Business Research MethodsMGT 524

Abu Bashar

Text Book

BUSINESS RESEARCH METHODS

Donald R Cooper

Pamela S Schindler

Having produced its new formula, the Atlanta-based company conducted 200,000 taste tests to see how it fared.

Research DesignAll tests were conducted double blind basisDouble Triangle DiscriminationTwo samples of Coke and one of Pepsi or Two samples of Pepsi & one of CokeTaste preference tests were conducted on a paired comparison basisRegular Coke –Regular PepsiNew Coke-Regular PepsiNew Coke-Regular Coke

The results were overwhelming. Not only did it taste better than the original, but people preferred it to Pepsi-Cola as well.

However, if Coca-Cola was to stay ahead of Pepsi-Cola it couldn’t have two directly competing products on the shelves at the same time. It therefore decided to scrap the original Coca-Cola and introduced New Coke in its place.

New coke was introduced on 23 April 1985, and the production of the original formulation ended the same week. At an 11 July 1985 press conference Coca Cola executives announced the return of the original formula.

“We have heard you” -Roberto Goizueta, Chairman

The simple fact is that all the time and money and skill poured into consumer research on the new Coca-Cola could not measure or reveal the deep and abiding emotional attachment to original Coca-Cola felt by so many people. The passion for original Coca-Cola – and that is the word for it, passion – was something that caught us by surprise.

-Chief Operating Officer Donald Keough

Having two sugar cola products on the market did indeed split the market share as Coca Cola has feared

Market Survey End 1985: Pepsi ahead of New Coke & Classic Coke combined

Early 1986: Classic coke began outselling new coke and reclaimed the sugar cola crown from Pepsi.

New Coke sort of faded away.

Conclusion of case

Do the right research. Despite the thousands of taste tests Coca-Cola carried out on its new formula, it failed to conduct adequate research into the public perception of the original brand.

What Research Is Not

Research isn’t information gathering:Gathering information from resources such books or magazines isn’t research.

No contribution to new knowledge.

Research isn’t the transportation of facts:Merely transporting facts from one resource to another doesn’t constitute research.

No contribution to new knowledge although this might make existing knowledge more accessible.

What Research Is

Research is:

Research is discovery of new fact, law, principle, theory or a generalization using inductive-deductive methods, reflective thinking, problem solving approach or scientific approach.

What Research Is

Research is:

Research is reinterpretation of already known fact, law, principle, theory or a generalization using inductive-deductive methods, reflective thinking, problem solving approach or scientific approach.

The systematic & objective identification, collection, analysis, dissemination and use of information for the purpose of assisting management decision making.

Research Characteristics1. Originates with a question or problem.

2. Requires clear articulation of a goal.

3. Follows a specific plan or procedure.

4. Often divides main problem into subproblems.

5. Guided by specific problem, question, or hypothesis.

6. Accepts certain critical assumptions.

7. Requires collection and interpretation of data.

8. Cyclical in nature.

Objectives of Research“Find out the truth which is hidden & which has not been

discovered yet”

To achieve new insight

To portray accurately the characteristic of particular individual, situation or a group

To test a hypothesis of a causal relationship between variables.

Types of ResearchBasic Research

Intended to expand the body of knowledgeProvide knowledge for the use of others

Applied ResearchCarried out for solving particular problem or for guiding a specific problemResults are private

When to do research

There is an information gap

Cost of filling gap through research is less cost of taking wrong decision

Time taken for research does not delay decision making beyond reasonable limits

Thank You