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

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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

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Categories of ResearchCategories of Research

Applied Basic (Pure)

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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

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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