Decision Support Systems and Marketing Research

Marketing decision support systems
An interactive, flexible computerized information system that enables managers to obtain and manipulate information as they are making decisions.
Characteristics of marketing decision support systems (4)
Discovery Oriented
Database marketing
The creation of a large computerized file of customers’ and potential customers’ profiles and purchase patterns.
(**key tool for successful one-to-one marketing)
Marketing research
The process of planning, collecting, and analyzing data relevant to a marketing decision.
3 Roles of marketing research
Gathering and presenting factual statements
-explaining data
-address “what if” questions
The marketing research process (7 steps)
1. define problem, 2. plan design/primary data, 3. specify sampling procedure, 4. collect data, 5. analyze data, 6. prepare/present report, 7. follow up
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 be to provide insightful decision-making information.
Management decision problem
A broad-based problem that uses marketing research in order for managers to take proper actions.
Sources of secondary data (5)
internal corporate information, government agencies, trade and industry associations, business periodicals, news media
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
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
Marketing research aggregators
Acquire, catalog, reformat, segment, and resell reports already published by large and small marketing research firm.
Databases are getting bigger, more comprehensive, and easier to search.
primary data
Information collected for the first time. Used for solving the particular problem under investigation.
primary data, adv and disadv
Answers a specific research question
Data are current
Source of data is known
Secrecy can be maintained
Primary data can be very expensive
Survey research
The most popular technique for gathering primary data, in which a researcher interacts with people to obtain facts, opinions, and attitudes.
Forms of survey research (6)
In-home interviews
mall intercept interviews
telephone interviews
mail surveys
executive interviews
focus groups
Questionnaire design: open-ended question
An interview question that encourages an answer phrased in the respondent’s own words
Questionnaire design: closed-ended question
An interview question that asks the respondent to make a selection from a limited list of responses
Questionnaire design: scaled-response question
A closed-ended question designed to measure the intensity of a respondent’s answer
Questionnaire design must be (4 things)
Clear and concise
No ambiguous language
Avoid two questions in one
Avoid leading questions
Observation research
A research method that relies on four types of observation:
people watching people
people watching an activity
machines watching people
-machines watching an activity
Observational research: mystery shoppers
Researchers posing as customers who gather observational data about a store.
Observational research: behavioral targeting
A form of observation marketing research that uses data mining coupled with identifying Web surfers by the IP addresses.
ethnographic research
The study of human behavior in its natural context; involves observation of behavior and physical setting.
virtual shopping, advantages
Creates an environment with a realistic level of complexity and variety.
•Allows quick set up and altering of tests.
•Low production costs.
•High flexibility.
Experiments are used by researchers to…
gather primary data
Experiment variables (5)
Package design
Shelf space
Advertising theme
Advertising expenditures
Types of samples: probability samples
Simple random
Types of samples: nonprobability
Convenience Sample
Quota Sample
Snowball Sample
probability sample
A sample in which every element in the population has a known statistical likelihood of being selected.
Random sample
sample arranged so that every element of the population has an equal chance of being selected
nonprobability sample
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.
measurement error
Error when there is a difference
between the information desired and the information provided by the process
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
field service firms provide…
Focus group facilities
Mall intercept locations
Test product storage
Kitchen facilities
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.
preparing and presenting the report
Concise statement of the research objectives
Explanation of research design
Summary of major findings
Conclusion with recommendations
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?

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