Schindler (2022) described four types of studies: reporting studies
(summarizes and often recasts data to achieve deeper understanding),
descriptive studies (determine who / what / where / when / how much),
causal-explanatory (explains relationships among variables – how one
variable affects change in another), and causal-predictive (predicts effect on
a dependent variable by manipulating independent variables) (pp 78 – 79).
In this case, company President Vicale is seen using elements of both
descriptive and causal-explanatory studies. After his own personal figure
collection caught a lot of attention, Vicale conducted a descriptive study of
the global market for action figures. From this, he was able to determine the
players in the industry including Hasbro and others (who), the significance of
action figure presence in toy stores as they take up more aisle space than
everything except video games (where / how much), and the fact that young
girls have their own action figure section as well (who). Vicale also
demonstrates elements of causal-explanatory study when he consults the
lawyer about using the likenesses of living persons for their action figures
(how mass-producing products bearing these likenesses will affect the
amount of legal risk).
2) Using the criteria in Exhibit 2-1, evaluate the research that
HeroBuilders.com conducted prior to launching its hero and
villain action figure business.
Schindler’s Exhibit 2-1 details actions that deliver effective research in the
following order: Purpose clearly defined, research design thoroughly planned
and executed, high ethical standards applied, adequate analysis for decision-
maker’s needs, limitations frankly revealed, and findings reported
unambiguously – insights and conclusions justified (2022, p. 29).
Vicale’s purpose is perhaps too vague, as he limited it to determining the
potential of the action figure market. This would infer a very wide scope
without any defining limitations (e.g., does Vicale only want to determine the
market potential in the United States, or globally?). To lay the foundation for
more quality research, Vicale could have benefitted from a more clearly
defined research purpose.
That being said, Vicale’s research does seem to have been thoroughly
planned and executed in relation to his purpose. He confirmed the existence
of a thriving and competitive market that Hasbro and others are involved in
globally. Vicale takes another step here by also determining how action
figures fit into the retail environment. He was able to determine that action
figures take up more aisle space than almost anything else in a toy store
(only being bested in that regard by video games).
Vicale demonstrated sufficient ethical standards throughout his research
in this case. By limiting his research to internet and retail environments,
there was little to no room for unethical research methods in the first place.
Some extreme opportunities such as unethically obtaining action figure sales
numbers for Hasbro / other competitors or exploiting children for sampling
and questioning in the retail environment exist, none of which occurred in
this case. Vicale further demonstrates high ethical standards by consulting
the lawyer on the permissibility of using famous living person’s likenesses in
toy products.
The data that Vicale obtained in this research already has high validity
and reliability. Data he obtained on players in the action figure market can
easily be substantiated by visiting each manufacturer’s website to view their
product lines. This data was further validated by Vicale when he stepped
into retail spaces. Vicale’s observations in the retail environments have high
existing validity and reliability, as well. Vicale is able to witness firsthand
alongside consumers the existence of these products in retail stores.
Together, the data and observations collected supported Vicale’s research
purpose.
As discussed in the previous section on Vicale’s vague purpose of this
research, it is apparent that limitations exist. However, no limitations are
explicitly discussed in this case – not by Vicale or others. More quality
research could have been conducted if the limitations had been
acknowledged, because then some attempt could have been made to
mitigate those limitations.
Vicale seems to have reported his findings in a straightforward manner, as
the company soon launched their e-commerce business selling action figures
based on modern day heroes following this research. However, it is not
demonstrated whether Vicale summarized his conclusions to his
management team via a detailed report.
3) What issues, other than those Vicale chose to evaluate, would
you have included in your research plan for HeroBuilders.com?
In the current year of 2024, it is a safe bet to assume that more
transactions will occur via e-commerce as opposed to retail stores for a
number of product types or industries, such as toys or video games.
However, the early 2000s were a very different time. Amazon.com, a
modern e-commerce goliath, didn’t even post its first profit until Q4 of 2001
(CNN Money, 2002). For this reason, Vicale’s research could have benefitted
from an analysis of how many action figures were sold at the time via e-
commerce vs how many get sold at retail by Hasbro and other players. This
information would have been readily available via public company financial
information, or perhaps via telephone interviews with key informants at
those companies. Covariation (how two variables are related) is an
important element of quality business research, as emphasized by Mullen,
Budeva, and Doney (2009). They placed increased emphasis on the
magnitude of covariation – that is, how strongly do two variables covary (p.
289)? During the early 2000s when e-commerce was just starting to make
itself known, a lacking data point in Vicale’s research is the market share of
action figures in e-commerce vs retail stores. Since Vicale’s company
purchased an e-commerce toy company that went on to launch an e-
commerce heroes action figure line shortly after the research, they could
have benefitted from knowing how strongly e-commerce affected sales of
action figures in this time period.
Another step that could have bolstered the quality of this research is the
creation of a business model for the modern-day action figure hero line.
Boons and Ludeke-Freund (2012) distinguished four core elements of a
concept for a business model: Value proposition (value embedded in the
product), supply chain (management of relationships with suppliers),
customer interface (management of relationships with customers), and a
financial model (comprehensive cost/benefit analysis) (p.10).
This study could have also benefitted from additional data collection
methods, even ones used as frequently as surveys or interviews (Yang,
Wang, & Su, 2006, p. 603). As discussed previously, key informants at
Hasbro and other toymakers could have testified to the degree of success
seen by their action figure product lines. Depending on the scope of the
planned product’s availability (i.e., limited to America or internationally
available in multiple countries), sources of such data collection methods
need to be considered. People in other countries view the world in very
different ways (Yang, Wang, & Su, 2006, p. 603), so it would be crucial to see
how international target audiences view action figures, especially ones
depicted on the likeness of famous persons that may or may not be from
their own country.
References
(2002, January 22nd). Amazon posts a profit. CNN Money.
https://money.cnn.com/2002/01/22/technology/amazon/
Boons, F. and Ludeke-Freund, F. (2012, July 31st). Business models for
sustainable innovation: State-of-the-art and steps towards a research
agenda. Journal of Cleaner Production, 45.
https://www.sciencedirect.com/science/article/pii/S0959652612003459?
ref=pdf_download&fr=RR-2&rr=86d4aa803bcab0d9
Mullen, M. R., Budeva, D. G., and Done, P. M. (2009, July). Research methods
in the leading small business-entrepreneurship journals: A critical review with
recommendations for future research. Journal of Small Business
Management, 47(3). https://go.openathens.net/redirector/liberty.edu?url=https%3A
%2F%2Fonlinelibrary.wiley.com%2Fdoi%2Fepdf%2F10.1111%2Fj.1540-
627X.2009.00272.x
Schindler, P. S. (2022). Business Research Methods. 14th edition. McGraw Hill.
Yang, Z., Wang, X. and Su, C. (2006). A review of research methodologies in
international business. International Business Review, 15.
https://www.sciencedirect.com/science/article/pii/S0969593106000850
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