Decision Support Systems and Marketing Research: Prepared by Deborah Baker Texas Christian University

Decision Support Systems and Marketing Research
chapter
Prepared by Deborah Baker Texas Christian University

Chapter 8 Version 6e 2002 South-Western 1
Learning Objectives
1. Explain the concept and purpose of a marketing decision support system.
2. Define marketing research and explain its importance to marketing decision making. 3. Describe the steps involved in conducting a marketing research project.
chapter
Chapter 8 Version 6e
2002 South-Western
Learning Objectives (continued)

4. Discuss the profound impact of the Internet on marketing research.
5. Discuss the growing importance of scanner-based research. 6. Explain the concept of competitive intelligence.
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Learning Objective
Explain the concept and purpose of a marketing decision support system.
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Decision Support System
An interactive, flexible computerized information system that enables managers to obtain and manipulate information as they are making decisions.
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DSS System Characteristics
Interactive
Flexible
Discovery-Oriented
Characteristics of a DSS System

Chapter 8 Version 6e 2002 South-Western
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Database Marketing
The creation of a large computerized file of customers and potential customers profiles and purchase patterns.
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Learning Objective
Define marketing research and explain its importance to marketing decision making.
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Marketing Research
The process of planning, collecting, and analyzing data relevant to a marketing decision.
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Roles of Marketing Research
Marketing Research has three roles:
Descriptive Diagnostic
Predictive
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Roles of Marketing Research
Gathering and presenting Descriptive factual statements
Diagnostic Explaining data

Attempting to estimate the results of a planned marketing decision
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Predictive
Management Uses of Marketing Research

Improve the quality of decision making
Trace problems Focus on keeping existing problems Understand the ever-changing marketplace
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Learning Objective
Describe the steps involved in conducting a marketing research project.
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The Marketing Research Process
Define Problem Plan Design/ Primary Data Specify Sampling Procedure
Collect Data
Prepare/ Present Report

Follow Up
Analyze Data
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Marketing Research
Marketing Research Problem
Marketing Research Objective Management Decision Problem
Determining what information is needed and how that information can be obtained efficiently and effectively.
The specific information needed to solve a marketing research problem; the objective should provide insightful decision-making information. A broad-based problem that requires marketing research in order for managers to take proper actions.
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Secondary Data
Data previously collected for any purpose other
than the one at hand.
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Sources of Secondary Data
Internal Corporate Information
Government Agencies Trade and Industry Associations Marketing Research Firms Commercial Publications
News Media
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Advantages of Secondary Data
Saves time and money if on target
Aids in determining direction for primary data collection Pinpoints the kinds of people to approach Serves as a basis of comparison for other data
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Disadvantages of Secondary Data
May not be on target with the research problem Quality and accuracy of data may pose a problem
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The New Age of Secondary Information

The Internet
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www
Search Engines and Directories
Sites of Interest to Marketing Researchers

Discussion Groups Periodical, Newspaper, and Book Databases
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Basic Types of Directories
Academic and Professional Directories Commercial Portals
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Research Design
Specifies which research questions must be answered, how and when the data will be gathered, and how the data will be analyzed.
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Planning the Research Design
Which research questions must be answered? How and when will data be gathered?
How will the data be analyzed?
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Primary Data
Information collected for the first time. Can be used for solving the particular problem under investigation.
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Advantages of Primary Data
Answers a specific research question
Data are current Source of data is known Secrecy can be maintained
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Disadvantages of Primary Data
Expensive Quality declines if interviews are lengthy
Reluctance to participate in lengthy interviews Disadvantages are usually offset by the advantages of primary data!
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Survey Research
The most popular technique for gathering primary data in which a researcher interacts with people to obtain facts, opinions, and attitudes.
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Forms of Survey Research
In-Home Interviews Mail Surveys
Mall Intercept Interviews Telephone Interviews

(Home and Central Location)
Executive Interviews
Focus Groups
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Mall Intercept Interview
Survey research method that involves interviewing people in the common areas of shopping malls.
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Executive Interviews
A type of survey that involves interviewing businesspeople at their offices concerning industrial products or services.
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Focus Group
Seven to ten people who participate in a group discussion led by a moderator.
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Advantages of On-Line Focus Groups

Speed
Cost-effectiveness Broad geographic scope Accessibility Honesty
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Questionnaire Design
Open-Ended Question
Closed-Ended Question ScaledResponse Question
An interview question that encourages an answer phrased in respondents own words. An interview question that asks the respondent to make a selection from a limited list of responses. A closed-ended question designed to measure the intensity of a respondents answer.
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Questionnaire Design
Clear and Concise
No Ambiguous Language Qualities of Good Questionnaires Unbiased
Reasonable Terminology
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Observation Research
A research method that relies on three types of observation:
people
people
watching people
watching an activity watching people
machines
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Observation Research
People Watching People
Mystery Shoppers One-Way Mirrors
Types of Observation Research
People Watching an Activity Machines Watching People
Audits
Traffic Counters Passive People Meter

