Learning Objectives

Understand . . .
• What business research is and how it differs from
business decision support systems and business
intelligence systems.
• Trends affecting business research and the
emerging hierarchy of business decision makers.
• The distinction between good business research
and research that falls short of professional quality.
• The nature of the research process.
Data Collectors Face
Responsibilities

“This is a fantastic time to be entering the

business world, because business is going to
change more in the next 10 years than it has in
the last 50.”
Bill Gates, entrepreneur and founder
Microsoft
PulsePoint:
Research Revelations

34
The percent of employees who never
consider that their bosses, clients, or
colleagues think before posting to a
blog, discussion forum, or social
network.
Why Study Business Research?

Business
research provides
information to
guide business
decisions
Research Should Help
Respond to Change

“Enterprises have long recognized the need

to better sense and respond to business change.
What’s different today is that ubiquitous access
to information and real-time communications
have fostered an ‘always on’ business culture
where decision making has become a ‘just-in-time
process.’”
Business Performance Management Forum
Business Research

•A 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
Research Should Reduce
Risk

The primary
purpose of
research is to
reduce the level of
risk of a marketing
decision
What’s Changing in Business
that Influences Research

New
New Information Technological
Technological
Research
Research Overload Connectivity
Connectivity
Perspectives
Perspectives
Computing
Computing Shifting
Shifting
Power
Power && Global
Global
Speed
Speed Economics
Economics
Factors
Factors
Battle
Battle for
for Critical
Analytical
Analytical Scrutiny of
Talent
Talent Business
Government
Government
Intervention
Intervention
Computing Power and Speed

Lower-cost
Data
Collection
Better
Better
Integration
Integration of
of Visualization
Visualization
Data
Data Tools
Tools

Factors
Factors

Real-time
Real-time Powerful
Powerful
Access
Access Computation
Computation
Business Planning Drives
Business Research

Organizational Business
Mission Goals

Business Business
Strategies Tactics
Business Decisions and
Research

Häagen-Dazs Tactics
– Super premium
– Dozens of flavors
– Small packages
– Signature colors on
packaging
– Available in franchise
and grocery stores
Information Sources

Decision Support Business Intelligence

Systems Systems
Numerous elements of Ongoing information
data organized for collection
retrieval and use in Focused on events,
business decision trends in micro and
making macro-environments
Stored and retrieved via
– Intranets
– Extranets
Sources of
Business Intelligence

Government/
Competitive
Regulatory

Demographic Economic
Business
Intelligence

Technological Cultural/
Social
Hierarchy of Business Decision
Makers

Visionaries
Visionaries

Standardized
Decision Makers

Intuitive Decision Makers

Minute Main and Business
Research
P&G has a world-class research
department
Research May Not Be Necessary

Can It Pass These Tests?

• Can information be applied to a critical
decision?
• Will the information improve managerial
decision making?
• Are sufficient resources available?
Information Value Chain

Data collection/ Data

transmission management

Characteristics

Decision Data
support systems interpretation

Models
The Research Process
 Characteristics of
Good Research
Clearly
Clearly defined
defined purpose
purpose
Detailed
Detailed research
research process
process
Thoroughly
Thoroughly planned
planned design
design
High
High ethical
ethical standards
standards
Limitations
Limitations addressed
addressed
Adequate
Adequate analysis
analysis
Unambiguous
Unambiguous presentation
presentation
Conclusions
Conclusions justified
justified
Credentials
Credentials
Categories of Research

Applied Basic (Pure)

Types of Studies

Reporting Descriptive

Explanatory Predictive
Key Terms

• Applied research • Management dilemma

• Business intelligence • Predictive studies
system (BIS) • Pure research
• Business research • Reporting studies
• Control • Return on Investment
• Decision support (ROI)
system • Scientific method
• Descriptive studies • Strategy
• Explanatory Studies • Tactics
Appendix 1a
How the Research
Industry Works
Who Conducts Business
Research?
Some Organizations Use
Internal Research Sources
Some Organizations Use
External Research Sources
Business Research Firms
Proprietary Research

Decision Analyst,
Inc. uses Internet-
based concept
testing called
Conceptor to
examine new
product concepts
Syndicated Services

Nielsen Media
Research
provides audience
data for television
programs like
Court TV
Some Syndicated Data Providers

AC Nielsen DoubleClick
Scarborough Nielsen/NetRatings
Millward Brown Taylor Nelson Sofres
Nielsen Media Research Intersearch
Roper ASW J.D. Power Associates
CSA TMO MediaMark
Yahoo! Simmon (SMRB)
ORC International BRMB
Information Resources Inc.
Specialty Business Research
Firms

Methodology

Process

Industry

Participant group

Geographic Region
Communication Agencies

Sales Advertising
Promotion

Public
Relations
Direct
Business
Consultants and
Trade Associations
Trade Associations

NHRA
NHRA
CASRO
CASRO
MRA
MRA
ESOMAR
ESOMAR
BRA
BRA
AMA
AMA
WAOBRP
WAOBRP
MPA
MPA
NAB
NAB
Many Firms Conduct Research
Key Terms

•Custom Researcher
•Full-service researcher
•Specialty researcher
•Syndicated data provider
•Omnibus researcher
•Omnibus study
 Chapter 1
Addendum

Research Timeline

1-39
 Information Revolution

1971
1964 1973
First CATI
OCR UPC bar-code
survey
shows scanning 1979
conducted
promise introduced First
U.S. DOD VisiCalc
commissions ships
1968 1972 1975
forerunner of Word processing Optical laser Microsoft
Internet first demonstrated disk revealed is born

1960 1980
1968 1973 1980
1964 SPSS created Basic ideas of Apple owns
IBM Internet created 50% of
introduces pc market
model 360 1971
Intel introduces first 1976
microprocessor Apple I
released
Information Revolution

1993 2001
1987 2003
WWW experiences Online survey
First Wal-Mart commits
3,400X growth software widely
Internet To use RFID
in service traffic available
survey

1981 1994 2002

IBMPC 1990s Greenfield Online Web-conferencing
released OCR used for Introduces Software
data entry online focus group introduced

1980 2010

1991 2009
WWW 1996 76.3% in
1987 Internet
developed US have
IRI conducts World Exposition
first scanner Internet
held access
tracking study 2002
High-speed
chip technology
for servers