Chapter 1

Research
in Business
McGraw-Hill/Irwin
Business Research Methods, 10e Copyright 2008 by The McGraw-Hill Companies, Inc. All Rights Reserved.
1-2
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.

Learning Objectives
1-3
PulsePoint: Research Revelations
23
The percent of firms planning
significant hiring who plan to hire
highly-educated professionals.
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.
Whats 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
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

Business Research Defined
1-7
Research Should Reduce Risk
The primary
purpose of
research is to
reduce the
level of risk of
a marketing
decision
1-8
Whats Changing in Business
that Influences Research
Critical
Scrutiny of
Business
Computing
Power &
Speed
Battle for
Analytical
Talent
Factors
Information
Overload
Shifting
Global
Economics
Government
Intervention
Technological
Connectivity
New
Research
Perspectives
1-9
Computing Power and Speed
Real-time
Access
Factors
Lower-cost
Data
Collection
Powerful
Computation
Better
Visualization
Tools
Integration of
Data
1-10
Business Planning Drives Business
Research
Organizational
Mission
Business
Strategies
Business
Tactics
Business
Goals
1-11
Business Decisions and Research
Hagen-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
Business
Intelligence
Government/
Regulatory
Economic
Competitive
Demographic
Technological
Cultural/
Social
1-14
Hierarchy of Business Decision Makers
Visionaries
Intuitive Decision Makers
Standardized
Decision Makers
Visionaries
1-15
Minute Main and Business Research
1-16
Eastman Kodak 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
Characteristics
Data collection/
transmission
Data
interpretation
Models
Decision
support systems
Data
management
1-19
The Business 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
1-21
Two Categories of Research
Applied Basic (Pure)
1-22
Four Types of Studies
Reporting
Explanatory Predictive
Descriptive
1-23
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
Appendix 1a

How the
Research
Industry Works
1-25
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 Internet-based
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
Direct
Business
Public
Relations
Advertising
Sales
Promotion
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

Chapter 1
Addendum

Research
Timeline
1-39
Information Revolution
1960
U.S. DOD
commissions
forerunner of
Internet
1964
OCR
shows
promise
1968
Word processing
first demonstrated
1971
First CATI
survey
conducted
1972
Optical laser
disk revealed
1973
UPC bar-code
scanning
introduced
1975
Microsoft
is born
1979
First
VisiCalc
ships
1964
IBM
introduces
model 360
1968
SPSS created
1971
Intel introduces first
microprocessor
1973
Basic ideas of
Internet created
1976
Apple I
released
1980
Apple owns
50% of
pc market
1-40
Information Revolution
1980
1981
IBMPC
released
1987
First
Internet
survey
1990s
OCR used for
data entry
1993
WWW experiences
3,400X growth
in service traffic
1994
Greenfield Online
Introduces
online focus group
2001
Online survey
software widely
available
2002
Web-conferencing
Software
introduced
1987
IRI conducts
first scanner
tracking study
1991
WWW
developed
1996
Internet
World Exposition
held
2002
High-speed
chip technology
for servers
2007
74.9% in
US have
Internet
access
2003
Wal-Mart commits
To use RFID
2008