Ebook Business research method (8th edition): Part 1

Ebook Business research method (8th edition): Part 1 includes the following content: Chapter 1 the role of business research; chapter 2 information systems and knowledge management; chapter 3 theory building; chapter 4 the business research process: an overview; chapter 5 the human side of business research: organizational and ethical issues; chapter 6 problem definition: the foundation of business research; chapter 7 qualitative research tools; chapter 8 secondary data research in a digital age;...

U O G IN TC O M ES RN A LE CHAPTER THE ROLE OF BUSINESS RESEARCH After studying this chapter, you should be able to Understand how research contributes to business success Know how to define business research Understand the difference between basic and applied business research Understand how research activities can be used to address business decisions Know when business research should and should not be conducted Appreciate the way that technology and internationalization are changing business research Chapter Vignette: “If It Quacks Like a Duck?” PR NEWSFOT O AFLAC “If you’re hurt and you miss work”: This is the tag line for one of the most popular U.S advertising campaigns—for AFLAC Insurance The tag line is accompanied by the familiar Pekin duck constantly reminding people with a loud “AFFLLAACKK!!” Recent polls show that the AFLAC duck has become one of America’s favorite icons, coming in second only to the Mars M&M’s characters But how has the duck’s favorable fan status affected AFLAC’s business performance? Certainly, AFLAC’s business strategy goes beyond creating the most popular duck since Donald! Throughout its thirty-year history, AFLAC, like other firms, has faced important business decisions about how to create brand awareness, how to build consumer knowledge of the brand, and how to build sales and loyalty Leading up to these decisions, the firm must first assess its current situation and its brand awareness relative to its competitors Approximately two dozen AFLAC duck commercials ago, research revealed that most consumers were unaware of AFLAC The vast majority of consumers would not list AFLAC when prompted to name insurance companies Instead, names like Allstate, State Farm, and Prudential proved more familiar Not surprisingly, these companies enjoyed greater market share Based on this research, AFLAC decided to invest in a national television campaign to build awareness of the brand name—“AFFLLAAACCK!!” The phonic similarity to “QUACK” proved successful Today, AFLAC has built great awareness of its name, but this hasn’t necessarily translated into business success Despite the tag line, fewer than 30 percent of consumers who recognize the name 93754_01_ch01_p001-017.indd 7/11/09 4:31:37 PM Chapter 1: The Role of Business Research know that AFLAC specializes in supplemental disability insurance This accounts for over three-fourths of AFLAC’s nearly $14 billion annual revenue Thus, while the initial research suggested the need for building awareness, their more recent research is addressing difficulties in creating the right knowledge of AFLAC What communication strategy is best for building knowledge? Can knowledge be built in the same way as awareness? Will knowledge lead to increased intentions to business with AFLAC? What role does the company play compared to the AFLAC sales associates in creating company image? All of these are questions that should be answered Business research will be directed toward answering these questions The information will then be used to try and erase the knowledge deficit faced by AFLAC If the answers are half as effective as those that led to the AFLAC duck, the company should enjoy tremendous success Thus, for AFLAC, as for many firms, research is an important tool in shaping business strategy.1 Introduction 93754_01_ch01_p001-017.indd Jelly Belly brand’s market research has capitalized on consumers’ desires to produce fifty varieties of jelly beans as well as recipes on how to create snacks with them © BEANBOOZLED COURTESY OF JELLY BELLY JELLY BEANS The recent history of AFLAC demonstrates the need for information in making informed decisions addressing key issues faced by all competitive businesses Research can provide that information Without it, business decisions involving both tactics and strategies are made in the dark We open with three examples illustrating how business decisions require intelligence and how research can provide that intelligence The following examples focus specifically on how research can lead to innovation in the form of new products, improvements in existing goods and services, or enhancements in employee relationships Imagine yourself in the role of business manager as you read these examples and think about the information needs you may have in trying to build success for your company Jelly Belly brand traditionally offered fifty official jelly bean flavors However, research input from customers has helped that number grow and now Jelly Belly even has a variety of specialty beans Consumers willingly submitted new flavor ideas as part of the Jelly Belly Dream Bean Contest (http://www.dreambeancontest.com) In return, the consumers received an opportunity to win prizes The company receives some really off-the-wall flavor ideas Among the strangest are flavors such as Dill Pickle, Rotten Egg, Taco, Burned Bacon, and Cream of Wheat.2 Top suggestions were put back on the Web so that people could vote for the flavor they most wanted to see introduced In 2008, the winning flavor was Acai Berry, which beat out other finalist flavors such as Sublime Chili Lime, Thai Iced Tea, and Mojito More recently, Jelly Belly is trying to capitalize on consumers’ desires for sports performance products Survey research suggests that consumers would respond favorably to food and drink products providing benefits that improve one’s ability to exercise.3 As a result, Jelly Belly has introduced Sport Beans Sport Beans contain added electrolytes, carbohydrates, and vitamins designed to provide added energy and alertness In addition, all the strange flavor suggestions also have spawned a new product offering for the entire jelly bean market Bean-Boozled Jelly Beans combines a traditional flavor with an exotic flavor that look identical, so consumers never know which one they are getting The product provides added value through the fun that comes with all the potential surprises A Skunk Spray bean looks exactly like a Licorice bean So, the bean lover never is sure when the bean will bamboozle! 