rmb 2011-13 batch lectures

8/2/2019 RMB 2011-13 Batch Lectures

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Business Research Methods


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When Columbia PicturesIndustries, Inc., wasplanning the

promotion for itsnew movieStarman, ithad to decidehowmuch to spend for advertising the movie andwhen theadvertising shouldoccur.

"One of Columbia's biggestmarketing weaknessesin thepast wasto spend toomuch in advertising its films .... It

now carefullytracks the effects of its spendingin twice-a-week polls of moviegoers.

"(Columbia's marketing vice-president) believesthat amovie thatopens nationally like Starman shouldbe knownby at least60% of the publicby opening day. In the weeksbeforesuch a movie's release, his departmenttracksawareness ofthe film-by region, agegroup, and gender. Ifawareness builds fasterthan expected, Columbiacuts backits promotion .... If itdoesn't pickup fastenough, spendingis increased.

Situation I :Adv. Decision


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Situation II: Adv. Decision

The A&Pfood store chain introduced a new nationwideadvertising

campaign to show consumers itsstores were clean, were staffedbyfriendly employees, and were wellstocked withfresh food offeredat valueprices.

"These commercialsare the product of a varietyof surprisingly extensivemotivationalresearch techniques .... Consumers wereshown a simplesketch of a woman aboutto enter a supermarket. They wereasked what

the woman wasthinking and how she felt. In another test, subjects wereshown photographs of people, toldthey depicted both A&Pcustomers andthose who shopped elsewhere, and were then asked to separatethepictures into twogroups and explain why. Some subjects were alsoaskedto imagine A&Pas a person: Is ita man or a woman; what kind ofworkdoes he or she do?

"The results were not the stuff ofhappy A&Pmarketing conferences. Thetests showed that consumers considered supermarket shopping to bedrudgery and that the A&Pchain, in particular, wasseen as agrandmother who isa bitcorny and behind the times. Perhaps worse, itsstores were considered moreexpensive and less efficientthan thecompetition's."


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Situation III

Althoughthe United Statesrepresents the largest travelmarketin the world, only 2 percent ofthe country's travelers go toCanada for vacations. To learn why so fewAmerican travelersvisitCanada, the Canadian tourism bureau interviewed 9,000Americans who vacationed regularly. What emerged fromthesehour-long, in-home interviews was" ... the general perception ofCanada as clean, safe, and dull, withimmense stretches ofwilderness broken up by citiesthat closed down at 5 PM. Atypicalcomment was, 'Canada doesn't present itselfas anexciting place, witha lot of activity like New York .... or Californiaforthe craziness. There's nothing I can identify withCanada. It's

just. ... Canada.'" What resulted fromthe research wasa $14 million advertising

campaign " .... tojazzup Canada's publicpersona. Out went themoose and the mountains and in camethe nightclubs,Broadway-type theaters, OldWorld architecture, French citiesand sports opportunities."


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Situation IV: Adv. Decision Diet Rite had less than a 1 percent market share, which was much

smallerthan either Diet Coke orDietPepsi. "DietRite had triedads that pushed taste, lower price, even its low calorie content, buthad notfoundan effective way to distinguish the productfrom its

powerful competitors'. It was looking foran emotional hook.

"SoDiet Rite's agency ... began by interviewing dozens ofwomen

who were dieters. The interviewers, clinical psychologists,reported that these women were convinced their bodies wereunattractive, or they used food fora substitutefora balanced

family life, or they were raisedin homes wherefood was usedas apunishmentor reward.All saidtheyfelt dieting was difficultandmade themfeel more vulnerable.

"On the basis ofthese interviews (the agency) recommended thattheDietRite campaign not show gorgeous & slim women becausewomen with poor self-images couldnot relate to them. The agencyalso decided that viewers would empathize with other dieters whoappeared vulnerable and hardworking."


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Situation V: New Product

Development When the CampbellSoup Co. first developed

JuiceWorks, a line of fruit juices for children,

" ... 200 students in elementary schoolsinNew Jersey helped Campbell developthenew drinksby tasting and rating them. Onscorecards filledwith drawings of faces, the

children gavethe early samples lowmarks-alot of frownsand children holding their nosesand signaling thumbs down. Campbellmodifiedthe recipesuntil the scores

improved."


