1. CHAPTER EIGHT Improving Decisions with Marketing Information
For use only with Perreault and McCarthy texts.
© 2005 McGraw-Hill Companies, Inc.
McGraw-Hill/Irwin
For use only with Perreault and McCarthy texts. © 2005 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin

2. When we finish this lecture you should
1. Know about marketing information systems.
2. Understand a scientific approach to marketing research.
3. Know how to define and solve marketing problems.
4. Know about getting secondary and primary data.
5. Understand the role of observing, questioning, and using experimental methods in marketing research.
At the end of this presentation, you should:
1. Know about marketing information systems.
2. Understand a scientific approach to marketing research.
3. Know how to define and solve marketing problems.
4 Know about getting secondary and primary data.
5. Understand the role of observing, questioning, and using experimental methods in marketing research.
© 2005 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

3. Radical Improvements Are Underway in Marketing Information
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MIS Makes Information Available and Accessible
MIS Makes Information Available and Accessible
Get More Information Faster and Easier
Get More Information Faster and Easier
Summary Overview
Marketing managers need information about: customers and their responses to the marketing mix; targeting and segmentation; competitors; and the marketing environment. They also need information that will allow them to do detailed cost analysis for the purposes of implementation and control. Marketing information systems (MIS) help make this information available and accessible.
Key Issues
An MIS allows a manager to get more information, faster and easier, by making it readily available in an easy-to-use format.
Discussion Question: What advantages would an organization have over its competitors if it had a superior marketing information system?
Intranet: a system for linking computers within a company that works like the Internet. An intranet is easily accessible and is also easy to update.
Marketing managers must help develop a marketing information system, especially in designing what types of data should be included in the system. :
Marketing Managers Must Help Develop an MIS :
An Intranet Is Easy to Update
An Intranet Is Easy to Update : :
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4. © 2005 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Exhibit 8-1
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Elements of a Complete Marketing Information System
Summary Overview
This diagram of a typical MIS shows how its key components fit together to meet a manager’s information needs.
Key Issues
Information sources for an MIS may include formal marketing research studies, as well as previously published internal or external data.
Data warehouse: a place where databases are stored so that they are available when needed.
Some MISs have a decision support system (DSS) that puts managers on-line.
DSS: a computer program that makes it easy for a marketing manager to get and use information while he or she is making decisions.
Search engine: a computer program that helps a marketing manager find information that is needed.
Discussion Question: With what types of search engines are you familiar?
Marketing model: a statement of relationships among marketing variables. It allows a manager to see how answers to questions might change in various what-if situations.
The outcomes of the decisions become feedback to the process. The database is continually refreshed with new information, making it an up-to-the-minute management tool.
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5. The Impact of an MIS
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Information Makes Managers Eager for More
Information Makes Managers Eager for More
Many Firms Are Not There Yet
Many Firms Are Not There Yet
Summary Overview
The growth in the popularity of marketing information systems has had a tremendous impact on the decision-making capabilities in many organizations.
Key Issues
Information makes managers eager for more of it.
The more they use the MIS, they see more possible applications.
Advancements in technology will make the MIS even more of a necessity.
Many firms are not there yet, either because they don’t have an MIS, or don’t know how to fully use the one they have.
Discussion Question: Why might there be problems with managers not fully utilizing the power of an existing MIS within their organization?
MIS use is growing rapidly.
Even very small firms can develop an MIS. Marketing managers need to:
think about the problems they need to solve;
decide what information is needed to solve the problems; and
ask for it from the MIS in the right form.
New questions require new answers, meaning that an MIS must be continually updated with information.
MIS Use Is Growing Rapidly
New Questions Require New Answers
MIS Use Is Growing Rapidly : : :
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6. Research Is a Bridge to Customers
Courtesy of Quizno’s
Marketing research is a set of procedures to develop and analyze new information to help marketing managers make decisions. Marketing researchers get facts that aren’t available in the MIS. This ad from Quizno’s, though humorous, illustrates the importance of marketing research and how flawed research can lead to inaccurate conclusions.