7/11/09 4:31:38 PM U R V E Y COURTESY OF QUALTRICS.COM As a user of this book, you can take part in a real business research survey In each chapter, we’ll refer back to some aspect of this survey to illustrate key points about business research For instance, we can easily illustrate different types of survey approaches by referring back to some question contained in the T H I S ! survey In later chapters, your instructor will pro-vide you with a way to access not only the data from your particular class, but also data from all users This data can be used to illustrate some of the analytical approaches discussed in the closing chapters of the book For now, your instructor will provide you with instructions to access the h questionnaire via the Internet As a first step in this process, simply respond to the items in the questionnaire just as you would to any other research survey © GEORGE DOYLE S Successful companies are constantly scanning ideas in the hope of providing ways of adding value Jelly Belly’s Sports Beans and Bean-Boozled Beans offer two different ways of adding value.4 The coffee industry, after years of the “daily grind,” has proved quite dynamic over the past decade After years of steady decline, research on consumers’ beverage purchases show that coffee sales began rebounding around 1995 Telephone interviews with American consumers estimated that there were 80 million occasional coffee drinkers and million daily upscale coffee drinkers in 1995 By 2001, estimates suggested there were 161 million daily or occasional U.S coffee drinkers and 27 million daily upscale coffee drinkers.5 Coffee drinking habits have also changed In 1991 there were fewer than 450 coffeehouses in the United States Today, it seems like places such as Starbucks, Second Cup, The Coffee Bean & Tea Leaf, and Gloria Jean’s are virtually everywhere in the United States and Canada There are more than 15,000 thousand Starbucks locations around the world with the majority of these being wholly owned stores.6 While locating these outlets requires significant formal research, Starbucks also is researching new concepts aimed at other ways a coffee shop can provide value to consumers One concept that has survived testing thus far is the addition of free, in-store high-speed wireless Internet access Thus, you can have hot coffee in a hot spot! After Starbucks baristas began reporting that customers were asking clerks what music was playing in the stores, Starbucks began testing the sales of CDs containing their in-store music In 2009, Starbucks began a bundled pricing promotion offering a breakfast sandwich or pastry and a tall coffee drink for $3.95 in response to the declining economy The research that underlies the introduction of these value-added concepts could first include simply asking a consumer or a small group of consumers for their reaction to the concept Survey research and then actual in-store tests may follow So, the research underlying such decisions can be multilayered Often, business research is directed toward an element of an organization’s internal operations For example, DuPont utilizes research techniques to better understand their employees’ needs DuPont has ninety-four thousand employees worldwide and fifty-four thousand in the United States.7 The company has conducted four comprehensive work/life needs assessment surveys of its employees since 1985 This business research provides the company with considerable insight into employee work/life behavior and allows DuPont to identify trends regarding employee needs The most recent survey found that, as the company’s work force is aging, employees’ child care needs are diminishing, but elder care needs are emerging The survey found that 88 percent of respondents identified themselves as baby boomers About 50 percent of the employees say that they have— or expect to have—elder care responsibilities in the next three to four years, up from 40% in 1995 The surveys have shown that DuPont employees want to balance work and family responsibilities, feeling deeply committed to both aspects of their lives The latest research shows that company efforts to satisfy these desires have been successful Employee perception of support from management for work/life issues improved from the 1995 study and the results indicate employees feel less stress Support from colleagues is rated high, and women indicated they now have more 93754_01_ch01_p001-017.indd 7/11/09 4:31:39 PM Chapter 1: The Role of Business Research role models The study also reported that the feeling of management support is directly connected to employees’ efforts to make the company successful Employees who use the work/life programs are willing to “go the extra mile.” These examples illustrate the need for information in making informed business decisions Jelly Belly provides consumers with the incentive of free samples of jelly beans in return for ideas about desirable new bean flavors The statistics about coffee demonstrate how research can track trends that may lead to new business opportunities Starbucks’s research also illustrates how research can be used to examine new concepts in progressively more complex stages, setting the stage for a more successful product introduction DuPont’s ability to track employee attitudes allows them to adjust employee benefit packages to maximize satisfaction and reduce employee turnover These are only the tip of the iceberg when it comes to the types of business research that are conducted every day This chapter introduces basic concepts of business research and describes how research can play a crucial role in creating and managing a successful business The Nature of Business Research Business research covers a wide range of phenomena For managers, the purpose of research is to provide knowledge regarding the organization, the market, the economy, or another area of uncertainty A financial manager may ask, “Will the environment for long-term financing be better two years from now?” A personnel manager may ask, “What kind of training is necessary for production employees?” or “What is the reason for the company’s high employee turnover?” A marketing manager may ask, “How can I monitor my retail sales and retail trade activities?” Each of these questions requires information about how the environment, employees, customers, or the economy will respond to executives’ decisions Research is one of the principal tools for answering these practical questions Within an organization, a business researcher may be referred to as a marketing researcher, an organizational researcher, a director of financial and economic research, or one of many other titles Although business researchers are often specialized, the term business research encompasses all of these functional specialties While researchers in different functional areas may investigate different phenomena, they are similar to one another because they share similar research methods It’s been said that “every business issue ultimately boils down to an information problem.”8 Can the right information be delivered? The ultimate goal of research is to supply accurate information that reduces the uncertainty in managerial decision making Very often, decisions are made with little information for various reasons, including cost considerations, insufficient time to conduct research, or management’s belief that enough is already known Relying on seat-of-thepants decision making—decision making without research—is like betting on a long shot at the racetrack because the horse’s name is appealing Occasionally there are successes, but in the long run, intuition without research leads to losses Business research helps decision makers shift from intuitive information gathering to systematic and objective investigation Business Research Defined Business research is the application of the scientific method in searching for the truth about business phenomena These activities include