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Introduction to Research

Research is the process of finding solutions toa problem after a thorough study and

analysis of the situational factors


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Business Research

Is defined as unbiased, structured andsequential method of enquiry, directed towards

a clear implicit or explicit business objective.

This enquiry might lead to validating theexisting postulates or arriving at new theories

and methods.

It is used to understand the market trends. To find out the optimal marketing mix, devise

effective HR policies, or to find the best

investment options and many more.


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SituationA domestic hearing-aid Co. is not able to keep above the red line and has

identified inventory management in the company as probably one of the

areas that needs to be refurbished. You take stocks of existing shipping,storing and delivery operations and find that you are losing out-of-stock

conditions at your end. You track this down to a faulty inventory reporting

system, where the data about stock is provided for a cycle of 40 days.

A small impromptu survey with retailers stocking your products and the

pathology labs recommending your products confirms your observations.

You study the latest inventory management techniques available. You

isolate three different practices and work out the feasibility of

implementing each one of them in the company.

The one that seems to be most cost and time effective is the one you chooseand develop an inventory model which you implement for the base hearing

aids. You realize you have a probable winner on hand. You prepare a

report on the proposed inventory management model with cost

implications to the management.

What do you observe here? 9


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Basic Research

Basic research refers to focused systematicstudy or investigation undertaken to discovernew knowledge and establish facts or

principles in a particular field. It is primarily aimed at gathering knowledge.

Eg: Understanding the consumer buying process

Examining the consumer learning process.


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Applied Research

It refers to investigation undertaken to discover the

applications and uses of theories, knowledge andprinciples in actual work or solving problems.

It is used to answer a specific question, determine whysomething failed or succeeded, solve a specific problem.

For eg:

Evaluating the impact of a training program onemployee performance

Examining consumer response to direct marketingprograms

Identifying the reasons why product did not work wellin market, when it had worked in test market.


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Some more types of research..

Exploratory research is a type of research conducted

for a problem that has not been clearly defined. Often

relies on secondary research.

Descriptive & Analytical research

Quantitative & Qualitative research

Conceptual & Empirical research


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Why is it important for managers to know

about research?

Solve problems

Decision making tool

Competition

Risk

Investment


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Why Business/Marketing Research

has evolved and grown

Managers are separated from their final consumers.

They need information from their final consumers.

Target Market

Product & Services

Price

Distribution

Promotion


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What is Marketing Research

.is the process of designing, gathering, analyzing, andreporting information that may be used to solve aspecific marketing problem. (Burns & Bush)

is the function that links the consumer, customer,and public to the marketer through informationinformation used to identify and define marketingopportunities and problems; generate, refine, andevaluate marketing actions; monitor marketing

performance; and improve the understanding ofmarketing as a process. (AMA)


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Research applications in marketing

Market & consumer analysis

Product research

Pricing research

Promotional research

Place research


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Research applications in finance

Asset pricing, capital markets and corporate finance

Financial derivatives and credit risk modeling research

Market-based accounting research

Auditing and accountability

Other areas: financial forecasting, behavioural finance,

volatility analysis


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Research applications in

human resourcesTraining & development studies

Selection and staffing studies

Performance appraisaldesign and evaluation

Organization planning and development

Incentive and benefits studies

Emerging areascritical factor analysis, employerbranding studies


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Research applications in

production & operations management

Operation planning and design

Demand forecasting and demand estimation

Process planning

Project management and maintenance effectiveness

studies

Logistics and supply chain-design and evaluation

Quality estimations and assurance studies


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Market Research during different phases of

administrative process

Evaluating the plans effectiveness

Putting the plan in action

Developing a plan

Setting goals and Establishing strategies Phase I

Phase II

Phase III

Phase IV


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Factors affecting Business Research

Time constraint

Availability of resources

Nature of information sought

Benefits versus costs


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Business Research Process

Problem & Objective Formulation

Research Proposal & Hypotheses Formulation

Research Design & Methods

Select sample procedure

Data collection

Analysis & interpretation of data

Research Report


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Problem Formulation

Research Problem refers to some difficulty which is impacting

towards negativity on the business or Management and requiresbest solution.

