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The Products World

MARKET
Existing products
Any holes?

RAW
MATERIALS
Sources
Chemical properties
Constraints of use?

PRODUCT
Ingredients
Process parameters
Quality?
instrumental,
sensory,
microbiological...

CONSUMERS
Characteristics
Preferences
Target group?

http://yourstory.com/2015/11/cherry-comet/
http://yourstory.com/2015/11/id-fresh/

http://yourstory.com/2015/11/startups-social-mission

http://business.nab.com.au/high-techtomatoes-with-traditionally-good-flavour-211239/
https://www.gov.uk/government/news/reducinganimal-use-in-research-apply-for-businesscontracts
http://www.inspire21.com/stories/businessstories/Iwilldropmypr

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The Role of Business Research

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Business Research
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

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Business Research
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 forprofit organizations

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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?

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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 lowinvolvement situations?


Does employee tenure with a company influence
productivity?
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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

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Summary of the Scientific Method

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Managerial Value of Business Research


There are only a few
business orientations:

Product-oriented
Production-oriented
Marketing-oriented

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Business Orientations

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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
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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.

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When to Conduct Business Research

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Types of Business Research


Exploratory
Descriptive
Causal

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Exploratory Research
Conducted to clarify ambiguous situations or discover

ideas that may be potential business opportunities.


Initial research conducted to clarify and define the
nature of a problem.
Does not provide conclusive evidence
Subsequent research expected

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Descriptive Research
Describes characteristics of objects, people,
groups, organizations, or environments.
Addresses who, what, when, where, why, and

how questions.
Considerable understanding of the nature of
the problem exists.
Does not provide direct evidence of causality.

Diagnostic analysis
Seeks to diagnose reasons for market

outcomes and focuses specifically on the


beliefs and feelings consumers have about and
toward competing products.
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Causal Research
Research conducted to identify cause and
effect relationships (inferences).
Evidence of causality:
o Temporal sequencethe appropriate causal order

of events.
o Concomitant variationtwo phenomena vary

together.
o No spurious associationan absence of

alternative plausible explanations.

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Degrees of Causality
Absolute Causality
The cause is necessary and sufficient to bring

about the effect.

Conditional Causality
A cause is necessary but not sufficient to bring

about an effect.

Contributory Causality
A cause need be neither necessary nor

sufficient to bring about an effect.


Weakest form of causality.

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Experiments
Experiment
A carefully controlled study in which the researcher

manipulates a proposed cause and observes any


corresponding change in the proposed effect.

Experimental variable
Represents the proposed cause and is controlled by the

researcher by manipulating it.

Manipulation
The researcher alters the level of the variable in specific

increments.

Test-market
An experiment that is conducted within actual market

conditions.
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Testing for Causes with an Experiment

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Characteristics of Different Types of Business


Research

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Stages in the Research Process


Process stages:
1. Defining the research objectives
2. Planning a research design
3. Planning a sample
4. Collecting the data
5. Analyzing the data
6. Formulating the conclusions and preparing the report

Forward linkageearlier stages influence later


stages.
Backward linkagelater stages influence earlier
stages.

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Stages of the Research Process

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Flowcha
rt of the
Busines
s
Researc
h
Process

Research Objectives
Research objectives
The goals to be achieved by conducting

research.

Deliverables
The consulting term used to describe research

objectives to a research client.

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Exploratory Research Techniques


Literature review

A directed search of published works, including periodicals


and books, that discusses theory and presents empirical
results that are relevant to the topic at hand.

Pilot Studies

A small-scale research project that collects data from


respondents similar to those to be used in the full study.

Pretest
A small-scale study in which the results are only
preliminary and intended only to assist in design of a
subsequent study.

Focus Group
A small group discussion about some research topic led
by a moderator who guides discussion among the
participants.
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Sample Decision Statements, Research


Objectives, and Research Hypotheses

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Research Design
A master plan that specifies the methods and
procedures for collecting and analyzing the
needed information.
Basic design techniques for descriptive and
causal research:

Surveys
Experiments
Secondary data
Observation

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Selection of the Basic Research


Method
Survey
A research technique in which a sample

is interviewed in some form or the


behavior of respondents is observed
and described.

Telephone

Mail

Internet

In person

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Selection of the Basic Research


Method
Sampling

Involves any procedure that draws

conclusions based on measurements of a


portion of the population.

Sampling decisions
Who to sample?target population
What size should the sample be?
How to select the sampling units?

Random sample vs Non-random Sample

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Processing and Analyzing Data


Editing
Involves checking the data collection forms for

omissions, legibility, and consistency in


classification.

Codes
Rules for interpreting, categorizing, recording, and

transferring the data to the data storage media.

Data analysis
The application of reasoning to understand the

data that have been gathered.

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Drawing Conclusions and Preparing a


Report
Steps in communicating the research findings:
Interpreting the research results
Describing the implications
Drawing the appropriate conclusions for managerial decisions

Reporting requirements
Conclusions fulfill the deliverables promised in the research

proposal
Consider the varying abilities of people to understand the
research results
A clearly-written, understandable summary of the research
findings

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