defining business opportunities and problems, generating and evaluating alternative courses of action, and monitoring employee and organizational performance Business research is more than conducting surveys.9 This process includes idea and theory development, problem definition, searching for and collecting information, analyzing data, and communicating the findings and their implications This definition suggests that business research information is not intuitive or haphazardly gathered Literally, research (re-search) means “to search again.” The term connotes patient study and scientific investigation wherein the researcher takes another, more careful look at the data to discover all that is known about the subject Ultimately, all findings are tied back to the underlying theory The definition also emphasizes, through reference to the scientific method, that any information generated should be accurate and objective The nineteenth-century American humorist Artemus Ward claimed, “It ain’t the things we don’t know that gets us in trouble It’s the things we know that ain’t so.” In other words, research isn’t performed to support preconceived ideas 93754_01_ch01_p001-017.indd business research The application of the scientific method in searching for the truth about business phenomena These activities include defining business opportunities and problems, generating and evaluating ideas, monitoring performance, and understanding the business process 7/11/09 4:31:40 PM R E S E A R C H S N A P S H O T American consumers can be seen every day scouring nutrition labels Most likely, the item they show the most interest in recently is the amount of fat The Food and Drug Administration (FDA) is concerned that consumers get information that is not only accurate, but that also conveys the proper message to achieve a healthy diet But all fat is not created equal In particular, dieticians warn of the dangers associated with excess amounts of trans fats; diet nutrition labels break fats into saturated and unsaturated fats Among numerous factors that complicate the interpretation of the nutrition label, trans fat (hydrogenated) is technically a nonsaturated fat, but it acts more like a saturated fat when consumed So, where should it be placed? The FDA cannot address this problem intelligently without research addressing questions such as the following: © SUSAN VAN ETTEN If trans fats are listed as saturated fats, would consumers’ beliefs about their consumption become more negative? If the saturated fat amount includes a specific line indicating the amount of “saturated fat” that is really trans fat, would consumers become more confused about their diet? If all amounts of fat are given equal prominence on the label, will consumer attitudes toward the different types of fats be the same? Will consumers interpret foods free of trans fats as healthy? Making this even more complicated is the fact that some consumer segments, such as teenagers in this case, may actually use the nutrition labels to select the brands that are least nutritious rather than most nutritious So, they may actually seek out the one with the worst proportion of trans fats! The FDA specifically addressed trans fats in labeling regulations that took effect in 2006 Under these regulations, the FDA allows labels to claim zero trans fat as long as less than half a gram of hydrogenated oil per serving is contained Simple? Sources: “Health Labels are in the Eye of the Beholder,” Food Management 40 (January 2005), 80; Hunter, B T., “Labeling Transfat Is Tricky,” Consumers’ Research Magazine 86 (July 2003), 8–10; Weise, E., “Food Labels Now Required to Mention Trans Fat, Allergens,” USA Today (January 2, 2006), H1 © GEORGE DOYLE & CIARAN GRIFFIN Good Fat and Bad Fat but to test them The researcher must be personally detached and free of bias in attempting to find truth If bias enters into the research process, the value of the research is considerably reduced We will discuss this further in a subsequent chapter Our definition makes it clear that business research is designed to facilitate the managerial decision-making process for all aspects of the business: finance, marketing, human resources, and so on Business research is an essential tool for management in virtually all problem-solving and decision-making activities By providing the necessary information on which to base business decisions, research can decrease the risk of making a wrong decision in each area However, it is important to note that research is an aid to managerial decision making, never a substitute for it Finally, this definition of business research is limited by one’s definition of business Certainly, research regarding production, finance, marketing, and management in for-profit corporations like DuPont is business research However, business research also includes efforts that assist nonprofit organizations such as the American Heart Association, the San Diego Zoo, the Boston Pops Orchestra, or a parochial school Further, governmental agencies such as the Federal Emergency Management Agency (FEMA) and the Department of Homeland Security (DHS) perform many functions that are similar, if not identical, to those of for-profit business organizations For instance, the Food and Drug Administration (FDA) is an important user of research, employing it to address the way people view and use various food and drugs One such study commissioned and funded research to address the question of how consumers used the risk summaries that are included with all drugs sold in the United States.10 Therefore, not-for-profits and governmental agencies can use research in much the same way as managers at Starbucks, Jelly Belly, or DuPont While the focus is on for-profit organizations, this book explores business research as it applies to all institutions Applied and Basic Business Research applied business research Research conducted to address a specific business decision for a specific firm or organization One useful way to describe research is based on the specificity of its purpose Applied business research is conducted to address a specific business decision for a specific firm or organization The opening vignette describes a situation in which AFLAC may use applied research to decide how to best create knowledge of its supplemental disability insurance products 93754_01_ch01_p001-017.indd 7/11/09 4:31:40 PM Chapter 1: The Role of Business Research Basic business research (sometimes referred to as pure research) is conducted without a specific decision in mind, and it usually does not address the needs of a specific organization It attempts to expand the limits of knowledge in general, and as such it is not aimed at solving a particular pragmatic problem Basic research can be used to test the validity of a general business theory (one that applies to all businesses) or to learn more about a particular business phenomenon For instance, a great deal of basic research addresses employee motivation How can managers best encourage workers to dedicate themselves toward the organization’s goals? From such research, we can learn the factors that are most important to workers and how to create an environment where employees are most highly motivated This basic research does not