Introduction to Business Research
Assistant Professor Dr. Chanin Yoopetch
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Business Research Defined
Business research is defined as the
systematic and objective process of
generating information for aid in
making business decisions.
- Including financial research, operational research,
Marketing research
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Business Research

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

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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.
Information
Reduces
Uncertainty
I don’t know
if we
should
offer on-site
child care?
“It ain’t the things we don’t know
that gets us in trouble. It’s the things
we know that ain’t so.”
Artemus Ward
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Business Research Types
Basic research
Applied research
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Basic Research

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Attempts to expand the limits of
knowledge.
Not directly involved in the solution
to a pragmatic problem.
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Basic Research Example

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Is executive success correlated
with high need for achievement?
Are members of highly cohesive
work groups more satisfied than
members of less cohesive work
groups?
Do consumers experience cognitive
dissonance in low-involvement
situations?
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"The secret of success is to know
something nobody else knows. "
Aristotle Onassis
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Applied Research

Conducted when a decision must
be made about a specific real-life
problem
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Applied Research Examples
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Should McDonalds add Italian
pasta dinners to its menu?
Business research told McDonald’s
it should not?
Should Procter & Gamble add a
high-priced home teeth bleaching
kit to its product line?
Research showed Crest Whitestrips
would sell well at a retail price of
$44
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Scientific Method

The analysis and interpretation of
empirical evidence (facts from
observation or experimentation) to
confirm or disprove prior
conceptions.
The Decision-making Process Associated
with the Development and
Implementation of a Strategy

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Identifying problems and
opportunities
Diagnosis and assessment
Selecting and implementing a
course of action
Evaluating the course of action
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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.
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Performance-monitoring Research

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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”
Determining When to Conduct Business
Research

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Time constraints
Availability of data
Nature of the decision
Benefits versus costs
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Determining When to Conduct
Business Research
Availability of Data
Benefits
Time Constraints
Nature of the Decision vs. Costs
Is sufficient time
available before
a managerial
decision
must be made?
No
Yes
Is the information already
on hand
inadequate
for making
the decision?
No
Yes
Is the decision
Yes
of considerable
strategic
or tactical
importance?
Does the value
of the research Yes
information
exceed the cost
of conducting
research?
No
Do Not Conduct Business Research
No
Conducting
Business
Research
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Value versus Costs

Potential Value of a Business
Research Effort Should Exceed Its
Estimated Costs
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Value Should Exceed
Estimated Costs
Costs
Value
•Decreased certainty
•Increased likelihood
of a correct decision
•Improved business
performance and
resulting higher
profits
•Research
expenditures
•Delay of business
decision and
possible disclosure
of information to
rivals
•Possible erroneous
research results
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Major Topics for Research in Business
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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
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Cross-functional Teams

Cross-functional teams are
composed of individuals from
various organizational departments
such as engineering, production,
finance, and marketing who share
a common purpose.
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Business Research in the 21st Century
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Increased globalization
Growth of the Internet and other
information technologies
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Global Research
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Business Research is increasingly
global
Market knowledge is essential
A.C. Nielsen - more that 67%
international business
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Global Business Research
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General information about country
- economic conditions and political
climate
Cultural and consumer factors
Market and competitive conditions
- demand estimation
The Internet
Is Transforming Society
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Time is collapsing.
Distance is no longer an obstacle.
Crossing oceans is only a mouse
click away.
People are connected 24 hours a
day, seven days a week.
"Instantaneous" has a new
meaning.
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Internet Research


Seeking facts and figures about an
issue
Surveys on Web sites
What is Marketing Research?
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Redefining Marketing Research
The American Marketing Association
(AMA) redefined Marketing Research
as:
The function which links the consumer, the
customer, and public to the marketer
through INFORMATION
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Redefining Marketing Research
Used to identify and
define market
opportunities and
problems
Generate, refine, and
evaluate marketing
performance
Monitor marketing
performance
Improve understanding
of marketing as a
process
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Definition of Marketing Research
Marketing 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.
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Market Research
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Specifies the information necessary to
address these issues
Manages and implements the data
collection process
Analyzes the results
Communicates the findings and their
implications
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Classification of Marketing Research
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.
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A Classification of Marketing Research
Marketing Research
Problem
Identification Research
Market Potential Research
Market Share Research
Market Characteristics Research
Sales Analysis Research
Forecasting Research
Business Trends Research
Problem Solving
Research
Segmentation Research
Product Research
Promotion Research
Distribution Research
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Problem Solving Research
SEGMENTATION RESEARCH
 Determine the basis of segmentation
 Establish market potential and
responsiveness for various
segments
PRODUCT RESEARCH
 Select target markets

Test concept
 Create lifestyle profiles:
demography, media, and
product image characteristics

Determine optimal product design

Package tests

Product modification

Brand positioning and
repositioning

Test marketing

Control score tests
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Problem Solving Research
PROMOTIONAL RESEARCH
0.00%
APR
PRICING RESEARCH

Optimal promotional budget

Sales promotion relationship

Optimal promotional mix

Copy decisions

Media decisions

Creative advertising testing

Evaluation of advertising effectiveness

Claim substantiation

Pricing policies

Importance of price in brand selection

Product line pricing

Price elasticity of demand

Initiating and responding to price changes
$ALE
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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
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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
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The Role of Marketing Research
Customer Groups
•
•
•
•
Consumers
Employees
Shareholders
Suppliers
Uncontrollable
Environmental
Factors
Controllable
Marketing
Variables
Marketing
Research
•Product
•Pricing
•Promotion
•Distribution
Assessing
Information
Needs
Providing
Information
Marketing
Decision
Making
Marketing Managers
• Market Segmentation
• Target Market Selection
• Marketing Programs
• Performance & Control
•Economy
•Technology
•Laws &
Regulations
•Social & Cultural
Factors
•Political Factors
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Marketing Research Suppliers & Services
RESEARCH
SUPPLIERS
INTERNAL
FULL SERVICE
Syndicate
Services
Standardized
Services
Internet
Services
Customize
d
Services
EXTERNAL
LIMITED SERVICE
Branded
Products
and Services
Field
Services
Coding and
Data Entry
Services
Analytical
Services
Data
Analysis
Services