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7. © 2005 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Who Does the Work?
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Summary Overview
Many different individuals and organizations are involved in marketing research.
Key Issues
Some large organizations have their own internal marketing research departments.
Most organizations needing marketing research use external suppliers, such as custom marketing research firms. These firms can either be very general in their approach or they can be very specialized.
Discussion Question: Why might a large company that has its own marketing research department also want to use an external research supplier?
As this ad shows, many firms rely on outside specialists like Dun and Bradstreet to provide marketing information about their current and potential customers. Many of these firms also offer ongoing training.
The use of marketing research is not limited to business firms—government agencies and nonprofit organizations are also adopting a more research-driven approach to making decisions. +
© 2005 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

8. Ethical Issues in Marketing Research
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Withholding Information
Unauthorized Disclosure of Personalized Information
Summary Overview
As with any area of marketing, there are ethical issues involved in the use, and possible misuse, of information gathered via marketing research.
Key Issues
Among the more common ethical issues are ones dealing with decisions about withholding certain types of marketing research information.
Marketing managers or research suppliers might withhold important details about data collection.
A research supplier may not want to tell the whole story, to avoid being the bearer of bad news.
Other unscrupulous marketing research suppliers may turn their data over to telemarketers or list brokers without permission.
Discussion Question: Have you ever taken part in a telephone survey, mail survey, Internet survey, or personal interview that you thought was marketing research, only to find out later that it was cover for a cleverly designed sales presentation? What impact do these tactics have on legitimate data collection efforts?
Finally, there are very skilled people who also know how to lie with statistics and therefore misrepresent information.
The best defense for the marketer is to know something about marketing research.
Disguised Sales Pitches
Lying with Statistics : : :
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9. Effective Research Requires Cooperation
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That marketing research geek doesn’t understand my business – she doesn’t even know my competitors!
That overpaid yuppie is clueless – she doesn’t even know how a chi-square is computed!
Summary Overview
In order to have good marketing research, it is extremely important for the marketing manager and the marketing researcher to develop a good working relationship.
Key Issues
Sometimes developing a good relationship is difficult, because the marketing manager and the researcher come from somewhat different professional worlds.
Marketing managers need research because they have problems they want to solve, but they sometimes have trouble explaining what they need to a researcher.
On the other hand, researchers who are very skilled in the technical aspects of marketing research may not completely understand the decision situation facing the manager.
Discussion Question: How can marketing managers and researchers come to understand and work with each other in a productive way?
The bottom line? Collaboration between the researcher and the manager is absolutely necessary if the research effort is going to be successful. : :
Collaboration Is Absolutely Necessary!
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10. © 2005 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Exhibit 8-2
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The Scientific Method and Marketing Research
Summary Overview
An MIS or DSS typically makes use of regularly collected recurring information, but marketing research develops unique information to solve a new problem.
Key Issues
Scientific method: a decision-making approach that is objective and orderly in testing ideas before accepting them.
Hypotheses: educated guesses about likely causes and effects that can be measured objectively to help eliminate unnecessary risk taking.
Marketing research process: a five-step application of the scientific method:
Step 1 is defining the problem: the manager and the researcher determine the key decision issues requiring information.
Step 2 is analyzing the situation: an informal study of information that is already available in the problem area.
Step 3 is getting problem-specific data: the collection of data that is customized to the decision maker’s unique needs.
Step 4 is interpreting the data: the process of getting meaning from the collected data; it is a transformation of raw data to useful information.
Step 5 is solving the problem: the delivery of recommendations to the marketing manager, who is ultimately responsible for implementing the recommendations.
