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Chapter 8 Copyright ©2009 Cengage Learning Inc. All rights reserved 1
MKTG
Designed byAmy McGuire, B-books, Ltd.
Prepared byDeborah Baker, Texas Christian University
Lamb, Hair, McDaniel 2008-2009
Decision Support Systems and Marketing Research
8CHAPTER
Chapter 8 Copyright ©2009 Cengage Learning Inc. All rights reserved 2
Learning Outcomes
Explain the concept and purpose of a marketing decision support system
Define marketing research and explain its importance to marketing decision making
Describe the steps involved in conducting a marketing research project
LO1
LO2
LO3
Chapter 8 Copyright ©2009 Cengage Learning Inc. All rights reserved 3
Learning Outcomes
Discuss the profound impact of the Internet on marketing research
Discuss the growing importance of scanner-based research
Explain the concept of competitive intelligence
LO4
LO5
LO6
Chapter 8 Copyright ©2009 Cengage Learning Inc. All rights reserved 4
Explain the concept and purpose of a
marketing decision support system
Marketing Decision Marketing Decision Support SystemsSupport Systems
LO1
Chapter 8 Copyright ©2009 Cengage Learning Inc. All rights reserved 5
LO1
Marketing Decision Support Systems
Decision Support Systems
Decision Support Systems
An interactive, flexible
computerized information
system that enables managers
to obtain and manipulate
information as they are making
decisions.
Chapter 8 Copyright ©2009 Cengage Learning Inc. All rights reserved 6
LO1
DSS System Characteristics
InteractiveInteractive
FlexibleFlexible
Discovery-OrientedDiscovery-Oriented
AccessibleAccessible
Chapter 8 Copyright ©2009 Cengage Learning Inc. All rights reserved 7
LO1
Marketing Decision Support Systems
DatabaseMarketing
DatabaseMarketing
The creation of a large
computerized file of customers’
and potential customers’
profiles and purchase patterns.
The key tool for successful
one-to-one marketing.
Chapter 8 Copyright ©2009 Cengage Learning Inc. All rights reserved 8
Biz Flix
LO1 Apollo 13
Chapter 8 Copyright ©2009 Cengage Learning Inc. All rights reserved 9
REVIEW LEARNING OUTCOMELO1
Marketing Decision Support Systems
Chapter 8 Copyright ©2009 Cengage Learning Inc. All rights reserved 10
Define marketing research and
explain its importance to
marketing decision making
The Role of Marketing ResearchThe Role of Marketing ResearchLO2
Chapter 8 Copyright ©2009 Cengage Learning Inc. All rights reserved 11
The Role of Marketing Research
LO2
MarketingResearch
MarketingResearch
The process of planning, collecting, and analyzing data relevant to a marketing decision.
Chapter 8 Copyright ©2009 Cengage Learning Inc. All rights reserved 12
Marketing Research Studies
LO2
ProductsProducts
AdvertisingAdvertising
PricesPrices
PackagesPackages
Names and LogosNames and Logos
ServicesServices
Buying habitsBuying habits
ColorsColors
UsesUses
AwarenessAwareness
FamiliarityFamiliarity
New conceptsNew concepts
Traffic patternsTraffic patterns
WantsWants
NeedsNeeds
PoliticsPolitics
Chapter 8 Copyright ©2009 Cengage Learning Inc. All rights reserved 13
The Role of Marketing Research
LO2
Diagnostic
Predictive
Descriptive Gathering and presenting
factual statements
Explaining data
“What if?”
Chapter 8 Copyright ©2009 Cengage Learning Inc. All rights reserved 14
LO2B
eyond
the
Book
Management Uses of Marketing Research
Improve the quality of decision making Trace problems Focus on keeping existing customers Understand the marketplace Alert them to marketplace
trends Gauge the value of goods
and services, and the level
of customer satisfactionNOTE: Supplemental content – not in book.
