1-1

Chapter 1

Research
in Business

McGraw-Hill/ © 2006 The McGraw-Hill Companies, Inc., All Rights

Irwin Reserved.
 1-2

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 value of learning business research
process skills
 Objectives

• What is research?
• Distinguish between applied and basic
research
• Explain what is meant by scientific
investigation
• Hallmarks of scientific research
• Discuss the research process
 What is research?

Research is:
• “The process of thoroughly studying and
analysing the situational factors surrounding
a problem in order to seek out solutions to it”.
(Cavana, Delahaye and Sekaran, 2001: 4)
• ‘.. a systematic, careful inquiry or
examination to discover new information or
relationships and to expand/verify existing
knowledge for some specified purpose’
(Bennett, 1991: 68).
 1-5

Why Study
Business Research?

Business
research provides
information to
guide business
decisions
 1-6

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 is business
research?
• “Undertaking systematic research to find out
things about business and management”
(Saunders, Lewis and Thornhill, 2003: 3)
• “An organised, systematic, data-based, critical,
objective, scientific inquiry or investigation into a
specific problem or issue with the purpose of
finding solutions to it or clarifying it. (Cavana et
al, 2001: 5)
 1-8

Studying Business
Research
New
New Greater
Greater
Growth of
Research
Research Computing
Computing
Internet
Perspectives
Perspectives Power
Power

Stakeholder
Stakeholder Business
Business asas aa
Influence
Influence discipline
discipline
Factors
Factors

Competition Complex
Competition
Decisions

Government
Government
Intervention
Intervention
 Why Do We Do
Research?
(Babbie, 1995; Veal
• Exploration 2005)
– Uncovering issues of concern
– Increasing understanding of the problem
• Description
– Finding out, describing what is
– What is the situation? Where are we now?
 Why Do We Do
Research?
(continued)
• Explanation
– Explaining how or why things are as they are
(and using this to predict)
– Answering questions, solving problems,
testing theories
• Evaluation research
– evaluation of policies, strategies, programs
and practices dents
 Basic versus applied
business research
• Basic – to enhance the understanding of
problems that commonly occur across a
range of organisations
• Applied – done with the intention of
applying results to specific problems in the
business
 Example of Basic
Research:
“Six Degrees of
Separation”
• [Link]
• In 1969, Stanley Milgram from Harvard
University sent out 300 letters to people in
Omaha, Nebraska
• He asked them to forward these letters to a
selected person in Boston, by contacting
only people that they themselves knew
• It took on average 6 people to forward the
mail to the right person
 Applications of the
“small world”
• Employment opportunities
• Email distribution
• Transmission of diseases

• “Social network analysis”

– YouTube, MySpace
 Who does research?
(Veal, 2005)
• Academics
• Students
• Government and business
organisations
• Consultants
• Managers
 The Research Process

A general approach:
• Desire to do research
• Formulating and clarifying the topic
• Reviewing the literature
• Choosing a research strategy
• Collecting data
• Analysing data
• Reporting the findings (write-up)
 Research areas of
concern to managers
(Veal, 2005)
• Clients • Policy
• Potential clients • Finance
• Staffing • Training and staff
• Performance development
• Competitors • Information technology
• Legal issues • Industrial relations
• Sales • Organisational
• environment
Products
• Managerial
• Culture effectiveness
• Productivity • Communication
• Strategy • Organisational
• Quality development
 Research in the
management process
1
•FIGURE 1.1 The •1. Terms of
rational-comprehensive reference/brief
planning/ management
process •2. Environmental
appraisal
•3. Mission/goals

•4. Consult with •5. Develop options

stakeholders
•6. Evaluate options &
decide strategy

•7. Implement/manage

•8. Monitor/evaluate

•9. Feedback
 Research in the management process
2
•Adapted from Case
1. Terms of reference/brief:
• Study Example 1.1
Anecdotal
evidence indicates changing
nature of student • 2. Environmental
• 9. Feedback appraisal:
work/study experience
• Time-use surveys

•Su
• Student evaluation and
• 8. Monitor/evaluate: graduate destination
survey data

r ve
• Analysis of student
evaluation data •4.
•Consult with stakeholders
• Employer feedback
y • 3. Mission/goals:
• UB committed to
• 7. Implement/manage
student welfare and
performance

• 5. Develop options:
• 6. Evaluate
options/decide • Research shows young
strategy: people are
ioncreasingly:
• Changing student
support systems • Working full-time
• Increasing options for • Studying part-time
off-campus/distance/fle
• Juggling multiple roles
xible learning •Veal: Business Research Methods 2e © 2005 Pearson Education Australia •18
 Dimensions of
business research
(Veal Figure 1.3)
 Approaches and
methodologies
• The subject of next week’s class!!