Discussion Question: How does an approach like the marketing research process help research to be systematic (well-planned), objective, and oriented toward the needs of managers? : : :
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11. Defining the Problem – Step 1
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Finding the Right Problem Level
Finding the Right Problem Level
Summary Overview
This is the most important and often the most difficult step in the research process. Often, the researcher must help the manager to flesh out the real problem facing the organization and the types of information needed to solve the problem.
Key Issues
Finding the right problem level almost solves the problem, in many cases.
In order to find the right problem, the marketing strategy planning framework can be useful.
Don’t confuse problems with symptoms.
Key performance indicators in marketing may be symptoms of other more fundamental problems.
Discussion Question: Suppose a firm experiences a sudden sales decline. Is this decline a symptom or a problem? Why?
Setting research objectives may require more understanding.
The researcher and manager can develop a list of research questions that are most important.
A single research project may not be adequate for answering all of the questions.
Problems vs. Symptoms
Problems vs. Symptoms
Setting Research Objectives : : :
© 2005 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

12. Analyzing the Situation – Step 2
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What Information Do We Already Have?
What Information Do We Already Have?
Summary Overview
Situation analysis is basically an informal study in answer to the question, “What information do we already have in the problem area?”
Key Issues
Situation analysis often begins by picking the brains of informed people, such as experts within the organization, key middlemen, or other knowledgeable people.
Discussion Question: What other types of people may be useful sources of information in the early stages of a situation analysis?
Situation analysis helps educate a researcher, by providing background about unfamiliar problem areas.
The situation analysis may uncover information that leads to an early identification of a solution, or it may help to determine what other types of information are really necessary.
Pick the Brains of People Around You
Pick the Brains of People Around You :
Situation Analysis Helps Educate a Researcher : :
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13. © 2005 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Exhibit 8-3
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Secondary and Primary Data
Summary Overview
A situation analysis usually incorporates secondary data, which may provide the answers, or at least some background, relevant to the research problem.
Key Issues 
Secondary data: information that has already been collected or published.
Primary data: information specifically collected to solve a current problem.
Much secondary data is available.
Examples of secondary data sources from inside the company might be data from the MIS, financial information from the accounting department, or reports from the field sales force.
Information from outside the company might include government information, trade association studies, or information available in magazines or journal articles.
Search engines can help researchers find information on the Internet.
Many other computerized database and index services are also available on the Internet.
Government data is inexpensive and available in electronic or printed form. Most countries with advanced economies have government agencies that help researchers get the data they need. 
Discussion Question: Why does it make sense to examine secondary data first, before gathering primary data? : : +
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14. Private Sources Are Useful Too
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Summary Overview
Many private research organizations, as well as advertising agencies, newspapers, and magazines, regularly compile and publish data.
Key Issues
Harris InfoSource is a private organization that regularly provides information to researchers.
According to the ad, Harris InfoSource is a comprehensive database of business establishments.
Such information is useful in targeting prospects and preparing for sales contacts.
Many trade organizations also provide information about their members.
The Encyclopedia of Associations is an excellent source listing hundreds of these organizations.
Standard and Poor’s Industry Surveys is a source of information covering entire industries.
As with government data, much private information is available electronically as well as in print.
Discussion Question: Why would it be important to evaluate the quality of the secondary information available from a private source? What types of things would a researcher want to consider in evaluating the quality of secondary data? +
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15. The Bottom Line on Secondary Data
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Key Issues
Situation Analysis – A Lot For a Little
Research Proposal
Summary Overview
Regardless of the source, it makes sense to examine secondary information before collecting more customized primary data, because secondary data tends to be relatively inexpensive and easy to acquire. Therefore, situation analysis yields a lot, for very little.
Key Issues
The small amount of time and money spent on reviewing secondary data may actually solve the research problem, or:
it can help to establish research priorities;
focus the research objectives more precisely; or
suggest additional issues for examination.
The outcome of a situation analysis is a listing of the research questions that remain unanswered.
At this point, the researcher can determine what else is needed and how to get it.
