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Customer Information SystemsCustomer Information Systems
McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.
Customer Information Systems — Today’s Objectives
Objectives will be to:
Define and understand marketing research
Explore a framework for marketing research
Examine marketing research data-collection methods
Compare how online methods differ from offline methods
Discuss what research is best suited by the Internet
Understand the implications of international Internet market research
Understanding Marketing Research
Benefits and Uses of Marketing Research
Framework for Marketing Research
Data Collection in Marketing Research
Comparisons for Offline and Online Marketing Research Methods
Guidelines for Conducting Data Analysis and Utilization
Conclusion
Chapter 15: Customer Information Systems
Chapter 15: Customer Information Systems
Understanding Marketing Research
Benefits and Uses of Marketing Research
Framework for Marketing Research
Data Collection in Marketing Research
Comparisons for Offline and Online Marketing Research Methods
Guidelines for Conducting Data Analysis and Utilization
Conclusion
Exhibit 15.1: Customer-Centric Marketing Process
Marketing Research
Marketing Strategyand Tactics
Customer RelationshipManagement
Sales Force Managementand Customer Experience
Database Marketing
Acquire/Up-SellCross-Sell
Exhibit 15.2: Leveraging Customer Information
DefineProblem
Collect Data
Organize Data
Analyze Data
Utilize Data
Exhibit 15.3: Customer Information System
Mar
ketin
g R
esea
rch
Exhibit 15.4: Framework of Marketing Research
Opportunity/Problem DefinitionOpportunity/Problem Definition
Research DesignResearch Design
Data Collection and EntryData Collection and Entry
Data AnalysisData Analysis
Final Report/Data UtilizationFinal Report/Data Utilization
MarketerMarketer PublicPublicPublicPublic
ConsumerConsumerConsumerConsumer
CustomerCustomerCustomerCustomerMarketing Research
Market Problems
Target Market
Market Opportunities
IdentificationIdentification
DefinitionDefinition
ActionAction
Exhibit 15.5: What Is Marketing Research?
Marketing Research Objectives
Marketing Research Attempts to Perform Three Basic Tasks:
Marketing ResearchMarketing Research
DescriptionDescription
DiagnosisDiagnosis
PredictionPrediction
Chapter 15: Customer Information Systems
Understanding Marketing Research
Benefits and Uses of Marketing Research
Framework for Marketing Research
Data Collection in Marketing Research
Comparisons for Offline and Online Marketing Research Methods
Guidelines for Conducting Data Analysis and Utilization
Conclusion
Benefits of Marketing Research
Improve the quality of decision-makingImprove the quality of decision-making
Guide communications with current and potential customersGuide communications with current and potential customers
Identify potential opportunities in the marketplaceIdentify potential opportunities in the marketplace
Minimize business risk by uncovering prospective problemsMinimize business risk by uncovering prospective problems
Create benchmarks and track progressCreate benchmarks and track progress
Evaluate overall successEvaluate overall success
Many more…Many more…
Benefits of Internet Marketing Research
Quickly gain crucial market intelligenceQuickly gain crucial market intelligence
Act upon first-mover advantagesAct upon first-mover advantages
Stay afloat in a fast-paced environmentStay afloat in a fast-paced environment
Reduce market research costsReduce market research costs
Many more…Many more…
Exhibit 15.6: Popular Uses of Marketing Research
Who are mycustomers?
Who are mycustomers? Conjoint
Analysis
How to segment
the market?
How to segment
the market?
What isthe price
elasticity?
What isthe price
elasticity?
What are the growth
trends?
What are the growth
trends?
Who are my competitors?
Who are my competitors?
What dothey like?
What dothey like?
Whendo they
purchase?
Whendo they
purchase?
MarketingResearchMarketingResearch
Opinion Research
Competitive Analysis
Buying-Habit Studies
Environmental Studies
Customer Identification
Discrete Choice Modeling
Chapter 15: Customer Information Systems
Understanding Marketing Research
Benefits and Uses of Marketing Research
Framework for Marketing Research
Data Collection in Marketing Research
Comparisons for Offline and Online Marketing Research Methods
Guidelines for Conducting Data Analysis and Utilization
Conclusion
Exhibit 15.7: Opportunity/Problem Definition
Project TitleProject Title
Statement of Marketing Statement of Marketing Problem/OpportunityProblem/Opportunity
Statement of Marketing Statement of Marketing Problem/OpportunityProblem/Opportunity
Project Objective(s)Project Objective(s)
Questions That the Study Questions That the Study Attempts to AnswerAttempts to Answer
Questions That the Study Questions That the Study Attempts to AnswerAttempts to Answer
“Market Research on
Internet Habits of Teenagers”
“Market Research on
Internet Habits of Teenagers”
“Teenagers Make Up a
Large Portion of the Market”
“Teenagers Make Up a
Large Portion of the Market”
Identify the Characteristics of Webpages
Teenagers Visit
Identify the Characteristics of Webpages
Teenagers Visit
Ex.: What Sites Do Teenagers
Visit Most?
