THE ROLE OF BUSINESS

RESEARCH

Business Research Defined

Business research is defined as the
systematic and objective process of
generating information for aid in
making business decisions

Business research is the systematic and objective

identification
collection
analysis
dissemination
and use of information

for the purpose of improving decision making related to the

identification and
solution of problems and opportunities in business.

Business Research Types

Basic research (Problem Identification

research)
Applied research (Problem
research)

Kelloggs

Solving

Basic Research

Attempts to expand the limits of

knowledge.
Not directly involved in the solution to a
pragmatic problem.
Example:

Is executive success correlated with high

need for achievement?
Does the sale of cool drinks comes down?
Does the cricket players are doing good?
Does the inflation is increasing due to
budget?

Applied Research

Conducted when a decision must be made

about a specific real-life problem
Examples:

Should McDonalds add Italian pasta dinners to its

menu?
Business research told McDonalds it should not?
Should Procter & Gamble add a high-priced home
teeth bleaching kit to its product line?
Does the current Indian players are doing good?
Does the inflation of Iran is increasing due to its
budget?

Scientific Method

The analysis and interpretation of

empirical
evidence
(facts
from
observation or experimentation) to
confirm or disprove prior conceptions

A Classification of Research with respective to Marketing

Research

Problem
Identification Research
Market Potential Research
Market Share Research
Market Characteristics
Research
Sales Analysis Research
Forecasting Research
Business Trends Research

Problem-Solving
Research

Segmentation
Research
Product Research
Pricing Research
Promotion Research

Determining When to Conduct Business

Research

Time constraints
Availability of data
Nature of the decision
Benefits versus costs

Determining When to Conduct Business

Research

Availability of
Benefits
Data Nature of the Decision vs. Costs
Time Constraints
Is sufficient time
available before
a managerial
decision
must be made?

No

Yes

Is the information already

on hand
inadequate
for making
the decision?

No

Yes

Is the decision
Yes
of considerable
strategic
or tactical
importance?

No

Do Not Conduct Business Research

Does the value

of the research Yes
information
exceed the cost
of conducting
research?

No

Conducting
Business
Research

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

Step 2: Developing an Approach to the

Problem

Framing theoretical framework

Analytical models
Research questions
Hypothesis
Needed Information

Step 3: Formulating a Research Design

It is blueprint for conducting research

Definition of information needed

Secondary data analysis
Qualitative research
Methods of collection data (survey, observation and
experimentation)
Measurement and scaling procedures
Questionnaire design
Sampling process and sample size
Plan of data analysis

Step 4: Doing Field Work or Collecting Data

Personal interview (in-home, chatting in

mail, skype/viber)
Telephone
Mail (traditional mail or mail survey)
Secondary data
Can also get data from Research supplier

Research Suppliers &

Services

Internal suppliers
External suppliers

Full-service suppliers

Syndicated services ex. Collect and sell common pools of

data
Customized services ex. Supplies data suits to clients need
Internet services Specialize in conducting research online

Limited-service suppliers

Field services collects data through mail, personal etc.,

Coding and data entry services
Technical and Analytical services Quantitative methods
Focus group depth interview (1to1), moderators

Step 5: Preparing and Analyzing Data

Verification of data
Editing

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

Research Associations Online

AAPOR : American Association for Public Opinion Research

(www.aapor.org)

AMA : American Marketing Association (www.ama.org)

ARF : The Advertising Research Foundation

(www.amic.com/arf)

CASRO : The Council of American Survey Research

Organizations (www.casro.org)

MRA : Marketing Research Association (www.mra-net.org)

QRCA : Qualitative Research Consultants Association

(www.qrca.org)

RIC : Research Industry Coalition

(www.researchindustry.org)

ESOMAR: European Society for Opinion and

Marketing Research (www.esomar.nl)

MRS: The Market Research Society (UK)

(www.marketresearch.org.uk)

MRSA: The Market Research Society of

Australia (www.mrsa.com.au)

PMRS: The Professional Marketing

Research Society (Canada) (www.pmrsaprm.com)