1. Research Methodology
Chapter 1

2. Definition of Research
“Search for facts – answer to questions and solutions to problems. It is a purposive and organized inquiry”.

3. Definition of Business Research
Business research is defined as the systematic and objective process of generating information for solving a problem or finding solution to a complex issue (aid in making business decisions).

4. Business Research Literally, research (re-search) -“search again”
Business research must be objective
Detached and impersonal rather than biased
It facilitates the managerial decision process for all aspects of a business.

5. Objectives of Business Research
To extends knowledge
To discovered new information
Theory building
To verify and test existing facts and theory
To analysis inter-relationships between variables
Aims to find solution to current problems

6. Types of Research Basic Research
Generating scientific knowledge for future use (Common use).
Applied Research
Undertaken to solve existing problem.

7. Basic Research Attempts to expand the limits of knowledge.
Not directly involved in the solution to a practical problem.

8. Basic Research Example
Is executive success correlated with high need for achievement?
Coupons versus rebates as demand stimulation tactics
Compensation Systems and Labour Productivity
Factors determining share prices

9. Applied Research
Conducted when a decision must be made about a specific real-life problem

10. Applied Research Examples
Should McDonalds add Italian pasta dinners to its menu?
Business research told McDonald’s it should not?
Should Procter & Gamble add a high-priced home teeth bleaching kit to its product line?
Research showed Crest White strips would sell well at a retail price of RM44

11. Basic Differences Between Basic and Applied Research
“what is the problem” is an important step in resolving that problem.
What problems to analysis may be outside the individual researcher domain
Researcher role is examine analytically and a course of action recommended
Basic Research
Problem based on the researcher interest to expand understanding of the subject
Selection of the problem is totally the choice of the researcher
Some value judgment may be made,action is not recommended

12. Research and Business
Primary objective is to provide information that improves the decision-making process of an organization.
These information reduce managerial uncertainty in each stages of development and implementation of a strategy.

13. The 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

14. Identifying Problem
Research may be used as scanning activity to provide information about what is occurring within the organization or in the business environment.
Example: Analysis the Business Environment
Privatization and globalization in the developing countries
Fast economic growth in developing countries
It all leads to demand for Car

15. Diagnosis and Assessment
Managers need to gain insight about the underlying factors causing the situation. They should know what happened, why and how.
Example: Diagnosis the Demand
What is the expected growth of demand for car
What is the purchasing power of the people in the developing country
Consumers taste and preference
Competition in the market segment

16. Selection and Implementation
Research helps to obtain specific information that will aid in evaluating the alternatives and in selecting the best course of action.
Example:
Cost effective model to satisfy the consumers in the developing country
Place of production or export
Choose a place where potential consumers are more.

17. Evaluation Research
Evaluation research is the formal, objective measurement and appraisal of the extent to which a given activity, project, or program has achieved its objectives.
Example:
Performance analysis

18. Determining When to Conduct Business Research
Time constraints
Availability of data
Nature of the decision
Benefits versus costs

19. Determining When to Conduct Business Research
Time
Constraints
Availability of
Data
Nature of the
Decision
Benefits vs. Costs
Conducting
Business
Research
Yes
Is sufficient time
available before
a managerial
decision
must be made?
Is the infor-
mation already
on hand
inadequate
for making
the decision?
Yes
Is the decision
of considerable
strategic
or tactical
importance?
Yes
Does the value
of the research
information
exceed the cost
of conducting
research?
Yes No No No No
Do Not Conduct Business Research

20. Value versus Costs
Potential Value of a Business Research Effort Should Exceed Its Estimated Costs

21. Value Should Exceed Estimated Costs
Research expenditures
Delay of business decision and possible disclosure of information to rivals
Possible erroneous research results
Decreased uncertainty
Increased likelihood of a correct decision
Improved business performance and resulting higher profits

22. Why should a Manager Know Research?
Facilitate good decision making
Become discriminating about research findings
Issues of inside versus outside researcher
To share relevant information with researcher
Understand complex issues, variables, calculate risk, probabilities, etc.

23. Internal Researcher Advantages: Limitations:
Better acceptance from the staff
Knowledge about the organization
Would be integral part of implementation and evaluation of the research recommendations
Limitations:
Less fresh ideas
Power Politics
May not be valued as experts by staff

24. External Researcher Advantages: Experience from several situations
Better technical training
Limitations:
Time to understand the organizational system
Cooperation from the staffs is not easy
Not available for evaluation after implementation
cost