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Mystery Shoppers
Researchers posing as customers who gather observational data about a store and collect data about customer/employee interactions.
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Experiment
A method a researcher uses to gather primary data.
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Sampling Procedure
Sample Universe
A subset from a large population. The population from which a sample will be drawn.
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Probability Samples
Probability Sample Random Sample
A sample in which every element in the population has a known statistical likelihood of being selected. A sample arranged so that every element of the population has an equal change of being selected.
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Nonprobability Samples
Any sample in little or no Nonprobability attempt is made to whichrepresentative get a Sample cross-section of the population
Convenience Sample
A form of nonprobability sample using respondents who are convenient or readily accessible to the researcher.
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Sampling Procedure
Universe
Sample
Probability Samples
Non-Probability Samples
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Types of Samples
Probability Samples
Simple Random Sample
Stratified Sample Cluster Sample Systematic Sample
Non-Probability Samples
Convenience Sample
Judgment Sample Quota Sample Snowball Sample
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Types of Errors
Measurement Error Sampling Error Frame Error Random Error
Errors Associated with Sampling
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Types of Errors
Measurement Error Sampling Error Frame Error Random Error
Error when there is a difference between the information desired and the information provided by research Error when a sample somehow does not represent the target population.
Error when a sample drawn from a population differs from the target population.
Error because the selected sample is an imperfect representation of the overall population.
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Field Service Firm
A firm that specializes in interviewing respondents on a subcontracted basis.
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Field Service Firms
Provide
Focus group facilities Mall intercept locations Test product storage Kitchen facilities
Retail audits
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Cross-Tabulation
A method of analyzing data that lets the analyst look at the responses to one question in relation to the responses to one or more other questions.
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Preparing and Presenting the Report

Concise statement of the research objectives
Explanation of research design Summary of major findings Conclusion with recommendations
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Following Up
Were the recommendations followed?
Was sufficient decision-making information included in the report? What could have been done to make the report more useful?
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Learning Objective
Discuss the profound impact of the Internet on marketing research.
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Impact of the Internet

Allows better and faster decision making
Improves ability to respond quickly to customer needs and market shifts
Makes follow-up studies and research easier

Slashes labor-and time-intensive research activities
Advantages of internet Surveys

Rapid development, Real-time reporting Reduced costs
Advantages of Internet Surveys
Personalized questions and data Improved respondent participation Contact with the hard-to-reach
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Internet Samples
Unrestricted Internet Sample
Screened Internet Sample Recruited Internet Sample
A survey in which anyone with a computer and modem can fill out the questionnaire. An Internet sample with quotas based on desired sample characteristics. A sample in which respondents are prerecruited and must qualify to participate.
Other Uses of the Internet

Distribution of requests for proposals
Collaboration in the management of a research project
Other Internet Uses by Marketing Researchers
Data management and on-line analysis Publication and distribution of reports Viewing of presentations of marketing research surveys
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Learning Objective
Discuss the growing importance of scanner-based research.
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Scanner-Based Research
A system for gathering information from a single group of respondents by continuously monitoring the advertising, promotion, and pricing they are exposed to and the things they buy.
When Should Marketing Research be Conducted?

Where there is a high level of uncertainty When value of research information exceeds the cost of generating the information
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Learning Objective
Explain the concept of competitive intelligence.
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Competitive Intelligence
An intelligence system that helps managers assess their competition and vendors in order to
become more efficient and effective competitors.
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Competitive Intelligence
Can help identify a competitors advantage Can help determine how the competitors advantage was achieved
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Advantages of Competitive Intelligence

Predict changes in business relationships
Guard against threats Forecast a competitors strategy Develop a successful marketing plan
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Sources of Competitive Intelligence

Internet UCC Filings
Company Personnel
Experts CI Consultants Government Agencies
Suppliers
Newspapers/Periodicals Yellow Pages Trade Shows
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Decision Support Systems and Marketing Research: Prepared by Deborah Baker Texas Christian University

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Decision Support Systems and Marketing Research

Prepared by Deborah Baker Texas Christian University

Learning Objectives (continued)

Explain the concept and purpose of a marketing decision support system.

Characteristics of a DSS System

Diagnostic Explaining data

Management Uses of Marketing Research

Prepare/ Present Report

Data previously collected for any purpose other

than the one at hand.

The New Age of Secondary Information

Search Engines and Directories

Sites of Interest to Marketing Researchers

How will the data be analyzed?

Mall Intercept Interviews Telephone Interviews

Advantages of On-Line Focus Groups

No Ambiguous Language Qualities of Good Questionnaires Unbiased

Types of Observation Research

People Watching an Activity Machines Watching People

Traffic Counters Passive People Meter

A method a researcher uses to gather primary data.

Errors Associated with Sampling

A firm that specializes in interviewing respondents on a subcontracted basis.

Preparing and Presenting the Report

Impact of the Internet

Makes follow-up studies and research easier

Advantages of internet Surveys

Advantages of Internet Surveys

Other Uses of the Internet

Collaboration in the management of a research project

Other Internet Uses by Marketing Researchers

Discuss the growing importance of scanner-based research.

When Should Marketing Research be Conducted?

Explain the concept of competitive intelligence.

Advantages of Competitive Intelligence

Sources of Competitive Intelligence

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