Research proposal: a plan that specifies what information will be obtained and how.
The research proposal helps to keep a research project on track and on budget.
Discussion Question: Other than control over budgeting and project scheduling, what other advantages does a research proposal provide for both researchers and managers?
What Else Is Needed? :
Situation Analysis – A Lot For a Little
What Else Is Needed? :
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16. Getting Problem-Specific Data – Step 3
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Observing
Monitoring behaviors
Human or machine
Costs coming down
Questioning
Asking people
Formal or informal
Qualitative questioning is open-ended
Primary Data
Summary Overview
In getting problem-specific data, marketers collect primary data that is customized to their unique needs. In most cases, researchers try to learn what customers think about a particular topic, or they try to see how they behave under certain conditions.
Key Issues
Primary data is usually classified into two main categories:
Observing involves monitoring behaviors. Observation may be done by humans or by machines.
Questioning means asking consumers about their ideas, attitudes, interests, or behaviors. Questioning may be done formally or informally.
Qualitative questioning is open-ended, with a hidden purpose.
It aims for in-depth, detailed responses—not yes or no answers.
It tends to work best in research situations that require the generation of a lot of ideas as opposed to firm conclusions.
Discussion Question: If the depth of responses is a key advantage of qualitative questioning, what might be a disadvantage? : :
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17. Focus Groups Stimulate Discussion
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Summary Overview
One of the most popular forms of qualitative questioning is the focus group.
Key Issues
Focus group interview: involves interviewing 6 to 10 people in an informal group setting. A skilled moderator leads the discussion, asking open-ended questions on topics of interest and taking advantage of group dynamics to pursue comments in-depth. Sessions are usually videotaped, or they may be broadcast via Internet or satellite.
As this ad shows, FocusVision Worldwide is one of an increasing number of firms that can broadcast live focus groups anywhere in the world. Thus, the focus groups are readily accessible to researchers who can analyze the information. Managers can also observe.
Focus group interviewing can be relatively inexpensive, and it can be conducted quickly. However, the conclusions drawn from a focus group depend on who watches it. Focus groups involve so few people as participants that they may not be representative of the entire target market.
Focus groups can also be overused and mistaken for “market facts.” Sometimes, they generate more questions than answers. As a result, many researchers use focus groups as preparation for more formal quantitative research utilizing a larger, scientifically selected group of respondents.
Discussion Question: Have you ever participated in a focus group? Describe your experience. +
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18. Structured Questioning Gives More Objective Results
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Quantitative Research
Quantitative Research
Faster Response & Analysis
Faster Response & Analysis
Key Issues
Summary Overview
If the collection of primary data is standardized, there are several advantages for researchers. They can use identical questions and response alternatives across a large, representative sample of respondents. They can also summarize the information using a variety of statistics.
Key Issues
Quantitative research seeks structured responses that can be summarized in numbers, such as percentages, averages, or other statistics.
Fixed responses speed answering and analysis.
Discussion Question: If you were trying to decide whether or not to execute a $30 million advertising campaign, would you rather base your decision on qualitative or quantitative research? Why?
A common approach is to have consumers indicate how much they agree or disagree with a statement on a survey.
There are quantitative measures of attitudes, too.
Another approach is to have respondents rate the various attributes of a product or service using a numerical scale. :
Attitude Measurement :
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19. Surveys Come in Many Forms
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Mail and Online
Mail and Online
Primary
Methods
for
Collecting
Survey
Data
Telephone
Telephone
Summary Overview
There are several different types of surveys. The choice of the right survey depends on the research objectives and constraints such as time and money.
Key Issues
Mail and online surveys are common and convenient. Advantages of these types of surveys include: the ability to ask an extensive set of questions; convenience for the respondent; anonymity; and a greater willingness by the respondent to provide personal information.
The main disadvantage is a low response rate– the percentage of people contacted who complete the survey. It may also take a long time to get the results. Recently, more researchers have been delivering surveys faster online.
