Chapter 1--The Role of Business Research
Student: ___________________________________________________________________________
1. Business research can be directed toward an element of an organization’s internal operations. 
True    False
 
2. Researchers in different functional areas of a business differ in the respect that they typically use different research methods. 
True    False
 
3. Business research is basically about conducting surveys. 
True    False
 
4. The term “research” means “to search again.” 
True    False
 
5. A business researcher needs to be subjective in order to provide accurate information. 
True    False
 
6. Business research is restricted to for-profit organizations. 
True    False
 
7. Conducting research to determine why consumers visit Starbucks is an example of basic business research. 
True    False
 
8. The procedures and techniques used by applied researchers and basic researchers differ substantially. 
True    False
 
9. The scientific method used by researchers is essentially the same process in social sciences, such as business, as it is in “hard” sciences, such as biology or physics. 
True    False
 
10. When ideas can be stated in researchable terms, we reach the hypothesis stage of the scientific method. 
True    False
 
11. Research plays a more prominent role in product-oriented companies than in customer-oriented companies. 
True    False
 
12. Developing and implementing a business strategy involves six stages. 
True    False
 
13. Performance-monitoring research is primary used to evaluate employees. 
True    False
 
14. Research should be conducted regardless of how long it will take to perform. 
True    False
 
15. Communication technologies have impacted business research greatly. 
True    False
 
16. Which of the following is FALSE regarding business research? 
A. Business research covers a wide range of phenomena.
B. Business research is not considered rigorous enough to apply the scientific method.
C. The purpose of business research is to provide knowledge to managers.
D. Business research can be directed toward an element of an organization’s internal operations.
 
17. _____ is the application of the scientific method in searching for the truth about business phenomena. 
A. Management
B. Business
C. Business Research
D. Science
 
18. Pamela is testing the hypothesis that employees will be more productive working in offices painted with muted colors rather than bold colors.  Pamela is conducting _____. 
A. qualitative research
B. essential research
C. scientific deduction
D. business research
 
19. All of the following are important aspects of the business research process EXCEPT _____. 
A. gathering information
B. idea and theory development
C. analyzing data
D. making results publicly available
 
20. Which of the following are the two types of business research based on the specificity of its purpose? 
A. basic and applied
B. scientific and non-scientific
C. cross-sectional and qualitative
D. quantitative and secondary
 
21. _____ is conducted to address a specific business decision for a specific firm or organization. 
A. Basic business research
B. Qualitative business research
C. Quantitative business research
D. Applied business research
 
22. Campbell’s Soup is considering launching a new gumbo product and is testing different recipes with consumers before full commercialization.  What type of research is Campbell’s using to determine which soup consumers will like the best? 
A. secondary research
B. basic research
C. applied research
D. test research
 
23. Which type of research tries to verify a theory or to learn more about a business concept and is not intended to solve a particular business problem? 
A. performance-monitoring research
B. basic research
C. total quality management
D. the scientific method
 
24. A business professor is examining the relationship between age and ethical business behavior.  The research is not being conducted for any specific business or even industry, but rather it is intended to better understand and predict this behavior across all aspects of business.  This professor is conducting which type of business research? 
A. basic business research
B. formal business research
C. applied business research
D. abstract business research
 
25. Which of the following refers to the way researchers go about using knowledge and evidence to reach objective conclusions about the real world? 
A. qualitative method
B. quantitative method
C. scientific method
D. primary method
 
26. All of the following are business orientations EXCEPT _____. 
A. management-oriented
B. product-oriented
C. production-oriented
D. marketing-oriented
 
27. A production-oriented firm focuses its research on _____. 
A. customers
B. technicians and experts in the field
C. competitive forces outside of the organization
D. line employees, engineers, accountants, and other efficiency experts
 
28. Wal-Mart is the low-cost leader in retail.  This company achieves this success by prioritizing efficiency in its distribution process.  Which business orientation is Wal-Mart exhibiting when it prioritizes efficiency and effectiveness of the supply chain process (i.e., getting products into the stores) in making decisions? 
A. production-orientated
B. product-oriented
C. marketing-oriented
D. technically-oriented
 
