Prepared by Prepared by

AngeIa Zigras, Seneca CoIIege AngeIa Zigras, Seneca CoIIege

Deborah Baker, Texas Christian University Deborah Baker, Texas Christian University
DECISION DECISION
SUPPORT SUPPORT
SYSTEMS AND SYSTEMS AND
MARKETING MARKETING
RESEARCH RESEARCH
You wiII Iearn to ... You wiII Iearn to ...
1. 1. ExpIain the concept and purpose of a ExpIain the concept and purpose of a
marketing decision support system. marketing decision support system.
2. Define marketing research and expIain its 2. Define marketing research and expIain its
importance to marketing decision making. importance to marketing decision making.
3. Describe the steps invoIved in conducting 3. Describe the steps invoIved in conducting
a marketing research project. a marketing research project.
You wiII Iearn to ... You wiII Iearn to ...
4. Discuss the growing importance of 4. Discuss the growing importance of
scanner scanner- -based research. based research.
5. ExpIain when marketing research shouId 5. ExpIain when marketing research shouId
and shouId not be conducted. and shouId not be conducted.
Marketing InteIIigence Marketing InteIIigence
Everyday information about Everyday information about
deveIopments in the deveIopments in the
marketing environment that marketing environment that
managers use to prepare managers use to prepare
and adjust marketing pIans. and adjust marketing pIans.
Decision Support System Decision Support System
An interactive, fIexibIe An interactive, fIexibIe
computerized information computerized information
system that enabIes system that enabIes
managers to obtain and managers to obtain and
manipuIate information as manipuIate information as
they are making decisions. they are making decisions.
DSS System Characteristics DSS System Characteristics
Characteristics Characteristics
of a of a
DSS System DSS System
Characteristics Characteristics
of a of a
DSS System DSS System
Interactive Interactive
FIexibIe FIexibIe
Discovery-Oriented Discovery-Oriented
AccessibIe AccessibIe
Database Marketing Database Marketing
The creation of a Iarge The creation of a Iarge
computerized fiIe of computerized fiIe of
customers' and potentiaI customers' and potentiaI
customers' profiIes and customers' profiIes and
purchase patterns. purchase patterns.
Marketing Research Marketing Research
The process of pIanning, The process of pIanning,
coIIecting, and anaIyzing coIIecting, and anaIyzing
data reIevant to a marketing data reIevant to a marketing
decision. decision.
Defining Market Research Defining Market Research (1) (1)
Research is the systematic and objective Research is the systematic and objective
approach to investigate a specific approach to investigate a specific
probIem that needs a soIution. probIem that needs a soIution.
Research is a process by which a series Research is a process by which a series
of weII thought out and carefuIIy of weII thought out and carefuIIy
executed activities enabIe one to executed activities enabIe one to
enquire, investigate or examine a enquire, investigate or examine a
probIem to discover new facts to deaI probIem to discover new facts to deaI
with the probIem. with the probIem.
Defining Research Defining Research (2) (2)
Systematic : weII organised and pIanned Systematic : weII organised and pIanned
Objectivity : unbiased and unemotionaI Objectivity : unbiased and unemotionaI
The information is used to identify and define The information is used to identify and define
opportunities and probIems, and make opportunities and probIems, and make
recommendations on soIutions recommendations on soIutions
Market Research Iinks consumer, customer and Market Research Iinks consumer, customer and
the pubIic to the marketers through information. the pubIic to the marketers through information.
Generate, refine and evaIuate marketing Generate, refine and evaIuate marketing
actions, performance and the marketing actions, performance and the marketing
process. process.