• TUTORIALS START THIS WEEK

• NEXT WEEK:
– David Lynch will be guest lecturer
– Steve will be teaching in Hong Kong, but
contactable via email
 Scientific Investigation

• The need for an honest, truthful, accurate

and complete investigation
• Focused on the goals of problem-solving
• Pursues a step-by-step, logical, organised
and rigorous method
The Hallmarks of Scientific Research

1. Purposiveness 5. Accuracy
2. Rigour 6. Objectivity
3. Testability 7. Generalisability
4. Replicability 8. Parsimony
 1-23

Business Planning Drives

Business Research

Organizational Business
Mission Goals

Business Business
Strategies Tactics
 1-24

Information Sources

Decision Support Business Intelligence

Systems Systems
• Numerous elements of • Ongoing information
data organized for collection
retrieval and use in • Focused on events,
business decision making trends in micro and
• Stored and retrieved via macro-environments
– Intranets
– Extranets
 1-25

Exhibit 1-1 Sources of

Business Intelligence

Government/
Competitive
Regulatory

Demographic Economic
Business
Intelligence

Technological Cultural/
Social
 1-26

Business Tactics and

Research

Häagen-Dazs Tactics
– Super premium
– Dozens of flavors
– Small packages
– Signature colors on
packaging
– Available in franchise
and grocery stores
 1-27

Exhibit 1-2 Hierarchy of

Business Decision Makers

Visionaries

Standardized
Decision Makers

Intuitive
Intuitive Decision
Decision Makers
Makers
 1-28

Exhibit 1-2 Hierarchy of

Business Decision Makers

Visionaries

Standardized
Decision Makers

Intuitive Decision Makers

 1-29

Exhibit 1-2 Hierarchy of

Business Decision Makers

Visionaries
Visionaries

Standardized
Decision Makers

Intuitive Decision Makers

 1-30

Exhibit 1-3 Minute Main

and Business Research
 1-31

Research May Be
Unnecessary
• Can information be applied to a critical
decision?
• Does it improve managerial decision-
making?
• Are sufficient resources available?
 1-32

Information Value Chain

Data collection/ Data

transmission management

Characteristics

Decision Data
support systems interpretation

Models
 1-33

Exhibit 1-8 Characteristics

of Good Research
Clearly
Clearly defined
defined purpose
purpose
Detailed
Detailed research
research process
process
Thoroughly
Thoroughly planned
planned design
design
High
High ethical
ethical standards
standards
Limitations
Limitations addressed
addressed
Adequate
Adequate analysis
analysis
Unambiguous
Unambiguous presentation
presentation
Conclusions
Conclusions justified
justified
Credentials
Credentials
 1-34

Exhibit 1-4 Who Conducts

Business Research?

Internal External
 1-35

Eastman Kodak has a world-

class research department
 1-36

Exhibit 1-4
Business Research Suppliers

External Research Suppliers

Business Research Firms

Communication Agencies

Consultants

Trade Associations
 1-37

Business Research Firms

Business Research Firms

Full Service Specialists

Custom Methods

Syndicated
Proprietary
Data

Other
 1-38

Proprietary Research

Decision Analyst, Inc.

uses Internet-based
concept testing
called Conceptor
to examine new
product concepts
 1-39

Syndicated Services

Nielsen Media
Research
provides audience
data for television
programs like
Court TV
 1-40

Exhibit 1-6 Some

Syndicated Data Providers
• AC Nielsen • DoubleClick
• Scarborough • Nielsen/NetRatings
• Millward Brown • Taylor Nelson Sofres
• Nielsen Media Research Intersearch
• Roper ASW • J.D. Power Associates
• CSA TMO • MediaMark
• Yahoo! • Simmon (SMRB)
• ORC International • BRMB
• Information Resources Inc.
 1-41

Specialty Business
Research Firms

Methodology

Process

Industry

Participant group

Geographic Region
 1-42

Communication Agencies

Sales Advertising
Promotion

Direct Public
Business Relations
 1-43

Consultants and
Trade Associations
• Consultants • Trade Associations
– Business – General business
– General Business – Business
specialties
– Research
specialties
 1-44

Trade Associations
NHRA
NHRA
CASRO
CASRO
MRA
MRA
ESOMAR
ESOMAR
BRA
BRA
AMA
AMA
WAOBRP
WAOBRP
MPA
MPA
NAB
NAB
 1-45

Exhibit 1-4 Who Conducts

Research?
 1-46

Key Terms
• Business intelligence • Intranet
system • Management dilemma
• Business research • Omnibus researcher
• Control • Omnibus Study
• Custom Researcher • Proprietary Methodology
• Data mining • Return on Investment
• Data warehouse (ROI)
• Decision support • Scientific method
system • Strategy
• Extranet • Syndicated data provider
• Full-service • Tactics
researcher