1. DECISION
SUPPORT
SYSTEMS AND
MARKETING
RESEARCH
Prepared by
Angela Zigras, Seneca College
Deborah Baker, Texas Christian University

2. You will learn to ...
1. Explain the concept and purpose of a
marketing decision support system.
2. Define marketing research and explain its
importance to marketing decision making.
3. Describe the steps involved in conducting
a marketing research project.

3. You will learn to ...
4. Discuss the growing importance of scanner-
based research.
5. Explain when marketing research should and
should not be conducted.

4. Marketing Intelligence
Everyday information about
developments in the
marketing environment that
managers use to prepare and
adjust marketing plans.

5. Decision Support System
An interactive, flexible
computerized information
system that enables
managers to obtain and
manipulate information as
they are making decisions.

6. DSS System Characteristics
Interactive
Flexible
Discovery-Oriented
Characteristics
of a
DSS System Accessible

7. Database Marketing
The creation of a large
computerized file of
customers’ and potential
customers’ profiles and
purchase patterns.

8. Marketing Research
The process of planning,
collecting, and analyzing data
relevant to a marketing
decision.

9. Defining Market Research (1)
 Research is the systematic and objective
approach to investigate a specific
problem that needs a solution.
 Research is a process by which a series
of well thought out and carefully
executed activities enable one to
enquire, investigate or examine a
problem to discover new facts to deal
with the problem.

10. Defining Research (2)
 Systematic : well organised and planned
 Objectivity : unbiased and unemotional
 The information is used to identify and define
opportunities and problems, and make
recommendations on solutions
 Market Research links consumer, customer and
the public to the marketers through information.
 Generate, refine and evaluate marketing
actions, performance and the marketing
process.

11. Issues to consider with Problem definition
 Past information (secondary
 P data/MIS)
 R  Resources and constraints
 Objectives
 O
 Buyer behaviour (human or
 B organisational)
 L  Legal environment
  Economic environment
E
 Marketing and technological
 M skills

12. Roles of Marketing Research
Marketing Research
has three roles:
Descriptive Predictive
Diagnostic

13. Roles of Marketing Research
 Gathering and presenting
Descriptive factual statements
Diagnostic  Explaining data
 Attempting to estimate the
Predictive results of a planned
marketing decision

14. Management Uses of
Marketing Research
 Improve the quality of decision making
 Trace problems
 Focus on keeping existing customers
 Understand the ever-changing
marketplace

15. Steps in a Marketing Research
Project
Define
Problem
Plan Design/
Specify
Primary Data
Sampling
Procedure
Collect
Data
Analyze
Data
Prepare/
Present
Report
Follow Up

16. Marketing Research
Marketing Determining what information is needed and
Research how that information can be
Problem obtained efficiently and effectively.
Marketing The specific information needed
to solve a marketing research problem;
Research the objective should provide insightful
Objective decision-making information.
Management A broad-based problem that
Decision requires marketing research in order
Problem for managers to take proper actions.

17. Objective setting example 1
 Management Problem:
Should a new product be launched?
 Research Objective:
Determine consumer preference and
purchase intentions for the proposed
new product.

18. Objective setting example 2
 Management Problem:
Should the ad campaign be
changed?
 Research Objective:
To determine effectiveness of the
current campaign.

19. Objective setting example 3
 Management Problem:
Should the price of the brand be
increased?
 Research Objective:
To determine the price elasticity of
demand and the impact on sales and
profits of various levels of price changes.

20. Sources of Secondary Data
Internal Information
Marketing Research Firms
Trade and Industry Associations
National Research Bureaus
Professional Associations
Commercial Publications

21. Secondary Data
Data previously collected for
any purpose other
than the one at hand.

22. 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

23. Disadvantages of Secondary Data
 May not be on target with the research
problem
 Quality and accuracy of data may pose
a problem

24. The New Age of
Secondary Information
The Internet
 Search Engines www
and Directories
 Sites of Interest to
Marketing Researchers
 Discussion Groups
 Periodical, Newspaper, and Book Databases

25. Basic Types of Directories
 Academic and Professional
Directories
 Commercial Portals

26. Research Design
Specifies which research
questions must be answered,
how and when the data will be
gathered, and how the data
will be analyzed.

27. Planning the Research Design
Which research How and when
questions will data be
must be answered? gathered?
?
How will
the data
be analyzed?

28. Primary Data
Information collected for the
first time. Can be
used for solving the particular
problem
under investigation.

