1-1

Chapter 1
Research
in Business

McGrawHill/Irwin

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

Reserved.

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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

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Why Study
Business Research?

Business
research provides
information to
guide business
decisions

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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

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Studying Business
Research
New
New
Research
Research
Perspectives
Perspectives

Growth of
Internet

Stakeholder
Stakeholder
Influence
Influence

Greater
Greater
Computing
Computing
Power
Power
Business
Business as
as aa
discipline
discipline

Factors
Factors
Complex
Decisions

Competition
Competition
Government
Government
Intervention
Intervention

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Computer Advances
Data warehousing
Storing vast amounts
of data in electronic
storehouses

Data mining
Applying
mathematical models
to extract meaningful
knowledge from data
in internal databases

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Business Planning Drives

Business Research

Organizational
Mission

Business
Goals

Business
Strategies

Business
Tactics

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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

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Exhibit 1-1 Sources of

Business Intelligence
Government/
Regulatory

Demographic

Competitive

Economic

Business
Intelligence

Technological

Cultural/
Social

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Business Tactics and

Research
Hagen-Dazs Tactics
Super premium
Dozens of flavors
Small packages
Signature colors on
packaging
Available in franchise
and grocery stores

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Exhibit 1-2 Hierarchy of

Business Decision Makers

Visionaries
Standardized
Decision Makers

Intuitive
Intuitive Decision
Decision Makers
Makers

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Exhibit 1-2 Hierarchy of

Business Decision Makers

Visionaries
Standardized
Decision Makers

Intuitive Decision Makers

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Exhibit 1-2 Hierarchy of

Business Decision Makers

Visionaries
Visionaries
Standardized
Decision Makers

Intuitive Decision Makers

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Exhibit 1-3 Minute Main

and Business Research

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Research May Be
Unnecessary
Can information be applied to a critical
decision?
Does it improve managerial decisionmaking?
Are sufficient resources available?

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Information Value Chain

Data collection/
transmission

Data
management
Characteristics

Decision
support systems

Data
interpretation
Models

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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

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Exhibit 1-4 Who Conducts

Business Research?

Internal

External

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Eastman Kodak has a worldclass research department

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Exhibit 1-4
Business Research Suppliers

External Research Suppliers

Business Research Firms
Communication Agencies
Consultants
Trade Associations

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Business Research Firms

Business Research Firms

Full Service

Specialists

Custom

Methods

Proprietary

Syndicated
Data
Other

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Proprietary Research

Decision Analyst, Inc.

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

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Syndicated Services
Nielsen Media
Research
provides audience
data for television
programs like
Court TV

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Exhibit 1-6 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.

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Specialty Business
Research Firms
Methodology
Process
Industry
Participant group
Geographic Region

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Communication Agencies
Sales
Promotion

Direct
Business

Advertising

Public
Relations

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Consultants and
Trade Associations
Consultants
Business
General Business

Trade Associations
General business
Business
specialties
Research
specialties

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Trade Associations
NHRA
NHRA
CASRO
CASRO
MRA
MRA
ESOMAR
ESOMAR
BRA
BRA
AMA
AMA
WAOBRP
WAOBRP
MPA
MPA
NAB
NAB

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Exhibit 1-4 Who Conducts

Research?

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Key Terms
Business intelligence
system
Business research
Control
Custom Researcher
Data mining
Data warehouse
Decision support
system
Extranet
Full-service
researcher

Intranet
Management dilemma
Omnibus researcher
Omnibus Study
Proprietary Methodology
Return on Investment
(ROI)
Scientific method
Strategy
Syndicated data provider
Tactics