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Business
Research MethodsModule-1
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Introduction
Research is an art of scientific investigation. It isalso a systematic design, collection, analysis andthe reporting the findings and solutions for themarketing problems of a company . Research is
required because of the following reasons; To identify and find solutions to the problems To help making decisions To find alternate strategies To develop new concepts
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Literally, research (re-search) -search again Business research must be objective oriented Research always starts with a question or a problem
Research information is neither intuitive nor haphazardlygathered.
Its purpose is to find answers to questions through theapplication of the scientific method
It is a systematic and intensive study directed towards a
more complete knowledge of the subject studied Detached and impersonal rather than biased It facilitates managerial decision process for all aspects of a
business by providing information.
What is Research?
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What is Marketing Research?
Marketing research is the function which links the customerand public to the marketing through information - used toidentify and define marketing opportunities and problems ,generate, refine, and evaluate marketing action monitor
marketing performance and improve understanding ofmarket as a process.
It is a continuous activity carried out by organisations so as
not to miss any chance of a gap in a market which theycould fill specific activity aimed at providing an answer, oranswers to a current problem or opportunity is defined asthe systematic and objective process of generatinginformation for aid in making business decisions.
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The systematic process of designing, gathering,
analysing and reporting information that may be used to
solve a specific marketing problem.It begins with problem definition and ends with a report
and action recommendationsProvides information that facilitates or improves
marketingdecisions
Marketing Research Defined
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Classification of MarketingResearch
ProblemIdentification
Research
ProblemSolving
Research
Research that helps to identify problems that are notnecessarily apparent and yet exists and likely to arise in
the future is called Problem Identification Research.Research undertaken to help solve specific marketing
problems is called as Problem Solving Research
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Problem Identification Research
Market Potential Research
Market Share Research
Image/Brand Research
Market Characteristics Research
Sales Analysis Research
Forecasting Research Business Trends Research
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Brand positioning and repositioning
Test marketing
Pricing Research
Importance of price in brand selaction
Pricing policies
Product line pricing Price elasticity of demand
Response to price change
Promotional Research
Optimal promotional budget and promotional mix
Sales promotion relationship
Media selection
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Creative advertising testing
Evaluation of advertising effectiveness
Distribution Research Type of distribution
Attitude of channel members
Intensity of wholesale and retail coverage Location of retail and wholesale outlets
Channel margins.
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find out what pleases the Lord
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Information
Reduces
Uncertainty
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"The secret of success is to know something
nobody else knows. "
Aristotle Onassis
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Factors Affecting Business Research
Time constraint
Availability of Resources
Nature of information sought
Benefits versus cost
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Criteria for Good Research
Purpose clearly defined
Research process detailed
Research design thoroughly planned
High ethical standards applied
Limitations frankly revealed
Adequate analysis for decision makers needs
Conclusions justified Researchers experience reflected
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Objectives of Research
Achieve new insight into the problem
Study accurately the characteristics of aparticular individual situation or group
Diagnose the problem in the area concerned andto find solution to such problem
Test a hypothesis of a casual relationshipbetween variable
Promotional, profit, corporate image, customersatisfaction, product development etc
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Basic research
Applied research
Scientific Research
Business Research Types
B i R h P
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Basic Research or Pure
Research
Attempts to expand the limits/boundaries ofknowledge.
Conducted to verify the acceptability of agiven theory. Not directly involved in the solution to a
pragmatic problem. Basic research findings generally cannot be
immediately implemented.
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Basic Research Examples
Is executive success correlated with highneed for achievement?
Are members of highly cohesive work groupsmore satisfied than members of less cohesivework groups?
Do consumers experience cognitive
dissonance (e.g., You tell your youngerbrother to brush after every meal, but youdont) in low-involvement situations?
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Applied Research
Conducted when a decision must be made
about a specific real-life problem.
Research undertaken to answer questions
about specific problems or to make decision
about a particular course of action or policy.
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Applied Research Examples
An organization contemplating a paperless
office and a networking system for the
companys personal computers may conductresearch to learn the amount of time its
employees spend at personal computers in an
average week.
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Applied Research Examples,
Contd.,
Should McDonalds add Italian pasta
dinners to its menu?
Applied research told McDonalds it should
not.
O Q
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Oral Quiz
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1. A researcher investigates whether different in a mangers brain (e.g. rightversus left hemisphere) are active during different kinds of managerialdecision-making.
