Chapter 9- Decision Support Systems and Marketing ResearchMarketing 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 decisionMarketing 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 Research1. Define problem2. Plan Design/ Primary Data3. Specify sampling procedure4. Collect data5. Analyze data6. Prepare/present report7. Follow upSecondary 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 Internet1. analyze topic2. test run a word or phrase in a search engine3. learn as you go and vary your approach4. don’t bog down in a strategy that doesn’t work5. return to earlier steps better informed-Marketing research aggrigators:-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 themResearch Design-planning:-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 interviewsSurvey 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 arespondent’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 terminolologyObservation Research-research methods that relies on 3 types of observations:-people watching people-people watching an activity-machines watching peopleEthnographic Research-the study of human behavior in its natural context; involves observation of behavior and physical settingSampling-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 populationCollecting the Data-field service firms: (provide)-focus group facilities-mall intercept locations-test product storage-kitchen facilities-retail auditsAnalyzing 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 questionsPreparing and Presenting the Report-concise statement of the research objectives-explanation of research design-summary of major findings-conclusion with recommendationsFollowing 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 researchOnline