Chapter 5

Chapter 5The Human Side of Business Research:Organizational and Ethical Issues51LEARNING OUTCOMES52Know when research should be conducted externally and when it should be done internallyBe familiar with the types of jobs, job responsibilities and career paths available within the business research industryUnderstand the often conflicting relationship between management and researchersDefine ethics and understand how it applies to business researchAfter studying this chapter, you should2LEARNING OUTCOMES (contd)53Know and appreciate the rights and obligations of a) research respondentsparticularly children, b) business researchers, and c) research clients or sponsors Know how to avoid situations involving a conflict of interest in performing business researchAfter studying this chapter, you should3Who Does the Research?54Outside AgencyAn independent research firm contracted by the company that actually will benefit from the research.In-house ResearchResearch performed by employees of the company that will benefit from the research.4EXHIBIT 5.1Should Research Be Done In-House or By an Outside Agency?55

5Organizational Structure of Business Research56Small firms< 100 employeesVP of marketing may be in charge of all significant marketing research.Mid-sized firms100-500 employeesLarge firms> 500 employeesEXHIBIT 5.2The Largest Research Firms in the World57

7Organizational Structure of Business Research: Mid-Sized Firms58Director of marketing researchProvides leadership in research efforts and integrates all staff-level research activities into one effort.Plans, executes, and controls the firms research function.Research analystResponsible for client contact, project design, preparation of proposals, selection of research suppliers, and supervision of data collection, analysis, and reporting activities.8Organizational Structure of Business Research (contd)59Research assistants (or associates)Provide technical assistance with questionnaire design, data analyses, and similar activities.Manager of decision support systemsSupervises the collection and analysis of sales, inventory, and other periodic customer relationship management (CRM) data.Forecast analystProvides technical assistance, such as running computer programs and manipulating data to forecast sales.9EXHIBIT 5.3Organization of the Marketing Research Department in a Large Firm510aConducts research to improve total quality management in production.bConducts research that cuts across product lines or involves competitive marketing practices or characteristics of customer groups.cConducts research that cuts across product lines to measure the effectiveness of promotional activities.dConducts research aimed at gaining a basic understanding of various elements of the marketing process.

10The Director of Research as a Manager511Problems in directing research:Skilled research professionals like conducting research better than managing people.The research management role often is not formally recognized.Outstanding research professionals often have trouble delegating responsibility.Research is often seen as a hodgepodge of techniques available to answer individual, unrelated questions.11Sources of Conflict between Management and Research512Future decisions based on past experienceIntuitivedecision makingTimeMoneyResearch that implies criticismManagementversusResearch12EXHIBIT 5.4Areas of Conflict Between Top Management and Researchers 513

13Reducing the Conflict between Management and Researchers514Ways to reduce conflictEarly in projects and working closely togetherFormal job descriptionBetter planning and an annual statement of the research programCommunication of research findings and designsResearch generalistServes as a link between management and research specialists in acting as a problem definer, an educator, a liaison, a communicator, and a friendly ear.14EXHIBIT 5.6 Improving Two-Way Communication to Reduce Conflict515

15Cross-Functional Teams516Cross-functional teamsComposed of individuals from various functional areas such as engineering, production, finance, and marketing who share a common purpose.Benefits:Help organizations focus on a core business process, such as new-product development.Reduce the tendency for employees to focus single-mindedly on an isolated functional activity.Help to better communicate customers desires and opinions across the firm.16Research Suppliers and Contractors517Research SuppliersCommercial providers of research services.Syndicated ServiceA research supplier that provides standardized information for many clients in return for a fee.Standardized Research ServiceCompanies that develop a unique methodology for investigating a business specialty area.example: Retail Forward17Limited Research Service Companies and Custom Research518Limited-Service Research SuppliersSpecialize in particular research activities, such as syndicated service, field interviewing, data warehousing, or data processing.Full-service research suppliers sometimes contract these companies for ad hoc (custom) marketing research projects.Custom researchProjects that are tailored specifically to a clients unique needs.18Ethical Issues in Business Research519Business ethicsThe application of morals to behavior related to the exchange environment.Moral standardsPrinciples that reflect beliefs about what is ethical and what is unethical.Ethical dilemmaA situation in which one chooses from alternative courses of actions, each with different ethical implications.19Ethical Issues in Business Research (contd)520RelativismA term that reflects the degree to which one rejects moral standards in favor of the acceptability of some action.This way of thinking rejects absolute principles in favor of situation-based evaluations.IdealismA term that reflects the degree to which one bases ones morality on moral standards.example: the Golden Rule20General Rights and Obligations of Concerned Parties521Everyone involved in research can face an ethical dilemma:The people actually performing the researchthe doers.The research client, sponsor, or the management team requesting the researchthe users.The research participantsthe actual research respondents or subjects.Each party has certain rights and obligations toward the other parties.21EXHIBIT 5.7Interaction of Rights and Obligations522

22Rights and Obligations: Research Participant523Rights:To be informedTo privacyProtected from harmObligations:To be truthfulInformed ConsentThe individual understands what the researcher wants him/her to do and consents to the research study.ConfidentialityThe information involved in the research will not be shared with others.

23Deception in Research Designs And the Right To Be Informed524Experimental DesignsPlaceboA false experimental effect used to create the perception of a true effect.DebriefingResearch subjects are fully informed and provided with a chance to ask any questions they may have about the experiment.24Protection from Harm525Questions to ask to help avoid harming a research participant:Has the research subject provided consent to participate in an experiment?Is the research subject subjected to substantial physical or psychological trauma?Can the research subject be easily returned to his or her initial state?Human subjects review committeeReviews proposed research designs to ensure that no harm can come to any research participant.25Rights and Obligations of the Researcher526The researcher should:Understand that the purpose of research is research (no sales pitch to research participants)Maintain objectivityNot misrepresent researchBe honest in reporting errorsProtect the confidentiality of both subjects and clients26Research That Isnt Research527Pseudo-researchConducted not to gather information for decisions but to bolster a point of view and satisfy other needs.Push pollTelemarketing under guise of research.Service monitoringContacting customers about their experience with a product, there is no selling attempt.27EXHIBIT 5.9How Results Can Be Misrepresented in a Report or Presentation528A)Researcher points to a large difference in quality ratings. Men report much higher quality service than do women. In contrast, women report only slightly less satisfaction than do men.B)The researcher points to a trivial difference in quality perceptions between men and women. There is no difference in the satisfaction ratings of men and women.

28The Researcher and Conflicts of Interest529Conflict of interestOccurs when one researcher works for two competing companies.Rights and Obligations of the Client Sponsor (User)530Issues in the client-researcher relationshipEthical behavior between buyer and sellerAn open relationship with research suppliersAn open relationship with interested partiesAdvocacy researchresearch undertaken to support a specific claim in a legal action or represent some advocacy group.Privacy rights of research participants30Privacy on the Internet531Controversial issueMany researchers argue that they dont need to know who the user is, but they do want to know certain things (e.g., demographics, product usage) associated with an anonymous profile.Researchers should not disclose private information without permission from consumers who provided that information.