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Lamb, Hair, McDaniel

CHAPTER 9

Decision Support Systems and

Marketing Research

2010-2011

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Explain the concept

and purpose of a

marketing decision

support system

Marketing Decision

Support Systems

LO1

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Marketing Decision

Support Systems

Database

MarketingThe creation of a large

computerized file of customers’

and potential customers’ profiles

and purchase patterns.

The key tool for successful

one-to-one marketing.

LO1

4

Define marketing

research and

explain its

importance to

marketing decision

making

The Role of

Marketing Research

LO2

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The Role of

Marketing Research

Marketing

ResearchThe process of

planning, collecting, a

nd analyzing data

relevant to a

marketing decision.

LO2

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The Role of

Marketing Research

Diagnostic

Predictive

Descriptive Gathering and presenting

factual statements What are consumer attitudes toward our

product?

Explaining data What was impact on sales after change in

package design?

“What if?” How can we use research to predict results

of planned marketing decisions?

LO2

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Why marketing research? Improve quality of

decision making

Trace problems

Focus on keeping

existing customers

Understand changes

in marketplace

The Importance of

Marketing Research

LO2

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Describe the steps involved in conducting a marketing

research project

Steps in a Marketing

Research Project

LO3

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The Marketing Research Process

CollectData

SpecifySamplingProcedure

Plan Design/Primary Data

DefineProblem

AnalyzeData

Prepare/PresentReport

Follow Up

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5

6

7

LO3

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Information previously collected for any

purpose other than the one at hand.

Advantages: 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

Secondary Data

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

LO3

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Sources of

Secondary Data

Government Agencies

Trade and Industry Associations

Business Periodicals

News Media

Internal Corporate Information

LO3

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Planning the

Research Design

Which research questions

must be answered?

How and whenwill data be gathered?

How willthe data

be analyzed?

?

LO3

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Primary Data

Information collected for the first time.

Used for solving the particular problem

under investigation.

Advantages: Answers a specific research question

Data are current

Source of data is known

Secrecy can be maintained

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

Disadvantages are usually offset by the advantages of primary data.

LO3

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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.

Survey Research

LO3

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Forms of

Survey Research

Focus Groups

Executive Interviews

Mail Surveys

Telephone Interviews

Mall Intercept Interviews

In-Home Interviews

LO3

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Questionnaire Design

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.

LO3

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Questionnaire Design

Clear and concise

No ambiguous language

Unbiased

Reasonable terminology

Only one question

Online

http://www.surveymonkey.com/

LO3

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Observation Research

SituationPeople

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

LO3

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Ethnographic

Research

Ethnographic Research

The study of human behavior

in its natural context; involves

observation of behavior and

physical setting.

LO3

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Virtual Shopping

• Allows customers to “shop” with realistic

complexity and variety

• Tests can be altered quickly

• Computer automatically collects data

Virtual Grocery Store

LO3

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Sampling Procedure

Universe Sample

Probability Samples

Non-Probability Samples

LO3

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Probability Samples

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.

LO3

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Nonprobability Samples

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.

LO3

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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.

LO3

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Analyzing the Data

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.

Cross-

Tabulation

LO3

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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

LO3

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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?

LO3

30

Discuss the profound

impact of the Internet

on marketing

research

The Profound Impact of

the Internet on

Marketing Research

LO4

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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 tracking research

easier

Slashes labor- and time-intensive research

activities and costs

LO4

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Advantages of

Internet Surveys

Contact with the hard-to-reach

Improved respondent participation

Personalized questions and data

Reduced costs

Rapid development,Real-time reporting

LO4

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Uses of the Internet by

Marketing Researchers

Other types of marketing research

Conduct focus groups

Administer surveys

Online

http://www.greenfieldonline.com

LO4

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Advantages of Online

Focus Groups

Speed

Cost-effectiveness

Broad geographic

scope

Accessibility

Honesty

LO4

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Web Community Research

• A carefully selected group of consumers who agree to participate in an ongoing dialogue with a particular corporation.

Web communities:

– Engage customers

– Achieve customer-derived innovations

– Establish brand advocates

– Offer real-time results

LO4

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Role of Blogs in

Marketing Research

Refined technologies allow

companies to mine data

available in Internet blogs.

Companies can identify the

most influential bloggers

and learn exactly what they

are saying (and how they

are saying it).

LO4

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Discuss the growing

importance of

scanner-based

research

Scanner-Based Research

LO5

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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.

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

LO5

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Scanner-Based Research

BehaviorScanWith such a measure of household purchasing, it is possible to manipulate marketing variables, such as television advertising or consumer promotions, or to introduce a new product and analyze real changes in consumer buying behavior.

InfoScanRetail sales, detailed consumer purchasing information (including measurement of store loyalty and total grocery basket expenditures), and promotional activity by manufacturers and retailers are monitored and evaluated for all bar-coded products.

Data are collected weekly from more than 34,000 supermarkets, drugstores, and mass merchandisers.

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Explain when

marketing research

should be conducted

When Should Marketing Research Be

Conducted?

LO6

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When Should Marketing

Research Be Conducted?

Where there is a high

level of uncertainty

When value of research

information exceeds the

cost of generating the

information

LO6

42

Explain the concept

of competitive

intelligence

Competitive Intelligence

LO7

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Competitive Intelligence

Online

http://www.scip.org

An intelligence system that helps

managers assess their

competition and vendors in order

to become more efficient and

effective competitors.Competitive

Intelligence

LO7