Applied Research

Its Role in the Business

Environment

Give me wisdom and knowledge, that I may Give me wisdom and knowledge, that I may lead this people, for who is able to govern this lead this people, for who is able to govern this great people of yours?“great people of yours?“

2 Chronicles 1:102 Chronicles 1:10

Objectives

• To understand the importance of business research as a management decision-making tool.

• To define business research. • To understand the difference between basic and applied

research. • To understand the managerial value of business

research and the role it plays in the development and implementation of strategy.

• To define total quality management and show its relationship to business research.

• To understand when business research is needed and when it should not be conducted.

• To identify various topics for business research. • To explain that business research is a global activity.

Why Study Research?• Research provides

you with the knowledge and skills needed for the fast-paced decision-making environment– Data leads to…

– Information leads to…

– Knowledge

• Knowledge is power!

Who do you relate to the most

1. Brad Pitt (married to Angelina Jolie #13)2. Coolio (rapper)3. Tiger Woods (golf pro)4. Michael Jordon (Ex-basketball pro)5. Christopher Reeves (actor, disabilities advocate)6. George W. Bush (President)7. Denzel Washington (Academy Award winner)8. Oprah (talk show host, business woman)9. Lance Armstrong (7-time Tour de France winner)10. Tom Cruise (actor)11. Britney Spears (singer)12. Rosie O’Donnell (actress)13. Howard Schultz (Chairman of Starbucks)14. Arnold Schwarzenegger (governor, former actor)15. Stephen Hawkins (scientist)

1 2 3

4 5 6

7 8 9

10 11 12

13 14 15

Company Example

• 1980s market was shrinking

• Confident w/core customerbut concerned about future sales

• Needed to find the universal thread of appeal for its product

• Wanted to reach other markets

• Embarked on a series of focus groups• Current owners• Prospective owners• Competitors’ customers

• Surveyed 16,000 current owners

• Did a psychological inventory

Company Example

• Attributes that attracted people to their product:• Independence• Freedom• Power• High degree of brand

loyalty

• Results:• Gave company confidence

to expand marketing efforts• 1996 sales grew to

105,000 from 30,000 in 1985

• Still has a waiting list

Stock Chart1987-2002

Who are they?

They are…

• Hints:

• Orange• Black• Leather• Rock & Roll

InformationReduces

Uncertainty

"…The great Information Age is really an explosion of non-information; it is an explosion of data. To deal with the increasing onslaught of data, it is imperative to distinguish between the two; information is that which leads to understanding."

Richard Saul WurmanInformation Anxiety 2 

Female Attractiveness

• Key to attractive females?

• Low waist-to-hip ratio

Singh, D. (1993), "Adaptive Significance of Female Physical Attractiveness: Role of Waist-to-Hip Ratio,"Journal of Personality and Social Psychology 65: 293-307

Male Attractiveness

• Key to attractive men?

• Facial symmetry• Body symmetry• Body odor

Rikowski A., Grammer K. (1999): Human Body Odour, Symmetry and Attractiveness, Proc. of the Royal Society London B, 266, pp. 869-874.

Business Research Types

• Basic research– Applied research

• Business Research

– Let’s take a look at Basic and Applied Research….

Leads

to…

Basic Research• Basic research: Basic research: embarks on the embarks on the unknown, enlarging unknown, enlarging the realm of the the realm of the possiblepossible

• Attempts to expand Attempts to expand the limits of the limits of knowledge.knowledge.

• Not directly involved Not directly involved in the solution to a in the solution to a pragmatic problem.pragmatic problem.

Basic Research Expands Knowledge: Example

• What are the characteristics of successful people?• “Successful people share many characteristics. They are

constantly learning how to do their jobs better and take responsibility for their own training in order to do so. They empower themselves, are self-motivated, and take control of their lives, rather than waiting for someone else to lead them down the path to success. .”

• Source: John Tschohl, The Qualities of Successful People, Managing Service Quality, Volume 9 Number 2 1999 pp. 78-80

• What are the characteristics of effective sales people?• motivation; customer orientation; team orientation; and

sales support orientation.• Source: A.T. Barker, Salespeople characteristics, sales managers' activities

and territory design as antecedents of sales organization performance, Marketing Intelligence & Planning, 2001

"The secret of success is to know something nobody else knows. "

Aristotle Onassis

Applied Research

• Conducted when a decision must be made about a specific real-life problem

• Applied research: elaboration and application of the known

Why Business Research in the 21st Century?

• Increased globalization

• Growth of the Internet and other information technologies

• Change, change, and more change!

Global Research

• Business Research is increasingly global

• Market knowledge is essential

• A.C. Nielsen - more than 67% of large businesses involved in international business

Global Business Research

• 80% of all international investments come from developed countries (the triad or golden triangle)

North America

Europe Asia Pacific

Triador

Golden Triangle

The Internet Is Transforming Society

• Time is collapsing. Time is collapsing. • Distance is no longer an obstacle. Distance is no longer an obstacle. • Crossing oceans is only a mouse click away. Crossing oceans is only a mouse click away. • People are connected 24 hours a day, seven People are connected 24 hours a day, seven

days a week. days a week. • "Instantaneous" has a new meaning. "Instantaneous" has a new meaning.

The Delivery of Information

• Horse drawn carriage: 1500-1800– 10 mph

• Steam locomotive: 1850-1930– 65 mph

• First cars: 1910’s– 30 mph

• Jet aircraft: 1960’s– 700 mph

• Internet: Now– Instantaneous