examine the problem from any single organization’s perspective However, AFLAC, Starbucks, or DuPont’s management may become aware of such research and use it to design applied research studies examining questions about their own employees Thus, the two types of research are not completely independent, as basic research often provides the foundation for later applied research While the distinction between basic and applied is useful in describing research, there are very few aspects of research that apply only to basic or only to applied research We will use the term business research more generally to refer to either type of research The focus of this text is more on applied research—studies that are undertaken to answer questions about specific problems or to make decisions about particular courses of action or policies Applied research is emphasized in this text because most students will be oriented toward the day-to-day practice of management, and most students and researchers will be exposed to short-term, problem-solving research conducted for businesses or nonprofit organizations basic business research Research conducted without a specific decision in mind that usually does not address the needs of a specific organization It attempts to expand the limits of knowledge in general and is not aimed at solving a particular pragmatic problem The Scientific Method All research, whether basic or applied, involves the scientific method The scientific method is the way researchers go about using knowledge and evidence to reach objective conclusions about the real world The scientific method is the same in social sciences, such as business, as in physical sciences, such as physics In this case, it is the way we come to understand business phenomena Exhibit 1.1 briefly illustrates the scientific method In the scientific method, there are multiple routes to developing ideas When the ideas can be stated in researchable terms, we reach the hypothesis stage The next step involves testing the hypothesis against empirical evidence (facts from observation or experimentation) The results either support a hypothesis or not support a hypothesis From these results, new knowledge is generated the scientific method The way researchers go about using knowledge and evidence to reach objective conclusions about the real world EXHIBIT 1.1 A Summary of the Scientific Method Prior Knowledge Observation Hypotheses Hypothesis Test (Observation or Experimentation) Conclusion (New Knowledge) 93754_01_ch01_p001-017.indd 7/11/09 4:31:45 PM Part 1: Introduction In basic research, testing these prior conceptions or hypotheses and then making inferences and conclusions about the phenomena leads to the establishment of general laws about the phenomena Use of the scientific method in applied research ensures objectivity in gathering facts and testing creative ideas for alternative business strategies The essence of research, whether basic or applied, lies in the scientific method Much of this book deals with scientific methodology Thus, the techniques of basic and applied research differ largely in degree rather than in substance Managerial Value of Business Research product-oriented Describes a firm that prioritizes decision making in a way that emphasizes technical superiority in the product production-oriented Describes a firm that prioritizes efficiency and effectiveness of the production processes in making decisions In all of business strategy, there are only a few business orientations (see Exhibit 1.2) A firm can be product-oriented A product-oriented firm prioritizes decision making in a way that emphasizes technical superiority in the product Thus, research gathering information from technicians and experts in the field are very important in making critical decisions A firm can be production-oriented Production orientation means that the firm prioritizes efficiency and effectiveness of the production processes in making decisions Here, research providing input from workers, engineers, finance, and accounting becomes important as the firm seeks to drive costs down Production-oriented firms are usually very large firms manufacturing products in very large quantities The third is marketing-oriented, which focuses more on how the firm provides value to customers than on the physical product or production process With a marketing-oriented organization the majority of research focuses on the customer Research addressing consumer desires, beliefs, and attitudes becomes essential EXHIBIT 1.2 Business Orientations Product-Oriented Firm Example Prioritizes decision making that emphasizes the physical product design, trendiness or technical superiority The fashion industry makes clothes in styles and sizes that few can adopt Research focuses on technicians and experts in the field Production-Oriented Firm Example Prioritizes efficiency and effectiveness of the production processes in making decisions U.S auto industry’s assembly-line process is intent on reducing costs of production as low as possible Research focuses on line employees, engineers, accountants, and other efficiency experts Marketing-Oriented Firm Example Focuses on how the firm provides value to customers Well-known hotel chains are designed to address the needs of travelers, particularly business travelers Research focuses on customers marketing-oriented Describes a firm in which all decisions are made with a conscious awareness of their effect on the customer 93754_01_ch01_p001-017.indd We have argued that research facilitates effective management For example, Yoplait GoGurt illustrates the benefit of business research The company’s consumer research about eating regular yogurt at school showed that moms and kids in their “tweens” wanted convenience and portability Some brands, like Colombo Spoon in a Snap, offered the convenience of having a utensil as part of the packaging/delivery system However, from what Yoplait learned about consumers, they thought kids would eat more yogurts if they could “lose the spoon” and eat yogurt anywhere, anytime Moms and kids participating in a taste test were invited to sample different brand-on-the-go packaging shapes—long tubes, thin tubes, fat tubes, and other shapes—without being told how to handle the packaging One of the company’s researchers said, “It was funny to see the moms fidget around, then daintily pour the product onto a spoon, then into their mouths The kids instantly jumped on it They knew what to do.”11 Squeezing Go-Gurt from the tube 7/11/09 4:31:45 PM Chapter 1: The Role of Business Research was a big plus The kids loved the fact that the packaging gave them permission to play with their food, something parents always tell them not to Based on their research, Yoplait introduced Go-Gurt in a three-sided tube designed to fit in kids’ lunchboxes The results were spectacular, with more than $100 million in sales its first year on the market Yoplait realized that knowledge of consumers’ needs, coupled with product research and development, leads to successful business strategies As the Yoplait example shows, the prime managerial value of business research is that it provides information that improves the decision-making process The decision-making process associated with the development and