Chapter 1 Slides

Research Methods for BusinessResearch Methods for Business © 2007 Hair, Money, Samouel and Page© 2007 Hair, Money, Samouel and Page

Chapter 1Chapter 1

Business Research Business Research For The 21For The 21stst Century Century


Chapter 1Chapter 1

Learning Outcomes:Learning Outcomes:

1.1. Provide an orientation to modern day Provide an orientation to modern day business research.business research.

2.2. Define business research and the people Define business research and the people who use it.who use it.

3.3. Discuss recent business trends and how Discuss recent business trends and how they effect business research.they effect business research.

4.4. Examine research related technologies.Examine research related technologies.

5.5. Introduce the continuing case used Introduce the continuing case used throughout the text.throughout the text.


Business ResearchBusiness Research

o . . . seeks to predict and explain all phenomena . . . seeks to predict and explain all phenomena

that taken together comprise(terdiri) the ever-that taken together comprise(terdiri) the ever-

changing business environment.changing business environment.

o . . . finds answers that (a) improve business . . . finds answers that (a) improve business

performance, and (b) improve the lives of performance, and (b) improve the lives of

customers, employees and owners.customers, employees and owners.

o . . . . is a truth-seeking function that gathers, . . . . is a truth-seeking function that gathers,

analyzes, interprets and reports information so analyzes, interprets and reports information so

that business decision makers become more that business decision makers become more

effective.effective.


Key Elements of Business Key Elements of Business ResearchResearch

• Business research is broad.Business research is broad.(bidang,bsr)(bidang,bsr)

• Business research can be Business research can be formal.formal.

• Business research can be Business research can be informal.informal.

• Good research is replicable.Good research is replicable.• Good research should provide Good research should provide

more benefit than it costs.more benefit than it costs.


Applied and Basic Business Applied and Basic Business ResearchResearch

Applied business research – is motivated by an Applied business research – is motivated by an attempt (p’cbaan) to solve a particular problem attempt (p’cbaan) to solve a particular problem faced by a particular(khas,istimewa) faced by a particular(khas,istimewa) organization.organization.

Basic business research – is motivated by a Basic business research – is motivated by a desire(idam) to better understand some desire(idam) to better understand some business related phenomena as it applies to all business related phenomena as it applies to all of an industry or all of business in general.of an industry or all of business in general.


Applied and Basic Business Applied and Basic Business ResearchResearch

AppliedApplied

•What is the effect of What is the effect of digital audio and photo digital audio and photo managing on Samsung’s managing on Samsung’s DVD market share?DVD market share?

•Can prospective Can prospective employee psychological employee psychological profiles be used to profiles be used to reduce turnover at reduce turnover at Erasmus University Erasmus University Medical Campus?Medical Campus?

BasicBasic•How does How does

technological technological turbulence affect turbulence affect business business performance?performance?

•Does job stress affect Does job stress affect the job performance the job performance and satisfaction of and satisfaction of male and female male and female service providers service providers equally?equally?


Applied and Basic Business Applied and Basic Business ResearchResearchAppliedApplied

•How will stocking wines How will stocking wines from a new French from a new French vineyard in Languedoc vineyard in Languedoc Roussillon affect the Roussillon affect the profitability of Waitrose profitability of Waitrose retail outlets in the United retail outlets in the United Kingdom?Kingdom?

•How would imposing How would imposing reduced working hours reduced working hours rather than downsizing rather than downsizing affect employee morale at affect employee morale at Volkswagen AG?Volkswagen AG?

BasicBasic•What factors relate to What factors relate to

consumer perceptions of a consumer perceptions of a wine’s overall quality?wine’s overall quality?

• Is employee morale more Is employee morale more related to reductions in the related to reductions in the working weeks across the working weeks across the employee base or to staff employee base or to staff retrenchment within the retrenchment within the German economy?German economy?


Who Uses Business Research?Who Uses Business Research?

o High Tech FirmsHigh Tech Firmso Low Tech FirmsLow Tech Firms

• Manufacturing Manufacturing • ServiceService

o Not for ProfitsNot for Profits• Charitable(amal) Charitable(amal)

OrganizationsOrganizations• Government OrganizationsGovernment Organizations

Law makersLaw makers CourtsCourts


Business Research Applications for a Start-Up Venture in Online Grocery Business Research Applications for a Start-Up Venture in Online Grocery SalesSales

Decision Decision InvolvedInvolved

Research TopicResearch Topic ImplicationsImplications

What type of capital resources should be used?