Issues to consider with ProbIem definition Issues to consider with ProbIem definition
PPast information ast information (secondary (secondary
data/MIS) data/MIS)
R Resources and constraints esources and constraints
OObjectives bjectives
B Buyer beh uyer behaviour aviour (human or (human or
organisationaI) organisationaI)
LLegaI environment egaI environment
EEconomic environment conomic environment
M Ma arketing rketing and technoIogicaI and technoIogicaI
skiIIs skiIIs
PP
R R
OO
B B
LL
EE
M M
RoIes of Marketing Research RoIes of Marketing Research
Descriptive Descriptive
Diagnostic Diagnostic
Predictive Predictive
Marketing Research Marketing Research
has three roles: has three roles:
Marketing Research Marketing Research
has three roles: has three roles:
Diagnostic Diagnostic

Predictive Predictive

Descriptive Descriptive
Gathering and presenting
factuaI statements
ExpIaining data
Attempting to estimate
the resuIts of a pIanned
marketing decision
RoIes of Marketing Research RoIes of Marketing Research
Management Uses of Management Uses of
Marketing Research Marketing Research
Improve the quaIity of decision making Improve the quaIity of decision making
Trace probIems Trace probIems
Focus on keeping existing customers Focus on keeping existing customers
Understand the ever Understand the ever- -changing changing
marketpIace marketpIace
Steps in a Marketing Research Steps in a Marketing Research
Project Project
CoIIect CoIIect
Data Data
CoIIect CoIIect
Data Data
PIan Design/ PIan Design/
Primary Data Primary Data
PIan Design/ PIan Design/
Primary Data Primary Data
Specify Specify
SampIing SampIing
Procedure Procedure
Specify Specify
SampIing SampIing
Procedure Procedure
Define Define
ProbIem ProbIem
Define Define
ProbIem ProbIem
AnaIyze AnaIyze
Data Data
AnaIyze AnaIyze
Data Data
Prepare/ Prepare/
Present Present
Report Report
Prepare/ Prepare/
Present Present
Report Report
FoIIow Up FoIIow Up FoIIow Up FoIIow Up
Marketing Research Marketing Research
Marketing Marketing
Research Research
ProbIem ProbIem
Marketing Marketing
Research Research
ProbIem ProbIem
Marketing Marketing
Research Research
Objective Objective
Marketing Marketing
Research Research
Objective Objective
Management Management
Decision Decision
ProbIem ProbIem
Management Management
Decision Decision
ProbIem ProbIem
Determining what information is needed
and how that information can be
obtained efficientIy and effectiveIy.
The specific information needed
to soIve a marketing research probIem;
the objective shouId provide insightfuI
decision-making information.
The specific information needed
to soIve a marketing research probIem;
the objective shouId provide insightfuI
decision-making information.
A broad-based probIem that
requires marketing research in order
for managers to take proper actions.
A broad-based probIem that
requires marketing research in order
for managers to take proper actions.
Objective setting Objective setting exampIe 1 exampIe 1
Management Problem Management Problem: :
$hould a new product be launched? $hould a new product be launched?
#esearch Objective #esearch Objective: :
etermine consumer preference and etermine consumer preference and
purchase intentions for the proposed purchase intentions for the proposed
new product. new product.
Objective setting Objective setting exampIe 2 exampIe 2
Management Problem Management Problem: :
$hould the ad campaign be $hould the ad campaign be
changed? changed?
#esearch Objective #esearch Objective: :
%o determine effectiveness of the %o determine effectiveness of the
current campaign. current campaign.
Objective setting Objective setting exampIe 3 exampIe 3
Management Problem Management Problem: :
$hould the price of the brand be $hould the price of the brand be
increased? increased?
#esearch Objective #esearch Objective: :
%o determine the price elasticity of %o determine the price elasticity of
demand and the impact on sales and demand and the impact on sales and
profits of various levels of price profits of various levels of price
changes. changes.
Sources of Secondary Data Sources of Secondary Data
Marketing Research Firms
Trade and Industry Associations
NationaI Research Bureaus
ProfessionaI Associations
CommerciaI PubIications
InternaI Information
Secondary Data Secondary Data
Data previousIy coIIected Data previousIy coIIected
for any purpose other for any purpose other
than the one at hand. than the one at hand.