29. A firm focusing more on how to provide value to customers than on the physical product or production process is embracing which business orientation? 
A. marketing orientation
B. quality orientation
C. external orientation
D. value orientation
 
30. Which of the following is the first step in developing a business strategy? 
A. analyzing firm performance
B. identifying problems or opportunities
C. selecting and implementing a course of action
D. diagnosing and assessing problems or opportunities
 
31. Which of the following is the LAST step in developing and implementing a business  strategy? 
A. analyzing firm performance
B. evaluating the course of action
C. identifying problems or opportunities
D. diagnosing and assessing problems or opportunities
 
32. _____ is the formal, objective measurement and appraisal of the extent a given activity, project, or program has achieved its objectives or whether continuing programs are presently performing as projected. 
A. Monitoring research
B. Performance research
C. Comprehensive research
D. Evaluation research
 
33. The Chief Financial Officer (CFO) requested research to determine if the financing option the company implemented for a new capital investment initiative achieved the objective of reducing the company’s tax liability.  Which type of research is appropriate for evaluating this course of action?  
A. basic research
B. post-hoc research
C. evaluation research
D. financial research
 
34. When Target stores monitors the sales activities of its retail stores in order to detect any indication of dollar sales changes, this is an example of which type of research? 
A. relationship marketing research
B. total quality management research
C. basic research
D. performance-monitoring research
 
35. All of the following are factors considered when deciding whether or not research is needed EXCEPT _____. 
A. nature of the decision
B. availability of data
C. managerial experience
D. benefits versus costs
 
36. When a manager decides not to do research because a decision needs to be made before the results of the study can be analyzed, this is an example of which aspect in the determination of the need for marketing research? 
A. nature of the decision
B. time constraints
C. availability of the data
D. cost considerations
 
37. In general, the ______ important a decision is strategically to the organization, the ______ likely that research will be undertaken. 
A. less; more
B. more; more
C. more; less
D. none of these choices
 
38. When a manager is trying to decide whether a new product launch decision should be postponed until some additional research can be conducted, which of the following questions should this manager ask himself or herself? 
A. Is the proposed research expenditure the best use of the available funds?
B. Will the information gained by business research improve the quality of the business decision enough to warrant the expenditure?
C. Will the payoff from the research be worth the dollar expenditures for research?
D. all of these choices
 
39. When conducting research internationally, it is important to _____ research results, which means the researcher verifies that the empirical findings from one culture also exist and behave similarly in another culture. 
A. cross-validate
B. simulate
C. integrate
D. cross-analyze
 
40. Consumer research conducted in the United States indicates that many consumers consider the country of origin when purchasing products, and consumers tend to prefer products that are made in the U.S.A.  To determine if consumers in other countries are partial to their own country’s products, what must be done before the empirical findings from the research conducted among U.S. consumers also exist and behave similarly in another culture? 
A. reliability assessment
B. cultural cross-validation
C. benefit/cost analysis
D. cultural-monitoring research
 
41. The application of the scientific method in searching for truth about business phenomena is known as ______. 
________________________________________
 
42. The two types of business research based on the specificity of its purpose are called basic and _____ research. 
________________________________________
 
43. Researchers conducting research to address a specific business decision for their business are conducting ______ research. 
________________________________________
 
44. Research that attempts to verify a theory but which is not intended to solve any specific business problem is known as ______ research. 
________________________________________
 
45. The way researchers go about using knowledge and evidence to reach objective conclusions about the real world is known as the ______ method. 
________________________________________
 
46. When a company focuses all of its efforts aimed at consumers based on its technical superiority in product design and features, this company is said to be _____ - oriented. 
________________________________________
 
47. A _____ orientation focuses more on how the firm provides value to customers than on the physical product. 
________________________________________
 
48. The first stage in the development and implementation of a business strategy is _____. 
________________________________________
 
49. The formal, objective measurement and appraisal of the extent a given activity, project, or program has achieved its objectives is known as _____ research. 
________________________________________
 
50. A company that routinely assesses employee satisfaction to provide feedback for evaluation and control of the human relations function of the company is using _____ research. 
________________________________________
 
51. When empirical evidence from two different cultures suggests that people in one culture act in ways that are similar to people in a different culture, we say that this fact _____ the hypothesis that the two cultures are similar to one another. 
________________________________________
 
52. Explain how business research contributes to business success. 

 

 
 
53. Describe basic and applied business research and design an example of each. 

 

 
 
54. Discuss how business researchers apply the scientific method when conducting research. 

 

 
 
55. Explain the differences among a product-oriented firm, a production-oriented firm, and a marketing-oriented firm and the role business research plays in each. 

