Chapter 9 Decision Support Systems and Marketing Research
1
Copyright ©2009 by Cengage Learning Inc. All rights reserved 1
Designed by
Eric Brengle
B-books, Ltd.
CHAPTER
9
Prepared by
Amit Shah
Frostburg State University
MarketingLamb, Hair, McDaniel
10
Decision Support Systems
and Marketing Research
Copyright ©2009 by Cengage Learning Inc. All rights reserved
Learning Outcomes
2
Explain the concept and purpose of a marketing
decision support system
Define marketing research and explain its
importance to marketing decision making
Describe the steps involved in conducting
a marketing research project
LOI
LO2
LO3
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Learning Outcomes
3
Discuss the profound impact of the Internet on marketing research
Discuss the growing importance of
scanner-based research
Explain the concept of competitive intelligence
LO5
LO6
LO4
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Marketing Decision Support
Systems
4
Explain the concept and purpose of a
marketing decision support system
LOI
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Marketing Decision Support
Systems
5
Decision
Support SystemsDSS
An interactive, flexible
computerized information
system that enables managers
to obtain and manipulate
information as they are making
decisions.
LOI
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DSS System Characteristics
6LOI
Interactive
Flexible
Discovery-Oriented
Accessible
Chapter 9 Decision Support Systems and Marketing Research
2
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Marketing Decision Support
Systems
7
Database
Marketing
The creation of a large
computerized file of customers’
and potential customers’
profiles and purchase patterns.
The key tool for successful
one-to-one marketing.
LOI
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REVIEW LEARNING OUTCOMEMarketing Decision Support Systems
8
LOI
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The Role of Marketing Research
9
Define marketing research and explain its importance
to marketing decision making
LO2
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The Role of Marketing Research
10
Marketing
ResearchThe process of planning,
collecting, and analyzing
data relevant to a marketing
decision.
LO2
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Marketing Research Studies
11
LO2
Products
Advertising
Prices
Packages
Names and Logos
Services
Buying habits
Colors
Uses
Awareness
Familiarity
New concepts
Traffic patterns
Wants
Needs
PoliticsCopyright ©2009 by Cengage Learning Inc. All rights reserved
The Role of Marketing Research
12
LO2
Diagnostic
Predictive
Descriptive Gathering and presenting
factual statements
Explaining data
“What if?”
Chapter 9 Decision Support Systems and Marketing Research
3
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Management Uses of
Marketing Research
13LO2
Improve the quality of decision making
Trace problems
Focus on keeping existing
customers
Understand the marketplace
Alert them to marketplace
trends
Gauge the value of goods and services,
and the level of customer satisfaction
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REVIEW LEARNING OUTCOMEMarketing Research and Its Importance
14
LO2
Why marketing research? Improve quality of
decision making
Trace problems
Focus on keeping
existing customers
Understand changes in
marketplace
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Steps in a Marketing Research
Project
15
Describe the steps involved in conducting
a marketing research project
LO3
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The Marketing
Research ProcessLO3
CollectData
SpecifySamplingProcedure
Plan Design/Primary Data
DefineProblem
AnalyzeData
Prepare/PresentReport
Follow Up
1
2
3
4
5
6
7
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Marketing Research
17
LO3
Marketing Research Problem
MarketingResearch 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
18
LO3
Secondary
DataData previously collected for
any purpose other than the one
at hand.
Chapter 9 Decision Support Systems and Marketing Research
4
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Sources of Secondary Data
19LO3
Government Agencies
Trade and Industry Associations
Business Periodicals
News Media
Internal Corporate Information
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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
20
LO3
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Disadvantages of
Secondary Data
• May not give adequate detailed
information
• May not be on target with the
research problem
• Quality and accuracy of data may
pose a problem
21
LO3
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The New Age of Secondary Information:
The Internet
22
LO3
1
2
3
4
5
Analyze your topic
Test run a word or phrase in a search engine
Learn as you go and vary your approach
Don’t bog down in strategy that doesn’t work
Go back to earlier steps better informed
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Planning the Research Design
23
LO3
Which research questions
must be answered?
How and whenwill data be gathered?
How willthe data
be analyzed?
?
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Primary Data
24
LO3
Primary
DataInformation collected for the
first time. Can be used for
solving the particular
problem under investigation.
Chapter 9 Decision Support Systems and Marketing Research
5
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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
25
LO3
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Disadvantages of
Primary Data
• Expensive
• “Piggybacking” may confuse respondents
• Quality declines if interviews are lengthy
• Reluctance to participate in lengthy interviews
26
LO3
Disadvantages are usually offset by the advantages of primary data.