Components of research problem are:

1) There must be some objective to attain.2) There must be alternative means for obtaining the objective, i.e.,

there must be more than one problem which can lead togeneration of objective.

3) There must be some doubt in the mind of researcher as to the

selection of alternative. i.e. researcher must know that whichproblem is effecting more to the business.


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Establishing the objective

After defining the problem, next stage is of establishing the objective.

Defining of Objective is the most critical stage, as whole research is to

be conducted to the objective.

Example: the scope for bringing about lasting changes in attitude by

means of training programs.

(Problem: prior to objective that Projects are not completing on timeor conflict level is increasing)


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Sources of Problem

1) Reading: reading critical articles related to the problemscenario.

2) Experience: Experienced researchers can understand the

scenario and can formulate problems easily.

3) Exposure to field situations: Researcher has to visit field andsometimes has to do internship to understand the market

closely and practically.

4) Consultation to experts: discuss scenario to Experts and

Business executives. Business executives interacts more tocustomers so can understand market easily.

5) Brainstorming: discussing among the group about the case.


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Process of Identification of Problem

1) Selecting the discipline: Specify in which discipline research is to

be done. Like: Marketing, Finance, HR, Operations, Economics

etc

2) Particular aspects of the selected subject: Here concentration is

more into the area of discipline which has been specified.

3) Identification of two or more specific topics in the selected

broad area: This stage requires grasp of the area and awareness

about the related problems and work which already has been done.

(Sources of problem can be used on this stage)


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Criteria of Selection

Internal Criteria

Researchers interest

Researchers competence

Researchers own resources

External Criteria

Researchability: Problem should be researchable

Importance & Urgency

Novelty or Originality

Feasibility

Usefulness and Social relevance


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Management Research Question Hierarchy

Discover the Management Dilemma

Discover the Management Question

Discover the Research Question

Refine the

Research Question ExplorationExploration

Stage 1 of Research Process


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Formulating the Research Question

Discover

ManagementDilemma

Identify symptoms rather

than problems

Exploration

Review published sources and interview

information to understand true dilemma.

Discover

Management

Question

Using collected exploratory

nformation to word the dilemma into question

Exploration

Clarify the possible management action that

might be taken to solve the dilemma.

Define

Research

Questions

Several management questions may be taken here.

Each question is an alternative action that may be used to

solve the dilemma


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The Research Question: MindWriter

Discover

ManagementDilemma

An increasing number of letters

and phone complaints about

postpurchase service.

Exploration

Employee shortages, Tech-line operator training,

Uneven courier performance, Parts shortages,Inconsistent repair servicing,

Product damage during repair,

Product damage during Shipping,

Packaging and handling

Discover

Management

Question

What should be done to improve the

Complete Care program for MindWriter

product repairs and servicing?

Exploration

Service manager, Call center manager,

Independent package company account

executive

Research

Questions

Should the tech-support operator be given more intensive training

Should ABC Courier Service be replaced by an air-transport service

Should the repair diagnostic and repair sequencing operations be

Modified

Should metropolitan repair centers be established to complement or

Re lace in-factor re air facilities


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Selecting between specific alternatives

under consideration

Using Typical Research and then results

will tell about the research question out of

available questions Research from the past behavior and

including some Quantitative techniques to

research further. (Decision tree analysis)


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Research Proposal

Research Proposal is a blue print for conducting and controlling

research. It is considered as a research plan to serve as a mean ofcommunication between the researcher and the research supporter.

Purpose of Research Proposal

Need of theparticular research

Beneficiaries of research

Kind of data to be collected and the means

Type of analysis that will be done

Duration, facilities, and funds required to carry out the research

Credentials of the proposals


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The Content of Research Proposal

Executive Summary

Research Questions & Objectives

Literature Review

Hypotheses Generation

Importance/Benefits of the Study

Research Design/Method

Time scale and Budget

Data Analysis

Bibliography and Appendices

rmb 2011-13 batch lectures

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