Business Research

Methods
Session 1

Managerial value of business

research
Decision making process:
Identifying problems or opportunities
Diagnosing and assessing problems or
opportunities
Selecting and implementing a course of
action
Evaluating the course of action

Decision making process

Identifying problems or opportunities
Determining the nature of situations or
identifying the existence of problems or
opportunities present in the organization
in order to plan strategies
Shifts in the positioning of a business
Decision to enter a new market
How best to stock a grocery shelf??

 Diagnosing and assessing problems or opportunities

Insight about the underlying factors causing the situation
Alternative course of actions for an opportunity
Quantitative or qualitative investigations

Selecting and implementing a course of action

Research for evaluating the alternatives and in selecting
the best course of action. Example, to set up a garments
factory in Bangladesh or Pakistan
Opportunities evaluation through use of various
performance criteria. Example, estimates of market
potential allow managers to evaluate the revenue
generated by each of the possible opportunities.

 Evaluating the course of action

Evaluation research formal, objective measurement and
appraisal of the extent to which a given activity, project or
program has achieved its objectives as well as providing
information about the major factors influencing the
observed performance levels.
Performance monitoring research specific type of
evaluation research that regularly provides feedback for
the evaluation and control of recurring business activity.
For example, monitoring wholesale and retail activity to
ensure early detection of sales declines etc. using such
mechanisms as universal product code for sales
research, together with computerized cash registers
and electronic scanners at checkout counters

 Total Quality Management a business

philosophy that focuses on integrating
customer-driven quality throughout the
organization; continuous improvement
of product quality and service.

When is business research needed?

Time constraints

Data Availability Nature of the decision

Is sufficient
Is the
time
information
available
yes already on
before a
hand
managerial
inadequate
decision must
for making
be made?
the decision?

no

no

Benefits vs. costs

Is the
Does the value
decision of
of research
yes considerable yes
yes Conduct
information
business
strategic or
exceed the cost
research
tactical
of conducting
importance?
research?

no

Business research should not be conducted

no

Role in Managerial Decision process

Situation
Analysis

Macroenvironment Analysis
Threats and Opportunities in the market

Strategy
Development

Business Scope, Current Marketing

Situation, Competitive Advantage,
Setting objectives

Marketing
Program
Development

Segmentation, Product, Distribution,

Advertising and Promo., Personal
Selling,
Price, Branding, Customer satisfaction

Implementation

Performance monitoring
Refining strategies and Program

Percentage of Consumer Companies Using Mkt.

Research for various Applications

Application Area

New product screening/ new concept evaluation

Product design studies

65

Consumer Product Testing

82

95

Test marketing of new products in labs.

54

In store, test marketing of new products

51

Tracking studies to measure brand acceptance or usage

Advertising pretesting or copy testing
Advertising campaign testing
Basic marketing strategy studies

83
61
82

92

What do we do with Problems?

Ignore them
Talk about them
Try to solve them

Problem Definition
Management decision Problem & Marketing
Research Problem
Mgt. Decision Problem

Mkt. Research Problem

Asks what the decision maker needs

Asks what information is
needed
to do
& how it should be obtained
Action oriented
Focuses on symptoms

Information oriented
Focuses on the underlying causes

Problem Definition
Examples
Mgt. Decision Problem

Mkt. Research Problem

Should the advertising campaign be

To determine the effectiveness
changed?
of the current campaign
Should we invest new production facility?
To determine the long-term
consumer loyalty for the product
How should the loss of market share be arrested?
Should the market be segmented differently?
Should a new product be introduced?
Should the promotional budget be increased?

Problem Definition
Defining Marketing Research Problem

Broad Statement

Specific Components

Problem Definition
Example: Tennis Magazine
To gather information about the subscribers of
Tennis Magazine

Demographics
Psychological characteristics Tennis Activity
Relationship to
& Lifestyles
Tennis Magazine

Application Harley Davidson Example

Management Decision Problem

Should it invest to produce more motorcycles?

Marketing Research Problem

To determine if customers would be loyal buyers of Harley
Davidson in the long term.

Application Harley Davidson Example

To determine if customers would be loyal buyers of Harley
Davidson in the long term
Adventure Loving Traditionalists
Laid-Back Campers
Sensitive Pragmatists
Classy Capitalists

Who are the customers?

Can different types of customers be distinguished?
What are their demographic
Is it possible to segment the market in a meaningful way?
& psychographic characteristics?

How do customers feel regarding

Are the customers loyal to Harley Davidson?
their Harleys?
What is the extent of brand loyalty
Are all customers motivated by the
Cool-Headed Loners
Same appeal?
Stylish Status-Seekers

Cocky Misfits

Departmental store patronage project

DM: we have seen the decline in the patronage of
our store.
R: How do you know that?
DM : well, it is reflected in our sales and market
share.
R: Why do you think that your patronage has
declined?
Dm : I wish I knew.
R: What about competition?
DM: I suspect we are better than competitors on
some factors and worse on others.
R: How do the customer view your store?
DM: I think most of them positively, although we
may have a weak area or two.

Problem?
Management Decision Problem
What should be done to improve the patronage of the
store.

Marketing Research Problem

Determine the relative strengths and weakness of sears,
vis--vis other major competitors, with respect to factors
that influence store patronage.

The process of problem solving

1. Ascertain the decision makers objectives
2. Understand the background of the problem
3. Isolate and identify the problem rather than its
symptoms
4. Determine the unit of analysis
5. Determine the relevant variables
6. State the research questions and research
objectives

Research Questions

Researchers translation of the business problem

into a specific need for inquiry.

Research Objectives

The purpose of the research, expressed in

measurable terms; the definition of what the
research should accomplish.
The objectives must specify the information
needed to make a decision.

Major topics for research in business

Exhibit 1.2, page 15, Business Research
Methods, Zikmund.
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
Cross-functional teams

Global Perspective
Global business research
Examples, A.C. Nielson, IMS etc.
Nature of particular markets; example,
EU in color preferences for medicines
Growth of the internet