Chapter 9 Decision Support Systems and Marketing Research Marketing Decisions Support Systems an interactive flexible computerized information system that enables managers to obtain and manipulate information as they are making decisions characteristics Interactive Flexible Discovery Oriented Accessible Database Marketing the creation of large computerized file of customers and potential customer s profiles and purchase patterns key tool for success is one to one marketing Marketing research the process of planning collecting and analyzing data relevant to a marketing decision Marketing Research Studies products advertising prices packages names and logos services buying habits colors uses awareness familiarity new concepts traffic patterns wants needs politics Role descriptive gathering and presenting factual statements diagnostic explaining data predictive what if management use of marketing research Improve quality of management decisions trace problems focus on keeping existing customers understand the marketplace alert them to marketing trends gauge the value of goods and services and level of customer satisfaction importance improves quality of decision making trace problems focus on keeping existing customers understand changes in marketplace Steps in Marketing Research 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 Secondary Data Sources internal corporate information government agencies trade and industry agencies business periodicals news media advantages saves time and money if on target aids in determining direction for primary data collection pinpoints the kind of people to approach serves as a basis for comparison for other data disadvantages may not give adequate detailed information may not be on target with the research problem quality and accuracy of data may pose a problem new age of secondary data the Internet 1 analyze topic 2 test run a word or phrase in a search engine 3 learn as you go and vary your approach 4 don t bog down in a strategy that doesn t work 5 return to earlier steps better informed Marketing research aggrigators which research questions must be answer how and when will data be gathered how will the data be analyzed Primary Data info 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 unknown secrecy can be maintained disadvantages expensive piggy backing may confuse respondents quality declines if interviews are lengthy reluctance to participate in lengthy interviews provide small to medium sized companies with info they could not afford to research on their own increases the revenue generated by large extensive reports by slicing repackaging them Research Design planning 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 in home interviews mall intercept interviews telephone interviews mail surveys executive interviews focus groups questionnaire design Open ended questions an interview question that encourages and answer phrased in a respondent s own words Closed ended questions an interview question that asks the respondents to make a selection from a limited list of responses Scaled response question a closed ended question designed to measure the intensity of a respondent s answer closed ended and scaled are easier to tabulate b c responses are fixed clear and concise no ambiguous language only one question unbiased reasonable terminolology Observation Research research methods that relies on 3 types of observations people watching people people watching an activity machines watching people Ethnographic Research the study of human behavior in its natural context involves observation of behavior and physical setting Sampling Procedure universe sample probability samples non probability samples types of samples probability simple random sample stratified sample cluster sample systematic sample non probability convenience sample judgment sample quota sample snowball sample Probability Samples probability sample a sample where ever element in the population has a known statistical likelihood of being selected random sample a sample arranged so that every element of the population ahs equal chance of being selected Non Probability Samples non probability sample any sample in which little or no attempt has been made to get a representative cross section of the population convenience sample a form of non probability sample using respondents who are convenient or readily accessible to the researcher types of errors measurement error error when there is a difference btwn the info desired and the info provided by the research sampling error error when sample somehow does not represent a target population frame error error when a sample drawn from the population differs from target population random error error because the selected sample is an imperfect representation of the overall population Collecting the Data field service firms provide focus group facilities mall intercept locations test product storage kitchen facilities retail audits Analyzing the Data Cross tabulation a method of analyzing data that lets the analyst look at the response to one question in relation to the responses of 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 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 advantages of internet surveys rapid development real time reporting reduced costs personalized questions and data improve respondent participation contact with the hard to reach uses by marketing researchers administer surveys conduct focus groups other types of marketing research Online Surveys methods of collecting web survey systems survey design and web hosting sites online panel providers