Chapter 8 Copyright ©2009 Cengage Learning Inc. All rights reserved 15
REVIEW LEARNING OUTCOMELO2
Marketing Research and Its Importance
Why marketing research? Improve quality of decision making
Trace problems
Focus on keeping existing customers
Understand changes inmarketplace
Chapter 8 Copyright ©2009 Cengage Learning Inc. All rights reserved 16
Describe the steps involved in conducting a marketing
research project
Steps in a Marketing Steps in a Marketing Research ProjectResearch Project
LO3
Chapter 8 Copyright ©2009 Cengage Learning Inc. All rights reserved 17
The Marketing Research Process
LO3
CollectData
CollectData
SpecifySamplingProcedure
SpecifySamplingProcedure
Plan Design/Primary DataPlan Design/Primary Data
DefineProblemDefine
Problem
AnalyzeData
AnalyzeData
Prepare/PresentReport
Prepare/PresentReport
Follow UpFollow Up
1
23
4
5
6
7
Chapter 8 Copyright ©2009 Cengage Learning Inc. All rights reserved 18
Marketing ResearchLO3
Marketing Research Problem
Marketing Research Problem
MarketingResearch Objective
MarketingResearch Objective
Management Decision Problem
Management Decision Problem
Determining what information is needed and how that information can be
obtained efficiently and effectively.
Determining what information is needed and how that information can be
obtained efficiently and effectively.
The specific information needed to solve a marketing research problem; the objective should provide insightful
decision-making information.
The specific information needed to solve a marketing research problem; the objective should provide insightful
decision-making information.
A broad-based problem that requires marketing research in order for managers to take proper actions.
A broad-based problem that requires marketing research in order for managers to take proper actions.
Chapter 8 Copyright ©2009 Cengage Learning Inc. All rights reserved 19
Secondary DataLO3
Data previously collected
for any purpose other
than the one at hand.
Secondary Data
Secondary Data
Chapter 8 Copyright ©2009 Cengage Learning Inc. All rights reserved 20
Sources of Secondary DataLO3
Government AgenciesGovernment Agencies
Trade and Industry AssociationsTrade and Industry Associations
Business PeriodicalsBusiness Periodicals
News MediaNews Media
Internal Corporate InformationInternal Corporate Information
Online
http://www.coca-colastore.com
Chapter 8 Copyright ©2009 Cengage Learning Inc. All rights reserved 21
Advantages of Secondary DataLO3
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
Chapter 8 Copyright ©2009 Cengage Learning Inc. All rights reserved 22
Disadvantages of Secondary DataLO3
May not give adequate detailed information
May not be on target with the research problem
Quality and accuracy of data may pose a problem
Chapter 8 Copyright ©2009 Cengage Learning Inc. All rights reserved 23
The New Age of Secondary Information: The Internet
LO3
11
22
33
44
55
Analyze your topicAnalyze your topic
Test run a word or phrase in a search engineTest run a word or phrase in a search engine
Learn as you go and vary your approachLearn as you go and vary your approach
Don’t bog down in strategy that doesn’t workDon’t bog down in strategy that doesn’t work
Go back to earlier steps better informedGo back to earlier steps better informed
Chapter 8 Copyright ©2009 Cengage Learning Inc. All rights reserved 24
Planning the Research DesignLO3
Which research questions
must be answered?
How and whenwill data be gathered?
How willthe data
be analyzed?
?
Chapter 8 Copyright ©2009 Cengage Learning Inc. All rights reserved 25
Primary DataLO3
Primary Data
Primary Data
Information collected for the
first time. Can be used for
solving the particular problem
under investigation.
Chapter 8 Copyright ©2009 Cengage Learning Inc. All rights reserved 26
Advantages of Primary DataLO3
Answers a specific research question
Data are current Source of data is
known Secrecy can be
maintained
Chapter 8 Copyright ©2009 Cengage Learning Inc. All rights reserved 27
Disadvantages of Primary DataLO3
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.
Chapter 8 Copyright ©2009 Cengage Learning Inc. All rights reserved 28
Survey ResearchLO3
The most popular technique
for gathering primary data in
which a researcher interacts
with people to obtain facts,
opinions, and attitudes.
