The Role of

Business
Research

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Reserved. May not be scanned, copied or
duplicated, or2013
postedCengage
to a publicly
Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in
accessible website, in whole or in part.

LEARNIN
G
OUTCOM
ES

1. Understand how research contributes to

business success
2. Know how to define business research
3. Understand the difference between
basic and applied business research
4. Understand how research activities can
be used to address business decisions
5. Know when business research should
and should not be conducted
6. Appreciate the way technology and
internationalization are changing
business research

2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website,
1-2in

ESPN Hits a Home Run

ESPN has information
in many databases.
Business research
integrated it so they
could learn more
about how fans use
their media.
Gaining intelligence
had bottom-line
implications for their
own revenue and
their advertisers'

2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website,
1-3in

Business Research Defined

Business research is the application
of the scientific method in searching
for the truth about business
phenomena.
The process includes:

idea and theory development

problem definition
searching for and collecting information
analyzing data
communicating the findings and their
implications

2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website,
14in

Business Research Defined

This definition suggests that
business research information is:

not intuitive or haphazardly gathered

accurate and objective
relevant to all aspects of the business
limited by ones definition of business

Not-for-profit organizations and

governmental agencies can use
research in much the same was as
managers in for-profit organizations.
2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website,
15in

Applied and Basic Business

Research
Applied business research
conducted to address a specific
business decision for a specific firm or
organization.
Example:
Should McDonalds add Italian pasta
dinners to its menu?
Which health insurance plan should a
business provide for its employees?

2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website,
16in

Applied and Basic Business

Research
Basic business research (also called
pure research)
conducted without a specific decision in
mind that usually does not address the
needs of a specific organization.
Attempts to expand the limits of knowledge in
general.
Not aimed at solving a pragmatic problem.

Example:
Do consumers experience cognitive dissonance
in low-involvement situations?
Does employee tenure with a company influence
productivity?
2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website,
17in

The Scientific Method

Scientific Method
The way researchers go about using
knowledge and evidence to reach
objective conclusions about the real
world.
The analysis and interpretation of
empirical evidence (facts from
observation or experimentation) to
confirm or disprove prior conceptions

2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website,
18in

A Summary of the Scientific

Method

EXHIBIT 1.1

2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website,
19in

Managerial Value of Business

Research
There are only a few business
orientations:
Product-oriented
Production-oriented
Marketing-oriented

2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website,
110in

Managerial Value of Business

Research

The decision-making process

associated with the development and
implementation of a business
strategy involves four interrelated
stages:
1. Identifying problems and opportunities
2. Diagnosing and assessing problems or
opportunities
3. Selecting and implementing a course
of action
4. Evaluating the course of action

2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website,
111in

Evaluating the Course of

Actions
Evaluation Research
The formal, objective measurement
and appraisal of the extent a given
activity, project, or program has
achieved its objectives.

Performance Monitoring Research

Research that regularly, sometimes
routinely, provides feedback for
evaluation and control of business
activity.
2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website,
112in

When is Business Research

Needed?
The determination of the need for
research centers on:
1.
2.
3.
4.

Time constraints
The availability of data
The nature of the decision to be made
Benefits versus costs (the value of the
research information in relation to costs)
Will the payoff or rate of return be worth the
investment?
Will the information improve the quality of
the managerial decision enough to warrant
the expenditure?
Is the expenditure the best use of the
available funds?

2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website,
113in

Harley-Davidson Goes
Abroad
Consumers in different
countries have
different preferences.
Even if consumers
want it, government
regulations can make
it prohibitive (e.g.,
India).
Harley is pursuing the
U.S. womens market
for bikes.
2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website,
1-14in

Business Class Success?

Business-class travelers
want comfort, good
food, and convenient
boarding, but the price
is hefty.
Two start-ups offered
discount businessclass-only airlines but
failed.
Could more effective
research have
determined that these
were not feasible
business ventures?
2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website,
1-15in

Business Research in the 21st

Century
Communication Technologies

Always connectedtime, place, and

distance are irrelevant.
Decreases in information acquisition,
storage, access, and transmission
costs.

2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website,
116in

Business Research in the 21st

Century
Global Business Research

Business research is increasingly

global.
Must understand the nature of
particular markets.
Cross-validation
Verify that the empirical findings from
one culture also exist and behave
similarly in another culture.

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117in

Jacques Daniels
Research findings:
Japanese use JD as a
dinner beverage
Australians drink
distilled spirits at
home
British like to drink at
bars and restaurants
Chinese prefer
knock-offs to save
money and enjoy it
with green tea
2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website,
1-18in