1-2
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.
Learning ObjectivesLearning Objectives
1-3
Data Collectors Face Data Collectors Face ResponsibilitiesResponsibilities
“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
1-4
PulsePoint: PulsePoint: Research RevelationsResearch Revelations
34The percent of employees who never consider that their bosses, clients, or colleagues think before posting to a blog, discussion forum, or social network.
1-5
Why Study Business Research?Why Study Business Research?
Business research provides information to guide business decisions
1-6
Research Should Help Research Should Help Respond to ChangeRespond 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
1-7
•A process of determining, acquiring,analyzing, synthesizing, and disseminatingrelevant business data, information, andinsights to decision makers in ways thatmobilize the organization to take appropriate business actions that, in turn, maximize business performance
Business ResearchBusiness Research
1-8
Research Should Reduce Research Should Reduce RiskRisk
The primary purpose of
research is to reduce the level of risk of a marketing
decision
1-9
Critical Scrutiny of Business
Computing Power & Speed
Computing Power & Speed
Battle for Analytical
Talent
Battle for Analytical
Talent
FactorsFactors
Information Overload
Shifting Global
Economics
Shifting Global
Economics
Government Intervention
Government Intervention
Technological Connectivity
Technological Connectivity
New Research
Perspectives
New Research
Perspectives
What’s Changing in Business What’s Changing in Business that Influences Researchthat Influences Research
1-10
Computing Power and SpeedComputing Power and Speed
Real-time Access
Real-time Access
Lower-cost Data
Collection
Powerful Computation
Powerful Computation
Better Visualization
Tools
Better Visualization
Tools
Integration of Data
Integration of Data
FactorsFactors
1-11
Business Planning Drives Business Planning Drives Business ResearchBusiness Research
Organizational Mission
BusinessGoals
BusinessStrategies
BusinessTactics
1-12
Business Decisions and Business Decisions and ResearchResearch
Häagen-Dazs Tactics– Super premium – Dozens of flavors– Small packages– Signature colors on
packaging– Available in franchise
and grocery stores
1-13
Information SourcesInformation Sources
Decision Support Systems
Numerous elements of data organized for retrieval and use in business decision
making
Stored and retrieved via– Intranets– Extranets
Business Intelligence Systems
Ongoing information collection
Focused on events, trends in micro and
macro-environments
1-14
Sources of Sources of Business IntelligenceBusiness Intelligence
Business Intelligence
Government/Regulatory
Economic
Competitive
Demographic
Technological Cultural/Social
1-15
Hierarchy of Business Decision Hierarchy of Business Decision MakersMakers
Visionaries
Intuitive Decision Makers
Standardized Decision Makers
Visionaries
1-16
Minute Main and Business Minute Main and Business ResearchResearch
1-17
P&G has a world-class research P&G has a world-class research departmentdepartment
1-18
Research May Not Be NecessaryResearch 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?
1-19
Information Value ChainInformation Value Chain
Characteristics
Data collection/ transmission
Data interpretation
Models
Decisionsupport systems
Data management
1-20
The Research ProcessThe Research Process
1-21
Characteristics of Characteristics of Good ResearchGood Research
Clearly defined purposeClearly defined purpose
Detailed research processDetailed research process
Thoroughly planned designThoroughly planned design
High ethical standardsHigh ethical standards
Limitations addressedLimitations addressed
Adequate analysisAdequate analysis
Unambiguous presentationUnambiguous presentation
Conclusions justifiedConclusions justified
CredentialsCredentials
1-22
Categories of ResearchCategories of Research
Applied Basic (Pure)
1-23
Types of StudiesTypes of Studies
Reporting
Explanatory Predictive
Descriptive
1-24
Key TermsKey Terms
• Management dilemma• Predictive studies• Pure research• Reporting studies• Return on Investment
(ROI)• Scientific method• Strategy• Tactics
• Applied research• Business intelligence
system (BIS)• Business research• Control• Decision support
system• Descriptive studies• Explanatory Studies
Appendix 1aAppendix 1a
How the Research How the Research Industry WorksIndustry Works
1-26
Who Conducts Business Who Conducts Business Research?Research?
1-27
Some Organizations Use Some Organizations Use Internal Research SourcesInternal Research Sources
1-28
Some Organizations Use Some Organizations Use External Research SourcesExternal Research Sources
1-29
Business Research FirmsBusiness Research Firms
1-30
Proprietary ResearchProprietary Research
Decision Analyst, Inc. uses Internet-based concept testing called Conceptor to examine new product concepts
1-31
Syndicated ServicesSyndicated Services
Nielsen Media Researchprovides audience data for television programs like Court TV
1-32
Some Syndicated Data ProvidersSome Syndicated Data Providers
AC Nielsen
Scarborough
Millward Brown
Nielsen Media Research
Roper ASW
CSA TMO
Yahoo!
ORC International
DoubleClick
Nielsen/NetRatings
Taylor Nelson Sofres Intersearch
J.D. Power Associates
MediaMark
Simmon (SMRB)
BRMB
Information Resources Inc.
1-33
Specialty Business Research Specialty Business Research FirmsFirms
Methodology
Process
Industry
Participant group
Geographic Region
1-34
Communication AgenciesCommunication Agencies
Direct Business
Public Relations
AdvertisingSales Promotion
1-35
Consultants and Consultants and Trade AssociationsTrade Associations
1-36
Trade AssociationsTrade Associations
NHRANHRA
CASROCASRO
MRAMRA
ESOMARESOMAR
BRABRA
AMAAMA
WAOBRPWAOBRP
MPAMPA
NABNAB
1-37
Many Firms Conduct ResearchMany Firms Conduct Research
1-38
Key TermsKey Terms
•Custom Researcher•Full-service researcher•Specialty researcher•Syndicated data provider•Omnibus researcher•Omnibus study
Chapter 1 Chapter 1 AddendumAddendum
Research TimelineResearch Timeline
1-39
1-40
Information RevolutionInformation Revolution
1960
U.S. DODcommissionsforerunner of
Internet
1964 OCR shows
promise
1968Word processing first demonstrated
1971First CATI
surveyconducted
1972Optical laser disk revealed
1973UPC bar-code
scanningintroduced
1975Microsoft
is born
1979First
VisiCalc ships
1964 IBM
introduces model 360
1968SPSS created
1971Intel introduces first
microprocessor
1973Basic ideas of Internet created
1976 Apple I released
1980Apple owns
50% ofpc market
1980
1-41
Information RevolutionInformation Revolution
1980
1981IBMPC
released
1987 First
Internetsurvey
1990sOCR used for
data entry
1993WWW experiences
3,400X growth in service traffic
1994Greenfield Online
Introducesonline focus group
2001Online survey
software widelyavailable
2002Web-conferencing
Softwareintroduced
1987 IRI conductsfirst scanner
tracking study
1991WWW
developed1996
Internet World Exposition
held2002
High-speedchip technology
for servers
200976.3% inUS haveInternet access
2003Wal-Mart commits
To use RFID
2010
