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1-2

A systematic inquiry that provides information to

guide managerial decisions .

A process ofdetermining, 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 Defined

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1-3

Why Study

Business Research?

Business research provides

information to guide business

decisions

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1-4

Studying Business

Research

Complex

Decisions

Stakeholder

Influence

Competition

Factors

Growth of

Internet

Business as a

discipline

Government

Intervention

Greater

Computing

Power

New

Research

Perspectives

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1-5

Computer Advances

Data warehousing

Storing vast amounts

of data in electronic

storehouses

Data mining

Applying

mathematical models

to extract meaningful

knowledge from data

in internal databases

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1-6

Business Planning Drives

Business Research

Organizational

Mission

BusinessStrategies

BusinessTactics

Business

Goals

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1-7

Information Sources

Decision Support

Systems

Numerous elements of

data organized forretrieval 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

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1-8

Exhibit 1-1 Sources of

Business Intelligence

Business

Intelligence

Government/

Regulatory

Economic

Competitive

Demographic

Technological Cultural/

Social

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1-9

Business Tactics and

Research

Amul Ice-cream

Dozens of flavors

Small packages

Available in franchise

and grocery stores

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What Research is not ?

Research isnt information Gathering

Research isnt transportation of facts

Research is systematic process ofcollecting , analyzing information in order

to increase our understanding of

phenomenon about which we are

concerned.

1-11

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Examples of Non-Research

Projects Comparing data sets

Correlating data sets

Problems with Yes/No answers.

1-12

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1-13

Exhibit 1-4 Who Conducts

Business Research?

Internal External

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1-14

Eastman Kodak has a world-

class research department

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1-16

Exhibit 1-4 Who Conducts

Research?

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1-17

Exhibit 1-4

Business Research Suppliers

External Research Suppliers

Business Research Firms

Communication Agencies

Consultants

Trade Associations

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1-18

Business Research Firms

Business Research Firms

Full Service Specialists

Custom

Proprietary

Methods

SyndicatedData

Other

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Business Research

Suppliers Full-service firms conduct all phases of research from

planning to insight development. They may offercustom

projects tailored to a clients needs and/orproprietary

work.

Proprietary methodologies are programs or techniques

that are owned by a single firm. Syndicated data

providers track the change of one or more measures

over time, usually in a given industry.

1-19

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Business Research

Suppliers Specialty firms establish expertise in one or a few

research methodologies. They represent the largest

number of research firms and tend to dominate the small

research firms operated by a single research firm or a

very small staff.

Omnibus studies are those studies that combines one or

a few questions from several business decision makers

who need information from the same population.

1-20

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1-21

Exhibit 1-6 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.

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1-22

Specialty Business

Research Firms

Methodology

Process

Industry

Participant group

Geographic Region

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1-23

Communication Agencies

Direct

Business

Public

Relations

AdvertisingSales

Promotion

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1-24

Consultants and

Trade Associations

Consultants

Business

General Business

Trade Associations

General business

Business

specialties

Research

specialties

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1-25

Exhibit 1-8 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

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Assignment

Ad Track is a weekly survey of how much

consumers like or dislike a major

advertising campaign compared with other

ads . Who sponsors this poll and who

collects the data ?

1-26

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2-27

The Scientific Method

Direct observation

Clearly defined variables

Clearly defined methods

Empirically testable

Elimination of alternatives

Statistical justification

Self-correcting process

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2-28

Researchers

Encounter problems

State problems

Propose hypotheses

Deduce outcomes

Formulate rival

hypotheses

Devise and conductempirical tests

Draw conclusions

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2-29

Synovate

Curiosity is

necessary to be a

good businessresearcher

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2-30

Sound Reasoning

Exposition Argument

InductionDeduction

Types of Discourse

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2-31

Inner-city household

interviewing is especially

difficult and expensive

This survey involves

substantial inner-city

household interviewing

The interviewing in this

survey will be especially

difficult and expensive

Deductive Reasoning

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2-32

Inductive Reasoning

Why didnt sales increase during ourpromotional event?

Regional retailers did not have sufficient stockto fill customer requests during thepromotional period

A strike by employees prevented stock from

arriving in time for promotion to be effective A hurricane closed retail outlets in the region

for 10 days during the promotion

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2-33

Exhibit 2-1 Why Didnt

Sales Increase?

