1. Introduction to Business Research
Assistant Professor Dr. Chanin Yoopetch

2. 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

3. Business Research
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.

4. Information Reduces Uncertainty
I don’t know
if we
should
offer on-site
child care?

5. “It ain’t the things we don’t know that gets us in trouble
“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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6. Business Research Types
Basic research
Applied research

7. Basic Research Attempts to expand the limits of knowledge.
Not directly involved in the solution to a pragmatic problem.

8. Basic Research Example
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?

9. "The secret of success is to know something nobody else knows. "
Aristotle Onassis

10. Applied Research
Conducted when a decision must be made about a specific real-life problem

11. Applied Research Examples
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

12. Scientific Method
The analysis and interpretation of empirical evidence (facts from observation or experimentation) to confirm or disprove prior conceptions.

13. The Decision-making Process Associated with the Development and Implementation of a Strategy
Identifying problems and opportunities
Diagnosis and assessment
Selecting and implementing a course of action
Evaluating the course of action

14. 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.

15. Performance-monitoring Research
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”

16. Determining When to Conduct Business Research
Time constraints
Availability of data
Nature of the decision
Benefits versus costs

17. Determining When to Conduct Business Research
Availability of Data
Benefits vs. Costs
Conducting
Business
Research
Time Constraints
Nature of the Decision
Is sufficient time
available before
a managerial
decision
must be made?
Is the infor-
mation already
on hand
inadequate
for making
the decision?
Is the decision
of considerable
strategic
or tactical
importance?
Does the value
of the research
information
exceed the cost
of conducting
research?
Yes
Yes
Yes
Yes No No No No
Do Not Conduct Business Research

18. Value versus Costs
Potential Value of a Business Research Effort Should Exceed Its Estimated Costs

19. Value Should Exceed Estimated Costs
Research expenditures
Delay of business decision and possible disclosure of information to rivals
Possible erroneous research results
Decreased certainty
Increased likelihood of a correct decision
Improved business performance and resulting higher profits

20. Major Topics for Research in Business
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

21. 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.

22. Business Research in the 21st Century
Increased globalization
Growth of the Internet and other information technologies

23. Global Research Business Research is increasingly global
Market knowledge is essential
A.C. Nielsen - more that 67% international business

24. Global Business Research
General information about country - economic conditions and political climate
Cultural and consumer factors
Market and competitive conditions - demand estimation

25. The Internet Is Transforming Society
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.

26. Internet Research Seeking facts and figures about an issue
Surveys on Web sites

27. What is Marketing Research?
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28. 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

29. Redefining Marketing Research
Used to identify and define market opportunities and problems
Information
Generate, refine, and evaluate marketing performance
Monitor marketing performance
Improve understanding of marketing as a process

30. 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.

31. Market Research
Specifies the information necessary to address these issues
Manages and implements the data collection process
Analyzes the results
Communicates the findings and their implications

32. 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.

33. A Classification of Marketing Research
Problem
Identification Research
Problem Solving Research
Market Potential Research
Market Share Research
Market Characteristics Research
Sales Analysis Research
Forecasting Research
Business Trends Research
Segmentation Research
Product Research
Promotion Research
Distribution Research

34. Problem Solving Research
Determine the basis of segmentation
Establish market potential and responsiveness for various segments
Select target markets
Create lifestyle profiles: demography, media, and product image characteristics
SEGMENTATION RESEARCH
Test concept
Determine optimal product design
Package tests
Product modification
Brand positioning and repositioning
Test marketing
Control score tests
PRODUCT RESEARCH

35. Problem Solving Research
PROMOTIONAL RESEARCH
Optimal promotional budget
Sales promotion relationship
Optimal promotional mix
Copy decisions
Media decisions
Creative advertising testing
Evaluation of advertising effectiveness
Claim substantiation
0.00%
APR
PRICING RESEARCH
Pricing policies
Importance of price in brand selection
Product line pricing
Price elasticity of demand
Initiating and responding to price changes
$ALE

36. 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

37. 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

38. The Role of Marketing Research
Customer Groups
Employees
Shareholders
Suppliers
Consumers
Uncontrollable
Environmental
Factors
Economy
Technology
Laws & Regulations
Social & Cultural Factors
Political Factors
Controllable
Marketing
Product
Pricing
Promotion
Distribution
Variables
Marketing
Research
Marketing
Decision
Making
Providing
Information
Assessing
Needs
Marketing Managers
Market Segmentation
Performance & Control
Target Market Selection
Marketing Programs

39. Marketing Research Suppliers & Services
LIMITED SERVICE
Branded
Products
and Services
Data
Analysis
Services
Analytical
Coding and
Data Entry
Field
FULL SERVICE
Syndicate
Standardized
Customized
Internet
RESEARCH
SUPPLIERS
EXTERNAL
INTERNAL