Discussion Question: How might online survey respondents be different than the population in general? What impact would these differences have on the results of a survey and the conclusions that a research might draw from it?
Telephone surveys are fast and effective. Researchers can gather data more quickly and prepare it for analysis faster than with a mail survey, and there is an opportunity for researchers to probe respondents for details. However, telephone surveys are more costly and may inconvenience respondents.
Personal interview surveys can be in-depth, and give the interviewer the chance to explain complex issues. Interviewers must be well trained to avoid biasing the respondents’ answers. Consumer interviews are often done in shopping malls or retail stores, but interviews are even more expensive than telephone surveys. :
Personal Interview
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20. Observing – What You See Is What You Get
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Observation Is Common in Advertising Research
Observation Is Common in Advertising Research
Summary Overview
Observing is another way to collect primary data. Like data gathered from standardized surveys, observation data is usually tabulated.
Key Issues
In observation research, researchers try to see or record the behaviors of people. Most observation is done without the knowledge of the people being observed, because researchers do not want to influence the things people do. Observation can be done by humans or by machine.
Observation methods are common in advertising research.
Nielsen Media Research gathers data on television viewership by using “people meters” that record the channels watched by a selected sample of consumers.
Discussion Question: The data for developing TV ratings used to be collected exclusively via “diaries”—paper-and-pencil logs in which consumers recorded the programs they watched. Would you expect to see differences between what people recorded in a viewing diary compared to what a people meter might show? What types of differences?
Checkout scanners “see” a lot, as well, when it comes to shopping behavior.
This information helps retailers to manage their inventories and adjust their merchandise selections.
Consumer panels are groups of consumers who provide information to research firms on a continuing basis.
This information is made available to clients for a fee.
Checkout Scanners “See” a Lot
Checkout Scanners “See” a Lot
Consumer Panels :
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21. © 2005 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Exhibit 8-4
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Experimental Method Controls Conditions
Summary Overview
Questioning and observing might also be used in a different way by incorporating them into an experimental method, in which researchers compare the responses of two or more groups that are similar, except on the characteristic being tested.
Key Issues
Suppose a researcher wants to compare the effectiveness of two different versions of an ad. The effectiveness could be measured by the response of consumers to a question about their interest in the advertised product.
In step 1: researchers select a representative group of consumers.
In step 2: researchers split the group in two, and each group sees a different ad.
In step 3: researchers ask consumers to rate their level of interest in the product advertised. The researchers then compare the average responses for the groups.
In step 4: the researchers conclude that the higher rated ad causes people to have greater interest in the product than does the lower rated ad.
Test marketing is another way to experiment. Researchers select geographic areas in which they vary a product’s marketing mix in some way, and then they compare the results across the geographic areas.
Discussion Question: Why do you think that experimentation is not as popular as some other quantitative research methods, such as questioning and observation?
Syndicated research firms can share data collection costs. For example, a manager can subscribe to research services that provide regularly compiled data. These services collect large amounts of data useful to many clients – and it takes up about 40% of marketing research spending. : : : + :
© 2005 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

22. Interactive Exercise: Types of Data
For complete information and suggestions on using this Interactive Exercise, please refer to the “Notes on the Interactive Exercise” section for this chapter in the Multimedia Lecture Support Package to Accompany Basic Marketing.
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23. © 2005 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Exhibit 8-5
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Interpreting the Data – Step 4
Summary Overview
Data analysis and interpretation follow data collection, and it answers the question, “What does it really mean?” Quantitative analysis is facilitated by the use of statistical packages—easy-to-use computer programs that analyze data.
Key Issues
Data analysis can be either simple or complex. One of the most popular analytical approaches is cross-tabulation. An example of a cross-tabulation appears in this slide.
The table shows the combined responses for two questions:
“Have you moved in the last year?” and
“Do you have Caller ID on your phone at home?”
