1/13/2016

Business Research Method

Prof. Ravi Shekhar Kumar

XLRI- Xavier School of Management, Jamshedpur
ravishekhar@xlri.ac.in
Session-1

Brief of Course Outline

Functional Knowledge
Quiz/Individual Assignment
:
20%
Class Participation
:
13%
Group Project
:
32%
End Term
:
35%
Note:
Class Participation, Case Analysis & Contribution will be assessed by the
instructor(s) based on participation in the class, preparation for the class,
sincerity in the class, regular attendance in the class, maintaining
discipline in the class, and general behavior in the class.

Please respect others in the class.

Group Project: Group of 6 members shall work on a topic. Submission
dates will shared later.

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Brief of Course Outline

Decision making will be learnt in the course
Visualization is through identifying the research problem
Analysis is through data collection and data analysis
Solution is how the participants are translating the analysis into
decision.

Decision making will be evaluated through course

embedded Case Analysis.
Grading will be as per institute norms.

Business Research
To provide a well-structured
method in carrying out
research investigation

Objective of
course

To provide thorough
understanding of the research
process

To familiarize with major

technique
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What are different examples of research?

Why should we conduct research?

Business research provides information to guide
business decisions

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Research
Reduces risk in decision making
Lets move away from making decisions based on anecdotal
evidence (i.e., information or casual observation that is not
based on facts or careful study)

Defining Business Research

Systematic and objective process of gathering,
recording, and analyzing data for aid in making
business decisions (Zikmund, 2007).
Systematic enquiry that provides information to
guide managerial decisions (Cooper & Schindler, 2009).
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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Defining Research
The function which links the consumer, the
customer, and public to the manager through
INFORMATION.
Used to identify & define
opportunities and problems

Generate, refine, & evaluate

performance

Information

Monitor performance
Improve understanding of process
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Defining Research
Research is the systematic & objective
identification
collection
analysis
Dissemination &
use of information

For improving decision making related to:

Identification & Solution of problems &
opportunities in business
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Few pointers about Research

Research is all about finding something, the absence of which may

distort our ability to take informed decisions (Nwokah et al., 2009).

The ability to take an informed decision is generated through a

systematic study that is conducted through various interrelated
stages.

All the steps in a research are interrelated and no independent

activity is launched without considering the decisions on the previous
stages.

One has to really understand that, from problem identification to

presentation of findings, every step is interlinked and interrelated.

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Research Suppliers & Services

INTERNAL

RESEARCH
SUPPLIERS
EXTERNAL

FULL SERVICE
Internet
Services
Syndicate
Services

Customized
Services

LIMITED SERVICE
Field
Services
Focus Groups
& Qualitative
Services

Other
Services
Technical
& Analytical
Services

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A Classification of Research
Research

Problem
Identification Research
To help identify problems which
are not necessarily apparent on the surface
& yet exist or are likely to arise in the future

Market Potential Research

Market Share Research
Market Characteristics Research
Sales Analysis Research
Forecasting Research
Business Trends Research

Problem
Solving Research
To help solve specific problems.

Segmentation Research
Product Research
Promotion Research
Distribution Research

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Problem-Solving Research
Segmentation Research
Determine the basis of
segmentation
Establish market potential &
responsiveness for various
segments
Select target markets
Create lifestyle profiles:
demography, media, &
product image characteristics

Product Research
Test concept
Determine optimal product
design
Package tests
Product modification
Brand positioning &
repositioning
Test marketing
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Problem-Solving Research
Promotional Research

0.00%

Optimal promotional budget

Sales promotion relationship
Optimal promotional mix

Pricing Research

Ad Copy decisions
Media decisions

Pricing policies

Creative advertising testing

Importance of price in brand

selection

Evaluation of advertising
effectiveness

Product line pricing

Price elasticity of demand

$ALE

Initiating and responding to

price changes
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Problem-Solving Research
Distribution Research
Types of distribution
Attitudes of channel members
Intensity of wholesale & resale coverage
Channel margins
Location of retail & wholesale outlets

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Research Process

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Steps of Research Process

Step 1: Defining the Problem
Step 2: Developing an Approach to the Problem
Step 3: Formulating a Research Design
Step 4: Doing Field Work or Collecting Data
Step 5: Preparing and Analyzing Data
Step 6: Preparing and Presenting the Report
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Chain Restaurant Study

One day I received a phone
call from a research analyst
who introduced himself as one
of our alumni

He was working for a restaurant

chain in town and wanted help
analyzing the data he had
collected while conducting a
marketing research study.

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Chain Restaurant Study

When we met, he presented me with a copy of

the questionnaire and asked how he should
analyze the data.
My first question to him was .

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Chain Restaurant Study

When he looked
perplexed, I explained
that data analysis is not
an independent exercise.
Rather, the goal of data analysis is to
Provide Information related to
the Problem Components

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Chain Restaurant Study

I was surprised to learn that he did not have a clear
understanding of the marketing research problem and
that a written definition did not exist. So before going
any further, I had to define the marketing research
problem.

Once that was done, I found that much of the

data collected was not relevant to the
problem. In this sense, the whole study was a
waste of resources. A new study had to be
designed and implemented to address the
problem defined.

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Problem Definition
The truly serious mistakes are made not as a
result of wrong answers but because of asking
wrong questions
Peter Drucker

The most important step in research

Covers purpose of study, relevant background
information, information needed, and how it will be
used in decision making
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Research: Stories
Failure Disney Land Europe (Paris) in 1992
Coca Cola launch of new Coke in early 1980s
Success of Starbuck in Japan in 1996

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Problem Definition Genesis

Drivers for problem formulation:
Unaticipated change, basically in the environment of focal firm
(suppliers, competitors, customers)
Planned change (estimation, effects, outcome)
Serendipity (random ideas or information)

Situation Narration by management

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Exercise before Problem Definition

1. Discussion with Decision maker
2. Discussion with Industry expert
3. Secondary Data
4. Qualitative Research
Focusing on 3Cs Analysis

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Factors to be Considered in
Environmental Context of the Problem
Past Information & Forecasts
Resources & Constraints
Objectives
Buyer Behavior
Legal Environment
Economic Environment
Marketing & Technological Skills
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Management Decision Problem(MDP)

A statement specifying the type of managerial action
required to solve the problem.
It asks what a decision maker needs to do.
It is action oriented.
It focuses on symptoms.

The problem facing the decision maker for which

the research is intended to provide answers or
information

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Research Problem(RP)
A statement specifying the type of information needed
by the decision maker to help solve the management
decision problem and how the information can be
obtained efficiently and effectively.
It asks what information is needed & how it should
be obtained
Information oriented
Focus on underlying cause

A statement of the decision problem into research

terms
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MDP Vs RP
MDP

RP

Should a new product be

introduced?

To determine consumer preferences

and purchase intentions for the
proposed new product.

Should the advertising

campaign be changed?

To determine the effectiveness

of the current advertising
campaign.

Should the price of the

brand be increased?

To determine the price elasticity

of demand and the impact on sales
and profits of various levels
of price changes.

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Problem Definition
MDP asks what Decision maker needs to do where
as,

RP asks what information is needed & how it can

obtained effectively & efficiently

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Problem Definition

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Errors in Defining Problem

Common
Errors

Problem Definition is
too Broad
Does Not Provide
guidelines for Subsequent
Steps
e.g., Improving the
Companys Image

Problem Definition is
too Narrow
May Miss Some Important
Components of the Problem
e.g. Changing Prices in
Response to a Competitors
Price Change.

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Interest generated?

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