implementation of a business strategy involves four interrelated stages: Identifying problems or opportunities Diagnosing and assessing problems or opportunities Selecting and implementing a course of action Evaluating the course of action Business research, by supplying managers with pertinent information, may play an important role by reducing managerial uncertainty in each of these stages Identifying Problems or Opportunities Before any strategy can be developed, an organization must determine where it wants to go and how it will get there Business research can help managers plan strategies by determining the nature of situations or by identifying the existence of problems or opportunities present in the organization Business research may be used as a scanning activity to provide information about what is occurring within an organization or in its environment The mere description of some social or economic activity may familiarize managers with organizational and environmental occurrences and help them understand a situation Consider these two examples: • • The description of the dividend history of stocks in an industry may point to an attractive investment opportunity Information supplied by business research may also indicate problems Employee interviews undertaken to characterize the dimensions of an airline reservation clerk’s job may reveal that reservation clerks emphasize competence in issuing tickets over courtesy and friendliness in customer contact Once business research indicates a problem or opportunity, managers may feel that the alternatives are clear enough to make a decision based on their experience or intuition However, often they decide that more business research is needed to generate additional information for a better understanding of the situation Diagnosing and Assessing Problems or Opportunities After an organization recognizes a problem or identifies a potential opportunity, business research can help clarify the situation Managers need to gain insight about the underlying factors causing the situation If there is a problem, they need to specify what happened and why If an opportunity exists, they may need to explore, refine, and quantity the opportunity If multiple opportunities exist, research may be conducted to set priorities Selecting and Implementing a Course of Action After the alternative courses of action have been clearly identified, business research is often conducted to obtain specific information that will aid in evaluating the alternatives and in selecting the best course of action For example, suppose Harley-Davidson is considering establishing a dealer network in either China or India In this case, business research can be designed to gather the relevant information necessary to determine which, if either, course of action is best for the organization 93754_01_ch01_p001-017.indd 7/11/09 4:31:45 PM 10 Part 1: Introduction Opportunities may be evaluated through the use of various performance criteria For example, estimates of market potential allow managers to evaluate the revenue that will be generated by each of the possible opportunities A good forecast supplied by business researchers is among the most useful pieces of planning information a manager can have Of course, complete accuracy in forecasting the future is not possible, because change is constantly occurring in the business environment Nevertheless, objective information generated by business research to forecast environmental occurrences may be the foundation for selecting a particular course of action Even the best plan is likely to fail if it is not properly implemented Business research may be conducted to indicate the specific tactics required to implement a course of action Evaluating the Course of Action evaluation research The formal, objective measurement and appraisal of the extent a given activity, project, or program has achieved its objectives performance-monitoring research Refers to research that regularly, sometimes routinely, provides feedback for evaluation and control of business activity © AGEFTOSTOCK/SUPERSTOCK Fun in the snow depends on weather trends, economic outlook, equipment, and clothing—all subjects for a business researcher 93754_01_ch01_p001-017.indd 10 After a course of action has been implemented, business research may serve as a tool to tell managers whether or not planned activities were properly executed and if they accomplished what they were expected to accomplish In other words, managers may use evaluation research to provide feedback for evaluation and control of strategies and tactics Evaluation research is the formal, objective measurement and appraisal of the extent a given activity, project, or program has achieved its objectives In addition to measuring the extent to which completed programs achieved their objectives or whether continuing programs are presently performing as projected, evaluation research may provide information about the major factors influencing the observed performance levels In addition to business organizations, nonprofit organizations and governmental agencies frequently conduct evaluation research Every year thousands of federal evaluation studies are undertaken to systematically assess the effects of public programs For example, the General Accounting Office has been responsible for measuring outcomes of the Employment Opportunity Act, the Job Corps program, and Occupational and Safety and Health Administration (OSHA) programs Performance-monitoring research is a specific type of evaluation research that regularly, perhaps routinely, provides feedback for the evaluation and control of recurring business activity For example, most firms continuously monitor wholesale and retail activity to ensure early detection of sales declines and other anomalies In the grocery and retail drug industries, sales research may use the Universal Product Code (UPC) for packages, together with computerized cash registers and electronic scanners at checkout counters, to provide valuable market-share information to store and brand managers interested in the retail sales volume of specific products United Airlines’ Omnibus in-flight survey provides a good example of performancemonitoring research for quality management United routinely selects sample flights and administers a questionnaire about inflight service, food, and other aspects of air travel The Omnibus survey is conducted quarterly to determine who is flying and for what reasons It enables United to track demographic changes and to monitor customer ratings of its services on a continuing basis, allowing the airline to gather vast amounts of information at low cost The 7/11/09 4:31:45 PM 370 Part 4: Measurement Concepts CASE EXHIBIT 15.11 AHRQ Hospital Questionnaire (continued) SECTION H: Background Information This information will help in the analysis of the survey results Mark ONE answer by filling in the circle How long have you worked in this hospital? a Less than year b to years c to 10 years d 11 to 15 years e 16 to 20 years f 21 years or more How long have you worked in your current hospital work area/unit? a Less than year d 11 to 15 years b to years e 16 to 20 years c to 10 years f 21 years or more Typically, how many hours per week you work in this