Chapter 1. Research in business is a method of solving problems in business. Nothing more!

It is not a mysterious scientific system confounded with mind boggling mathematical equations and statistical analysis requiring the expertise of rocket science. As managers few of you will ever be required to conduct true research studies. !oday"s business however is fast changing and very complex. A great deal of research is conducted to solve problems in the business setting. #ustomer needs and wants change prompting studies in marketing research. !he business environment is constantly changing and studies in trend analysis help managers adapt to those changes. !herefore it is important that managers understand the basics of the research process so that they can employ research methods and systematic thinking in the solving of business problems. !here are two types of research employed in the business setting$ Basic, or pure research and Applied research. %asic research attempts to expand on the limits of knowledge it explores existing data and collects new information that will expand the knowledge of a given situation. Applied research is used when a decision must be made about a specific real&life problem. %oth types of research involve the use of the scientific method ' a systematic approach to problem solving. (cientific not intuitive ob)ective and impersonal.* +hat types of business problems are solved through the use of research methods, !here are really only three types of problems that can be solved using business research. !hese are called problem solving methodologies. !he first and probably the most common problem solving methodology is the development methodology. As a manager you will be called on to develop training programs employee orientation programs or perhaps sales training programs. Research is used in the development process. -ften managers must examine cause and effect relationships in the business setting. If I decrease the price will I increase sales, +ill increased advertising result in increased sales, !hese are examples of business dilemmas that are solved with the use of the research problem solving methodology. !hird all programs that are developed should be evaluated to see if they are meeting desired ob)ectives. !hese business problems are solved using the evaluation problem solving methodology. +hen is business research needed, A manager must ask serious questions before expending time and or money on business research. '.* Is there enough time to conduct a valid and reliable study of the situation, '/* Is there enough information available or will it be possible to gather enough new information to examine the problem, '0* Is the problem significant or important enough to warrant a research study, And '1* 2o the benefits of the research warrant the cost of the study, If any one of these factors cannot be answered in a positive manner the study should probably not be conducted.