 

 
 
56. Discuss how businesses analyze strategic performance and the role performance-monitoring research performs in this function. 

 

 
 
57. Discuss the factors that influence whether or not business research is needed. 

 

 
 
58.  Explain why business research, like all business activity, continues to change. 

 

 

Chapter 1--The Role of Business Research Key
 
1. Business research can be directed toward an element of an organization’s internal operations. 
TRUE
 
2. Researchers in different functional areas of a business differ in the respect that they typically use different research methods. 
FALSE
 
3. Business research is basically about conducting surveys. 
FALSE
 
4. The term “research” means “to search again.” 
TRUE
 
5. A business researcher needs to be subjective in order to provide accurate information. 
FALSE
 
6. Business research is restricted to for-profit organizations. 
FALSE
 
7. Conducting research to determine why consumers visit Starbucks is an example of basic business research. 
FALSE
 
8. The procedures and techniques used by applied researchers and basic researchers differ substantially. 
FALSE
 
9. The scientific method used by researchers is essentially the same process in social sciences, such as business, as it is in “hard” sciences, such as biology or physics. 
TRUE
 
10. When ideas can be stated in researchable terms, we reach the hypothesis stage of the scientific method. 
TRUE
 
11. Research plays a more prominent role in product-oriented companies than in customer-oriented companies. 
FALSE
 
12. Developing and implementing a business strategy involves six stages. 
FALSE
 
13. Performance-monitoring research is primary used to evaluate employees. 
FALSE
 
14. Research should be conducted regardless of how long it will take to perform. 
FALSE
 
15. Communication technologies have impacted business research greatly. 
TRUE
 
16. Which of the following is FALSE regarding business research? 
A. Business research covers a wide range of phenomena.
B. Business research is not considered rigorous enough to apply the scientific method.
C. The purpose of business research is to provide knowledge to managers.
D. Business research can be directed toward an element of an organization’s internal operations.
 
17. _____ is the application of the scientific method in searching for the truth about business phenomena. 
A. Management
B. Business
C. Business Research
D. Science
 
18. Pamela is testing the hypothesis that employees will be more productive working in offices painted with muted colors rather than bold colors.  Pamela is conducting _____. 
A. qualitative research
B. essential research
C. scientific deduction
D. business research
 
19. All of the following are important aspects of the business research process EXCEPT _____. 
A. gathering information
B. idea and theory development
C. analyzing data
D. making results publicly available
 
20. Which of the following are the two types of business research based on the specificity of its purpose? 
A. basic and applied
B. scientific and non-scientific
C. cross-sectional and qualitative
D. quantitative and secondary
 
21. _____ is conducted to address a specific business decision for a specific firm or organization. 
A. Basic business research
B. Qualitative business research
C. Quantitative business research
D. Applied business research
 
22. Campbell’s Soup is considering launching a new gumbo product and is testing different recipes with consumers before full commercialization.  What type of research is Campbell’s using to determine which soup consumers will like the best? 
A. secondary research
B. basic research
C. applied research
D. test research
 
23. Which type of research tries to verify a theory or to learn more about a business concept and is not intended to solve a particular business problem? 
A. performance-monitoring research
B. basic research
C. total quality management
D. the scientific method
 
24. A business professor is examining the relationship between age and ethical business behavior.  The research is not being conducted for any specific business or even industry, but rather it is intended to better understand and predict this behavior across all aspects of business.  This professor is conducting which type of business research? 
A. basic business research
B. formal business research
C. applied business research
D. abstract business research
 
