BRM Module 1

7/31/2019 BRM Module 1

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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.



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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.


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.



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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


Business Research



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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.

Documents

BRM Module 1