Monday, 08 August 2016 13:31

Importance of Research in Business Decision Making

By: 

Businesses conduct research for many reasons, such as gathering crucial information about consumers and business customers. The key function of management is take decisions and without help of the research and analysis of present situation and future forecasting , decisions may not be effective. So research helps to take right decisions. Based on research, management can make intelligent and well informed decisions.

Now let’s discuss the importance of research in business decision making:

Businesses use research to ascertain the success of their advertising. For instance, a dairy manufacturer may want to find out what percentage of the people saw its latest tv commercial. The dairy manufacturer may find that more individuals become aware of its advertising the longer the tv ad runs. The company may decide to run its tv ads at different times if few people have seen the ads.

A business can make well-informed decisions due to research. In the research process, the business will be able to acquire details about key business areas, analyze it, create a strategy and distribute business information. Reports, presented to the top management, often contain details on consumer and employee preferences and all the available channels for sales, marketing, finance and production. Management makes use of these details to determine the best strategy. Research is a necessity at all stages and phases of business operations. Initial research is needed to evaluate whether getting into the given kind of business would be profitable and whether there exists demand for the proposed product.

Regarding the staff, a correctly carried out research can uncover important details on their satisfaction quotient, the difficulties experienced by them and how the problems related to relationships at the workplace could be handled. An analysis into the results would allow the management to bring about changes for the all round effective functioning of the organisation and its employees. The workers can be trained and coached in line with the needs. This would help personal as well as professional development improving overall organisational performance.

researchbusinessdecision

Research is important for managerial decision making. All strategic business areas are analyzed and evaluated; then techniques for more efficient procedures are created. All businesses usually have many ways of doing an activity. Through proper research, the organization will be able to pick the most effective, productive and profitable one. Research could possibly be applied to marketing, production, finance, IT and Human resources.

Research can answer questions for various problems, from getting a grip on industry trends, identifying new products to produce and deliver to the market, or deciding on which site to locate an outlet, to better understanding what it needs to fulfill customer demands. Research can also help evaluate if a product is accepted in the market. Research aids expansion into new markets.

Research helps in testing the potential success of new products. Businesses have to understand what kinds of products consumers would like before they market them. For instance, a restaurant may in the beginning, interview focus groups to test types of burgers. The focus groups will probably include small teams of consumers. The goal of the focus group may be to figure out which burger customers prefer. Ultimately, the company may test the burgers through surveys with larger groups of people.

 

The above points state the importance of research in business decision making. Research is necessary to gather facts and statistics with regards to a company’s customers, employees and competitors. Based on these numbers, businesses are able to make better managerial decisions.

http://universalteacher.com/1/importance-of-research-in-business-decision-making/

Leave a comment

Get Exclusive Research Tips in Your Inbox

Receive Great tips via email, enter your email to Subscribe.
Please wait

airs logo

Association of Internet Research Specialists is the world's leading community for the Internet Research Specialist and provide a Unified Platform that delivers, Education, Training and Certification for Online Research.

Newsletter Subscription

Receive Great tips via email, enter your email to Subscribe.
Please wait

Follow Us on Social Media

Book Your Seat for Webinar GET FREE REGISTRATION FOR MEMBERS ONLY      Register Now