hospital? a Less than 20 hours per week d 60 to 79 hours per week b 20 to 39 hours per week e 80 to 99 hours per week c 40 to 59 hours per week f 100 hours per week or more What is your staff position in this hospital? Mark ONE answer that best describes your staff position a Registered Nurse h Dietician b Physician Assistant/Nurse Practitioner i Unit Assistant/Clerk/Secretary c LVN/LPN j Respiratory Therapist d Patient Care Assistant/Hospital Aide/Care Partner k Physical, Occupational, or Speech Therapist e Attending/Staff Physician l Technician (e.g., EKG, Lab, Radiology) f Resident Physician/Physician in Training m Administration/Management g Pharmacist n Other, please specify: In your staff position, you typically have direct interaction or contact with patients? a YES, I typically have direct interaction or contact with patients b NO, I typically NOT have direct interaction or contact with patients How long have you worked in your current specialty or profession? a Less than year d 11 to 15 years b to years e 16 to 20 years c to 10 years f 21 years or more SECTION I: Your Comments Please feel free to write any comments about patient safety, error, or event reporting in your hospital THANK YOU FOR COMPLETING THIS SURVEY Source: Agency for Healthcare Research and Quality, “Hospital Survey on Patient Safety Culture,” http://www.ahrq.gov/qual/hospculture/ 93754_15_ch15_p335-384.indd 370 7/14/09 8:29:09 AM Chapter 15: Questionnaire Design 371 © GETTY IMAGES/ PHOTODISC GREEN Case 15.2 Canterbury Travels Hometown, located in the north central United States, had a population of about fifty thousand There were two travel agencies in Hometown before Canterbury Travels opened its doors Canterbury Travels was in its second month of operations Owner Roxanne Freeman had expected to have more business than she actually had She decided that she needed to conduct a survey to determine how much business Hometown offered She also wanted to learn whether people were aware of Canterbury Travels She thought that this survey would determine the effectiveness of her advertising CASE EXHIBIT 15.21 The questionnaire that Roxanne Freeman designed is shown in Case Exhibit 15.2–1 Questions Critically evaluate the questionnaire Will Canterbury Travels gain the information it needs from this survey? Design a questionnaire to satisfy Roxanne Freeman’s information needs Travel Questionnaire The following questionnaire pertains to a project being conducted by a local travel agency The intent of the study is to better understand the needs and attitudes of Hometown residents toward travel agencies The questionnaire will take only 10 to 15 minutes to fill out at your convenience Your name will in no way be connected with the questionnaire Have you traveled out of state? _Yes _No If yes, you travel for: Business Both Pleasure How often you travel for the above? 0–1 times per month 0–1 times per year 2–3 times per month 2–3 times per year 4–5 times per month 4–5 times per year or more times per month or more times per year How you make your travel arrangements? Airline Travel agency Other (please specify) _ Did you know that travel agencies not charge the customer for their services? _Yes _No Please rate the following qualities that would be most important to you in the selection of a travel agency: Free services (reservations, advice, and delivery of tickets and literature) Convenient location Knowledgeable personnel Friendly personnel Casual atmosphere Revolving charge account Reputation Personal sales calls Are you satisfied with your present travel agency? Holiday Travel Leisure Tours Canterbury Travels Other _ If not, what are you dissatisfied with about your travel agency? Free services (reservations, advice, and delivery of tickets and literature) Convenient location Knowledgeable personnel Friendly personnel Casual atmosphere Revolving charge account Reputation Personal sales calls Good Bad Very satisfied Very dissatisfied Good Bad (continued) 93754_15_ch15_p335-384.indd 371 7/14/09 8:29:09 AM 372 Part 4: Measurement Concepts CASE EXHIBIT 15.21 Travel Questionnaire (continued) Did you know that there is a new travel agency in Hometown? _Yes _No 10 Can you list the travel agencies in Hometown and their locations? 0– times pe r month 2– times pe r month 4– times pe r month or more times pe r month 0– times pe r year 2– times pe r year 4– times pe r year or more times pe r year 11 Do you use the same travel agency repeatedly? Holiday Travel Leisure Tours Canterbury Travels Other (please specify) 12 Have you visited the new travel agency in Hometown? _Yes _No 13 If yes, what is its name? 14 How you pay for your travel expenses? Cash Company charge Check Personal charge Credit card Other _ 15 Which of these have you seen advertising for? Holiday Travel Canterbury Travels Other 16 Where have you seen or heard the advertisement you describe above? 17 Would you consider changing travel agencies? _Yes _No The following are some personal questions about you that will be used for statistical purposes only Your answers will be held in the strictest confidence 18 What is your age? 19–25 46–55 26–35 56–65 36–45 Over 65 19 What is your sex? Male Female 20 What is your marital status? Single Divorced Married Widowed 21 How long have you lived in Hometown? 0–6 months 5–10 years 7–12 months 11–15 years 1–4 years Over 15 years 22 What is your present occupation? Business and professional Laborer Salaried and semiprofessional Student Skilled worker 23 What is the highest level of education you have completed? Elementary school 1–2 years of college Junior high school 3–4 years of college Senior high school More than years of college Trade or vocational school 24 What is your yearly household income? $0–$5,000 $25,001–$40,000 $5,001–$10,000 $40,001–$60,000 $10,001–$15,000 $60,000 and above $15,001–$25,000 93754_15_ch15_p335-384.indd 372 7/14/09 8:29:09 AM Chapter 15: Questionnaire Design 373 Case 15.3 McDonald’s Spanish Language Questionnaire Find someone who speaks Spanish and have him or her back translate the questions that appear in Case Exhibit 15.3–1 Are these Spanish-language questions adequate? © GETTY IMAGES/ PHOTODISC GREEN The questions in Case Exhibit 15.3–1, about a visit to McDonald’s, originally appeared in Spanish and were translated into English Questions What is the typical process for developing questionnaires for markets where consumers speak a language other than English? CASE EXHIBIT 15.31 McDonald’s Questionnaire AQUI En general, ¿qué tan satisfecho/a quedó S su visita a este McDonald's hoy? SE EMPIEZA NADA ATISFECHO/A Su visita fue Adentro (A) o en el Drive-thru (DT) Su visita fue Durante el Desayuno (D), Almuerzo (A), Cena (C) Su visita fue Entre semana (E) o Fin de semana (F) COMIDA ¿Quedó satisfecho/a la comida que recibio hoy? Si NO, ¿cuál fue el problema? Sandwich / platillo frío Favor de rellenar el(los) círculo(s) apropiado(s) MUY SATISFECHO/A A Adentro D DT Drive-thru Desayuno A Almuerzo E Entre semana F Fin de semana S Si N No A Cena Apariencia desagradable Mal sabor de la comida Pocas papas en la bolsa / caja Papas / tortitas de papa frías Papas no bien saladas Bebida aguada / de mal sabor © GETTY IMAGES/ PHOTODISC GREEN Case 15.4 Schönbrunn Palace in Vienna The Schönbrunn Palace in Vienna was constructed in the eighteenth century during the reign of the Hapsburgs Today this former summer residence of the imperial family is one of Austria’s top tourist attractions The questions in Case Exhibit 15.4–1, about a visit to the Schönbrunn Palace, originally appeared in German and were translated into English 93754_15_ch15_p335-384.indd 373 Questions What is the typical process for developing questionnaires for markets where consumers speak a different language? Find someone who speaks German and have him or her back translate the questions that appear in Case Exhibit 15.4–1 Are these German questions adequate? 