Business

Research Methods
The function that links the consumer, the
customer, and public to the Business through
INFORMATION
Used to identify and
define opportunities
and problems

Generate, refine, and

evaluate Business
performance
Monitor business
performance
Improve understanding
of business as a
process
 Business Research Defined
Business Research is the systematic and
objective
 identification
 collection
 analysis
 dissemination
 and use of information
For the purpose of improving decision making
related to the
 identification and
 solution of problems and opportunities in marketing
 Business Research
• Systematic planning at all stages
• Sound Methodology
• Well documented
• Planned in advance at every level
• Specifies the information necessary to address these issues
• Manages and implements the data collection process
• Analyzes the results
• Communicates the findings and their implications
• Helps managers use this information to make decisions
 Business Research
• Research information is neither intuitive nor
haphazardly gathered.
• Literally, research (re-search) -“search
again”
• Business research must be objective
• Detached and impersonal rather than biased
• It facilitates the managerial decision process
for all aspects of a business.
 Scope of Business Research

It is limited by one’s definition of business.It

also includes not-for-profit organisation.
Major areas ---
• Management
• Production
• Finance
• Marketing
• Human Resource
Business Research Classification
• Descriptive Vs Analytical
• Applied Vs Fundamental
• Quantitative Vs Qualitative
• Conceptual Vs Empirical
• Problem Identification Vs Problem Solution
 Business Research Types
Problem-Identification Research
Research undertaken to help identify problems which
are not necessarily apparent on the surface and yet exist
or are likely to arise in the future. Examples: market
potential, market share, image, market characteristics,
sales analysis, forecasting, and trends research.

Problem-Solving Research
Research undertaken to help solve specific marketing
problems. Examples: segmentation, product, pricing,
promotion, and distribution research.
 A Classification of Business Research

Business Research

Problem Problem-Solving
Identification Research Research

Market Potential & Share Segmentation Research

Research Product Research
Business Characteristics Pricing Research
Sales Analysis Research
Forecasting Research Promotion Research
Business Trends Research Distribution Research
 Problem-Solving Research
SEGMENTATION RESEARCH
 Determine the basis of segmentation
 Establish market potential and

responsiveness for various

segments
 Select target markets
 Create lifestyle profiles:
demography, media, and
product image characteristics
 PRODUCT RESEARCH

• Test concept
• Determine optimal product design
• Package tests
• Product modification
• Brand positioning and repositioning
• Test marketing
• Control score tests
 Problem-Solving Research

PRICING RESEARCH
 Pricing policies
 Importance of price in brand selection
 Product line pricing
 Price elasticity of demand
 Initiating and responding to price changes
 Problem-Solving Research

PROMOTIONAL RESEARCH

• Optimal promotional budget

• Sales promotion relationship
• Optimal promotional mix
• Copy decisions
• Media decisions
• Creative advertising testing
• Evaluation of advertising effectiveness
• Claim substantiation
 Problem-Solving Research
DISTRIBUTION RESEARCH

Determine…
 Types of distribution
 Attitudes of channel members
 Intensity of wholesale & resale coverage
 Channel margins
 Location of retail and wholesale outlets
 Evaluation Research
• Evaluation research is the formal, objective
measurement and appraisal of the extent to
which a given activity, project, or program
has achieved its objectives.
 Performance-monitoring
Research
• Research that regularly provides feedback
for evaluation and control
• Indicates things are or are not going as
planned
• Research may be required to explain why
something “went wrong”
Total Quality Management (TQM) Research

• A business philosophy that embodies the

belief that the management process must
focus on integrating customer-driven
quality throughout the organization.
 TQM
• Stresses continuous improvement of
product quality and service.
• Managers improve durability and enhance
features as the product ages.
• Managers strive to improve delivery and
other services to keep their companies
competitive
 Research Process
Step 1 : Problem Definition

Step 2 : Development of an Approach to the Problem

Step 3 : Research Design Formulation

Step 4 : Fieldwork or Data Collection

Step 5 : Data Preparation and Analysis

Step 6 : Report Preparation and Presentation

Managerial Value of Business Research

Business Research drives every aspect of

major decision making. The prime managerial
value is that it reduce uncertainty and risk by
providing information that improve the
decision making process associated with
strategy.
The Decision-making Process Associated with the
Development and Implementation of a Strategy

• Identifying problems and opportunities

• Diagnosis and assessment
• Selecting and implementing a course of
action
• Evaluating the course of action
 Determining When to Conduct
Business Research
• Time constraints
• Availability of data
• Nature of the decision
• Benefits versus costs
 Determining When to Conduct
Business
Availability of Data
Research
Benefits vs.
Time Constraints Nature of the Decision Costs
Is the infor- Does the value
Is sufficient time Is the decision Conducting
Yes mation already Yes Yes of the research Yes
available before of considerable
a managerial
on hand
strategic
information Business
inadequate exceed the cost
decision
for making
or tactical
of conducting Research
must be made? importance?
the decision? research?

