1. Chapter 9 Copyright ©2012 by Cengage Learning Inc. All rights reserved 1 Lamb, Hair, McDaniel CHAPTER 9 Decision Support Systems and Marketing Research © Andersen Ross/Blend Images/Photolibrary

2. Chapter 9 Copyright ©2012 by Cengage Learning Inc. All rights reserved 2 The Role of Marketing Research Marketing Research The process of planning, collecting, and analyzing data relevant to a marketing decision. LO 2

3. Chapter 9 Copyright ©2012 by Cengage Learning Inc. All rights reserved 3 The Role of Marketing Research Diagnostic Predictive Descriptive  Gathering and presenting factual statements  Explaining data  Address “what if” questions LO 2

4. Chapter 9 Copyright ©2012 by Cengage Learning Inc. All rights reserved 4 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 satisfaction NOTE: Supplemental content – not in book. LO 2 Beyond the Book

5. Chapter 9 Copyright ©2012 by Cengage Learning Inc. All rights reserved 5 Collect Data Collect Data Specify Sampling Procedure Specify Sampling Procedure Plan Design/ Primary Data Plan Design/ Primary Data Define Problem Define Problem Analyze Data Analyze Data Prepare/ Present Report Prepare/ Present Report Follow Up 1 2 3 4 5 6 7 LO 3 The Marketing Research Process

6. Chapter 9 Copyright ©2012 by Cengage Learning Inc. All rights reserved 6 The Marketing Research Project Marketing Research Problem Marketing Research Objective Management Decision Problem 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 be to provide insightful decision- making information. A broad-based problem that uses marketing research in order for managers to take proper actions. LO 3

7. Chapter 9 Copyright ©2012 by Cengage Learning Inc. All rights reserved 7 Planning the Research Design Which research questions must be answered? How and when will data be gathered? How will the data be analyzed? ? LO 3

8. Chapter 9 Copyright ©2012 by Cengage Learning Inc. All rights reserved 8 Sources of Secondary Data Government Agencies Trade and Industry Associations Business Periodicals News Media Internal Corporate Information LO 3

9. Chapter 9 Copyright ©2012 by Cengage Learning Inc. All rights reserved 9 Secondary Data Advantages:  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 LO 3 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

10. Chapter 9 Copyright ©2012 by Cengage Learning Inc. All rights reserved 10 The New Age of Secondary Information: The Internet LO 3 The rapid development of the Internet has eliminated much of the drudgery associated with the collection of secondary data.

11. Chapter 9 Copyright ©2012 by Cengage Learning Inc. All rights reserved 11 Marketing Research Aggregators Acquire, catalog, reformat, segment, and resell reports already published by large and small marketing research firm. Databases are getting bigger, more comprehensive, and easier to search. LO 3 Some major aggregators are: mindbranch.com aarkstore.com usadata.com

12. Chapter 9 Copyright ©2012 by Cengage Learning Inc. All rights reserved 12 Primary Data Information 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 known  Secrecy can be maintained Disadvantages:  Primary data can be very expensive. LO 3 Disadvantages are usually offset by the advantages of primary data.

13. Chapter 9 Copyright ©2012 by Cengage Learning Inc. All rights reserved 13 Survey Research The most popular technique for gathering primary data, in which a researcher interacts with people to obtain facts, opinions, and attitudes. Survey Research LO 3

14. Chapter 9 Copyright ©2012 by Cengage Learning Inc. All rights reserved 14 Forms of Survey Research Focus Groups Executive Interviews Mail Surveys Telephone Interviews Mall Intercept Interviews In-Home Interviews LO 3

15. Chapter 9 Copyright ©2012 by Cengage Learning Inc. All rights reserved 15 Questionnaire Design Open-Ended Question Open-Ended Question Closed-Ended Question Closed-Ended Question Scaled- Response Question Scaled- Response Question An interview question that encourages an answer phrased in the 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. LO 3

16. Chapter 9 Copyright ©2012 by Cengage Learning Inc. All rights reserved 16 Questionnaire Design Closed-ended and scaled-response questions are easier to tabulate than open- ended questions because response choices are fixed. On the other hand, unless the researcher designs the closed-ended question very carefully, an important choice may be omitted. Beyond the Book