7/14/09 8:29:09 AM 374 CASE EXHIBIT 15.41 93754_15_ch15_p335-384.indd 374 Part 4: Measurement Concepts Schönbrunn Palace Questionnaire 7/14/09 8:29:09 AM APPENDIX 15A QUESTION WORDING AND MEASUREMENT SCALES FOR COMMONLY RESEARCHED TOPICS As Chapters 13, 14, and 15 explain, problem definitions and research objectives determine the nature of the questions to be asked In most cases researchers construct custom questions for their specific projects However, in many instances different research projects have some common research objectives This appendix compiles question wordings and measurement scales frequently used by business researchers It is by no means exhaustive It does not repeat every question already discussed in the text For example, it does not include the hundreds of possible semantic differential items or Likert scale items discussed in Chapter 14 The purpose of this appendix is to provide a bank of questions and scales for easy reference It can be used when business research objectives dictate investigation of commonly researched issues Questions about Advertising Awareness Have you ever seen any advertising for (brand name)? Yes No Are you aware of (brand name)? Yes No If yes, how did you first become aware of (brand name)? • • • • • In-flight airline magazine Poster or billboard at airport Television at airport Card in the seatback pocket Other (please specify) Unaided Recall/Top of the Mind Recall Can you tell me the names of any brands of (product category) for which you have seen or heard any advertising recently? 93754_15_ch15_p335-384.indd 375 375 7/14/09 8:29:09 AM 376 Part 4: Measurement Concepts (After reading a magazine or viewing a TV program with commercials) Please try to recall all the brands you saw advertised on/in (name of program or magazine) (DO NOT PROBE WRITE BRAND NAMES IN ORDER MENTIONED BY RESPONDENT.) (After establishing that the respondent watched a certain television program) Do you recall seeing a commercial for any (product category)? (IF YES) What brand of (product category) was advertised? Aided Recall (After establishing that the respondent watched a certain television program or read a certain magazine) Now, I’m going to read you a list of brands Some of them were advertised on/in (name of program or magazine); others were not Please tell me which ones you remember seeing, even if you mentioned them before Brand A (Advertised) Brand B (Not advertised) Brand C (Advertised) Do you remember seeing a commercial for (specific brand name)? Yes No Recognition (Show advertisement to respondent) Did you see or read any part of this advertisement? Yes No Message Communication/Playback (Sales Point Playback) These questions require that the researcher first qualify awareness with a question such as “Have you ever seen any advertising for (brand name)?” The interviewer then asks message playback questions (If yes) What did the advertising tell you about (brand name or product category)? Other than trying to sell you the product, what you think was the main idea in the description you just read (commercial you just saw)? What was the main thing it was trying to communicate about the product? What did the advertising for (brand name) say about the product? What did you learn about (brand name) from this advertisement? Attitude Toward the Advertisement Please choose the statement below that best describes your feelings about the commercial you just saw I liked it very much I liked it I neither liked nor disliked it I disliked it I disliked it very much 93754_15_ch15_p335-384.indd 376 7/14/09 8:29:09 AM Chapter 15: Questionnaire Design 377 Was there anything in the commercial you just saw that you found hard to believe? Yes No What thoughts or feelings went through your mind as you watched the advertisement? Attitude Toward Advertised Brand (Persuasion) Based on what you’ve seen in this commercial, how interested would you be in trying the product? Extremely interested Very interested Somewhat interested Not very interested Not at all interested The advertisement tried to increase your interest in (brand) How was your buying interest affected? Increased considerably Increased somewhat Not affected Decreased somewhat Decreased considerably Based on what you’ve just seen in this commercial, how you think (brand name) might compare to other brands you’ve seen or heard about? Better As good as Not as good as Readership/Viewership Have you ever read (seen) a copy of (advertising medium)? Yes No How frequently you (watch the evening news on channel X)? Every day 5–6 times a week 2–4 times a week Once a week Less than once a week Never Several of the questions about products or brands in the following section are also used to assess attitudes toward advertised brands Questions about Ownership and Product Usage Ownership Do you own a (product category)? Yes 93754_15_ch15_p335-384.indd 377 No 7/14/09 8:29:09 AM 378 Part 4: Measurement Concepts Purchase Behavior Have you ever purchased a (product category or brand name)? Yes No Regular Usage Which brands of (product category) you regularly use? Brand A Brand B Brand C Do not use Which brands of (product category) have you used in the past month? Brand A Brand B Brand C Do not use In an average month, how often you buy (product category or brand name)? Record Number of Times per Month How frequently you buy (product category or brand name)? Every day 5–6 times a week 2–4 times a week Once a week Less than once a week Never Would you say you purchase (product category or brand name) more often than you did a year ago, about the same as a year ago, or less than a year ago? More often than a year ago About the same as a year ago Less than a year ago Questions about Goods and Services Ease of Use How easy you find using (brand name)? Very easy Easy Neither easy nor difficult Difficult Very difficult Uniqueness How different is this brand from other brands of (product category)? Very different Somewhat different 93754_15_ch15_p335-384.indd 378 7/14/09 8:29:09 AM Chapter 15: Questionnaire Design 379 Slightly different Not at all different How would you rate this product (brand name) on uniqueness? Extremely unique Very unique Somewhat unique Slightly unique Not at all unique Please form several piles of cards so that statements that are similar to each other or say similar things are in the same pile.You may form as many piles as you like, and you may put as many or as few cards as you want in a pile.You can set aside any statements that you feel are unique or different and are not similar to any of the other statements Attribute Ratings/Importance of Characteristics Measurement scales such as the semantic differential and Likert scales are frequently used to assess product attributes, especially when measuring brand image or store image See Chapter 15 How important is (specific attribute), as far as you are concerned? Very important Of some importance Of little importance Of absolutely no importance We would like you to rate (brand name or product category) on several different characteristics (For concept tests, add: Since you may not have used this product before, please base your answers on your impressions from what you’ve just read.) Characteristic A Excellent Good Fair Poor Interest In general, how interested are you in trying a new brand of (product category)? Very interested Somewhat interested Not too interested Not at all interested Like/Dislike What you like about (brand name)? What you dislike about (brand name)? 