Lecture 1
Introduction
Learning Objectives
1. Provide an introduction to modern-day business research.
2. Define business research and the people who use it.
3. Discuss recent business trends and how they affect business research.
4. Examine research-related technologies.
5. Introduce the continuing case.
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Modern-day business research
• Research: A discerning pursuit of the truth—of knowing
the facts.
• How to decide between business opportunities A and B?
– The facts needed; both positive and negative
• Business research companies
– Business research as a service
Definition of business research
• Science: systematic truth seeking
– Science seeks to explain the world as it really is.
• Natural science
– E.g., physics, chemistry & biology.
– Physical realities.
• Social science
– E.g., psychology & sociology.
– Realities of individual human behavior and the interactions of
humans in a society.
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Definition of business research
• Business
– People serving people.
– Value-creating process with exchange at its core.
• Business research: A truth-seeking, fact-finding function
that gathers, analyzes, interprets, and reports information
so that business decision makers become more effective.
– Reliable to be of value to the users.
– Conducted according to:
• Core value of research: objectivity, honesty, openness, accountability,
fairness, and stewardship.
• Specific norms and practices.
Definition of business research
Elements of business research:
1. BR involves the study of a wide range of phenomena
• People
• Systems or groups of people
• Interaction of people within systems
2. BR can be formal.
3. BR can be informal.
4. Good research is replicable.
5. Good research should provide more benefit than it costs.
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Definition of business research
• Applied business research
– Motivated by an attempt to solve a particular problem faced
by a particular organization
– Why Pepsi is gaining market share in Paris?
• Basic business research
– Motivated by a desire to better understand some business
phenomenon as it applies to an entire industry or to business
in general
– Why are people drinking more bottled water and less cola?
Examples of applied and basic business research
Applied Research Issues Basic Research Issues
What is the effect on Samsung’s Galaxy How does technological turbulence affect
smartphone market share of adding foldable business performance?
phones and extended battery life?
How will stocking wines from a new French What factors relate to consumer satisfaction
vineyard in Languedoc-Roussillon affect the with and loyalty to a supermarket?
profitability of Whole Foods supermarkets?
How would imposing reduced working hours Are staff reductions or furloughs more likely
rather than downsizing affect employee to affect employee morale?
morale at Ford Motor Company?
Can using prospective employee What psychological factors predict reduced
psychological profiles reduce turnover at turnover in service occupations?
McDonald’s?
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Topics of business research
• BR involves all aspects and all functions of business.
– Strategic decisions
– Marketing
– Production
• All types of business can benefit from research.
– Small & large
– For-profit and not-for-profit
The business researcher
• The business researcher’s role is to fill the need for
information for decision making
• The business researcher can be:
– Employed by the firm
– Outside consultant agency
• The outside research consultants may:
– Have special expertise or capabilities.
– Conduct and interpret research more objectively.
– Provide fresh insight into a problem faced by the firm.
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The business researcher
Outside research consultants Internal researchers
• May have special expertise or • Can provide information
capabilities. more quickly than an outside
• Can conduct and interpret agency
research more objectively. • The firm’s employees are
• Can provide fresh insight into more likely to collaborate
a problem faced by the firm. with in-house researchers
• Can often do the research for
less money
• Better able to follow up on a
research project.
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Trends impacting business research
• Expanding market freedom
• International research
• Personalized marketing
• The information revolution
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Technologies for business
• Electronic communication
• Networking
• Data warehouse
• Organizational learning
• Satellite technology
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