 Wal-Mart commits To use RFID 2002 Web-conferencing Software introduced 2008 1980 1987 IRI conducts first scanner tracking study 1991 WWW developed © 2008 Mc. Graw-Hill Companies, Inc. All Rights Reserved. 1996 Internet World Exposition held 2002 High-speed chip technology for servers 2007 74. 9% in US have Internet access