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Decision Support Systems Decision Support Systems and Marketing Researchand Marketing Research
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Prepared byPrepared byDeborah BakerDeborah Baker
Texas Christian UniversityTexas Christian University
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Learning ObjectivesLearning Objectives
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1.1. Explain the concept and purpose of a Explain the concept and purpose of a marketing decision support system.marketing decision support system.
2. Define marketing research and explain its 2. Define marketing research and explain its importance to marketing decision making.importance to marketing decision making.
3. Describe the steps involved in conducting 3. Describe the steps involved in conducting a marketing research project.a marketing research project.
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Learning Objectives (continued)Learning Objectives (continued)
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4. Discuss the profound impact of the Internet 4. Discuss the profound impact of the Internet on marketing research.on marketing research.
5. Discuss the growing importance of 5. Discuss the growing importance of scanner-based research.scanner-based research.
6. Explain the concept of competitive 6. Explain the concept of competitive intelligence.intelligence.
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Learning Objective Learning Objective 11
Explain the concept and purpose Explain the concept and purpose of a marketing decision support system.of a marketing decision support system.
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Decision Support SystemDecision 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 CharacteristicsDSS System Characteristics
CharacteristicsCharacteristicsof a of a
DSS SystemDSS System
CharacteristicsCharacteristicsof a of a
DSS SystemDSS System
InteractiveInteractive
FlexibleFlexible
Discovery-OrientedDiscovery-Oriented
AccessibleAccessible
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Database MarketingDatabase Marketing
The creation of a large
computerized file of
customers’ and potential
customers’ profiles and
purchase patterns.
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Learning Objective Learning Objective 22
Define marketing research andDefine marketing research andexplain its importance to explain its importance to
marketing decision making.marketing decision making.
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Marketing ResearchMarketing Research
The process of planning,
collecting, and analyzing
data relevant to a marketing
decision.
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Roles of Marketing ResearchRoles of Marketing Research22
DescriptiveDescriptive
DiagnosticDiagnostic
PredictivePredictive
Marketing Research Marketing Research
has three roles:has three roles:
Marketing Research Marketing Research
has three roles:has three roles:
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DiagnosticDiagnostic
PredictivePredictive
DescriptiveDescriptive
Gathering and presenting factual statements
Explaining data
Attempting to estimate the results of a planned marketing decision
Roles of Marketing ResearchRoles of Marketing Research22
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Management Uses of Management Uses of Marketing ResearchMarketing 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 Learning Objective
Describe the steps involved in Describe the steps involved in conducting a marketing research project.conducting a marketing research project.
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The Marketing Research ProcessThe Marketing Research Process
CollectCollectDataData
CollectCollectDataData
SpecifySpecifySamplingSamplingProcedureProcedure
SpecifySpecifySamplingSamplingProcedureProcedure
Plan Design/Plan Design/Primary DataPrimary DataPlan Design/Plan Design/Primary DataPrimary Data
DefineDefineProblemProblemDefineDefine
ProblemProblem
AnalyzeAnalyzeDataData
AnalyzeAnalyzeDataData
Prepare/Prepare/PresentPresentReportReport
Prepare/Prepare/PresentPresentReportReport
Follow UpFollow UpFollow UpFollow Up
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Marketing ResearchMarketing Research33
Marketing Marketing Research Research ProblemProblem
Marketing Marketing Research Research ProblemProblem
MarketingMarketingResearch Research ObjectiveObjective
MarketingMarketingResearch Research ObjectiveObjective
Management Management Decision Decision ProblemProblem
Management Management Decision Decision ProblemProblem
Determining what information is needed and how that information can be
obtained efficiently and effectively.
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.
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.
A broad-based problem that requires marketing research in order for managers to take proper actions.
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Secondary DataSecondary Data
Data previously collected
for any purpose other
than the one at hand.
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Sources of Secondary DataSources of Secondary Data
Government Agencies
Trade and Industry Associations
Marketing Research Firms
Commercial Publications
News Media
Internal Corporate Information
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Advantages of Secondary DataAdvantages 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 DataDisadvantages of Secondary Data33
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 The New Age of Secondary InformationSecondary Information
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The InternetThe InternetThe InternetThe Internetwwwwww
Search Enginesand Directories
Sites of Interest toMarketing Researchers
Discussion Groups
Periodical, Newspaper, and Book Databases
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Basic Types of DirectoriesBasic Types of Directories
Academic and Professional Directories
Commercial Portals
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Research DesignResearch 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 DesignPlanning the Research Design33
Which research Which research questions questions
must be answered?must be answered?