93754_15_ch15_p335-384.indd 379 7/14/09 8:29:09 AM 380 Part 4: Measurement Concepts How you like the taste of (brand name)? Like it very much Like it Neither like nor dislike it Dislike it Strongly dislike it Preference Which credit card you prefer to use? American Express MasterCard Visa No preference Expectations How would you compare the way (company’s) service was actually delivered with the way you had anticipated that (company) would provide the service? Much better than expected Somewhat better than expected About the same as expected Somewhat worse than expected Much worse than expected Satisfaction How satisfied were you with (brand name)? Very satisfied Somewhat satisfied Very dissatisfied How satisfied were you with (brand name)? Very satisfied Very dissatisfied Somewhere in between (If somewhere in between) On balance, would you describe yourself as leaning toward being more satisfied or more dissatisfied with (brand name) than with the brand you normally use? Satisfied Dissatisfied Now that you have owned (brand name) for months, please tell us how satisfied you are with it Completely satisfied Very satisfied Fairly well satisfied Somewhat dissatisfied Very dissatisfied Quality How would you rate the quality of (brand name)? Excellent Good 93754_15_ch15_p335-384.indd 380 7/14/09 8:29:09 AM Chapter 15: Questionnaire Design 381 Fair Poor Please indicate how the quality of (Brand A) compares with the quality of (Brand B) Better About the same Worse Problems Have you experienced problems with (company’s) service? Yes No When attempting to contact (company’s) representative, how much of a problem, if any, was each of the following: Phones busy No problem at all Slight problem Somewhat of a problem Major problem Slight problem Somewhat of a problem Major problem Put on hold too long or too often No problem at all What are the major shortcomings of (brand name)? (PROBE:What other shortcomings are there?) Benefits Do you think (product concept) would have major benefits, minor benefits, or no benefits at all? Major benefits Minor benefits No benefits at all Improvements In what ways, if any, could (brand name) be changed or improved? We would like you to tell us anything you can think of, no matter how minor it seems Buying Intentions for Existing Products Do you intend to buy a (brand name or product category) in the next month (3 months, year, etc.)? Yes No If a free (product category) were offered to you, which would you select? Brand A Brand B Brand C Do not use Buying Intentions Based on Product Concept (Respondent is shown a prototype or asked to read a concept statement.) Now that you have read about (product concept), if this product were available at your local store, how likely would you be to buy it? Would definitely buy it Would probably buy it Might or might not buy it 93754_15_ch15_p335-384.indd 381 7/14/09 8:29:09 AM 382 Part 4: Measurement Concepts Would probably not buy it Would definitely not buy it (Hand response card to respondent.) Which phrase on this card indicates how likely you would be to buy this product the next time you go shopping for a product of this type? Would definitely buy it Would probably buy it Might or might not buy it Would probably not buy it Would definitely not buy it Now that you have read about (product concept), if this product were available at your local store for (price), how likely would you be to buy it? Would definitely buy it Would probably buy it Might or might not buy it Would probably not buy it Would definitely not buy it How often, if ever, would you buy (product concept)? Once a week or more Once every to weeks Once a month/every weeks Once every to months Once every to months Less than once a year Never Based on your experience, would you recommend (company) to a friend who wanted to purchase (product concept)? Recommend that the friend buy from (company) Recommend that the friend not buy from (company) Offer no opinion either way Reason for Buying Intention Why you say that you would (would not) buy (brand name)? (PROBE: What other reason you have for feeling this way?) Questions about Demographics Age What is your age, please? What year were you born? Education What is your level of education? Some high school or less Completed high school 93754_15_ch15_p335-384.indd 382 7/14/09 8:29:09 AM Chapter 15: Questionnaire Design 383 Some college Completed college Some graduate school Completed graduate school What is the highest level of education you have obtained? Some high school or less High school graduate Some college College graduate Postgraduate school Completed graduate school Marital Status What is your marital status?’ Married Divorced/separated Widowed Never married/single Children Are there any children under the age of living in your household? Yes No If yes, how many? Income Which group describes your annual family income? Under $20,000 $20,000–$39,999 $40,000–$59,999 $60,000–$79,999 $80,000–$99,999 $100,000–$149,999 $150,000 or more Please check the box that describes your total household income before taxes in (year) Include income for yourself as well as for all other persons who live in your household Less than $10,000 $10,000–$14,999 $15,000–$19,999 $20,000–$24,999 $25,000–$29,999 $30,000–$34,999 93754_15_ch15_p335-384.indd 383 $35,000–$39,999 $40,000–$49,999 $50,000–$59,999 $60,000–$74,999 $75,000 or more 7/14/09 8:29:09 AM 384 Part 4: Measurement Concepts Occupation What is your occupation? Professional Executive Managerial Administrative Sales Technical Labor Secretarial Clerical Other What is your occupation? Homemaker Professional/technical Upper management/executive Middle management Sales/marketing 93754_15_ch15_p335-384.indd 384 Clerical or service worker Tradesperson/machine operator Laborer Retired Student 7/14/09 8:29:10 AM ... return be worth the investment? 12 93754_ 01_ ch 01_ p0 01- 017 .indd 12 7 /11 /09 4: 31: 54 PM Chapter 1: The Role of Business Research 13 Will the information gained by business research improve the quality... internationally The Research Snapshot above discusses how Brown-Forman, the parent 14 93754_ 01_ ch 01_ p0 01- 017 .indd 14 7 /11 /09 4: 31: 56 PM Chapter 1: The Role of Business Research 15 company of Jack... cost to get the data 11 93754_ 01_ ch 01_ p0 01- 017 .indd 11 7 /11 /09 4: 31: 48 PM © AMIT BHARGAVA/BLOOMBERG NEWS/LANDOV Business Class Success? If you’ve ever checked the price of business- class airfare