Business Decision Making
The business research process provides a roadmap with directions for conducting a business research project. There are three steps in the research process. They are the formulation, execution and analytical phases.
Step 1: Formulation stage - involves defining the substance and process of the research. To Develop: Theory, Research Questions, Hypotheses, and Study Design/Method. Example: Assume a luxury producer came and sought help from my company which provides business consultation services. He was worried about how to segment the current market. I would design the research objectives according to the Maslow's hierarchy of needs theory, eg. How many people are there living this area? their income level. their occupation and so on. I would assume that people of certain income level would be interest in luxury goods to show his or her status. The research will be designed especially made for this luxury company.
Step 2: Execution phase - researcher is actively gathering information from the appropriate sources. This information is then checked for errors, coded, and stored in a way that allows it to be analysed quickly and conveniently. Example: After the design of research is completed, I would send it to the marketing staff to implement the research, check the errors. Then I would transform the research questions into questionnaires, post them online or distribute them to certain areas. After people finished the questionnaires, I would gather all the information, check for errors, coded them into SPSS, and analysed right on the SPSS programme.
Step 3: Analytical phase - data are analysed. Hypotheses are tested and either (a) supported, or (b) not supported, based upon comparing the actual study outcome with the outcome predicted in the formulation stage. Results are examined to provide answers to the key research questions. The decision maker then take actions based upon better knowledge of the situation. Example: when the data have been analysed, I would test if the hypotheses are supported or not supported. Then make the conclusion.
Recent business trends have affected business research in many ways. They have helped shape the types of research performed, the way research is conducted and the phenomena that are studied, as well as the importance of research in business decision-making. Among the more important trends impacting business research are international research, relationship marketing and information revolution. International research.
Firms around the world now perform business research to improve their decision making. This research influences decisions often involving unfamiliar cultures. Internationalization means business research also must take an international focus. Difficult managerial decisions involving consumers and employees in a foreign culture are made even more difficult by an array of communication barriers, both verbal and nonverbal. These decisions require research regarding cultural differences including the ability to translate meaning from one language into the same meaning in another language. The internet means many businesses now consider the world their market. In addition, translational equivalence which means that text can be translated from one language to another and then back to the original language with no distortion in meaning, becomes essential. Relationship marketing
Relationship marketing emphasizes long-term interactions between a business and its stakeholders. The emergence of relationship marketing is changing research in terms of who and what is studied. A principal component of relationship marketing is the realization a firm cannot be everything to everybody. Otherwise, limited resources will be spent on unprofitable customers. Successful companies have loyal customers, loyal employees and loyal stakeholders. Relationship marketing has placed an increased emphasis on the...
References: Hair, J.F. Jr., Babin, B., Money, A.H. and Samuoel, P. (2003) Essentials of Business Research Methods, Wiley: New Jersey.
Coakes, S.J. and Steed, L. (2010) SPSS 18.0 for Windows: Analysis Without Anguish, Wiley & Sons: Australia.
Berenson, M.L., Levine, D.M. and Krehbiel, T.C. (2009) Basic Business Statistics: Concepts and Applications, Pearson Education Inc, New Jersey
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