Which research Which research questions questions
must be answered?must be answered?
How and whenHow and whenwill data be will data be gathered?gathered?
How and whenHow and whenwill data be will data be gathered?gathered?
How willHow willthe datathe data
be analyzed?be analyzed?
How willHow willthe datathe data
be analyzed?be analyzed?
??
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Primary DataPrimary Data
Information collected for
the first time. Can be
used for solving the
particular problem
under investigation.
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Advantages of Primary DataAdvantages of Primary Data33
Answers a specific research question
Data are current
Source of data is known
Secrecy can be maintained
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Disadvantages of Primary DataDisadvantages of Primary Data33
Expensive
Quality declines if interviews are lengthy
Reluctance to participate in lengthy interviews
Disadvantages are usually offset by the
advantages of primary data!
Disadvantages are usually offset by the
advantages of primary data!
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Survey ResearchSurvey 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 ResearchForms of Survey Research
Focus GroupsFocus Groups
Executive InterviewsExecutive Interviews
Mail SurveysMail Surveys
Telephone Interviews(Home and Central Location)
Telephone Interviews(Home and Central Location)
Mall Intercept InterviewsMall Intercept Interviews
In-Home InterviewsIn-Home Interviews
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Mall Intercept InterviewMall Intercept Interview
Survey research method
that involves interviewing
people in the common
areas of shopping malls.
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Executive InterviewsExecutive Interviews33
A type of survey that
involves interviewing
businesspeople at their
offices concerning
industrial products
or services.
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Focus GroupFocus Group33
Seven to ten people who
participate in a group
discussion led by a
moderator.
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Advantages of Advantages of On-Line Focus GroupsOn-Line Focus Groups
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Speed
Cost-effectiveness
Broad geographic scope
Accessibility
Honesty
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Questionnaire DesignQuestionnaire Design33
Open-EndedQuestion
Open-EndedQuestion
Closed-EndedQuestion
Closed-EndedQuestion
Scaled-Response Question
Scaled-Response Question
An interview question that encourages an answer phrased in
respondent’s own words.
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.
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.
A closed-ended question designed to measure the intensity
of a respondent’s answer.
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Questionnaire DesignQuestionnaire Design
Qualities Qualities of of
Good Good QuestionnairesQuestionnaires
Qualities Qualities of of
Good Good QuestionnairesQuestionnaires
Clear and ConciseClear and Concise
No Ambiguous LanguageNo Ambiguous Language
UnbiasedUnbiased
Reasonable TerminologyReasonable Terminology
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Observation ResearchObservation Research33
A research method that
relies on three types of
observation:people watching people
people watching an activity
machines watching people
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Observation ResearchObservation Research
Mystery Shoppers
One-Way Mirrors
Types ofTypes ofObservationObservation
ResearchResearch
Types ofTypes ofObservationObservation
ResearchResearchAudits
Machines Machines WatchingWatching
PeoplePeople
Machines Machines WatchingWatching
PeoplePeople
People People Watching Watching
PeoplePeople
People People Watching Watching
PeoplePeople
People People Watching Watching an Activityan Activity
People People Watching Watching an Activityan Activity
Traffic Counters
Passive People Meter
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Mystery ShoppersMystery Shoppers33
Researchers posing as
customers who gather
observational data about
a store and collect data
about customer/employee
interactions.
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ExperimentExperiment33
A method a researcher uses
to gather primary data.
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Sampling ProcedureSampling Procedure
SampleSample
UniverseUniverse
A subset from a large population.A subset from a large population.
The population from which a sample will be drawn.
The population from which a sample will be drawn.
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Probability SamplesProbability Samples
ProbabilitySample
ProbabilitySample
A sample in which every element in the population has a known statistical
likelihood of being selected.
A sample in which every element in the population has a known statistical
likelihood of being selected.
Random Sample
Random Sample
A sample arranged so that every element of the population has an equal change 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 SamplesNonprobability Samples
NonprobabilitySample
NonprobabilitySample
Convenience Sample
Convenience Sample
Any sample in which little or no attempt is made to get a representative
cross-section of the population
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.
A form of nonprobability sample using respondents who are
convenient or readily accessible to the researcher.