Survey ResearchSurvey Research
Chapter 8 Copyright ©2009 Cengage Learning Inc. All rights reserved 29
Forms of Survey ResearchLO3
Focus GroupsFocus Groups
Executive InterviewsExecutive Interviews
Mail SurveysMail Surveys
Telephone InterviewsTelephone Interviews
Mall Intercept InterviewsMall Intercept Interviews
In-Home InterviewsIn-Home Interviews
Chapter 8 Copyright ©2009 Cengage Learning Inc. All rights reserved 30
Forms of Survey ResearchLO3
Mall InterceptInterview
Mall InterceptInterview
Survey research method that involves interviewing people in the common areas of shopping malls.
Survey research method that involves interviewing people in the common areas of shopping malls.
Executive InterviewExecutive Interview
A type of survey that involves interviewing businesspeople at their offices concerning industrial products or services.
A type of survey that involves interviewing businesspeople at their offices concerning industrial products or services.
Chapter 8 Copyright ©2009 Cengage Learning Inc. All rights reserved 31
Forms of Survey ResearchLO3
Seven to ten people
who participate in a
group discussion led
by a moderator.
Focus GroupsFocus Groups
Chapter 8 Copyright ©2009 Cengage Learning Inc. All rights reserved 32
Questionnaire DesignLO3
Open-EndedQuestion
Open-EndedQuestion
Closed-EndedQuestion
Closed-EndedQuestion
Scaled-Response Question
Scaled-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 selection
from a limited list of responses.
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.
A closed-ended question designed to measure the intensity
of a respondent’s answer.
Chapter 8 Copyright ©2009 Cengage Learning Inc. All rights reserved 33
Questionnaire Design
Avocado 1 Olives (black/green) 6 Cheese (Monterey Jack/cheddar) 2 Onions (red/white) 7 Guacamole 3 Peppers (red/green) 8 Lettuce 4 Pimento 9 Mexican hot sauce 5 Sour cream 0
On the other hand, unless the researcher designs the closed-ended question very carefully, an important choice may be omitted.
Closed-ended and scaled-response questions are easier to tabulate than open-ended questions because response choices are fixed.
Beyond
the
Book
LO3
NOTE: Supplemental content – not in book.
Chapter 8 Copyright ©2009 Cengage Learning Inc. All rights reserved 34
Questionnaire DesignLO3
Clear and conciseClear and concise
No ambiguous languageNo ambiguous language
UnbiasedUnbiased
Reasonable terminologyReasonable terminology
Only one questionOnly one question
Online
http://www.createsurvey.com
Chapter 8 Copyright ©2009 Cengage Learning Inc. All rights reserved 35
Observation ResearchLO3
A research method that relies on
three types of observation:
people watching people people watching an activity machines watching people
Observation Research
Observation Research
Chapter 8 Copyright ©2009 Cengage Learning Inc. All rights reserved 36
Observational SituationsLO3
SituationPeople
watching people
People watching
phenomena
Machines watching people
Machines watching
phenomena
ExampleMystery
shoppers in a supermarket
Observer
at an intersection
counting traffic
Video cameras recording behavior
Traffic-counting machine
monitoring traffic flow
Online
http://www.bmiltd.com
Chapter 8 Copyright ©2009 Cengage Learning Inc. All rights reserved 37
Ethnographic ResearchLO3
The study of human behavior
in its natural context; involves
observation of behavior and
physical setting.
Ethnographic Research
Ethnographic Research
Chapter 8 Copyright ©2009 Cengage Learning Inc. All rights reserved 38
The Sampling ProcedureLO3
SampleSample
UniverseUniverse
A subset from a large population.A subset from a large population.
The population from which a sample will be drawn.
The population from which a sample will be drawn.
