Business Research Methods - Chapter 1 Notes

The secret of success is to know something nobody else knows. - Aristotle Onassis
Business research is a systematic and objective process of generating information to aid in making business decisions.
Research means to "search again".

Business research must be objective, detached, and impersonal rather than biased.

Information reduces uncertainty.
Scientific evidence shows that vaccination is not associated with autism (Taylor et al. (2014).
“It ain’t the things we don’t know that gets us in trouble. It’s the things we know that ain’t so.” - Artemus Ward

Basic research: Attempts to expand the body of knowledge and is not directly involved in solving a pragmatic problem.
- Example:
  - Is students’ success correlated with their family background?
  - Does government’s tightening of spending lower private sector investments?
Applied research: Conducted when a decision must be made about a specific real-life problem; its purpose is to find solutions.
- Example:
  - Should McDonalds add Korean fried chicken to its menu?
  - Should universities ban students’ involvement in political movement?
  - A research tests whether low income groups will benefit from food coupons rather than cash assistance.

The analysis and interpretation of empirical evidence (facts from observation or experimentation) to confirm or disprove prior conceptions.

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

Formal, objective measurement and appraisal of the extent to which a given activity, project, or program has achieved its objectives.

Research that regularly provides feedback for evaluation and control.
- Indicates things are or are not going as planned.
- Research may be required to explain why something "went wrong."

Considerations:
- Time constraints (Is sufficient time available before a managerial decision must be made?)
- Availability of data (Is the information already on hand inadequate for making the decision?)
- Nature of the decision (Is the decision of considerable strategic or tactical importance?)
- Benefits versus costs (Does the value of the research information exceed the cost of conducting research?)
Decision Matrix:
- Conduct Business Research:
  - Time Constraints: Yes
  - Availability of Data: Yes
  - Nature of the Decision: Yes
  - Benefits vs. Costs: Yes
- Do Not Conduct Business Research:
  - Time Constraints: No
  - Availability of Data: No
  - Nature of the Decision: No
  - Benefits vs. Costs: No

Potential Value of a Business Research Effort should exceed its estimated costs. Value > Costs

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

Cross-functional teams are composed of individuals from various organizational departments such as engineering, production, finance, and marketing who share a common purpose.