Texas A&M International University BUSINESS MISC c4

Chapter 4


The Business Research Process: An Overview
AT-A-GLANCE

I. Decision Making
A. Certainty
B. Uncertainty
C. Ambiguity
 Problems and opportunities

II. Types of Business Research
A. Exploratory research
B. Descriptive research
C. Causal research
 Causality
 Temporal sequence
 Concomitant variance
 Nonspurious association
 Degrees of causality
 Experiments
D. Uncertainty influences the type of research

III. Stages in the Research Process
A. Alternatives in the research process
B. Defining the research objectives
 Defining the managerial decision situation
 Exploratory research
 Previous research
 Pilot studies
 Stating research objectives
 Linking decision statements, objective, and hypotheses
C. Planning the research design
 Selection of the basic research method
 The “best” research design
D. Sampling
E. Gathering data
F. Processing and analyzing data
 Editing and coding
 Data analysis
G. Drawing conclusions and preparing a report

IV. The Research Program Strategy

,LEARNING OUTCOMES
1. Define decision making and understand the role research plays in making decisions
2. Classify business research as either exploratory research, descriptive research, or causal
research
3. List the major phases of the research process and the steps within each
4. Explain the difference between a research project and a research program


CHAPTER VIGNETTE: Getting (and Keeping) Up to Speed:
Hoover’s Helps HP

Like most global companies, Hewlett-Packard (HP) must continue to innovate in a continuously
changing environment. How can HP help their sales staff with data and analyses to keep them up
to speed with new companies, new territories, and new technologies? Hoovers, a division of the
Dun & Bradstreet Corporation, is an integral part of HP’s customer relationship management
(CRM) strategy, with data “plug-in” capabilities that give sales reps real-time information to
assist them in their decision-making.



SURVEY THIS!
Based on the data that the survey gathers, students are asked what business problems or
opportunities they feel can be addressed from the information. They are asked to specify at least
three research questions that can be answered by the information gathered by this survey. Is this
survey most representative of an exploratory research, descriptive research, or causal research
design?


RESEARCH SNAPSHOTS
 Cute, Funny, or Sexy? What Makes a Mascot Tick?
Research is used to help determine in mascots need to be changed (e.g., Pillsbury
Doughboy, Brawny paper towel man, etc.). It often begins with exploratory research,
such as focus groups. Exploratory research found that women wanted a sexy Brawny
man, Mr. Peanut was perceived positively (but not with Bermuda shorts on!), and that
the M&M characters were called by their color, so names were not necessary.

 Taking a Swing at Business Success
Greg Norman is a well-known professional golfer, but he is also a successful vintner.
Norman Estates gained fame in the wine trade with Australian wines that offered
considerable quality at a fair price. This company is expanding its portfolio by
purchasing vineyard properties and production capacity in California. Descriptive
research can be vital in making key decisions when considering diversifying beyond a
company’s traditional boundaries. Descriptive statistics describe what wine consumers
like to drink in terms of where it is from and where they are located. For example,
American consumers are switching increasingly from French wines to Australian- and
American-made wines, especially in the low and moderate price ranges.

,  Rolling Rock
Rolling Rock beer has its origins as a regional brand, and its signature package was a
longneck green bottle with a white painted label. The brand, now marketed by Labatt
USA, expanded nationally during the 1980s, and a number of line extensions proved
ineffective. Executives decided to conduct a massive consumer study, basically running
an experiment. They learned that the new packages met with consumers’ strong
approval, and consumers consistently indicated that they would be willing to pay more
for the brand in those packages.



OUTLINE
I. DECISION MAKING

 A business opportunity is a situation that makes some potential competitive
advantage possible.
 A business problem is a situation that makes some significant negative consequence
more likely.
 Problems are inferred from observable symptoms, which are observable cues that
serve as a signal of a problem because they are caused by that problem.
 Research may help identify what is causing this symptom so that decision makers
can actually attack the problem, not just the symptom.
 Decision making is the process of developing and deciding among alternative ways
of resolving a problem or choosing from among alternative opportunities.
 Every decision making situation can be classified based on whether it best represents
a problem or an opportunity and on whether it represents a situation characterized by
complete certainty or absolute ambiguity.

 Certainty
 Complete certainty means that the decision maker has all information needed to
make an optimal decision.
 Perfect certainty, especially about the future, is rare.

 Uncertainty
 Uncertainty means that the manager grasps the general nature of desired
objectives, but the information about alternatives is incomplete.
 Predictions about forces that shape future events are educated guesses.
 Effective managers recognize that spending additional time to gather data that
clarify the nature of a decision is needed.
 Business decisions generally involve uncertainty, particularly when seeking
different opportunities.

 Ambiguity
 Ambiguity means that the nature of the problem itself is unclear.
 Objectives are vague and decision alternatives are difficult to define.
 The most difficult decision situation, but perhaps the most common.

 Problems and Opportunities