Chapter 8 Copyright ©2009 Cengage Learning Inc. All rights reserved 39
Sampling ProcedureLO3
UniverseUniverse SampleSample
Probability Samples
Probability Samples
Non-Probability Samples
Non-Probability Samples
Chapter 8 Copyright ©2009 Cengage Learning Inc. All rights reserved 40
Types of SamplesLO3
Probability Samples
Probability Samples
Simple Random Sample
Simple Random Sample
Stratified Sample
Stratified Sample
Cluster Sample
Cluster Sample
SystematicSample
SystematicSample
Non-Probability Samples
Non-Probability Samples
Convenience Sample
Convenience Sample
JudgmentSample
JudgmentSample
Quota SampleQuota Sample
SnowballSample
SnowballSample
Chapter 8 Copyright ©2009 Cengage Learning Inc. All rights reserved 41
Probability SamplesLO3
ProbabilitySample
ProbabilitySample
A sample in which every element in the population has a known statistical likelihood of being
selected.
A sample in which every element in the population has a known statistical likelihood of being
selected.
Random Sample
Random Sample
A sample arranged so that every element of the population has an equal chance of being selected.
A sample arranged so that every element of the population has an equal chance of being selected.
Chapter 8 Copyright ©2009 Cengage Learning Inc. All rights reserved 42
Nonprobability SamplesLO3
NonprobabilitySample
NonprobabilitySample
Convenience Sample
Convenience Sample
Any sample in which little or no attempt is made to get a
representative cross-section of the population.
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.
A form of nonprobability sample using respondents who are
convenient or readily accessible to the researcher.
Chapter 8 Copyright ©2009 Cengage Learning Inc. All rights reserved 43
Types of ErrorsLO3
Measurement Error
Measurement 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
Sampling Error
Sampling Error
Error when a sample somehow does not represent the target population.
Error when a sample somehow does not represent the target population.
Frame Error
Frame Error
Error when a sample drawn from a population differs from the
target population.
Error when a sample drawn from a population differs from the
target population.
Random Error
Random Error
Error because the selected sample is an imperfect representation of
the overall population.
Error because the selected sample is an imperfect representation of
the overall population.
Chapter 8 Copyright ©2009 Cengage Learning Inc. All rights reserved 44
Field Service FirmsLO3
Focus group facilities Mall intercept locations Test product storage Kitchen facilities Retail audits
Provide:Provide:
Chapter 8 Copyright ©2009 Cengage Learning Inc. All rights reserved 45
Analyzing the DataLO3
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
Cross-Tabulation
Chapter 8 Copyright ©2009 Cengage Learning Inc. All rights reserved 46
Preparing and Presenting the Report
LO3
Concise statement of the research objectives
Explanation of research design
Summary of major findings
Conclusion with recommendations
Chapter 8 Copyright ©2009 Cengage Learning Inc. All rights reserved 47
Following UpLO3
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?
Chapter 8 Copyright ©2009 Cengage Learning Inc. All rights reserved 48
REVIEW LEARNING OUTCOME
LO3
Steps in a Marketing Research Project
Chapter 8 Copyright ©2009 Cengage Learning Inc. All rights reserved 49
Discuss the profound impact of the Internet
on marketing research
Impact of the Internet onImpact of the Internet onMarketing ResearchMarketing Research
LO4
Chapter 8 Copyright ©2009 Cengage Learning Inc. All rights reserved 50
LO4
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
Chapter 8 Copyright ©2009 Cengage Learning Inc. All rights reserved 51
LO4
Advantages of Internet Surveys
Contact with the hard-to-reach
Contact with the hard-to-reach
Improved respondent participation
Improved respondent participation
Personalized questions and data
Personalized questions and data
Reduced costsReduced costs
Rapid development,Real-time reporting
Rapid development,Real-time reporting
Chapter 8 Copyright ©2009 Cengage Learning Inc. All rights reserved 52
LO4
Uses of the Internet by Marketing Researchers
Other types of marketing research Other types of marketing research
Conduct focus groupsConduct focus groups
Administer surveysAdminister surveys
Online
http://www.greenfieldonline.com
Chapter 8 Copyright ©2009 Cengage Learning Inc. All rights reserved 53
LO4
Internet Samples
UnrestrictedInternet Sample
UnrestrictedInternet Sample
ScreenedInternet Sample
ScreenedInternet Sample
RecruitedInternet Sample
RecruitedInternet Sample
A survey in which anyone with a computer and modem can fill
out the questionnaire.