Identify the financial and risk implications associated with the various options.

Online grocers are highly capital intensive. The result is cash starvation during the early months of operation.

What markets should we serve?

Identify the potential profitability of potential markets.

Online grocers must identify markets with high volume potential relative to a small service area

What product assortments should be emphasized?

Identify the shopping value associated with product acquisition of various types.

Online grocers must determine the products for which customers believe physical product interaction is a value added process.

What type of personnel should be involved in operations?

What is the impact of outsourcing on perceived service quality?

Online grocers may find it more cost effective to outsource certain operational components including product delivery.

How should customers be attracted?

What is the potential response rate from the different options for inducing trial?

Customer acquisition costs are extremely high for online retailers. Therefore, successful online grocers will likely enjoy relative efficiency in enticing customers.


Relationship MarketingRelationship Marketing

International ResearchInternational Research

Expanding Expanding (m’luaskan) (m’luaskan) Market FreedomMarket Freedom

Trends Trends Impacting Impacting Business Business ResearchResearch

Information RevolutionInformation Revolution


Research Could Prevent Errors Like TheseResearch Could Prevent Errors Like These

Description of SituationDescription of Situation Intended Meaning Intended Meaning (Product Name/Slogan)(Product Name/Slogan)

Interpreted Interpreted MeaningMeaning

English name of a U.S. product and its German interpretation.

Clairol Mist Stick Piece of Manure

English name of a U.S. productand its Spanish interpretation.

Matador (AMC auto) Killer Auto

Japanese interpretation of English name.

Guess Jeans Vulgar/Low-Class/Ugly Jeans

German interpretation of English name.

Puffs Tissue Whorehouse Tissue

German interpretation of product term.

Credit Card Guilt Card

Japanese interpreter’s translation from Japanese into English to be sold in China

Anti-freeze Hot Piss Spray

Japanese interpreter’s translation from Japanese into English to be sold in China

Ready to Eat Pancakes Strawberry Crap Dessert


Information Revolution and ResearchInformation Revolution and Research

• Electronic CommunicationsElectronic Communications

• NetworkingNetworking

• Data Warehouses (gudang) – “Off the Data Warehouses (gudang) – “Off the shelf(para,rak)” datashelf(para,rak)” data

• Organizational LearningOrganizational Learning

• Satellite TechnologySatellite Technology


The KDD process involves the following The KDD process involves the following steps:steps:

1.1. Establishing access to relevant data;Establishing access to relevant data;

2.2. Selecting the set of events (data) to be analyzed;Selecting the set of events (data) to be analyzed;

3.3. Cleaning this data so it is understood by the Cleaning this data so it is understood by the

algorithm;algorithm;

4.4. Developing and using rules for selecting interesting Developing and using rules for selecting interesting

relationships; andrelationships; and

5.5. Developing a report of relationships that may affect Developing a report of relationships that may affect

firm performance.firm performance.


How the information age is How the information age is affecting researchers and affecting researchers and

decision makers:decision makers:

1.1. Matter matters less.Matter matters less.

2.2. Distance matters less.Distance matters less.

3.3. Time matters more.Time matters more.

4.4. Customization matters Customization matters

more.more.

5.5. People matter more.People matter more.


Internal Versus External Researchers?Internal Versus External Researchers?

• Hire outside Hire outside consultants and consultants and researchers?researchers?Does the research Does the research

require special require special expertise?expertise?

Can employees be Can employees be objective?objective?

Are new insights Are new insights desired?desired?

• Perform research “in-Perform research “in-house?”house?”Do we want to save Do we want to save

time?time? Is close employee Is close employee

collaboration collaboration required?required?

Do we want to save Do we want to save money?money?

Will we need to follow Will we need to follow up on the results?up on the results?


PUSH

SMART

ATM

ASP

LATEX

Crypto Rage

PATROL

What do these acronyms What do these acronyms mean?mean?

