Decision Support Systems
and Marketing Research
chapter
7
Prepared by
Deborah Baker
Texas Christian University
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Learning Objectives
1. Explain the concept and purpose of a
marketing decision support system.
chapter
7
2. Define marketing research and explain its
importance to marketing decision making.
3. Describe the steps involved in conducting
a marketing research project.
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Learning Objectives (continued)
4. Discuss the profound impact of the Internet
on marketing research.
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7
5. Discuss the growing importance of
scanner-based research.
6. Explain the concept of competitive
intelligence.
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Learning Objective
Explain the concept and purpose
of a marketing decision support system.
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Decision 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 Characteristics
Interactive
Flexible
Discovery-Oriented
Characteristics
of a
DSS System
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Database Marketing
The creation of a large
computerized file of
customers’ and potential
customers’ profiles and
purchase patterns.
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Learning Objective
Define marketing research and
explain its importance to
marketing decision making.
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Marketing Research
The process of planning,
collecting, and analyzing
data relevant to a marketing
decision.
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Roles of Marketing Research
Marketing Research
has three roles:
Descriptive
Predictive
Diagnostic
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Roles of Marketing Research
 Gathering and presenting
Descriptive
factual statements
Diagnostic  Explaining data
Predictive
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 Attempting to estimate the
results of a planned
marketing decision
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Management Uses of
Marketing Research
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 Improve the quality of decision making
 Trace problems
 Focus on keeping existing problems
 Understand the ever-changing
marketplace
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Learning Objective
Describe the steps involved in
conducting a marketing research project.
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The Marketing Research Process
Define
Problem
Plan Design/
Primary Data
Prepare/
Present
Report
Specify
Sampling
Procedure
Collect
Data
Analyze
Data
Follow Up
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Marketing Research
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.
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Secondary Data
Data previously collected
for any purpose other
than the one at hand.
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Sources of Secondary Data
Internal Corporate Information
Government Agencies
Trade and Industry Associations
Marketing Research Firms
Commercial Publications
News Media
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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
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Disadvantages of Secondary Data
 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
Secondary Information
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The Internet
www
 Search Engines
and Directories
 Sites of Interest to
Marketing Researchers
 Discussion Groups
 Periodical, Newspaper, and Book Databases
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Basic Types of Directories
 Academic and Professional
Directories
 Commercial Portals
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Research 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 Design
Which research
questions
must be answered?
?
How and when
will data be
gathered?
How will
the data
be analyzed?
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Primary Data
Information collected for
the first time. Can be
used for solving the
particular problem
under investigation.
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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
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Disadvantages of Primary Data
 Expensive
 Quality declines if interviews are lengthy
 Reluctance to participate in lengthy
interviews
Disadvantages are
usually offset by the
advantages
of primary data!
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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
In-Home Interviews
Mail Surveys
Mall Intercept Interviews
Executive Interviews
Telephone Interviews
Focus Groups
(Home and Central Location)
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Mall Intercept Interview
Survey research method
that involves interviewing
people in the common
areas of shopping malls.
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Executive Interviews
A type of survey that
involves interviewing
businesspeople at their
offices concerning
industrial products
or services.
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Focus Group
Seven to ten people who
participate in a group
discussion led by a
moderator.
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Advantages of
On-Line Focus Groups
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 Speed
 Cost-effectiveness
 Broad geographic scope
 Accessibility
 Honesty
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Questionnaire Design
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.
ScaledResponse
Question
A closed-ended question
designed to measure the intensity
of a respondent’s answer.
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Questionnaire Design
Clear and Concise
No Ambiguous Language
Qualities
of
Good
Questionnaires
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Unbiased
Reasonable Terminology
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Observation Research
A research method that
relies on three types of
observation:
people
watching people
people
watching an activity
machines
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Observation Research
People
Watching
People
Types of
Observation
Research
One-Way Mirrors
People
Watching
an Activity
Machines
Watching
People
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Mystery Shoppers
Audits
Traffic Counters
Passive People Meter
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Mystery Shoppers
Researchers posing as
customers who gather
observational data about
a store and collect data
about customer/employee
interactions.
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Experiment
A method a researcher uses
to gather primary data.
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Sampling Procedure
Sample
A subset from a large population.
Universe
The population from which
a sample will be drawn.
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Probability Samples
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 change of being selected.
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Nonprobability Samples
Any sample in which little or no
Nonprobability attempt
is made to get a representative
Sample
cross-section of the population
Convenience
Sample
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A form of nonprobability sample
using respondents who are
convenient or readily
accessible to the researcher.
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Sampling Procedure
Sample
Universe
Probability
Samples
Non-Probability
Samples
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Types of Samples
Probability
Samples
Non-Probability
Samples
Simple Random
Sample
Convenience
Sample
Stratified
Sample
Judgment
Sample
Cluster
Sample
Quota
Sample
Systematic
Sample
Snowball
Sample
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Types of Errors
Measurement Error
Sampling Error
Errors
Associated
with Sampling
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Frame Error
Random Error
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Types of Errors
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 Firm
A firm that specializes in
interviewing respondents
on a subcontracted basis.
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Field Service Firms
Provide
 Focus group facilities
 Mall intercept locations
 Test product storage
 Kitchen facilities
 Retail audits
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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
3
 Concise statement of the research
objectives
 Explanation of research design
 Summary of major findings
 Conclusion with recommendations
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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?
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Learning Objective
Discuss the profound impact
of the Internet on marketing research.
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Impact 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 Surveys
Rapid development,
Real-time reporting
Reduced costs
Advantages of
Internet Surveys
Personalized questions
and data
Improved respondent
participation
Contact with the
hard-to-reach
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Internet Samples
Unrestricted
Internet
Sample
A survey in which anyone with
a computer and modem can fill out
the questionnaire.
Screened
Internet
Sample
An Internet sample with quotas
based on desired sample
characteristics.
Recruited
Internet
Sample
A sample in which respondents
are prerecruited and must
qualify to participate.
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Other Uses of the Internet
Distribution of requests
for proposals
Collaboration in the
management of a research project
Other Internet
Uses
by Marketing
Researchers
Data management and
on-line analysis
Publication and distribution
of reports
Viewing of presentations of
marketing research surveys
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Learning Objective
Discuss the growing importance
of scanner-based research.
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Scanner-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
Research be Conducted?
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 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
Explain the concept of
competitive intelligence.
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Competitive 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 Intelligence
 Can help identify a competitor’s
advantage
 Can help determine how
the competitor’s advantage
was achieved
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Advantages of
Competitive Intelligence
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 Predict changes in business
relationships
 Guard against threats
 Forecast a competitor’s strategy
 Develop a successful marketing plan
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Sources of
Competitive Intelligence
6
Internet
UCC Filings
Company Personnel
Suppliers
Experts
Newspapers/Periodicals
CI Consultants
Yellow Pages
Government Agencies
Trade Shows
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