Among people who have moved in the last year, 23.4 percent have Caller ID.
Among people who have not moved, the percentage of people with Caller ID is only 10.2 percent.
Therefore, there seems to be a relationship between whether or not someone has moved and whether or not that person has Caller ID.
Discussion Question: Looking at the table, why might the fact that someone has moved contribute to a greater likelihood of having Caller ID? How can a basic knowledge of statistics help a manager who is presented with the results of a quantitative research study? +
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24. Key Concerns in Data Interpretation
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Population
Population
Sample
Sample
Key Issues
Summary Overview
Certain basic issues are critical in assessing the quality of a research project.
Key Issues
The first question a marketing researcher must answer is, “Is your sample really representative of the population?”
Population: the total group of interest to the researcher or marketing manager.
Sample: a smaller group selected to represent the population.
The key here is to ensure that the sample selected represents the larger population.
Discussion Question: Is a metropolitan area’s telephone directory a complete list of that area’s population? Why or why not? What implications are there for researchers who want to select samples of consumers from the telephone book?
Random samples tend to be representative.
Research results are not exact.
Confidence interval: the range on either side of an estimate that is likely to contain the true population value.
Validity problems can destroy research.
Validity: the extent to which data measures what it is intended to measure.
Poor interpretation can also destroy research.
Problems can arise if the researcher does not understand the management problem, so the marketing manager and researcher should work together closely. :
Validity
Confidence Intervals :
Confidence Intervals
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25. Interactive Exercise: Confidence Interval
The objective of this exercise is to show a graphical example illustrating how the results of a marketing research study can change as the sample characteristics change. The exercise contains hypothetical results from a question that is often asked on surveys: “How satisfied are you overall with the quality of the service you have received from XYZ Company?” Respondents to the survey question used a scale to respond that ranged from 0 (not at all satisfied) to 10 (completely satisfied).
Working through the exercise, the students will learn:
How the distribution of sample results affects the confidence interval around the average satisfaction score;
How the sample size affects the confidence interval;
How marketers make tradeoffs regarding the cost and quality of marketing research.
For more detailed instructions on how to use the Interactive Exercise, see the Word document located in the assets folder for this chapter.
© 2005 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

26. Solving the Problem – Step 5
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Actionable Results
Actionable Results
Lack of Impact?
Lack of Impact?
Summary Overview
In this last step of the research process, managers use the research results to make marketing decisions.
Key Issues
Researchers and managers should ensure at the outset of a research project that the results will be actionable.
Research results should be applicable to the marketing strategy planning process.
Discussion Question: Sometimes, research merely confirms what managers already know. Does this kind of result mean that the research has no value?
Sometimes, however, research does not have the impact that it should.
Usually, this lack of impact is due to problems with the research itself or barriers to the use of research within the organization.
Managers may not know enough about research to be able to get what they need.
The quality of research suppliers is highly variable.
Doing research right takes time, forethought, and money. If managers handle marketing research on a crisis basis-- too little, too late—they are in for serious problems.
Managers Need to Know About Research
Managers Need to Know About Research
Needed: Time, Forethought, Money
Quality of Suppliers Is Variable :
Quality of Suppliers Is Variable : :
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27. International Marketing Research
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Research Contributes to Success
Research Contributes to Success
Use Local Researchers
Use Local Researchers
Summary Overview
Marketing research contributes to international marketing success. Customer needs and interests, as well as segmenting dimensions and other environmental factors, may be considerably different in foreign markets. Decisions made without sound marketing research are laden with risk.
Key Issues
Marketers dealing in international markets would be well advised to avoid mistakes by using local researchers.
Discussion Question: Why is it advisable to use overseas market researchers in investigating foreign markets?
If a firm is engaged in similar research projects in various overseas markets, some coordination and standardization makes sense.
The marketing manager needs to be involved in this effort so that the research results yield cross-market comparisons.
