Ch. 1(1).pdf

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Copyright © 2010 Pearson Education, Inc.
Chapter (1)
Introduction to Business Research
Business Research Methods (BSC 321)

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Chapter Outline
1) Definition of Research
2) A Classification of Business Research
3) Business Research Process
4) The Role of Marketing Research in Decision
Making

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Introduction
• In global market place , there is increase need for
more detailed information. WHY?
- Firms become national + international in
scope of operation. More information on
large + more distant markets is required.
- Customers are becoming more sophisticated
- Competition more intense
- Environment is changing rapidly

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 Business Research (BR) is the systematic and
objective identification, collection, analysis, and
dissemination of information for the purpose of
assisting management in decision- making related
to the identification and solution of problems and
opportunities in different businesses’ fields.
Definition of Business Research

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Definition of Business Research Cont’d
Business research is the systematic and objective
 Identification
 Collection
 Analysis
 Dissemination of information
For the purpose of improving decision making related to the
 identification and
 solution of problems and opportunities in different
fields.

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From this definition it can be concluded the
following:
 -Business research is systematic. It uses the
scientific method, in that data are collected and
analyzed to test hypotheses.
 -Business research is objective. It attempts to
provide accurate information that reflects a true
state of affairs. Researcher should be free from
personal or biases in the research project.
 Researcher motto should be “Find it and tell it like
it is”
Definition of Business Research Cont’d

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Used to identify and
define market
opportunities and
problems
Generate, refine, and
evaluate business
performance
Monitor business
performance
Improve understanding
of business as a process
Redefining Business Research

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Business Research
• Business research involves the identification,
collection , analyses , dissemination and use of
information
• Specifies the information necessary to address these
issues
• Manages and implements the data collection process
• Analyzes the results
• Communicates the findings and their implications
• Helps managers use this information to make
decisions

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A Classification of Business Research
Business Research
Problem
Identification Research
Problem-Solving
Research
Market Potential Research
Market Share Research
Market Characteristics Research
Sales Analysis Research
Forecasting Research
Business Trends Research
Segmentation Research
Product Research
Pricing Research
Promotion Research
Distribution Research

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Problem-Identification Research
• Research undertaken to help identify problems which are
not necessarily apparent on the surface and yet exist or
are likely to arise in the future.
Examples:
- Market potential of Emaar
- Image of the government
- Automobile market characteristics
- Sales analysis of Juhayna
- Forecasting for GPS
- Banks trends research

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Problem-Solving Research
• Research undertaken to help solve specific business related
problems.
Examples:
• Segmentation of new product
• Product test of Juhayna whipping cream
• Pricing of New mobile in relation to the purchasing power
• Distribution research as Vodafone and Radioshake outlet
agreement.

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 Determine the basis of segmentation
(age, gender, income, etc)
 Establish market
responsiveness (iphone)
 Select target markets (Heya card
select affluent women)
 Create lifestyle profiles:
media, and product image
(lifestyle of Nescafe )
SEGMENTATION RESEARCH
 Test concept (internet cards of NBE)
 Determine optimal product design
(Car designs)
 Package tests (Juhayna cap)
 Product modification (Chipsy flavors)
 Brand positioning and repositioning
(Johnson & Johnson)
 Test marketing (Coca cola carbonated
drinks)
PRODUCT RESEARCH

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Table 1.1 cont.
PRICING RESEARCH
 Pricing policies (quantity discount)
 Importance of price in brand selection
(Gucci, berrbery and LV)
 Product line pricing (Juhayna Pure)
 Price elasticity of demand
PROMOTIONAL RESEARCH
 Optimal promotional budget (Menu 20
McDonald’s)
 Sales promotion relationship (persil and pril)
 Media decisions
 Evaluation of advertising effectiveness (pre &
post evaluation of COVID-19 campaign)
0.00% APR

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DISTRIBUTION RESEARCH
Determine…
 Types of distribution (retailer, wholesaler)
 Attitudes of channel members
 Intensity of wholesale & resale coverage
(Mercedes vs Geely)
 Channel margins (Channels profits)
 Location of retail and wholesale outlets ( Carrefour
and emarat misr)

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Classification of BR
Problem Identification
Research
 Identifies problems
not yet apparent
 Often undertaken for
survival and long term
growth of the
company
Problem Solving
Research
 Used once the
problem has been
identified
 Used in making
decisions to solve
problems

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Importance of Defining the Problem
 Problem definition involves stating the general
problem and identifying the specific components of
the research problem.
 Critical in setting the directions for all subsequent
phases of the marketing research process.
 Inadequate problem definition is a leading cause of
failure of business research projects.

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Case: Where did Coca-Cola go wrong?
 Coca-Cola conducted blind taste tests in the early 1980s to
determine consumer taste preferences.
 Results indicated that consumers preferred a sweeter product,
similar to Pepsi Cola. Coca-Cola introduced the new taste Coke
and named it “New Coke” and discontinued the original Coke.
 In less than 3 months, New Coke was discontinued after
customer outrage that the original Coke was removed.
 It has been suggested that Coca-Cola narrowly defined the
research problem.
 Coca-Cola failed to measure the emotional attachment and
loyalty to the existing brand name and its effect on subsequent
purchase and consumption behaviour.
Source: Shields, M.J. 1985 ‘Coke Fizzles, Fails to Factor in Customer Loyalty’, Adweek, 15 July, p.8.

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Collect the Background Information
 Discussion with decision makers
 Interviews with industry experts
 Reviewing existing information
 Secondary data analysis
 Exploratory qualitative research

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Environmental Context of the Problem
 Past information and forecasts
 Resources and constraints
 Organisational and decision maker’s objectives
 Buyer behaviour
 Legal environment
 Economic environment
 Marketing and Technological skills

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The Problem or Opportunity Audit
Management decision problems and
marketing research problems encompass
both problems and opportunities.
Conduct a problem audit to understanding
the origin and nature of the problem.
Discussion with decision maker should cover:
• Symptoms
• Alternative course of action
• Background information
• Suspected causes and possible solutions
• Anticipated consequences
• Corporate culture of the organisation

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Symptoms (management concern)
• Declining sales
• Decline in profits
• Losing market share
• Inability to meet sales
forecasts
• Low traffic
• Dissatisfied customers

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Possible Causes (Researcher concern)
• Low-quality product or service
• Incorrect pricing
• Inappropriate distribution
channels
• Low awareness of company or
brands
• Poor image of the company
• Unmotivated sales force

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Business Research Process
Step 1 : Problem Definition
Step 2 : Development of an Approach to the Problem
Step 3 : Research Design Formulation
Step 4 : Fieldwork or Data Collection
Step 5 : Data Preparation and Analysis
Step 6 : Report Preparation and Presentation

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Thank you
Any Questions?

Ch. 1(1).pdf

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