- Business research can be directed toward an element of an organization’s internal operations.
ANS: T PTS: 1 DIF: Moderate REF: p. 3
OBJ: LO: 01-01
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Comprehension
- Researchers in different functional areas of a business differ in the respect that they typically use different research methods.
ANS: F
While researchers in different functional areas may investigate different phenomena, they are similar to one another because they share similar research methods.
PTS: 1 DIF: Moderate REF: p. 4 OBJ: LO: 01-01
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Comprehension
- Business research is basically about conducting surveys.
ANS: F
Business research is more than conducting surveys. This process includes idea and theory development, problem definition, gathering information, analyzing data, and communicating the findings including potential implications.
PTS: 1 DIF: Moderate REF: p. 5 OBJ: LO: 01-02
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Comprehension
- The term “research” means “to search again.”
ANS: T PTS: 1 DIF: Moderate REF: p. 5
OBJ: LO: 01-02
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Knowledge
- A business researcher needs to be subjective in order to provide accurate information.
ANS: F
The researcher should be personally detached and free of bias attempting to find truth, so he or she must be objective, not subjective.
PTS: 1 DIF: Moderate REF: p. 5 OBJ: LO: 01-02
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Comprehension
- Business research is restricted to for-profit organizations.
ANS: F
Certainly, business research focuses on for-profit business activities, but it is also applicable to other types of organizations, such as non-profits.
PTS: 1 DIF: Moderate REF: p. 5 OBJ: LO: 01-02
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Comprehension
- Conducting research to determine why consumers visit Starbucks is an example of basic business research.
ANS: F
This is an example of applied business research, which is conducted to address a specific decision for a specific firm or organization, such as understanding why consumers visit Starbucks.
PTS: 1 DIF: Hard REF: p. 5 OBJ: LO: 01-03
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Application
- The procedures and techniques used by applied researchers and basic researchers differ substantially.
ANS: F
All research, whether basic or applied, involves the scientific method.
PTS: 1 DIF: Moderate REF: p. 6 OBJ: LO: 01-03
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Comprehension
- 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.
ANS: T PTS: 1 DIF: Moderate REF: p. 6
OBJ: LO: 01-03
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Comprehension
- When ideas can be stated in researchable terms, we reach the hypothesis stage of the scientific method.
ANS: T PTS: 1 DIF: Easy REF: p. 6
OBJ: LO: 01-03
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Comprehension
- Research plays a more prominent role in product-oriented companies than in customer-oriented companies.
ANS: F
A product-oriented firm prioritizes decision making in a way that emphasizes technical superiority in the product, and research may take a backseat.
PTS: 1 DIF: Moderate REF: p. 7 OBJ: LO: 01-04
NAT: AACSB Reflective Thinking| CB&E Model Strategy| Blooms Comprehension
- Developing and implementing a business strategy involves six stages.
ANS: F
It involves four stages.
PTS: 1 DIF: Moderate REF: p. 8 OBJ: LO: 01-04
NAT: AACSB Reflective Thinking| CB&E Model Strategy| Blooms Knowledge
- Performance-monitoring research is primary used to evaluate employees.
ANS: F
Performance-monitoring research is a specific type of evaluation research that regularly, sometimes routinely, provides feedback for evaluation and control of business activity, such as monitoring sales data. While it may be used to evaluate employees, this is not necessarily the primary use of this activity, nor is it limited to this activity.
PTS: 1 DIF: Hard REF: p. 9 OBJ: LO: 01-04
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Comprehension
- Research should be conducted regardless of how long it will take to perform.
ANS: F
In many instances management believes that a decision must be made immediately, allowing no time for research.
PTS: 1 DIF: Easy REF: p. 10 OBJ: LO: 01-05
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Comprehension
- Communication technologies have impacted business research greatly.
ANS: T PTS: 1 DIF: Easy REF: p. 12
OBJ: LO: 01-06
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Comprehension
MULTIPLE CHOICE
- 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. |
ANS: B PTS: 1 DIF: Hard REF: pp. 3-5
OBJ: LO: 01-01| LO: 01-02
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Comprehension
- _____ is the application of the scientific method in searching for the truth about business phenomena.
a. | Management |
b. | Business |
c. | Business Research |
d. | Science |
ANS: C PTS: 1 DIF: Moderate REF: p. 5
OBJ: LO: 01-02
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Knowledge
- 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 |
ANS: D PTS: 1 DIF: Hard REF: p. 5
OBJ: LO: 01-02
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Application
- 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 |
ANS: D PTS: 1 DIF: Hard REF: p. 5
OBJ: LO: 01-02
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Comprehension
- 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 |
ANS: A PTS: 1 DIF: Moderate REF: p. 5
OBJ: LO: 01-03
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Knowledge
- _____ 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 |
ANS: D PTS: 1 DIF: Moderate REF: p. 5
OBJ: LO: 01-03
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Knowledge
- 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 |
ANS: C PTS: 1 DIF: Hard REF: p. 5
OBJ: LO: 01-02
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Application
- 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 |
ANS: B PTS: 1 DIF: Moderate REF: p. 5
OBJ: LO: 01-03
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Knowledge
- 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 |
ANS: A PTS: 1 DIF: Hard REF: p. 5
OBJ: LO: 01-03
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Application
- 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 |
ANS: C PTS: 1 DIF: Moderate REF: p. 6
OBJ: LO: 01-03
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Knowledge
- All of the following are business orientations EXCEPT _____.
a. | management-oriented |
b. | product-oriented |
c. | production-oriented |
d. | marketing-oriented |
ANS: A PTS: 1 DIF: Hard REF: p. 7
OBJ: LO: 01-04
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Comprehension
- 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 |
ANS: D PTS: 1 DIF: Hard REF: p. 7
OBJ: LO: 01-04
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Comprehension
- 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 |
ANS: A PTS: 1 DIF: Hard REF: p. 7
OBJ: LO: 01-04
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Application
- 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 |
ANS: A PTS: 1 DIF: Moderate REF: p. 7
OBJ: LO: 01-04
NAT: AACSB Reflective Thinking| CB&E Model Strategy| Blooms Knowledge
- 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 |
ANS: B PTS: 1 DIF: Moderate REF: p. 8
OBJ: LO: 01-04
NAT: AACSB Reflective Thinking| CB&E Model Strategy| Blooms Knowledge
- 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 |
ANS: B PTS: 1 DIF: Moderate REF: p. 8
OBJ: LO: 01-04
NAT: AACSB Reflective Thinking| CB&E Model Strategy| Blooms Knowledge
- _____ 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 |
ANS: D PTS: 1 DIF: Moderate REF: p. 9
OBJ: LO: 01-04
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Knowledge
- 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 |
ANS: C PTS: 1 DIF: Hard REF: p. 9
OBJ: LO: 01-04
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Application
- 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 |
ANS: D PTS: 1 DIF: Hard REF: p. 9
OBJ: LO: 01-04
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Application
- 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 |
ANS: C PTS: 1 DIF: Hard REF: p. 10
OBJ: LO: 01-05
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Comprehension
- 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 |
ANS: B PTS: 1 DIF: Moderate REF: p. 10
OBJ: LO: 01-05
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Comprehension
- 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 |
ANS: B PTS: 1 DIF: Moderate REF: p. 11
OBJ: LO: 01-05
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Comprehension
- 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 |
ANS: D PTS: 1 DIF: Moderate REF: p. 12
OBJ: LO: 01-05
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Comprehension
- 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 |
ANS: A PTS: 1 DIF: Moderate REF: p. 14
OBJ: LO: 01-06
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Knowledge
- 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 |
ANS: B PTS: 1 DIF: Hard REF: p. 14
OBJ: LO: 01-06
NAT: AACSB Diversity| CB&E Model International Perspective| Blooms Application
COMPLETION
- The application of the scientific method in searching for truth about business phenomena is known as ______.
ANS: business research
PTS: 1 DIF: Moderate REF: p. 5 OBJ: LO: 01-02
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Knowledge
- The two types of business research based on the specificity of its purpose are called basic and _____ research.