Deduction

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2-34

Exhibit 2-2 Tracys

Performance

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2-35

Language of Research

Variables

Models

Theory

Terms used

in research

Constructs

Operational

definitions

Propositions/

Hypotheses

Conceptual

schemesConcepts

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2-36

Language of Research

Clear conceptualization

of concepts

Shared understanding

of concepts

Successof

Research

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2-37

Exhibit 2-3 Job Redesign

Constructs and Concepts

3-37

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1-39

Chapter 4Chapter 4

Identification of ResearchIdentification of Research

VariablesVariables

References:References: Business Research MethodsBusiness Research Methods

byby D.CooperD.Cooper, P. Schindler, P. SchindlerModified byModified by RahulRahul DalviDalvi

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2-41

Types of Variables

Dichotomous

Male/Female

Employed/ Unemployed

DiscreteEthnic background

Educational level

Religious affiliation

ContinuousIncome

Temperature

Age

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2-42

Exhibit 2-4 Independent

and Dependent Variables

Independent Variable

(IV)

Predictor

Presumed cause

Stimulus

Predicted from

Antecedent Manipulated

Dependent Variable

(DV)

Criterion

Presumed effect

Response

Predicted to.

Consequence Measured outcome

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2-43

Moderating Variables (MV)

The switch to commission from a salarycompensation system (IV) will lead toincreased sales productivity (DV) per

worker, especially among younger workers(MV).

The loss of mining jobs (IV) leads toacceptance of higher-risk behaviors toearn a family-supporting income (DV) particularly among those with a limitededucation (MV).

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2-44

Extraneous Variables (EV)

With new customers (EV-control), a switchto commission from a salary compensationsystem (IV) will lead to increased sales

productivity (DV) per worker, especiallyamong younger workers (MV).

Among residents with less than a highschool education (EV-control), the loss ofjobs (IV) leads to high-risk behaviors (DV),especially due to the proximity of the firingrange (MV).

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2-45

Intervening Variables (IVV)

The switch to a commission compensationsystem (IV) will lead to higher salesproductivity (DV) by increasing overall

compensation (IVV). A promotion campaign (IV) will increase

savings activity (DV), especially when freeprizes are offered (MV), but chiefly amongsmaller savers (EV-control). The resultscome from enhancing the motivation tosave (IVV).

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Propositions and

Hypotheses

Brand Manager Jones (case) has a

higher-than-average achievement

motivation (variable).

Brand managers in Company Z (cases)

have a higher-than-average achievement

motivation (variable).

Generalization

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2-47

Hypothesis Formats

Descriptive

In Detroit, our potato

chip market share

stands at 13.7%.

American cities are

experiencing budget

difficulties.

Research Question

What is the market

share for our potato

chips in Detroit?

Are American cities

experiencing budget

difficulties?

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2-48

Relational Hypotheses

Correlational

Young women (under 35)

purchase fewer units of

our product than women

who are older than 35.

The number of suits sold

varies directly with the

level of the business

cycle.

Causal

An increase in family

income leads to an

increase in the

percentage of income

saved.

Loyalty to a grocery store

increases the probability

of purchasing that storesprivate brand products.

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The Role of Hypotheses

Guide the direction of the study

Identify relevant facts

Suggest most appropriate research

design

Provide framework for organizing

resulting conclusions

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2-50

Characteristics of Strong

Hypotheses

AStrong

Hypothesis

Is

Adequate

Testable

Better

than rivals

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2-51

Exhibit 2-6 Theory of the

Product Life Cycle

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Model

Representation of a system

constructed to study some aspect of

that system or the system as a whole.

Models versus Theories

a models role is to represent or describe

A theorys role is to explain.

Models in business research may bedescriptive, predictive, and normative.

2-52

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Types of Model

Descriptive models are used for complex

systems because they allow for the

visualization of numerous variables and

relationships. Predictive models forecast future events and

facilitate business planning.

Normative models are used for control,

because they indicate necessary actions.

2-53

E hibit 2 7 A Di t ib ti

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2-54

Exhibit 2-7 A Distribution

Network Model

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2 56

Exhibit 2-8

The Role of Reasoning