No No No No

Do Not Conduct Business Research

 Value versus Costs
• Potential Value of a Business Research
Effort Should Exceed Its Estimated Costs
 Value Should Exceed
Estimated Costs
Costs
Value •Research
expenditures
•Decreased certainty •Delay of business
•Increased likelihood
decision and
of a correct decision
possible disclosure
•Improved business
of information to
performance and
rivals
resulting higher •Possible erroneous
profits
research results
 Marketing Research Suppliers & Services

• Internal suppliers
• External suppliers
– Full-service suppliers
• Syndicated services
• Standardized services
• Customized services
• Internet services
– Limited-service suppliers
• Field services
• Focus groups and qualitative services
• Technical and analytical services
 Research Suppliers & Services

RESEARCH
INTERNAL SUPPLIERS
EXTERNAL

FULL SERVICE LIMITED SERVICE

Field Other
Syndicate Internet
Services Services
Services Services

Standardized Customized Focus Groups

Services Services Technical
and Qualitative and Analytical
Services Services
 Criteria for Selecting a Research Supplier
 What is the reputation of the supplier?
 Do they complete projects on schedule?
 Are they known for maintaining ethical standards?
 Are they flexible?
 Are their research projects of high quality?
 What kind and how much experience does the supplier
have? Has the firm had experience with projects similar to
this one?
 Do the supplier's personnel have both technical and non-
technical expertise?
 Can they communicate well with the client?

Competitive bids should be compared on the basis of quality

as well as price.
 Major Topics for Research in
Business
• General Business Conditions and Corporate
Research
• Financial and Accounting Research
• Management and Organizational Behavior
Research
• Sales and Marketing Research
• Information Systems Research
• Corporate Responsibility Research
 Research Career
Vice President of Marketing Research
• Part of company’s top management team
• Directs company’s entire market research operation
• Sets the goals & objectives of the marketing research department
Research Director
• Also part of senior management
• Heads the development and execution of all research projects
Assistant Director of Research
• Administrative assistant to director
• Supervises research staff members
• Senior Project Manager
• Responsible for design, implementation, & research projects
Senior Analyst
• Participates in the development of projects
• Carries out execution of assigned projects
• Coordinates the efforts of other personnel
• Prepares final report
 Research Career
Analyst
• Handles details in execution of project
• Designs & pretests questionnaires
• Conducts preliminary analysis of data
Junior Analyst
• Secondary data analysis
• Edits and codes questionnaires
• Conducts preliminary analysis of data
Statistician/Data Processing
• Serves as expert on theory and application on statistical techniques
• Oversees experimental design, data processing, and analysis
Fieldwork Director
• Handles selection, training, supervision, and evaluation of
interviewers and field workers
 Ethical Issues in Business Research
I Problem definition
- Using surveys as a guise for selling or fundraising
- Personal agendas of the researcher or client
- Conducting unnecessary research

II Developing an approach
- Using findings and models developed for specific
clients or projects for other projects
- Soliciting proposals to gain research expertise
without pay
- Inaccurate reporting
Ethical Issues in Business Research (Cont.)

III Research Design

- Formulating a research design more suited to the researcher's
rather than the client's needs
- Using secondary data that are not applicable or have been
gathered through questionable means
- Disguising the purpose of the research
- Soliciting unfair concessions from the researcher
- Not maintaining anonymity of respondents
- Disrespecting privacy of respondents
- Misleading respondents
- Disguising observation of respondents
- Embarrassing or putting stress on respondents
- Using measurement scales of questionable reliability & validity
- Designing overly long/sensitive questionnaires
- Using inappropriate sampling procedures and sample size
Ethical Issues in Business Research

IV Field Work
- Increasing discomfort level of respondents
- Following unacceptable field work procedures
V Data Preparation and Analysis
- Identifying and discarding unsatisfactory respondents
- Using statistical techniques when the underlying
assumptions are violated
- Interpreting the results and making incorrect
conclusions and recommendations
VI Report Preparation and Presentation
- Incomplete reporting
- Biased reporting
- Inaccurate reporting