chapter

15

Customer Information Systems

McGraw-Hill/Irwin

2004 The McGraw-Hill Companies, Inc., All Rights Reserved.

Customer Information Systems Todays Objectives

Objectives will be to:

Define and understand marketing research Explore a framework for marketing research Examine marketing research data-collection methods Compare how online methods differ from offline methods

Discuss what research is best suited by the Internet

Understand the implications of international Internet market research

Chapter 15: Customer Information Systems

Understanding Marketing Research Benefits and Uses of Marketing Research Framework for Marketing Research Data Collection in Marketing Research Comparisons for Offline and Online Marketing Research Methods

Guidelines for Conducting Data Analysis and Utilization

Conclusion

Chapter 15: Customer Information Systems

Understanding Marketing Research Benefits and Uses of Marketing Research Framework for Marketing Research Data Collection in Marketing Research Comparisons for Offline and Online Marketing Research Methods

Guidelines for Conducting Data Analysis and Utilization

Conclusion

Exhibit 15.1: Customer-Centric Marketing Process

Marketing Research
Marketing Strategy and Tactics

Customer Relationship Management Sales Force Management and Customer Experience

Database Marketing Acquire/Up-Sell Cross-Sell

Exhibit 15.2: Leveraging Customer Information

Define Problem

Collect Data

Organize Data

Analyze Data

Utilize Data

Exhibit 15.3: Customer Information System

Exhibit 15.4: Framework of Marketing Research

Opportunity/Problem Definition

Marketing Research

Research Design

Data Collection and Entry

Data Analysis

Final Report/Data Utilization

Exhibit 15.5: What Is Marketing Research?

Target Market Marketing Research Customer Identification Market Opportunities Marketer Definition Market Problems Action Public

Consumer

Marketing Research Objectives

Marketing Research Attempts to Perform Three Basic Tasks:
Description Marketing Research

Diagnosis

Prediction

Chapter 15: Customer Information Systems

Understanding Marketing Research Benefits and Uses of Marketing Research Framework for Marketing Research Data Collection in Marketing Research Comparisons for Offline and Online Marketing Research Methods

Guidelines for Conducting Data Analysis and Utilization

Conclusion

Benefits of Marketing Research

Improve the quality of decision-making Guide communications with current and potential customers Identify potential opportunities in the marketplace Minimize business risk by uncovering prospective problems Create benchmarks and track progress Evaluate overall success

Many more

Benefits of Internet Marketing Research

Quickly gain crucial market intelligence Act upon first-mover advantages Stay afloat in a fast-paced environment Reduce market research costs Many more

Exhibit 15.6: Popular Uses of Marketing Research

How to segment the market? Who are my customers?
Customer Identification

Conjoint Analysis Discrete Choice Modeling

What is the price elasticity?

When do they purchase?

Buying-Habit Studies

Marketing Research

Environmental Studies

What are the growth trends?

Opinion Research

Competitive Analysis

What do they like?

Who are my competitors?

Chapter 15: Customer Information Systems

Understanding Marketing Research Benefits and Uses of Marketing Research Framework for Marketing Research Data Collection in Marketing Research Comparisons for Offline and Online Marketing Research Methods

Guidelines for Conducting Data Analysis and Utilization

Conclusion

Exhibit 15.7: Opportunity/Problem Definition

Project Title
Market Research on Internet Habits of Teenagers

Teenagers Make Up a Large Portion of the Market

Statement of Marketing Problem/Opportunity

Identify the Characteristics of Webpages Teenagers Visit

Project Objective(s)

Ex.: What Sites Do Teenagers Visit Most?

Questions That the Study Attempts to Answer

Exhibit 15.8: Deciding on a Research Design Type

Study Type

Exploratory Research

Conclusive Research

Causal Research

Descriptive Research

Why? How? When?

What Causes What?

Who, What, When, Where?

How Often? How Many?

Exhibit 15.9: Types of Marketing Research Data

Information Previously Collected and Published

Secondary Research

Ex.: Library Search

Information Gleaned by a Researcher for a Specific Purpose

Primary Research

Ex.: Interview

Information About the Motivations, Perceptions and Thoughts of a Group

Qualitative Research

Ex.: Focus Groups

Information About How Many People in a Population Share a Set of Characteristics

Quantitative Research

Ex.: Interview

Population Sampling
Desired Accuracy?

How Many Subjects?

Random Selection Equal Impact on Study Result?

Representative Sample

Exhibit 15.10: Guidelines for Using the Internet for Marketing Research
Can a sufficiently representative sample be drawn?
Yes No

Can confidentiality be assured?

Yes

No

Can answers be obtained via simple surveys?