Advantages of Secondary Data Advantages of Secondary Data
Saves time and money if on target Saves time and money if on target
Aids in determining direction for primary Aids in determining direction for primary
data coIIection data coIIection
Pinpoints the kinds of peopIe to approach Pinpoints the kinds of peopIe to approach
Serves as a basis of comparison for other Serves as a basis of comparison for other
data data
Disadvantages of Secondary Data Disadvantages of Secondary Data
May not be on target with the research May not be on target with the research
probIem probIem
QuaIity and accuracy of data may pose a QuaIity and accuracy of data may pose a
probIem probIem
The New Age of The New Age of
Secondary Information Secondary Information
The Internet The Internet The Internet The Internet

Search Engines Search Engines
and Directories and Directories
Sites of Interest to Sites of Interest to
Marketing Researchers Marketing Researchers
Discussion Groups Discussion Groups
PeriodicaI, Newspaper, and Book Databases PeriodicaI, Newspaper, and Book Databases
Basic Types of Directories Basic Types of Directories
Academic and ProfessionaI Academic and ProfessionaI
Directories Directories
CommerciaI PortaIs CommerciaI PortaIs
Research Design Research Design
Specifies which research Specifies which research
questions must be questions must be
answered, how and when answered, how and when
the data wiII be gathered, the data wiII be gathered,
and how the data wiII be and how the data wiII be
anaIyzed. anaIyzed.
PIanning the Research Design PIanning the Research Design
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 when How and when
wiII data be wiII data be
gathered? gathered?
How and when How and when
wiII data be wiII data be
gathered? gathered?
How wiII How wiII
the data the data
be anaIyzed? be anaIyzed?
How wiII How wiII
the data the data
be anaIyzed? be anaIyzed?
??
Primary Data Primary Data
Information coIIected for Information coIIected for
the first time. Can be the first time. Can be
used for soIving the used for soIving the
particuIar probIem particuIar probIem
under investigation. under investigation.
Advantages of Primary Data Advantages of Primary Data
Answers a specific research question Answers a specific research question
Data are current Data are current
Source of data is known Source of data is known
Secrecy can be maintained Secrecy can be maintained
Disadvantages of Primary Data Disadvantages of Primary Data
Expensive Expensive
QuaIity decIines if interviews are Iengthy QuaIity decIines if interviews are Iengthy
ReIuctance to participate in Iengthy ReIuctance to participate in Iengthy
interviews interviews
Survey Research Survey Research
The most popuIar technique The most popuIar technique
for gathering primary data for gathering primary data
in which a researcher in which a researcher
interacts with peopIe to interacts with peopIe to
obtain facts, opinions, obtain facts, opinions,
and attitudes. and attitudes.
Forms of Survey Research Forms of Survey Research
Focus Groups Focus Groups
Internet Surveys Internet Surveys
MaiI Surveys MaiI Surveys
TeIephone Interviews
(Home and CentraI Location)
TeIephone Interviews
(Home and CentraI Location)
MaII Intercept Interviews MaII Intercept Interviews
Computer-assisted
PersonaI Interviewing
MaII Intercept Interview MaII Intercept Interview
Survey research method Survey research method
that invoIves interviewing that invoIves interviewing
peopIe in the common peopIe in the common
areas of shopping maIIs. areas of shopping maIIs.
Computer Computer- -Assisted PersonaI Assisted PersonaI
Interviewing Interviewing
An interviewing method in An interviewing method in
which the interviewer reads which the interviewer reads
the questions from a the questions from a
computer screen and computer screen and
enters the respondent's enters the respondent's
data directIy into the data directIy into the
computer. computer.
Impact of the Internet Impact of the Internet
AIIows better and faster decision making AIIows better and faster decision making
Improves abiIity to respond quickIy to Improves abiIity to respond quickIy to
customer needs and market shifts customer needs and market shifts
Makes foIIow Makes foIIow- -up studies and research up studies and research
easier easier
SIashes Iabour SIashes Iabour- -and time and time- -intensive intensive
research activities research activities
Advantages of Internet Surveys Advantages of Internet Surveys
Contact with the
hard-to-reach
Contact with the
hard-to-reach
Improved respondent
participation
Improved respondent
participation
PersonaIized questions
and data
PersonaIized questions
and data
Reduced costs Reduced costs
Rapid deveIopment,
ReaI-time reporting
Rapid deveIopment,
ReaI-time reporting
dvantages of dvantages of
Internet $urveys Internet $urveys
dvantages of dvantages of
Internet $urveys Internet $urveys
Internet SampIes Internet SampIes
Unrestricted
Internet
SampIe
Unrestricted
Internet
SampIe
Screened
Internet
SampIe
Screened
Internet
SampIe
Recruited
Internet
SampIe
Recruited
Internet
SampIe
A survey in which anyone with
a computer and modem can fiII out
the questionnaire.