In large corporations with multinational operations, the marketing research function may be centralized, in order to achieve economies of scale and avoid duplication of effort. : :
Coordinate and Standardize :
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28. How Much Information Do You Need?
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Key Issues
Research Reduces Risk
Cost vs. Value of Research
Summary Overview
Marketing research can require significant expenditures. Managers must assess both the cost and the value of needed information.
Key Issues
Information is costly, but reduces risk.
Research usually pays for itself in the long run by improving the quality of decisions.
The cost of a marketing research study may well be quite small compared to the cost of a marketing mistake made because of inadequate information.
Discussion Question: Suppose a manager is trying to decide between: a.) launching a new product; or b.) delaying the full launch and conducting a market test in a small number of geographic areas. What circumstances might lead the manager to conduct the market test? What circumstances might lead the manager to press ahead with the full launch?
What is the value of information?
Managers never have all the information they would like to have.
They must weigh the cost of getting more information against the risk of making a decision without the information.
There are some decision analysis tools that may help in answering the question of cost versus value.
Managers have to choose how they will proceed. :
Research Reduces Risk
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29. © 2005 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Key Terms
This slide refers to boldfaced terms appearing in Chapter 8.
Marketing information system (MIS)
Intranet
Data warehouse
Decision support system (DSS)
Search engine
Marketing model
Marketing research
Scientific method
Hypotheses
Marketing research process
Situation analysis
Secondary data
Primary data
Research proposal
Qualitative research
Focus group interview
Quantitative research\
Response rate
Consumer panel
Summary Overview
These are key terms you should be familiar with based upon the material in this presentation.
Key Issues
Marketing information system (MIS): an organized way of continually gathering, accessing, and analyzing information that marketing managers need to make decisions.
Intranet: a system for linking computers within a company.
Data warehouse: a place where databases are stored so that they are available where needed.
Decision support system (DSS): a computer program that makes it easy for marketing managers to get and use information as they are making decisions.
Search engine: a computer program that helps a marketing manager find information that is needed.
Marketing model: a statement of relationships among marketing variables.
Marketing research: procedures to develop and analyze new information to help marketing managers make decisions.
Scientific method: a decision‑making approach that focuses on being objective and orderly in testing ideas before accepting them.
Hypotheses: educated guesses about the relationships between things or about what will happen in the future.
Marketing research process: a five‑step application of the scientific method that includes (1) defining the problem, (2) analyzing the situation, (3) getting problem-specific data, (4) interpreting the data, and (5) solving the problem.
Situation analysis: an informal study of what information is already available in the problem area.
Secondary data: information that has been collected or published already.
Primary data: information specifically collected to solve a current problem.
Research proposal: a plan that specifies what marketing research information will be obtained and how.
Qualitative research: seeks in‑depth, open‑ended responses, not yes or no answers.
Focus group interview: an interview of 6 to 10 people in an informal group setting.
Quantitative research: seeks structured responses that can be summarized in numbers‑‑like percentages, averages, or other statistics.
Response rate: the percent of people contacted in a research sample who complete the questionnaire.
Consumer panel: a group of consumers who provide information on a continuing basis.
© 2005 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

30. © 2005 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Key Terms
This slide refers to boldfaced terms appearing in Chapter 8.
Experimental method
Statistical packages
Population
Sample
Random sampling
Confidence interval
Validity
Summary Overview
These are additional key terms.
Key Issues
Experimental method: a research approach in which researchers compare the responses of two or more groups that are similar except on the characteristic being tested.
Statistical packages: easy‑to‑use computer programs that analyze data.
Population: in marketing research, the total group you are interested in.
Sample: a part of the relevant population.
Random sampling: each member of the research population has the same chance of being included in the sample.
Confidence interval: the range on either side of an estimate from a sample that is likely to contain the true value for the whole population.
Validity: the extent to which data measures what it is intended to measure.
© 2005 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin