1. Research
Methodology
TOPIC
Jl IKPN Bintaro No 1, Pesanggrahan,
Tanah Kusir, Jakarta, Special Capital
Region of Jakarta 12330, Indonesia
Ethics in Business
Research

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Ethic in Business Research
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Why Study Business Research?
Business research plays an important role in an
environment that emphasizes measurement.
Return on investment (ROI) is the calculation of the
financial return for all business expenditures and it
is emphasized more now than ever before. Business
research expenditures are increasingly scrutinized
for their contribution to ROMI. Business research
provides information to guide business decisions
RESEARCH IN BUSINESS
Research Should Help Respond to Change
“Enterprises have long recognized the need to better sense and respond to business change. What’s
different today is that ubiquitous access to information and real-time communications have fostered an
‘always on’ business culture where decision making has become a ‘just-in-time process.’”
Business Performance Management Forum
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Business Research
Business research is a systematic inquiry that provides
information to guide business decisions. A process of
determining, acquiring, analyzing, synthesizing, and
disseminatingrelevant business data, information,
andinsights to decision makers in ways thatmobilize the
organization to take appropriate business actions that, in
turn, maximize business performance.
Research Should Reduce Risk
The primary purpose of research is to reduce the level of
risk of a marketing decision

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What’s Changing in Business that Influences Research?
Several factors increase the relevance for studying business research.
• Information overload. While the Internet and its search engines present extensive amounts of
information, its quality and credibility must be continuously evaluated. The ubiquitous access to
information has brought about the development of knowledge communities and the need for
organizations to leverage this knowledge universe for innovation—or risk merely drowning in data.
Stakeholders now have more information at their disposal and are more resistant to business stimuli.
• Technological connectivity. Individuals, public sector organizations, and businesses are adapting
to changes in work patterns (real-time and global), changes in the formation of relationships and
communities, and the realization that geography is no longer a primary constraint.
• Shifting global centers of economic activity and competition. The rising economic power of Asia and
demographic shifts within regions highlight the need for organizations to expand their knowledge
of consumers, suppliers, talent pools, business models, and infrastructures with which they are less
familiar.
• Increasingly critical scrutiny of big business. The availability of information has made it possible for
all a firm’s stakeholders to demand inclusion in company decision making, while at the same time
elevating the level of societal suspicion.
• More government intervention. As public-sector activities increase in order to provide some
minimal or enhanced level of social services, governments are becoming increasingly aggressive in
protecting their various constituencies by posing restrictions on the use of managerial and business
research tools.
• Battle for analytical talent. Managers face progressively complex decisions, applying mathematical
models to extract meaningful knowledge from volumes of data and using highly sophisticated
software to run their organizations. The shift to knowledge-intensive industries puts greater
demand on a scarcity of well-trained talent with advanced analytical skills.
• Computing Power and Speed. Lower cost data collection, better visualization tools, more
computational power, more and faster integration of data, and real-time access to knowledge are
now manager expectations…not wistful visions of a distant future.
• New Perspectives on Established Research Methodologies. Older tools and methodologies, once
limited to exploratory research, are gaining wider acceptance in dealing with a wider range of
managerial problems.

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Business Planning Drives Business Research
An organization’s mission drives its business goals, strategies, and tactics and, consequently, its need
for business decision support systems and business intelligence. Students need to understand the
differences in these concepts to fully understand what drives a manager to seek solutions through
research.
Selecting business strategies and tactics often drive research.
• A business strategy is defined as the general approach an organization will follow to achieve its
business goals. A strategy might describe how an organization can best position itself to fulfill
customer needs or establish a general approach to gaining brand equity. Haagen-Daz positioned
itself with its super-premium ice-cream strategy.
• Business tactics are specific, timed activities that execute a business strategy. Haagen-Daz designed
its ice-cream to be rich and creamy with flavors like “Peanut Butter Fudge Chunk.” It packaged the
ice cream in pint size containers with signature gold and burgundy colors. It distributes the ice
cream in grocery stores and franchised stores.
Sources of Business Intelligence

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Exhibit 1-1
• Exhibit 1-1 shows some sources of business intelligence.
• Sources of government information include speeches by elected officials, recordings of public
proceedings, press releases, and agency websites.
• Sources of competitive information include presentations at conferences, literature searches, press
releases, syndicated industry studies, web sites, clipping services, and business research.
• Sources of economic information include literature searches and government reports.
• Sources of cultural and social information include syndicated studies, public opinion organizations,
business research, and government reports.
• Sources of technological information include patent filings, web sites, syndicated industry studies,
presentations at conferences, literature searches, and clipping services.
• Sources of demographic information include syndicated studies, government reports, and business
research.
Hierarchy of Business Decision Makers
Exhibit 1-2
• Exhibit 1-2 illustrates the hierarchy of business decision
makers.
• In the bottom tier, most decisions are based on past
experience or instinct. Decisions are also supported
with secondary data searches.
• In the middle tier, some decisions are based on business
research.
• In the top tier, every decision is guided by business
research. Firms develop proprietary methodologies and
are innovative in their combination of methodologies. There is access to research data and findings
throughout the organization.
Minute Main and Business Research
Exhibit 1-3
Minute Maid is an example of a top-tier research organization. Ask students: “Why?”

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Information Value Chain
Computers and telecommunications lowered the costs of data collection.
• Data management is now possible and necessary given the quantity of raw data.
• Models reflect the behavior of individuals, households, and industries.
• A DSS integrates data management techniques, models, and analytical tools to support decision
making.
• Data must be more than timely and standardized; it must be meaningful.
• These are all characteristics of the information value chain.
The Research Process
Exhibit 1-4
Exhibit 1-4 introduces the research process model used throughout the text and the PowerPoint slides.
Instructors are encourage to give it a brief overview here, as a more detailed look is offered in chapter
4, and individual stages are discussed in subsequent chapters.

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Characteristics of Good Research
Exhibit 1-5 presents the characteristics of
good business research and also explains what
managers should look for in research done by
others.
You might wish to discuss the concepts here,
before you discuss who actually conducts
research…or you might want to discuss who
conducts research first, followed by this slide
to summarize.
• Applied research applies research to discovering solutions for immediate problems or opportunities.
• Basic (or pure) research aims to solve perplexing questions or obtain new knowledge of an
experimental or theoretical nature that has little direct or immediate impact on action, performance,
or policy decisions.
• Reporting studies provide a summation of data, often recasting data to achieve a deeper
understanding or to generate statistics for comparison.
• A descriptive study tries to discover answers to the questions who, what, when, where, and,
sometimes, how.
• An explanatory study attempts to explain the reasons for the phenomenon that the descriptive
study only observed
• A predictive study attempts to predict when and in what situations an event will occur. Studies may
also be described as applied research or basic research.

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Who Conducts Business Research?
Exhibit 1a-3 lists some syndicated data providers, their service, and what their service measures.
Some Syndicated Data Providers

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Specialty Business Research Firms
• Firms specializing in methodology conduct only one type of research such as survey research,
customer satisfaction research or ad copy testing.
• Firms specializing in process contribute to only one portion of the research process such as sample
recruitment, telephone interviewing, or fielding Web surveys.
• Firms specializing by industry become experts in one or a few industries such as pharmaceutical
research or telecommunications research.
• Firms specializing by participant group become experts in a particular participant group such as
Latino-Americans.
• Firms specializing by geographic region operate in only one region of a country, for example, the
Midwest or the Southwest, or a city, like New York.
Communication Agencies
Communication agencies are heavy users of syndicated research data, especially from media industry
suppliers. Some agencies do extensive basic research. For direct business agencies, every single project
is actually an experiment.

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Trade Associations
This is a list of some major trade associations relevant to business research. A more comprehensive list
in on the text CD.
For a searchable website try: www.businessfinance.com/trade-associations.htm
National Human Resources Association
American Association of Public Opinion Research
Council of American Survey Research Organizations
Business Research Association
American Marketing Association
World Association of Opinion and Business Research Professionals
Advertising Research Foundation
Association of National Advertisers
Sales Research Trust
Magazine Publishers of America
National Association of Broadcasters
Key Terms

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Learning Objectives:
• What issues are covered in research ethics.
• The goal of “no harm” for all research activities and what constitutes no harm for participant,
researcher, and research sponsor
• Differing ethical dilemmas and responsibilities of researchers, sponsors, and research assistants.
• Role of ethical codes of conduct in professional associations.
Ethical Approaches
There is no single approach to ethics. Deontology advocates that ethical behavior should be directed by
duties regardless of the positive circumstances that might result from behavior that is in contradiction
to the duty. An example might be “Do not lie,” even when lying might result in a positive outcome.
Another approach is that of ethical relativism. Ethical relativism is based on an individual’s sense of
morality. Therefore, each person decides for his or herself what is ethical behavior. A middle ground is
necessary and provided through ethical standards of behavior for researchers.
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ETHICS IN BUSINESS RESEARCH
Ethical Codes of Conduct
Three organizations offering codes specifically for researchers are the Marketing Research Association
(MRA), the American Marketing Association (AMA), and the Council for American Survey Research
Organizations (CASRO). The logos in the slide are linked to the respective organization’s website where
you can view the codes of ethics.

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Ethical Issues at all Stages of the Research Process
Exhibit 2-1 highlights the many ethical issues that arise at all stages of the research process.
Research must be designed so that a participant does not suffer physical harm, discomfort, pain,
embarrassment, or loss of privacy. This slide lists the three guidelines researchers should follow to
protect participants.
When discussing benefits, the researcher should be careful not to overstate or understate the benefits.
Informed consent means that the participant has given full consent to participation after receiving full
disclosure of the procedures of the proposed study.
Ethical Treatment of Participants
Exhibit 2-2 illustrates the informed consent procedures used by the Indiana Center for Survey Research.
The components highlighted in its procedures are listed in the slide.
Components of Informed Consent

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Characteristics of Informed Consent
Since 1966, all projects with federal funding are required to be reviewed by an Institutional Review
Board (IRB). An IRB evaluates the risks and benefits of proposed research. The review requirement may
be more relaxed for projects that are unlikely to be risky – such as marketing research projects. Many
institutions require that all research – whether funded or unfunded by the federal government – be
reviewed by a local IRB.
The IRBs concentrate on two areas. First is the guarantee of obtaining complete, informed consent from
participants. The second is the risk assessment and benefit analysis review.
Complete informed consent has four characteristics and these are named
• The participant must be competent to give consent.
• Consent must be voluntary, and free from coercion.
• Participants must be adequately informed to make a decision.
• Participants should know the possible risks or outcomes associated with the research.
Ethical Responsibilities
Special consideration is necessary when researching the behavior and attitudes of children. Besides
providing informed consent, parents are often interviewed during the selection process to ensure that
the child is mature enough and has the verbal and physical capabilities necessary.
In situations where participants are intentionally or accidentally deceived, they should be debriefed
once the research is complete. Debriefing describes the goals of the research, as well as the truth and
reasons for any deception. Results are shared after the study is complete. Participants who require any
medical or psychological follow-up attention will receive it during the debriefing process.
Deception
Deception

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The convenience of collecting data online has created new ethical issues.
Data mining offers infinite possibilities for research abuse. The primary ethical data mining issues in
cyberspace are privacy-related including consent to information collection and control of information
dissemination. Legitimate data miners publicly post their information security policies.
The EU countries have passed the European Commission’s data protection directive. Under the directive,
commissioners can prosecute companies and block Web sites that fail to live up to its strict privacy
standards.
Exhibit2-3identifiesthesevenbasicprinciplethatcompaniesmustcomplywithtobegrantedimmunity
from legal action under the EU’s directive. These seven principles are:
• Notice: Companies must notify consumers/participants about what information is being collected,
how that information will be used, who that information will be shared with, and how individuals
can contact the organization with inquiries or complaints.
• Choice: Consumers/participants must be provided with an opt-out mechanism for any secondary
uses of data and for disclosures to third parties. For sensitive information, participants must opt in
before providing data that will be shared.
• Access: Individuals must have access to personal information that the organization holds and be
The U.S. Safe Harbor Agreement

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able to correct, amend, or delete information where it is in accurate, except where the burden or
expense of providing access would be disproportionate to the risks to the individual’s privacy.
• Security: Organizations must take reasonable precautions to protect personal information from
loss, misuse, and unauthorized access, disclosure, alteration, and destruction.
• Onward transfer: Companies disclosing personal data to a third party must adhere to the notice and
choice principles. A third party must subscribe to the safe-harbor principles.
• Data integrity: Reasonable steps must be taken to ensure that data collected are reliable, accurate,
complete, and current.
• Enforcement: Companies must ensure there are readily available and affordable independent
mechanisms to investigate consumer complaints.
Occasionally, researchers may be asked by sponsors to participate in unethical behavior. What can the
researcher do to remain ethical? There are four suggestions provided in the slide. The researcher can
attempt to
• educate the sponsor to the purpose of the research,
• explain the researcher’s role as a fact-finder,
• explain how distorting the truth or breaking faith will lead to future problems, and
• if the others fail, terminate the relationship.
What To Do If Coerced?
Effective Codes of Ethics
Many organizations have codes of ethics. A code of ethics is an organization’s codified set of norms or
standards of behavior that guide moral choices about research behavior. Effective codes are those that
1) are regulative, 2) protect the public interest and the interests of the profession served by the code, 3)
are behavior-specific, and 4) are enforceable.
Exhibit 2-5 provides additional sources for ethics resources.

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Science and Scientific Research