A survey in which anyone with
a computer and modem can fiII out
the questionnaire.
An Internet sampIe with quotas
based on desired sampIe
characteristics.
An Internet sampIe with quotas
based on desired sampIe
characteristics.
A sampIe in which respondents
are prerecruited and must
quaIify to participate.
A sampIe in which respondents
are prerecruited and must
quaIify to participate.
Other Uses of the Internet Other Uses of the Internet
ther Internet ther Internet
Uses Uses
by Marketing by Marketing
Researchers Researchers
ther Internet ther Internet
Uses Uses
by Marketing by Marketing
Researchers Researchers
Viewing of presentations of
marketing research surveys
Viewing of presentations of
marketing research surveys
PubIication and distribution
of reports
PubIication and distribution
of reports
Data management and
on-Iine anaIysis
Data management and
on-Iine anaIysis
CoIIaboration in the
management of a research project
CoIIaboration in the
management of a research project
Distribution of requests
for proposaIs
Distribution of requests
for proposaIs
Focus Group Focus Group
Seven to ten peopIe who Seven to ten peopIe who
participate in a group participate in a group
discussion Ied by a discussion Ied by a
moderator. moderator.
Advantages of Advantages of
On On- -Line Focus Groups Line Focus Groups
Speed Speed
Cost Cost- -effectiveness effectiveness
Broad geographic Broad geographic
scope scope
AccessibiIity AccessibiIity
Honesty Honesty
Questionnaire Design Questionnaire Design
Open-Ended
Question
Open-Ended
Question
CIosed-Ended
Question
CIosed-Ended
Question
ScaIed-
Response
Question
ScaIed-
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 seIection
from a Iimited Iist of responses.
An interview question that asks
the respondent to make a seIection
from a Iimited Iist of responses.
A cIosed-ended question
designed to measure the intensity
of a respondent's answer.
A cIosed-ended question
designed to measure the intensity
of a respondent's answer.
Questionnaire Design Questionnaire Design
QuaIities QuaIities
of of
Good Good
Questionnaires Questionnaires
QuaIities QuaIities
of of
Good Good
Questionnaires Questionnaires
CIear and Concise CIear and Concise
No Ambiguous Language No Ambiguous Language
Unbiased Unbiased
ReasonabIe TerminoIogy ReasonabIe TerminoIogy
Observation Research Observation Research
A research method that A research method that
reIies on three types of reIies on three types of
observation: observation:
peopIe watching peopIe peopIe watching peopIe
peopIe watching an activity peopIe watching an activity
machines watching peopIe machines watching peopIe
Observation Research Observation Research
Mystery Shoppers
One-Way Mirrors
Types of Types of
Observation Observation
Research Research
Types of Types of
Observation Observation
Research Research
Audits
Machines
Watching
PeopIe
Machines
Watching
PeopIe
PeopIe PeopIe
Watching Watching
PeopIe PeopIe
PeopIe PeopIe
Watching Watching
PeopIe PeopIe
PeopIe PeopIe
Watching Watching
an Activity an Activity
PeopIe PeopIe
Watching Watching
an Activity an Activity
Traffic Counters
Passive PeopIe Meter
Mystery Shoppers Mystery Shoppers
Researchers posing as Researchers posing as
customers who gather customers who gather
observationaI data about observationaI data about
a store and coIIect data a store and coIIect data
about customer/empIoyee about customer/empIoyee
interactions. interactions.
Experiment Experiment
A method a researcher uses A method a researcher uses
to gather primary data. to gather primary data.
SampIing Procedure SampIing Procedure
SampIe SampIe
Universe Universe
A subset from a Iarge popuIation. A subset from a Iarge popuIation.
The popuIation from which
a sampIe wiII be drawn.
The popuIation from which
a sampIe wiII be drawn.
ProbabiIity SampIes ProbabiIity SampIes
ProbabiIity
SampIe
ProbabiIity
SampIe
A sampIe in which every eIement in
the popuIation has a known statisticaI
IikeIihood of being seIected.
A sampIe in which every eIement in
the popuIation has a known statisticaI
IikeIihood of being seIected.
