Decision Support Systems and Marketing Research

1. Decision Support Systems and Marketing Research Chapter 7 Prepared by Deborah Baker Texas Christian University

2. 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.

3. 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.

4. Learning Objective 1 On Line http://www.fws.gov http://www.duckstamp.com Explain the concept and purpose of a marketing decision support system.

5. Decision Support System 1 DSS An interactive, flexible computerized information system that enables managers to obtain and manipulate information as they are making decisions.

6. DSS System Characteristics 1 Characteristicsof a DSS System Interactive Flexible Discovery-Oriented Accessible

7. Database Marketing 1 The creation of a large computerized file of customers’ and potential customers’ profiles and purchase patterns.

8. Learning Objective 2 Define marketing research and explain its importance to marketing decision making.

9. Marketing Research 2 The process of planning, collecting, and analyzing data relevant to a marketing decision.

10. Gathering and presenting factual statements Descriptive Diagnostic • Explaining data • Attempting to estimate the results of a planned marketing decision Predictive Roles of Marketing Research 2

11. Management Uses of Marketing Research 2 On Line http://british-airways.com • Improve the quality of decision making • Trace problems • Focus on keeping existing customers • Understand the ever-changing marketplace

12. Learning Objective 3 Describe the steps involved in conducting a marketing research project.

13. Define Problem Plan Design/ Primary Data Specify Sampling Procedure Collect Data Analyze Data Prepare/ Present Report Follow Up The Marketing Research Process 3

14. Marketing Research Problem Determining what information is needed and how that information can be obtained efficiently and effectively. Marketing Research Objective The specific information needed to solve a marketing research problem; the objective should provide insightful decision-making information. Management Decision Problem A broad-based problem that requires marketing research in order for managers to take proper actions. Marketing Research 3

15. Secondary Data 3 Data previously collected for any purpose other than the one at hand.

16. Sources of Secondary Data 3 Internal Corporate Information Government Agencies Trade and Industry Associations Marketing Research Firms Commercial Publications News Media

17. Advantages of Secondary Data 3 • 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

18. Disadvantages of Secondary Data 3 • May not be on target with the research problem • Quality and accuracy of data may pose a problem

19. www The New Age of Secondary Information: The Internet 3 On Line http://www.coca-colastore.com • Search Enginesand Directories • Sites of Interest toMarketing Researchers • Discussion Groups • Periodical, Newspaper, and Book Databases

20. Research Design 3 Specifies which research questions must be answered, how and when the data will be gathered, and how the data will be analyzed.

21. Which research questions must be answered? How and whenwill data be gathered? ? How willthe databe analyzed? s Planning the Research Design 3

22. Primary Data 3 Information collected for the first time. Can be used for solving the particular problem under investigation.

23. Advantages of Primary Data 3 • Answers a specific research question • Data are current • Source of data is known • Secrecy can be maintained

24. Disadvantages of Primary Data 3 • Expensive • Quality declines if interviews are lengthy • Reluctance to participate in lengthy interviews Disadvantages are usually offset by the advantages of primary data!

25. Survey Research 3 The most popular technique for gathering primary data in which a researcher interacts with people to obtain facts, opinions, and attitudes.

26. In-Home Interviews Mail Surveys Mall Intercept Interviews Executive Interviews Telephone Interviews(Home and Central Location) Focus Groups Forms of Survey Research 3 On Line http:/www.hersheys.com

27. Mall Intercept Interview 3 Survey research method that involves interviewing people in the common areas of shopping malls.

28. Executive Interviews 3 A type of survey that involves interviewing businesspeople at their offices concerning industrial products or services.

29. Focus Group 3 Seven to ten people who participate in a group discussion led by a moderator.

30. Advantages of On-Line Focus Groups 3 • Speed • Cost-effectiveness • Broad geographic scope • Accessibility • Honesty

31. Characteristics of Traditional Forms of Survey Research 3

32. Open-Ended Question An interview question that encourages an answer phrased in respondent’s own words. Closed-Ended Question An interview question that asks the respondent to make a selection from a limited list of responses. Scaled-Response Question A closed-ended question designed to measure the intensity of a respondent’s answer. Questionnaire Design 3

33. Types of Questions inQuestionnaire Design 3

34. Qualities of Good Questionnaires Clear and Concise No Ambiguous Language Unbiased Reasonable Terminology Questionnaire Design 3 On Line http://www.createsurvey.com

35. Observation Research 3 On Line http://www.bmiltd.com A research method that relies on three types of observation: • people watching people • people watching an activity • machines watching people

36. Observational Situations 3

37. People Watching People Mystery Shoppers One-Way Mirrors Types ofObservationResearch People Watching an Activity Audits Machines WatchingPeople Traffic Counters Passive People Meter Observation Research 3

38. Mystery Shoppers 3 Researchers posing as customers who gather observational data about a store and collect data about customer/employee interactions.

39. Experiment 3 A method a researcher uses to gather primary data.

40. Sample A subset from a large population. Universe The population from which a sample will be drawn. Sampling Procedure 3

41. Probability Sample 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. Probability Samples 3

42. Nonprobability Sample Any sample in which little or no attempt is made to get a representative cross-section of the population. Convenience Sample A form of nonprobability sample using respondents who are convenient or readily accessible to the researcher. Nonprobability Samples 3

43. Sample Universe Probability Samples Non-Probability Samples Sampling Procedure 3

44. Probability Samples Non-Probability Samples Simple Random Sample Convenience Sample Stratified Sample JudgmentSample Cluster Sample Quota Sample SystematicSample SnowballSample Types of Samples 3

45. Types of Samples 3

46. Measurement 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. Sampling Error Error when a sample drawn from a population differs from the target population. Frame Error Error because the selected sample is an imperfect representation of the overall population. Random Error Types of Errors 3

47. Field Service Firm 3 On Line http://www.greenfieldonline.com A firm that specializes in interviewing respondents on a subcontracted basis.

48. Field Service Firms 3 Provide: • Focus group facilities • Mall intercept locations • Test product storage • Kitchen facilities • Retail audits

49. Cross-Tabulation 3 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.

50. Preparing and Presenting the Report 3 • Concise statement of the research objectives • Explanation of research design • Summary of major findings • Conclusion with recommendations