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 nature of the research process.
1-2
Data Collectors Face
Responsibilities
“This is a fantastic time to be entering the
business world, because business is going to
change more in the next 10 years than it has in
the last 50.”
Bill Gates, entrepreneur and founder
Microsoft
1-3
PulsePoint:
Research Revelations
34
The percent of employees who never
consider that their bosses, clients, or
colleagues think before posting to a
blog, discussion forum, or social
network.
1-4
Why Study Business Research?
Business
research provides
information to
guide business
decisions
1-5
Research Should Help
Respond to Change
“Enterprises have long recognized the need
to better sense and respond to business change.
What’s different today is that ubiquitous access
to information and real-time communications
have fostered an ‘always on’ business culture
where decision making has become a ‘just-in-time
process.’”
Business Performance Management Forum
1-6
Business Research
•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
1-7
Research Should Reduce
Risk
The primary
purpose of
research is to
reduce the level of
risk of a marketing
decision
1-8
What’s Changing in Business
that Influences Research
New
Research
Perspectives
Computing
Power &
Speed
Information
Overload
Factors
Battle for
Analytical
Talent
Technological
Connectivity
Shifting
Global
Economics
Critical
Scrutiny of
Business
Government
Intervention
1-9
Computing Power and Speed
Lower-cost
Data
Collection
Integration of
Data
Better
Visualization
Tools
Factors
Real-time
Access
Powerful
Computation
1-10
Business Planning Drives
Business Research
Organizational
Mission
Business
Goals
Business
Strategies
Business
Tactics
1-11
Business Decisions and
Research
Häagen-Dazs Tactics
– Super premium
– Dozens of flavors
– Small packages
– Signature colors on
packaging
– Available in franchise
and grocery stores
1-12
Information Sources
Decision Support
Systems
Numerous elements of
data organized for
retrieval and use in
business decision
making
Stored and retrieved via
– Intranets
– Extranets
Business Intelligence
Systems
Ongoing information
collection
Focused on events,
trends in micro and
macro-environments
1-13
Sources of
Business Intelligence
Government/
Regulatory
Competitive
Economic
Demographic
Business
Intelligence
Technological
Cultural/
Social
1-14
Hierarchy of Business Decision
Makers
Visionaries
Visionaries
Standardized
Decision Makers
Intuitive Decision Makers
1-15
Minute Main and Business
Research
1-16
P&G has a world-class research
department
1-17
Research May Not Be Necessary
Can It Pass These Tests?
• Can information be applied to a critical
decision?
• Will the information improve managerial
decision making?
• Are sufficient resources available?
1-18
Information Value Chain
Data collection/
transmission
Data
management
Characteristics
Decision
support systems
Data
interpretation
Models
1-19
The Research Process
1-20
Characteristics of
Good Research
Clearly defined purpose
Detailed research process
Thoroughly planned design
High ethical standards
Limitations addressed
Adequate analysis
Unambiguous presentation
Conclusions justified
Credentials
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Categories of Research
Applied
Basic (Pure)
1-22
Types of Studies
Reporting
Descriptive
Explanatory
Predictive
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Key Terms
• Applied research
• Business intelligence
system (BIS)
• Business research
• Control
• Decision support
system
• Descriptive studies
• Explanatory Studies
•
•
•
•
•
Management dilemma
Predictive studies
Pure research
Reporting studies
Return on Investment
(ROI)
• Scientific method
• Strategy
• Tactics
1-24
Appendix 1a
How the Research
Industry Works
Who Conducts Business
Research?
1-26
Some Organizations Use
Internal Research Sources
1-27
Some Organizations Use
External Research Sources
1-28
Business Research Firms
1-29
Proprietary Research
Decision Analyst,
Inc. uses Internetbased concept
testing called
Conceptor to
examine new
product concepts
1-30
Syndicated Services
Nielsen Media
Research
provides audience
data for television
programs like
Court TV
1-31
Some Syndicated Data Providers
AC Nielsen
Scarborough
Millward Brown
Nielsen Media
Research
Roper ASW
CSA TMO
Yahoo!
ORC International
DoubleClick
Nielsen/NetRatings
Taylor Nelson Sofres
Intersearch
J.D. Power Associates
MediaMark
Simmon (SMRB)
BRMB
Information Resources Inc.
1-32
Specialty Business Research
Firms
Methodology
Process
Industry
Participant group
Geographic Region
1-33
Communication Agencies
Sales
Promotion
Advertising
Direct
Business
Public
Relations
1-34
Consultants and
Trade Associations
1-35
Trade Associations
NHRA
CASRO
MRA
ESOMAR
BRA
AMA
WAOBRP
MPA
NAB
1-36
Many Firms Conduct Research
1-37
Key Terms
•Custom Researcher
•Full-service researcher
•Specialty researcher
•Syndicated data provider
•Omnibus researcher
•Omnibus study
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Chapter 1
Addendum
Research Timeline
1-39
Information Revolution
1971
First CATI
survey
conducted
1964
OCR
shows
promise
U.S. DOD
commissions
forerunner of
Internet
1968
Word processing
first demonstrated
1973
UPC bar-code
scanning
introduced
1972
Optical laser
disk revealed
1975
Microsoft
is born
1979
First
VisiCalc
ships
1960
1980
1964
IBM
introduces
model 360
1968
SPSS created
1971
Intel introduces first
microprocessor
1973
Basic ideas of
Internet created
1980
Apple owns
50% of
pc market
1976
Apple I
released
1-40
Information Revolution
1987
First
Internet
survey
1981
IBMPC
released
1993
WWW experiences
3,400X growth
in service traffic
1990s
OCR used for
data entry
2001
Online survey
software widely
available
1994
Greenfield Online
Introduces
online focus group
2003
Wal-Mart commits
To use RFID
2002
Web-conferencing
Software
introduced
2010
1980
1987
IRI conducts
first scanner
tracking study
1991
WWW
developed
1996
Internet
World Exposition
held
2002
High-speed
chip technology
for servers
2009
76.3% in
US have
Internet
access
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