Ans. Basic research
2. A researcher investigates consumers attitudes toward a prototype of aninnovative type of product, a homeCleaning kit for use on clothes thatrequire dry cleaning.
Ans. Applied research
3. A researcher investigates 5 personality traits to see if they can explain thepurchasing behavior of automobile buyers.
Ans. Basic research
4. A new technology that nullifies the need to refrigerate fish has beeninvented. Heat processing and the useof flexible pouches for storagehelps retain the freshness of fish and frozen food for three years. Aresearcher investigates how this new technology will impact the market forfish in India.
Ans. Applied research
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5. A researcher working for a candy company has children evaluateconcepts and prototypes for new candies.The researchers askchildren to taste the products and rate them. Sometimes, the candycompany developsunique items that taste good and researchersask children to come up with a concept or a name the product.
Ans. Applied research
6. A researcher working investigates whether introducing asubbrand at new-car dealerships, identified byan AutoNation USAlogo below the dealership name, is an effective basic strategy thatcan be applied to allits dealerships.
Ans. Applied research
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ScientificMethod
The scientific method refers to techniques
and procedures that help the researcher to
know and understand business phenomena.
It is a systematic step by step procedurefollowing the logical processes of reasoning
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ScientificMethod, cont.,
* The procedures and techniques utilized
by basic and applied researchers do not
differ substantially.
* Both employ the scientific method to
answer the questions at hand.
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ScientificMethod, Contd.,
Scientific method is a systematic analysis
and interpretation of empirical evidence
(facts from observation or experimentation)to confirm or disprove prior conceptions.
Limitations of applying Scientific
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tat o s o app y g Sc e t cMethods
Marketing researcher can not be objective in hisinvestigation as he wants to support & justifycertain issue.
Scientists can measure minutest changes in hislab. .where as MR cannot do this.(consumes ,preferences ,questionnaires)
Scientific method is a continuous process leading
to accumulation of knowledge, so it is Difficult tomake accurate predictions & MR is not acontinuous process.
Four Stages of Decision-making Process
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Four Stages of Decision-making Process
Associated with the Development and
Implementation of a Strategy
Identifying problems and opportunities
Diagnosis and assessment Selecting and implementing a course of
action
Evaluating the course of action
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Evaluation Research
Evaluation research is the formal, objective
measurement and appraisal of the extent to
which a given activity, project, or programhas achieved its objectives.
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Performance-Monitoring
Research (PMR)
Research that regularly provides feedback for
evaluation and control of business activity
Indicates things are or are not going asplanned
Research may be required to explain why
something went wrong.
Determining When to Conduct
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Time constraints
Availability of data Nature of the decision
Benefits versus costs
Determining When to Conduct
Business Research
Determining When to Conduct
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Is sufficienttime
availablebefore
amanagerialdecisionmust bemade?
Is theinfor-
mationalreadyon hand
inadequatefor making
thedecision?
Is thedecision
ofconsiderable
strategicor tactical
importance?
Does thevalueof the
researchinformation
exceedthe cost
of conductingresearch?
Conducting
BusinessResearch
Do Not Conduct Business Research
Time
Constraints
Availability
of Data
Nature of
theDecision
Benefitsvs.
Costs
Yes YesYesYes
No No No No
g
Business Research
V l C t
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Value versus Costs
Potential Value of a Business Research
Effort Should Exceed Its Estimated Costs
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Value
Decreased certaintyIncreased likelihood of
a correct decisionImproved business
performance and
resulting higher profits
Costs
Research expendituresDelay of business
decision and possible
disclosure of
information to rivalsPossible erroneous
research results
Value Should Exceed Estimated Costs
Major Topics for Research in
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Major Topics for Research in
Business/ Role of Business
Research General Business Conditions and Corporate
Research
Financial and Accounting Research Management and Organizational Behavior
Research
Sales and Marketing Research
Information Systems Research Corporate Responsibility Research
C f ti l T
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Cross-functional Teams
Today everyone in a progressive organizationfrom accountants to engineers engages in aunified effort to consider all issues related to
the development, production, or marketing ofnew products.
Cross-functional teams are composed of
individuals from various organizationaldepartments such as engineering, production,finance, and marketing who share a commonpurpose.