29. Advantages of Primary Data
 Answers a specific research question
 Data are current
 Source of data is known
 Secrecy can be maintained

30. Disadvantages of Primary Data
 Expensive
 Quality declines if interviews are
lengthy
 Reluctance to participate in lengthy
interviews

31. Survey Research
The most popular technique
for gathering primary data in
which a researcher interacts
with people to obtain facts,
opinions,
and attitudes.

32. Forms of Survey Research
Mall Intercept Interviews Mail Surveys
Computer-assisted Internet Surveys
Personal Interviewing
Telephone Interviews Focus Groups
(Home and Central Location)

33. Mall Intercept Interview
Survey research method that
involves interviewing people
in the common areas of
shopping malls.

34. Computer-Assisted Personal
Interviewing
An interviewing method in
which the interviewer reads
the questions from a
computer screen and enters
the respondent’s data directly
into the computer.

35. 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 labour-and time-intensive
research activities

36. Advantages of Internet Surveys
Rapid development,
Real-time reporting
Reduced costs
Advantages of Personalized questions
Internet Surveys and data
Improved respondent
participation
Contact with the
hard-to-reach

37. Internet Samples
Unrestricted A survey in which anyone with
Internet a computer and modem can fill out
Sample the questionnaire.
Screened
An Internet sample with quotas based
Internet on desired sample characteristics.
Sample
Recruited A sample in which respondents
Internet are prerecruited and must
Sample qualify to participate.

38. Other Uses of the Internet
Distribution of requests
for proposals
Collaboration in the
management of a research project
Other Internet
Uses Data management and
by Marketing on-line analysis
Researchers
Publication and distribution
of reports
Viewing of presentations of
marketing research surveys

39. Focus Group
Seven to ten people who
participate in a group
discussion led by a
moderator.

40. Advantages of
On-Line Focus Groups
 Speed
 Cost-effectiveness
 Broad geographic
scope
 Accessibility
 Honesty

41. Questionnaire Design
An interview question that encourages
Open-Ended
an answer phrased in respondent’s own
Question words.
An interview question that asks
Closed-Ended
the respondent to make a selection from
Question a limited list of responses.
Scaled- A closed-ended question
Response designed to measure the intensity
Question of a respondent’s answer.

42. Questionnaire Design
Clear and Concise
No Ambiguous Language
Qualities Unbiased
of
Good
Questionnaires Reasonable Terminology

43. Observation Research
A research method that relies
on three types of observation:
people watching people
people watching an activity
machines watching people

44. Observation Research
People Mystery Shoppers
Watching
People One-Way Mirrors
Types of People
Observation Watching Audits
Research an Activity
Machines Traffic Counters
Watching
People Passive People Meter

45. Mystery Shoppers
Researchers posing as
customers who gather
observational data about
a store and collect data about
customer/employee
interactions.

46. Experiment
A method a researcher uses
to gather primary data.

47. Sampling Procedure
Sample A subset from a large population.
The population from which
Universe a sample will be drawn.

48. Probability Samples
A sample in which every element in
Probability the population has a known statistical
Sample likelihood of being selected.
A sample arranged so that every element
Random of the population has an equal change of
Sample being selected.

49. Nonprobability Samples
Any sample in which little or no attempt
Nonprobability is made to get a representative cross-
Sample section of the population
A form of nonprobability sample
Convenience using respondents who are
Sample convenient or readily
accessible to the researcher.

50. Sampling Procedure
Sample
Universe
Probability
Samples
Non-Probability
Samples

51. Types of Errors
Measurement Error
Sampling Error
Frame Error
Errors
Associated
with Sampling
Random Error

52. Types of Errors
Error when there is a difference
Measurement
between the information desired and the
Error information provided by research
Sampling Error when a sample somehow does not
Error represent the target population.
Error when a sample drawn from a
Frame
population differs from the
Error target population.
Error because the selected sample is
Random
an imperfect representation of
Error the overall population.

53. Field Service Firm
A firm that specializes in
interviewing respondents on a
subcontracted basis.

54. Collecting Data
Field Service Firms Provide
 Focus group facilities
 Mall intercept locations
 Test product storage
 Kitchen facilities
 Retail audits

55. Types of Samples
Non-Probability
Probability Samples
Samples
Simple Random Convenience
Sample Sample
Stratified Judgment
Sample Sample
Cluster Quota
Sample Sample
Systematic Snowball
Sample Sample

56. 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.

57. Preparing and Presenting
the Report
 Concise statement of the research
objectives
 Explanation of research design
 Summary of major findings
 Conclusion with recommendations

58. 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?

59. 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.

60. 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