Random
SampIe
Random
SampIe
A sampIe arranged so that every
eIement of the popuIation has an
equaI change of being seIected.
A sampIe arranged so that every
eIement of the popuIation has an
equaI change of being seIected.
NonprobabiIity SampIes NonprobabiIity SampIes
NonprobabiIity
SampIe
NonprobabiIity
SampIe
Convenience
SampIe
Convenience
SampIe
Any sampIe in which IittIe or no
attempt is made to get a representative
cross-section of the popuIation
A form of nonprobabiIity sampIe
using respondents who are
convenient or readiIy
accessibIe to the researcher.
A form of nonprobabiIity sampIe
using respondents who are
convenient or readiIy
accessibIe to the researcher.
SampIing Procedure SampIing Procedure
Universe Universe
SampIe SampIe
ProbabiIity
SampIes
ProbabiIity
SampIes
Non-ProbabiIity
SampIes
Non-ProbabiIity
SampIes
Types of Errors Types of Errors
Errors Errors
Associated Associated
with SampIing with SampIing
Errors Errors
Associated Associated
with SampIing with SampIing
Measurement Error Measurement Error
SampIing Error SampIing Error
Frame Error Frame Error
Random Error Random Error
Types of Errors Types of Errors
Measurement
Error
Measurement
Error
SampIing
Error
SampIing
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 sampIe somehow does not
represent the target popuIation.
Error when a sampIe somehow does not
represent the target popuIation.
Error when a sampIe drawn from a
popuIation differs from the
target popuIation.
Error when a sampIe drawn from a
popuIation differs from the
target popuIation.
Error because the seIected sampIe is
an imperfect representation of
the overaII popuIation.
Error because the seIected sampIe is
an imperfect representation of
the overaII popuIation.
FieId Service Firm FieId Service Firm
A firm that speciaIizes in A firm that speciaIizes in
interviewing respondents interviewing respondents
on a subcontracted basis. on a subcontracted basis.
CoIIecting Data CoIIecting Data
Focus group faciIities Focus group faciIities
MaII intercept Iocations MaII intercept Iocations
Test product storage Test product storage
Kitchen faciIities Kitchen faciIities
RetaiI audits RetaiI audits
FieId Service Firms Provide FieId Service Firms Provide
Types of SampIes Types of SampIes
ProbabiIity ProbabiIity
SampIes SampIes
ProbabiIity ProbabiIity
SampIes SampIes
SimpIe Random
SampIe
Stratified
SampIe
CIuster
SampIe
Systematic
SampIe
Non Non- -ProbabiIity ProbabiIity
SampIes SampIes
Non Non- -ProbabiIity ProbabiIity
SampIes SampIes
Convenience
SampIe
Judgment
SampIe
Quota
SampIe
SnowbaII
SampIe
Cross Cross- -TabuIation TabuIation
A method of anaIyzing data A method of anaIyzing data
that Iets the anaIyst Iook at that Iets the anaIyst Iook at
the responses to one the responses to one
question in reIation to the question in reIation to the
responses to one or more responses to one or more
other questions. other questions.
Preparing and Presenting Preparing and Presenting
the Report the Report
Concise statement of the research Concise statement of the research
objectives objectives
ExpIanation of research design ExpIanation of research design
Summary of major findings Summary of major findings
ConcIusion with recommendations ConcIusion with recommendations
FoIIowing Up FoIIowing Up
Were the recommendations foIIowed? Were the recommendations foIIowed?
Was sufficient decision Was sufficient decision- -making making
information incIuded in the report? information incIuded in the report?
What couId have been done to make What couId have been done to make
the report more usefuI? the report more usefuI?
Scanner Scanner- -Based Research Based Research
A system for gathering A system for gathering
information from a singIe information from a singIe
group of respondents by group of respondents by
continuousIy monitoring continuousIy monitoring
the advertising, promotion, the advertising, promotion,
and pricing they are and pricing they are
exposed to and the things exposed to and the things
they buy. they buy.
When ShouId Marketing When ShouId Marketing
Research be Conducted? Research be Conducted?
Where there is a high Where there is a high
IeveI of uncertainty IeveI of uncertainty
When vaIue of research When vaIue of research
information exceeds the information exceeds the
cost of generating the cost of generating the
information information