Business Research in the 21st
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Business Research in the 21st
Century
Increased globalization
Growth of the Internet and other information
technologies
Gl b l R h
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Global Research
Business Research is increasingly global
Market knowledge is essential
Global Business Research
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Global Business Research
General information about country -economic conditions and political climate
Cultural and consumer factors
Market and competitive conditions -demand estimation
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EthicalIssues in
BusinessResearch
What are Research Ethics?
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What are Research Ethics?
Ethics are norms or standards of behavior
that guide moral choices about our behavior
and our relationships with others
The goal is to ensure that no one is harmed
or suffers adverse consequences from
research activities
Ethical Treatment of Participants
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Ethical Treatment of Participants
Begin data collection by explaining to the
participant the benefits expected from the
research
Explain to the participants that their rights
and well-being will be adequately protected,
and say how this will be done
Be certain that interviewers obtain theinformed consent of the participant
Deception
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Deception
The participant is told only part of the truth
or when the truth is fully compromised
To prevent biasing the participants beforethe survey or experiment
To protect the confidentiality of a third party
Issues Related to Protecting
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Issues Related to Protecting
Participants
Informed consent
Debriefing
Right to Privacy/Confidentiality
Data Collection in Cyberspace
Ethical Issues related to the
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Ethical Issues related to the
Client
Sponsor non-disclosure
Purpose non-disclosure
Findings non-disclosure
Right to quality research
Ethics Related to Sponsor
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Ethics Related to Sponsor
Sometimes researchers will be asked by sponsors to
participate in unethical behavior.
To avoid coercion by sponsor the researcher should:
Educate sponsor to the purpose of research Explain researchers role
Explain how distortion of the truth leads to future
problems
If necessary, terminate relationship with sponsor
Ethical Issues related to
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Ethical Issues related to
Researchers and Team Members
Safety
Ethical behavior of assistants
Protection of anonymity
What are
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What are
Research
Ethics?
Ethics are norms or standards of behavior that
guide moral choices about our behavior and our
relationships with others The goal is to ensure that no one is harmed or
suffers adverse consequences from research
activities
Ethical/Unethical Practices in
Research
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ResearcherResearchers
Research
Organizations
RespondentsSubjects
Objects of
Investigation
Client - Sponsor
Decision MakersSponsoring Clients
Management Teams
Major Sources for Creating Ethical Dilemmas in ResearchPractices are From Interactions Among:
Research
Rights and Obligations
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Rights and Obligations
of the Respondent
The obligation to be
truthful Privacy Deception The right to be
informed
Rights andRights and
Obligations of theObligations of the
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Obligations of theObligations of the
ResearcherResearcher
The purpose of research isThe purpose of research is
researchresearch ObjectivityObjectivity Misrepresenting researchMisrepresenting research Protect the right toProtect the right to
confidentiality of bothconfidentiality of both
subjects and clientssubjects and clients Dissemination of faultyDissemination of faulty
conclusionsconclusions Advocacy researchAdvocacy research
Ethical Treatment of
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Respondents and
Subjects
Begin data collection by explaining to the
respondent the benefits expected from
the research
Explain to the respondents that their
rights and well-being will be adequatelyprotected, and say how this will be done
Be certain that interviewers obtain the
informed consent of the respondent
Rights and Obligations of
the Client Sponsor (User)
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the Client Sponsor (User)
Ethics between buyer andseller
An open relationship withresearch suppliers
An open relationship withinterested parties
Privacy Commitment to research Pseudo-pilot studies
Caselet 1:DOMINOS PIZZA INJAPAN
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JAPAN
Dominos Pizza tried to enter the Japanese market even thoughJapanese consumers tend not to eat lot of tomato-basedfoods, many have allergies to dairy products, and complexnavigation is required to deliver pizza through the streets ofTokyo.
Domino should have conducted marketing research beforeentering Japan
But better late than never as the company, upon entering themarket, conducted some research nd listened to their
customersIn reaction to the new consumer information, Dominos
introduced SUSHI PIZZA TOPPINGS and created a streetaddress data base for delivery scooters
Caselet 2:Boing 737 Taking off
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Reason for Research: Continuously monitor the marketplace and understand the needs and priorities of theircustomers.
Key Findings:
More than 60% prefer a single deck, 250 passengerairplane to a double deck 550 passenger airplane fornonstop flights.
7 out of 10 travelers prefer a nonstop trip on a singledeck
Travelers in all classes of service believe 250 passengerairplane will provide better experience with check-in,boarding, baggage claim, and customs andimmegration than 550 seat airplane.