17. Chapter 9 Copyright ©2012 by Cengage Learning Inc. All rights reserved 17 Questionnaire Design Clear and concise No ambiguous language Avoid two questions in one Avoid leading questions LO 3

18. Chapter 9 Copyright ©2012 by Cengage Learning Inc. All rights reserved 18 LO 3 Observation Research A research method that relies on four types of observation:

19. Chapter 9 Copyright ©2012 by Cengage Learning Inc. All rights reserved 19 Ethnographic Research The study of human behavior in its natural context; involves observation of behavior and physical setting. LO 3

20. Chapter 9 Copyright ©2012 by Cengage Learning Inc. All rights reserved 20 Virtual Shopping Advantages of virtual shopping: Creates an environment with a realistic level of complexity and variety. Allows quick set up and altering of tests. Low production costs. High flexibility. LO 3

21. Chapter 9 Copyright ©2012 by Cengage Learning Inc. All rights reserved 21 Experiments Experiments are used by researchers to gather primary data. Experiment Variables Price Package design Shelf space Advertising theme Advertising expenditures

22. Chapter 9 Copyright ©2012 by Cengage Learning Inc. All rights reserved 22 Sampling Procedure Universe Sample Probability Samples Non-Probability Samples LO 3

23. Chapter 9 Copyright ©2012 by Cengage Learning Inc. All rights reserved 23 Types of Samples Probability Samples Simple Random Sample Stratified Sample Cluster Sample Systematic Sample Non-Probability Samples Convenience Sample Judgment Sample Quota Sample Snowball Sample LO 3

24. Chapter 9 Copyright ©2012 by Cengage Learning Inc. All rights reserved 24 Analyzing the Data 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 LO 3

25. Chapter 9 Copyright ©2012 by Cengage Learning Inc. All rights reserved 25 Preparing and Presenting the Report  Concise statement of the research objectives  Explanation of research design  Summary of major findings  Conclusion with recommendations LO 3

26. Chapter 9 Copyright ©2012 by Cengage Learning Inc. All rights reserved 26 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? LO 3

27. Chapter 9 Copyright ©2012 by Cengage Learning Inc. All rights reserved 27 Impact of the Internet  Under appropriate conditions, can represent the entire population  Has replaced computer-assisted telephone interviewing  Rated as having the greatest potential for further growth LO 4

28. Chapter 9 Copyright ©2012 by Cengage Learning Inc. All rights reserved 28 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 costs Rapid development, Real-time reporting Rapid development, Real-time reporting LO 4

29. Chapter 9 Copyright ©2012 by Cengage Learning Inc. All rights reserved 29 Uses of the Internet by Marketing Researchers Other types of marketing research Conduct focus groups Administer surveys LO 4

30. Chapter 9 Copyright ©2012 by Cengage Learning Inc. All rights reserved 30 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 LO 4

31. Chapter 9 Copyright ©2012 by Cengage Learning Inc. All rights reserved 31 The Moderator’s Role Provides respondents with questions and instructions. Provides respondents access to stimuli, such as ad mockups or videos. LO 4

32. Chapter 9 Copyright ©2012 by Cengage Learning Inc. All rights reserved 32 Advantages of Online Focus Groups  Better participation rates  Cost-effectiveness  Broad geographic scope  Accessibility  Honesty LO 4

33. Chapter 9 Copyright ©2012 by Cengage Learning Inc. All rights reserved 33 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. BehaviorScan InfoScan LO 5 Research program that tracks the purchases of 3,000 households through store scanners in each research market Sales-tracking service for the consumer packaged-goods industry

34. Chapter 9 Copyright ©2012 by Cengage Learning Inc. All rights reserved 34 Competitive Intelligence An intelligence system that helps managers assess their competition and vendors in order to become more efficient and effective competitors. Competitive Intelligence (CI) LO 7

35. Chapter 9 Copyright ©2012 by Cengage Learning Inc. All rights reserved 35 When Should Marketing Research Be Conducted?  Depends on managers’ perceptions of its quality, price, and timing  When the expected value of research information exceeds the cost of generating the information LO 6