Go On-Linewww.google.com

http://www.google.com/

Variable Description Variable TypeRestaurant PerceptionsX1 Excellent Food Quality MetricX2 Attractive Interior MetricX3 Generous Portions MetricX4 Excellent Food Taste MetricX5 Good Value for the Money MetricX6 Friendly Employees MetricX7 Appears Clean & Neat MetricX8 Fun Place to Go MetricX9 Wide Variety of menu Items MetricX10 Reasonable Prices MetricX11 Courteous Employees MetricX12 Competent Employees MetricSelection Factor RankingsX13 Food Quality NonmetricX14 Atmosphere NonmetricX15 Prices NonmetricX16 Employees NonmetricRelationship & Classification VariablesX17 Satisfaction MetricX18 Likely to Return in Future MetricX19 Recommend to Friend MetricX20 Frequency of Patronage NonmetricX21 Who Saw Ad NonmetricX22 Which Ad Viewed NonmetricX23 Ad Rating MetricX24 Length of Time a Customer MetricX25 Gender NonmetricX26 Age MetricX27 Income MetricX28 Competitor Nonmetric

VS.VS.Description of Customer Survey VariablesDescription of Customer Survey Variables

Variable Description Variable TypeRestaurant PerceptionsX1 Excellent Food Quality MetricX2 Attractive Interior MetricX3 Generous Portions MetricX4 Excellent Food Taste MetricX5 Good Value for the Money MetricX6 Friendly Employees MetricX7 Appears Clean & Neat MetricX8 Fun Place to Go MetricX9 Wide Variety of menu Items MetricX10 Reasonable Prices MetricX11 Courteous Employees MetricX12 Competent Employees MetricSelection Factor RankingsX13 Food Quality NonmetricX14 Atmosphere NonmetricX15 Prices NonmetricX16 Employees Nonmetric


Variable Description Variable TypeRelationship & Classification VariablesX17 Satisfaction MetricX18 Likely to Return in FutureMetricX19 Recommend to Friend MetricX20 Frequency of PatronageNonmetricX21 Who Saw AdNonmetricX22 Which Ad ViewedNonmetricX23 Ad Rating MetricX24 Length of Time a CustomerMetricX25 GenderNonmetricX26 Age MetricX27 Income MetricX28 CompetitorNonmetric


Variable Description Variable Type

Work Environment MeasuresX1 I am paid fairly for the work I do. MetricX2 I am doing the kind of work I want. MetricX3 My supervisor gives credit and praise for work well done. MetricX4 There is a lot of cooperation among the members of my work group. MetricX5 My job allows me to learn new skills. MetricX6 My supervisor recognizes my potential. MetricX7 My work gives me a sense of accomplishment. MetricX8 My immediate work group functions as a team. MetricX9 My pay reflects the effort I put into doing my work. MetricX10 My supervisor is friendly and helpful. MetricX11 The members of my work group have the skills and/or training

to do their job well. MetricX12 The benefits I receive are reasonable. MetricRelationship MeasuresX13 Loyalty – I have a sense of loyalty to Samouel’s restaurant. MetricX14 Effort – I am willing to put in a great deal of effort beyond that

expected to help Samouel’s restaurant to be successful. MetricX15 Proud – I am proud to tell others that I work for Samouel’s restaurant. MetricClassification VariablesX16 Intention to Search MetricX17 Length of Time an Employee NonmetricX18 Work Type = Part-Time vs. Full-Time NonmetricX19 Gender NonmetricX20 Age NonmetricX21 Performance Metric

Description of Employee Survey VariablesDescription of Employee Survey Variables

Variable Description Variable TypeWork Environment MeasuresX1 I am paid fairly for the work I do. MetricX2 I am doing the kind of work I want. MetricX3 My supervisor gives credit and praise for

work well done. MetricX4 There is a lot of cooperation among the

members of my work group. MetricX5 My job allows me to learn new skills. MetricX6 My supervisor recognizes my potential. MetricX7 My work gives me a sense of accomplishment. MetricX8 My immediate work group functions

as a team. MetricX9 My pay reflects the effort I put into

doing my work. MetricX10 My supervisor is friendly and helpful. MetricX11 The members of my work group have the

skills and/or training to do their job well. MetricX12 The benefits I receive are reasonable. Metric


Variable Description Variable TypeRelationship MeasuresX13 I have a sense of loyalty to Samouel’s restaurant. MetricX14 I am willing to put in a great deal of effort beyond

that expected to help Samouel’s restaurant to be successful. Metric

X15 I am proud to tell others that I work for Samouel’s restaurant.

Metric

Classification VariablesX16 Intention to Search MetricX17 Length of Time an Employee NonmetricX18 Work Type = Part-Time vs. Full-Time NonmetricX19 Gender NonmetricX20 Age NonmetricX21 Performance Metric


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