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Sampling ProcedureSampling Procedure
UniverseUniverse SampleSample
Probability Samples
Probability Samples
Non-Probability Samples
Non-Probability Samples
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Types of SamplesTypes of Samples
Probability Probability SamplesSamples
Probability Probability SamplesSamples
Simple Random Sample
Stratified Sample
Cluster Sample
SystematicSample
Non-Probability Non-Probability SamplesSamples
Non-Probability Non-Probability SamplesSamples
Convenience Sample
JudgmentSample
Quota Sample
SnowballSample
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Types of ErrorsTypes of Errors
Errors Errors AssociatedAssociated
with Samplingwith Sampling
Errors Errors AssociatedAssociated
with Samplingwith Sampling
Measurement ErrorMeasurement Error
Sampling ErrorSampling Error
Frame ErrorFrame Error
Random ErrorRandom Error
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Types of ErrorsTypes of Errors
Measurement Error
Measurement Error
Sampling Error
Sampling Error
Frame Error
Frame Error
Random Error
Random Error
Error when there is a difference between the information desired and the
information provided by research
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 somehow does not represent the target population.
Error when a sample drawn from a population differs from 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.
Error because the selected sample is an imperfect representation of
the overall population.
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Field Service FirmField Service Firm33
A firm that specializes in
interviewing respondents on
a subcontracted basis.
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Field Service FirmsField Service Firms33
Focus group facilities
Mall intercept locations
Test product storage
Kitchen facilities
Retail audits
ProvideProvide
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Cross-TabulationCross-Tabulation33
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 Preparing and Presenting the Reportthe Report
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Concise statement of the research objectives
Explanation of research design
Summary of major findings
Conclusion with recommendations
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Following UpFollowing 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 Learning Objective
Discuss the profound impact Discuss the profound impact of the Internet on marketing research.of the Internet on marketing research.
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Impact of the InternetImpact 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
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Advantages of internet SurveysAdvantages of internet Surveys
Contact with the hard-to-reach
Contact with the hard-to-reach
Improved respondent participation
Improved respondent participation
Personalized questions and data
Personalized questions and data
Reduced costsReduced costs
Rapid development,Real-time reporting
Rapid development,Real-time reporting
Advantages ofAdvantages ofInternet SurveysInternet SurveysAdvantages ofAdvantages of
Internet SurveysInternet Surveys
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Internet SamplesInternet Samples44
UnrestrictedInternet Sample
UnrestrictedInternet Sample
ScreenedInternet Sample
ScreenedInternet Sample
RecruitedInternet Sample
RecruitedInternet Sample
A survey in which anyone with a computer and modem can fill out
the questionnaire.
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.
An Internet sample with quotas based on desired sample
characteristics.
A sample in which respondents are prerecruited and must
qualify to participate.
A sample in which respondents are prerecruited and must
qualify to participate.
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Other Uses of the InternetOther Uses of the Internet
Other Internet Other Internet Uses Uses
by Marketing by Marketing ResearchersResearchers
Other Internet Other Internet Uses Uses
by Marketing by Marketing ResearchersResearchers
Viewing of presentations of marketing research surveysViewing of presentations of marketing research surveys
Publication and distributionof reports
Publication and distributionof reports
Data management and on-line analysis
Data management and on-line analysis
Collaboration in the management of a research project
Collaboration in the management of a research project
Distribution of requests for proposals
Distribution of requests for proposals
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Learning Objective Learning Objective
Discuss the growing importance Discuss the growing importance of scanner-based research.of scanner-based research.
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Scanner-Based ResearchScanner-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.
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When Should Marketing When Should Marketing Research be Conducted?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 Learning Objective 66
Explain the concept of Explain the concept of competitive intelligence.competitive intelligence.
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Competitive IntelligenceCompetitive 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 IntelligenceCompetitive Intelligence
Can help identify a competitor’s advantage
Can help determine how the competitor’s advantagewas achieved
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Advantages of Advantages of Competitive IntelligenceCompetitive Intelligence
Predict changes in business relationships
Guard against threats
Forecast a competitor’s strategy
Develop a successful marketing plan
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Sources of Sources of Competitive IntelligenceCompetitive Intelligence
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InternetInternet
Company PersonnelCompany Personnel
ExpertsExperts
CI ConsultantsCI Consultants
Government AgenciesGovernment Agencies
UCC FilingsUCC Filings
SuppliersSuppliers
Newspapers/PeriodicalsNewspapers/Periodicals
Yellow PagesYellow Pages
Trade ShowsTrade Shows
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