Yes No

Internet Marketing Research

Traditional Marketing Research

Chapter 15: Customer Information Systems

Understanding Marketing Research Benefits and Uses of Marketing Research Framework for Marketing Research Data Collection in Marketing Research Comparisons for Offline and Online Marketing Research Methods

Guidelines for Conducting Data Analysis and Utilization

Conclusion

Exhibit 15.11: Marketing Research Data-Collection Methods

Data-Collection Methods

Offline Methods

Online Methods

Secondary

Primary

Secondary

Primary

Colleges, universities, libraries Books, publications Magazines, newspapers Marketing departments

Focus groups Surveys Observations

Search engines Newsgroups Directories

Questionnaires Discussion groups Click data

Others

Exhibit 15.12: Questionnaire Types

Questionnaires

Flat File Instruments

Interactive Instruments

E-Mail Integrated Questionnaires

Simple, Non-Interactive Survey

Simple, Interactive Survey

E-Mail Survey or Delivery Tool

Exhibit 15.13: Survey Questions

Survey Questions

How Old Are You?

Single-Response Questions

Scaled Questions

PairedComparison Tradeoff

Open-Ended Questions

Are You Male or Female?

DichotomousResponse Questions What Would You Prefer a Porsche or a Ferrari?

In 100 Words or Less, Describe Your Experience With This Product

In Which of the Following Income Ranges Do You Fall?

MultichotomousResponse Questions

On a Scale of 1 to 10, How Happy Are You?

Internet Compatibility High Low

Chapter 15: Customer Information Systems

Understanding Marketing Research Benefits and Uses of Marketing Research Framework for Marketing Research Data Collection in Marketing Research Comparisons for Offline and Online Marketing Research Methods

Guidelines for Conducting Data Analysis and Utilization

Conclusion

Exhibit 15.14: Comparison of Offline & Online Marketing Research Methods

Decision Factor Offline Method Online Method

Cost
Turnaround Time Effort Data Quality* Researcher Control Sampling Sample-selection Bias Delivery/Illustration Interviewer Bias

High
Slow Labor-Intensive Medium High Accurate Controllable Limited High

Low
Quick Labor-Nonintensive High Low Inaccurate High to Uncontrollable** Unlimited Low

Geographical Coverage
Anonymity guarantee Ethical Issues (privacy)

Limited
High to Medium Low

Unlimited
Low High

* Quality of data is defined here as ease and timeliness of data collection and entry. ** As the Internet becomes ubiquitous, this issue is becoming less important.

Chapter 15: Customer Information Systems

Understanding Marketing Research Benefits and Uses of Marketing Research Framework for Marketing Research Data Collection in Marketing Research Comparisons for Offline and Online Marketing Research Methods

Guidelines for Conducting Data Analysis and Utilization

Conclusion

Exhibit 15.15: Data Analysis

Data Analysis Procedures
Basic Statistics

Descriptive Statistics

Inferential Statistics

Econometric Analysis

Frequency tables Cross-tabulation Graphic representation Others

Mean Standard deviation Median Inter-quartile range Mode Range

T-test Correlation

Linear regression Nonlinear regression Logit modeling Clustering analysis Turf analysis Logistic regression

Complexity

Validation

External Validation: How does my study compare to actual data or other studies?

Internal Validation: What happens to my results if I change one study parameter?

Validation: Are my results realistic?

Exhibit 15.16: Database Marketing Program Plan

I. II. Marketing objectives Market analysis A. Customer analysis and segmentation B. Competition C. Environment III. Offer and market fit IV. Assessment of performance with similar programs V. Communication strategy A. Targeting and positioning B. Unique selling proposition C. Media and list decisions D. Message strategy VI. Database requirements A. Development B. Utilization C. Enhancement VII. Program budget VIII. Timeline IX. Accountability

Exhibit 15.18: Provider-Consumer Interaction Matrix

Chapter 15: Customer Information Systems

Understanding Marketing Research Benefits and Uses of Marketing Research Framework for Marketing Research Data Collection in Marketing Research Comparisons for Offline and Online Marketing Research Methods

Guidelines for Conducting Data Analysis and Utilization

Conclusion

Customer Information Systems Conclusion

A general marketing research framework involves the following seven steps: 1) opportunity or problem definition, 2) research design, 3) data collection and entry, 4) data analysis, and 5) final report and data utilization Offline marketing research methods are generally reliable but expensive and labor-intensive. Online methods significantly reduce the turnaround time and cost, but it may be difficult to draw a random and representative sample. Internet-based marketing research works best when:

A representative sample can be drawn from the population There is no issue with confidentiality of the data The topic is sufficiently straightforward that it can be communicated via a short, relatively simple survey