25. Which of the following refers to the way researchers go about using knowledge and evidence to reach objective conclusions about the real world? 
A. qualitative method
B. quantitative method
C. scientific method
D. primary method
 
26. All of the following are business orientations EXCEPT _____. 
A. management-oriented
B. product-oriented
C. production-oriented
D. marketing-oriented
 
27. A production-oriented firm focuses its research on _____. 
A. customers
B. technicians and experts in the field
C. competitive forces outside of the organization
D. line employees, engineers, accountants, and other efficiency experts
 
28. Wal-Mart is the low-cost leader in retail.  This company achieves this success by prioritizing efficiency in its distribution process.  Which business orientation is Wal-Mart exhibiting when it prioritizes efficiency and effectiveness of the supply chain process (i.e., getting products into the stores) in making decisions? 
A. production-orientated
B. product-oriented
C. marketing-oriented
D. technically-oriented
 
29. A firm focusing more on how to provide value to customers than on the physical product or production process is embracing which business orientation? 
A. marketing orientation
B. quality orientation
C. external orientation
D. value orientation
 
30. Which of the following is the first step in developing a business strategy? 
A. analyzing firm performance
B. identifying problems or opportunities
C. selecting and implementing a course of action
D. diagnosing and assessing problems or opportunities
 
31. Which of the following is the LAST step in developing and implementing a business  strategy? 
A. analyzing firm performance
B. evaluating the course of action
C. identifying problems or opportunities
D. diagnosing and assessing problems or opportunities
 
32. _____ is the formal, objective measurement and appraisal of the extent a given activity, project, or program has achieved its objectives or whether continuing programs are presently performing as projected. 
A. Monitoring research
B. Performance research
C. Comprehensive research
D. Evaluation research
 
33. The Chief Financial Officer (CFO) requested research to determine if the financing option the company implemented for a new capital investment initiative achieved the objective of reducing the company’s tax liability.  Which type of research is appropriate for evaluating this course of action?  
A. basic research
B. post-hoc research
C. evaluation research
D. financial research
 
34. When Target stores monitors the sales activities of its retail stores in order to detect any indication of dollar sales changes, this is an example of which type of research? 
A. relationship marketing research
B. total quality management research
C. basic research
D. performance-monitoring research
 
35. All of the following are factors considered when deciding whether or not research is needed EXCEPT _____. 
A. nature of the decision
B. availability of data
C. managerial experience
D. benefits versus costs
 
36. When a manager decides not to do research because a decision needs to be made before the results of the study can be analyzed, this is an example of which aspect in the determination of the need for marketing research? 
A. nature of the decision
B. time constraints
C. availability of the data
D. cost considerations
 
37. In general, the ______ important a decision is strategically to the organization, the ______ likely that research will be undertaken. 
A. less; more
B. more; more
C. more; less
D. none of these choices
 
38. When a manager is trying to decide whether a new product launch decision should be postponed until some additional research can be conducted, which of the following questions should this manager ask himself or herself? 
A. Is the proposed research expenditure the best use of the available funds?
B. Will the information gained by business research improve the quality of the business decision enough to warrant the expenditure?
C. Will the payoff from the research be worth the dollar expenditures for research?
D. all of these choices
 
39. When conducting research internationally, it is important to _____ research results, which means the researcher verifies that the empirical findings from one culture also exist and behave similarly in another culture. 
A. cross-validate
B. simulate
C. integrate
D. cross-analyze
 
40. Consumer research conducted in the United States indicates that many consumers consider the country of origin when purchasing products, and consumers tend to prefer products that are made in the U.S.A.  To determine if consumers in other countries are partial to their own country’s products, what must be done before the empirical findings from the research conducted among U.S. consumers also exist and behave similarly in another culture? 
A. reliability assessment
B. cultural cross-validation
C. benefit/cost analysis
D. cultural-monitoring research
 
41. The application of the scientific method in searching for truth about business phenomena is known as ______. 
business research
 
42. The two types of business research based on the specificity of its purpose are called basic and _____ research. 
applied
 
43. Researchers conducting research to address a specific business decision for their business are conducting ______ research. 
applied
 
