chapter 1 the role of business research (1)

7/28/2019 Chapter 1 the Role of Business Research (1)

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THE ROLE OF BUSINESS RESEARCHChapter 1

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LEARNING OUTCOMES

1. Understand how research contributes to business success

2. Know how to define business research

3. Understand the difference between basic and applied

business research4. Understand how research activities can be used to address

business decisions

5. Know when business research should and should not be

conducted6. Appreciate the way technology and internationalization are

changing business research12

After studying this chapter, you should


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Business Research Defined

Business research is the application of the scientific method in

searching for the truth about business phenomena.

The process includes:

idea and theory development

problem definition

searching for and collecting information

analyzing data

communicating the findings and their implications

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Business Research Defined

This definition suggests that business research information is:

not intuitive or haphazardly gathered

accurate and objective

relevant to all aspects of the business

limited by ones definition of business

Not-for-profit organizations and governmental agencies can

use research in much the same was as managers in for-profit

organizations.

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Applied and Basic Business

Research Applied business research

conducted to address a specific business decision for a specific

firm or organization.

Example:

Should McDonalds add Italian pasta dinners to its menu? Which health insurance plan should a business provide for its

employees?

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Applied and Basic Business

Research Basic business research (also called pure research)

conducted without a specific decision in mind that usually does

not address the needs of a specific organization.

Attempts to expand the limits of knowledge in general.

Not aimed at solving a pragmatic problem.

Example:

Do consumers experience cognitive dissonance in low-involvement

situations?

Does employee tenure with a company influence productivity?

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The Scientific Method

Scientific Method

The way researchers go about using knowledge and evidence to

reach objective conclusions about the real world.

The analysis and interpretation of empirical evidence (facts from

observation or experimentation) to confirm or disprove priorconceptions

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EXHIBIT 1.1 A Summary of the Scientific Method

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Managerial Value of Business

Research There are only a few business orientations:

Product-oriented

Production-oriented

Marketing-oriented

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EXHIBIT 1.2 Business Orientations

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Managerial Value of Business

Research The decision-making process associated with the development

and implementation of a business strategy involves four

interrelated stages:

1. Identifying problems and opportunities

2. Diagnosing and assessing problems or opportunities

3. Selecting and implementing a course of action

4. Evaluating the course of action

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Evaluating the Course of

Actions Evaluation Research

The formal, objective measurement and appraisal of the extent a

given activity, project, or program has achieved its objectives.

Performance Monitoring Research

Research that regularly, sometimes routinely, provides feedbackfor evaluation and control of business activity.

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When is Business Research

Needed? The determination of the need for research centers on:

1. Time constraints

2. The availability of data

3. The nature of the decision to be made

4. Benefits versus costs (the value of the research informationin relation to costs)

Will the payoff or rate of return be worth the investment?

Will the information improve the quality of the managerial

decision enough to warrant the expenditure?

Is the expenditure the best use of the available funds?

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EXHIBIT 1.3 Determining When to Conduct Business Research

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Business Research in the 21st

Century Communication Technologies

Always connectedtime, place, and distance are irrelevant.

Decreases in information acquisition, storage, access, and

transmission costs.

Global Business Research Business research is increasingly global.

Must understand the nature of particular markets.

Cross-validation

Verify that the empirical findings from one culture also exist and

behave similarly in another culture.

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chapter 1 the role of business research (1)

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