A survey in which anyone with a computer and modem can fill
out the questionnaire.
An Internet sample with quotas based on desired sample
characteristics.
An Internet sample with quotas based on desired sample
characteristics.
A sample in which respondents are prerecruited and must
qualify to participate.
A sample in which respondents are prerecruited and must
qualify to participate.
Chapter 8 Copyright ©2009 Cengage Learning Inc. All rights reserved 54
LO4
Process for Online Focus Groups
1. Build a database of respondents via Web site screening questionnaire
2. Identify qualified individuals via e-mail
3. Develop a discussion guide
4. Moderator runs group by typing in questions online for all to see
5. Environment is similar to a chat room
6. Firm captures the complete text of the focus group
Chapter 8 Copyright ©2009 Cengage Learning Inc. All rights reserved 55
LO4
Types of Online Focus Groups
Real-time online focus groupsReal-time online focus groups
Time-extended online focus groupsTime-extended online focus groups
Chapter 8 Copyright ©2009 Cengage Learning Inc. All rights reserved 56
LO4
Advantages of Online Focus Groups
Speed Cost-effectiveness Broad geographic scope Accessibility Honesty
Chapter 8 Copyright ©2009 Cengage Learning Inc. All rights reserved 57
LO4
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).
Chapter 8 Copyright ©2009 Cengage Learning Inc. All rights reserved 58
LO4
Other Uses of the Internet byMarketing Researchers
Viewing of presentations ofmarketing research surveysViewing of presentations ofmarketing research surveys
Publication and distributionof reportsPublication and distributionof reports
Data management and online analysisData management and online analysis
Collaboration between client and research supplierCollaboration between client and research supplier
Distribution of requests for proposals (RFPs) and proposalsDistribution of requests for proposals (RFPs) and proposals
Chapter 8 Copyright ©2009 Cengage Learning Inc. All rights reserved 59
REVIEW LEARNING OUTCOMELO4
Impact of the Internet on Marketing Research
Chapter 8 Copyright ©2009 Cengage Learning Inc. All rights reserved 60
Discuss the growing importance of scanner-based
research
Scanner-Based ResearchScanner-Based ResearchLO5
Chapter 8 Copyright ©2009 Cengage Learning Inc. All rights reserved 61
LO5
Scanner-Based Research
Scanner-basedResearch
Scanner-basedResearch
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
Chapter 8 Copyright ©2009 Cengage Learning Inc. All rights reserved 62
LO5
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
Chapter 8 Copyright ©2009 Cengage Learning Inc. All rights reserved 63
REVIEW LEARNING OUTCOMELO5
Scanner-Based Research
BehaviorScan InfoScan
Panel information fromSpecific groups of people,enables researchers to manipulate variables and seereal results
Aggregate consumerinformation on allbar-coded products
Chapter 8 Copyright ©2009 Cengage Learning Inc. All rights reserved 64
Explain the concept of competitive
intelligence
Competitive IntelligenceCompetitive IntelligenceLO6
Chapter 8 Copyright ©2009 Cengage Learning Inc. All rights reserved 65
Competitive IntelligenceLO6
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
Competitive Intelligence
Chapter 8 Copyright ©2009 Cengage Learning Inc. All rights reserved 66
Sources of Competitive Intelligence
LO6
InternetInternet
Company SalespeopleCompany Salespeople
ExpertsExperts
CI ConsultantsCI Consultants
Government AgenciesGovernment Agencies
UCC FilingsUCC Filings
SuppliersSuppliers
PeriodicalsPeriodicals
Yellow PagesYellow Pages
Trade ShowsTrade Shows
Chapter 8 Copyright ©2009 Cengage Learning Inc. All rights reserved 67
REVIEW LEARNING OUTCOMELO6
Competitive Intelligence
CI
Part of a soundmarketing strategy
Helps companiesrespond to competitivethreats
Helps reduceunnecessary costs