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Survey Research
27
LO3
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
28LO3
Focus Groups
Executive Interviews
Mail Surveys
Telephone Interviews
Mall Intercept Interviews
In-Home Interviews
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Forms of Survey Research
29
LO3
Mall Intercept
Interview
Survey research method that
involves interviewing people
in the common areas of
shopping malls.
Executive Interview
A type of survey that involves
interviewing businesspeople
at their offices concerning
industrial products or services.
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Forms of Survey Research
30
LO3
Focus Groups Seven to ten people who
participate in a group
discussion led by a
moderator.
Chapter 9 Decision Support Systems and Marketing Research
6
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Questionnaire Design
31
LO3
Open-EndedQuestion
Closed-EndedQuestion
Scaled-Response Question
An interview question that encourages an answer phrased in respondent’s
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 respondent’s answer.
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Questionnaire Design
32
LO3
Clear and concise
No ambiguous language
Unbiased
Reasonable terminology
Only one question
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Observation Research
33
LO3
Observation
Research A research method that relies on
three types of observation:
people watching people
people watching an activity
machines watching people
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Observational Situations
Situation
People
watching
people
People
watching
phenomena
Machines
watching
people
Machines
watching
phenomena
Example
Mystery
shoppers in a
supermarket
Observer at
an
intersection
counting
traffic
Video
cameras
recording
behavior
Traffic-
counting
machine
monitoring
traffic flow
34LO3
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Ethnographic Research
35
LO3
Ethnographic
Research The study of human behavior
in its natural context; involves
observation of behavior and
physical setting.
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The Sampling Procedure
36
LO3
Sample
Universe
A subset from a large population.
The population from which a sample will be drawn.
Chapter 9 Decision Support Systems and Marketing Research
7
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Sampling Procedure
37
LO3
Universe Sample
Probability Samples
Non-Probability Samples
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Types of Samples
38
LO3
Probability Samples
Simple Random Sample
Stratified Sample
Cluster Sample
SystematicSample
Non-Probability Samples
Convenience Sample
JudgmentSample
Quota Sample
SnowballSample
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Probability Samples
39
LO3
ProbabilitySample
A sample in which every element in the population has a known
statistical likelihood of being selected.
Random Sample
A sample arranged so that every element of the population has an equal chance of being selected.
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Nonprobability Samples
40
LO3
NonprobabilitySample
Convenience Sample
Any sample in which little or no attempt is made to get a
representative cross-section of the population.
A form of nonprobability sample using respondents who are
convenient or readily accessible to the researcher.
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Types of Errors
41LO3
Measurement Error
Error when there is a difference between the information desired and the
information provided by research
Sampling
Error
Error when a sample somehow does not represent the target population.
Frame
Error
Error when a sample drawn from a population differs from the
target population.
Random
Error
Error because the selected sample is an imperfect representation of
the overall population.
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Field Service Firms
• Focus group facilities
• Mall intercept locations
• Test product storage
• Kitchen facilities
42LO3
Provide:
Chapter 9 Decision Support Systems and Marketing Research
8
Copyright ©2009 by Cengage Learning Inc. All rights reserved
Analyzing the Data
43
LO3
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
44LO3
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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 to
management?
45LO3
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REVIEW LEARNING OUTCOME
46
LO3
Steps in a Marketing Research Project
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Scanner-Based Research
47
Discuss the growing importance of scanner-based research
LO5
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Scanner-Based Research
48
Scanner-based
Research
LO5
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.
BehaviorScan
InfoScan
Chapter 9 Decision Support Systems and Marketing Research
9
Copyright ©2009 by Cengage Learning Inc. All rights reserved
When Should Marketing
Research Be Conducted?
49
LO5
Where there is a high level of uncertainty
When value of research information
exceeds the cost of generating the
information
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REVIEW LEARNING OUTCOMEScanner-Based Research
50
LO5
BehaviorScan InfoScan
Panel information from
Specific groups of people,
enables researchers to
manipulate variables and see
real results
Aggregate consumer
information on all
bar-coded products
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Competitive Intelligence
51
Explain the concept of
competitive intelligence
LO6
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Competitive Intelligence
52
Competitive
Intelligence
LO6
An intelligence system that
helps managers assess their
competition and vendors in
order to become more efficient
and effective competitors.
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Sources of Competitive
Intelligence
53LO6
Internet
Company Salespeople
Experts
CI Consultants
Government Agencies
UCC Filings
Suppliers
Periodicals
Yellow Pages
Trade Shows
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REVIEW LEARNING OUTCOME
Competitive Intelligence
54
LO6
CI
Part of a sound
marketing strategy
Helps companies
respond to competitive
threats
Helps reduce
unnecessary costs