44. Research that attempts to verify a theory but which is not intended to solve any specific business problem is known as ______ research. 
basic
 
45. The way researchers go about using knowledge and evidence to reach objective conclusions about the real world is known as the ______ method. 
scientific
 
46. When a company focuses all of its efforts aimed at consumers based on its technical superiority in product design and features, this company is said to be _____ - oriented. 
product
 
47. A _____ orientation focuses more on how the firm provides value to customers than on the physical product. 
marketing
 
48. The first stage in the development and implementation of a business strategy is _____. 
identifying problems or opportunities
 
49. The formal, objective measurement and appraisal of the extent a given activity, project, or program has achieved its objectives is known as _____ research. 
evaluation
 
50. A company that routinely assesses employee satisfaction to provide feedback for evaluation and control of the human relations function of the company is using _____ research. 
performance-monitoring
 
51. When empirical evidence from two different cultures suggests that people in one culture act in ways that are similar to people in a different culture, we say that this fact _____ the hypothesis that the two cultures are similar to one another. 
cross-validates
 
52. Explain how business research contributes to business success. 
Competitive businesses need information to make informed decisions addressing key issues faced.  Research can provide that information. Without it, business decisions involving both tactics and strategies are made in the dark.
 
53. Describe basic and applied business research and design an example of each. 
Applied business research is conducted to address a specific decision for a specific firm or organization.  It is relatively specific, and an example is Wendy’s fast food restaurant trying to determine if its new veggie burger will be successful or a company’s human resource manager researching which insurance benefits will attract the best employment candidates.

Basic business 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 is not aimed at solving a particular pragmatic problem.  For example, a researcher might study the effects of CEO age on initial public offering (IPO) valuation.
 
54. Discuss how business researchers apply the scientific method when conducting research. 
The scientific method is the way researchers go about using knowledge and evidence to reach objective conclusions about the real world.  In the scientific method, there are multiple routes to developing ideas, such as through prior knowledge or observation.  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 do not support a hypothesis.  From these results, new knowledge is acquired.
 
55. Explain the differences among a product-oriented firm, a production-oriented firm, and a marketing-oriented firm and the role business research plays in each. 
A product-oriented firm prioritizes decision making in a way that emphasizes technical superiority in the product.  A production-oriented firm prioritizes efficiency and effectiveness of the production processes in making decisions.  In both of these orientations, research may take a backseat.  In contrast, research is a primary tool enabling implementation of a marketing orientation.  A marketing-oriented 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.
 
56. Discuss how businesses analyze strategic performance and the role performance-monitoring research performs in this function. 
Performance-monitoring research refers to research that regularly, sometimes routinely, provides feedback for evaluation and control of business activities.  Most firms continuously monitor wholesale and retail activity to ensure early detection of sales declines and other anomalies.  Customer surveys may be conducted to monitor quality management.
 
57. Discuss the factors that influence whether or not business research is needed. 
The determination of the need for business research centers on:

(1) Time constraints - systematic research takes time, and sometimes the urgency of a situation precludes the use of research.
(2) Availability of data - when managers lack adequate information, data need to be collected from an appropriate source in a timely fashion.
(3) Nature of the decision - in general, the more strategically or tactically important the decision, the more likely it is that research will be conducted.
(4) Benefits versus costs - when deciding whether to make a decision without research or to postpone the decision in order to conduct research requires examining whether the payoff or rate of return will be worth the investment, whether the information gained by research will improve the quality of the decision enough to warrant the expenditure, and whether the proposed research expenditure is the best us of the available funds.
 
58.  Explain why business research, like all business activity, continues to change. 
Changes in communication technologies and the trend toward an ever more global marketplace have played a large role in many of these changes.  With respect to communication technologies, virtually everyone is “connected” today and the speed with which information can be exchanged has increased tremendously.  Changes in computer technology have also made for easier data collection and data analysis. Time and geography no longer pose major obstacles.  The internationalization of research places greater demands on researchers and heightens the need for research tools that allow us to cross-validate research results, which means that the empirical findings from one culture also exist and behave similarly in another culture.