ANS: applied
PTS: 1 DIF: Moderate REF: p. 5 OBJ: LO: 01-03
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Knowledge
- Researchers conducting research to address a specific business decision for their business are conducting ______ research.
ANS: applied
PTS: 1 DIF: Moderate REF: p. 5 OBJ: LO: 01-03
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Comprehension
- Research that attempts to verify a theory but which is not intended to solve any specific business problem is known as ______ research.
ANS: basic
PTS: 1 DIF: Moderate REF: p. 5 OBJ: LO: 01-03
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Knowledge
- The way researchers go about using knowledge and evidence to reach objective conclusions about the real world is known as the ______ method.
ANS: scientific
PTS: 1 DIF: Moderate REF: p. 6 OBJ: LO: 01-03
NAT: AACSB Reflective Thinking| CB&E Model Research| Blooms Knowledge
- 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.
ANS: product
PTS: 1 DIF: Moderate REF: p. 7 OBJ: LO: 01-04
NAT: AACSB Reflective Thinking| CB&E Model Strategy| Blooms Knowledge
- A _____ orientation focuses more on how the firm provides value to customers than on the physical product.
ANS: marketing
PTS: 1 DIF: Moderate REF: p. 7 OBJ: LO: 01-04
NAT: AACSB Reflective Thinking| CB&E Model Strategy| Blooms Knowledge
- The first stage in the development and implementation of a business strategy is _____.
ANS: identifying problems or opportunities
PTS: 1 DIF: Moderate REF: p. 8 OBJ: LO: 01-04
NAT: AACSB Reflective Thinking| CB&E Model Strategy| Blooms Comprehension
- The formal, objective measurement and appraisal of the extent a given activity, project, or program has achieved its objectives is known as _____ research.
ANS: evaluation
PTS: 1 DIF: Moderate REF: p. 9 OBJ: LO: 01-04
NAT: AACSB Reflective Thinking| CB&E Model Strategy| Blooms Knowledge
- 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.
ANS: performance-monitoring
PTS: 1 DIF: Moderate REF: p. 9 OBJ: LO: 01-04
NAT: AACSB Reflective Thinking| CB&E Model Strategy| Blooms Knowledge
- 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.
ANS: cross-validates
PTS: 1 DIF: Moderate REF: p. 14 OBJ: LO: 01-06
NAT: AACSB Diversity| CB&E Model International Perspective| Blooms Knowledge
ESSAY
- Explain how business research contributes to business success.
ANS:
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.
PTS: 1 DIF: Easy REF: p. 3 OBJ: LO: 01-01
NAT: AACSB Communication| CB&E Model Research| Blooms Comprehension
- Describe basic and applied business research and design an example of each.
ANS:
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.
PTS: 1 DIF: Moderate REF: p. 5 OBJ: LO: 01-02
NAT: AACSB Communication| CB&E Model Research| Blooms Application
- Discuss how business researchers apply the scientific method when conducting research.
ANS:
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.
PTS: 1 DIF: Moderate REF: p. 6 OBJ: LO: 01-03
NAT: AACSB Communication| CB&E Model Research| Blooms Comprehension
- 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.
ANS:
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.
PTS: 1 DIF: Moderate REF: p. 7 OBJ: LO: 01-04
NAT: AACSB Communication| CB&E Model Strategy| Blooms Comprehension
- Discuss how businesses analyze strategic performance and the role performance-monitoring research performs in this function.
ANS:
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.
PTS: 1 DIF: Moderate REF: p. 9 OBJ: LO: 01-04
NAT: AACSB Communication| CB&E Model Research| Blooms Comprehension
- Discuss the factors that influence whether or not business research is needed.
ANS:
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.
PTS: 1 DIF: Moderate REF: p. 10 OBJ: LO: 01-05
NAT: AACSB Communication| CB&E Model Research| Blooms Knowledge
- Explain why business research, like all business activity, continues to change.
ANS:
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.
PTS: 1 DIF: Hard REF: p. 23 OBJ: LO: 01-06
NAT: AACSB Communication| CB&E Model Research| Blooms Comprehension