Ex.: What Sites Do Teenagers
Visit Most?
Why? How?
When?
Why? How?
When?
How Often?
How Many?
How Often?
How Many?
Who, What, When,
Where?
Who, What, When,
Where?
What Causes What?
What Causes What?
Exploratory ResearchExploratory Research Conclusive ResearchConclusive Research
Study TypeStudy Type
Causal ResearchCausal
ResearchDescriptive Research
Descriptive Research
Exhibit 15.8: Deciding on a Research Design Type
Exhibit 15.9: Types of Marketing Research Data
Information Previously Collected
and Published
Information Previously Collected
and PublishedSecondary ResearchSecondary Research
Primary ResearchPrimary Research
Qualitative ResearchQualitative Research
Quantitative ResearchQuantitative Research
Information Gleaned by a Researcher for a
Specific Purpose
Information Gleaned by a Researcher for a
Specific Purpose
Information About the Motivations,
Perceptions and Thoughts of a Group
Information About the Motivations,
Perceptions and Thoughts of a Group
Information About How Many People in a
Population Share a Set of Characteristics
Information About How Many People in a
Population Share a Set of Characteristics
Ex.: Library SearchEx.: Library Search
Ex.: InterviewEx.: Interview
Ex.: Focus GroupsEx.: Focus Groups
Ex.: InterviewEx.: Interview
RepresentativeSample
RepresentativeSample
How ManyHow ManySubjects?Subjects?
How ManyHow ManySubjects?Subjects?
RandomRandomSelection —Selection —
Equal Impact on Equal Impact on Study Result?Study Result?
RandomRandomSelection —Selection —
Equal Impact on Equal Impact on Study Result?Study Result?
Population Sampling
Desired Desired Accuracy?Accuracy?Desired Desired
Accuracy?Accuracy?
Exhibit 15.10: Guidelines for Using the Internet for Marketing Research
Internet Marketing Internet Marketing ResearchResearch
Internet Marketing Internet Marketing ResearchResearch
Can a sufficiently representative sample be drawn?
Can a sufficiently representative sample be drawn?
Traditional Marketing ResearchTraditional Marketing Research
Can confidentiality be assured?Can confidentiality be assured?
Can answers be obtainedvia simple surveys?
Can answers be obtainedvia simple surveys?
YesYes NoNo
YesYes NoNo
YesYes NoNo
Chapter 15: Customer Information Systems
Understanding Marketing Research
Benefits and Uses of Marketing Research
Framework for Marketing Research
Data Collection in Marketing Research
Comparisons for Offline and Online Marketing Research Methods
Guidelines for Conducting Data Analysis and Utilization
Conclusion
Offline MethodsOffline Methods Online MethodsOnline Methods
SecondarySecondary PrimaryPrimary SecondarySecondary PrimaryPrimary
Colleges, universities, libraries
Books, publications
Magazines, newspapers
Marketing departments
Others
Focus groups
Surveys
Observations
Search engines
Newsgroups
Directories
Questionnaires
Discussion groups
Click data
Data-Collection MethodsData-Collection MethodsData-Collection MethodsData-Collection Methods
Exhibit 15.11: Marketing Research Data-Collection Methods
QuestionnairesQuestionnaires
Flat File InstrumentsFlat File InstrumentsFlat File InstrumentsFlat File Instruments Interactive Interactive InstrumentsInstrumentsInteractive Interactive
InstrumentsInstrumentsE-Mail Integrated E-Mail Integrated QuestionnairesQuestionnaires
E-Mail Integrated E-Mail Integrated QuestionnairesQuestionnaires
Simple,Non-Interactive
Survey
Simple,Non-Interactive
Survey
E-Mail Survey or Delivery ToolE-Mail Survey
or Delivery Tool
Simple, Interactive
Survey
Simple, Interactive
Survey
Exhibit 15.12: Questionnaire Types
Survey QuestionsSurvey Questions
Single-Response Single-Response QuestionsQuestions
Single-Response Single-Response QuestionsQuestions
Dichotomous-Dichotomous-Response Response QuestionsQuestions
Dichotomous-Dichotomous-Response Response QuestionsQuestions
Multichotomous-Multichotomous-Response Response QuestionsQuestions
Multichotomous-Multichotomous-Response Response QuestionsQuestions
Scaled Scaled QuestionsQuestions
Scaled Scaled QuestionsQuestions
Paired-Paired-Comparison Comparison
TradeoffTradeoff
Paired-Paired-Comparison Comparison
TradeoffTradeoff
On a Scale of1 to 10, How Happy Are
You?
On a Scale of1 to 10, How Happy Are
You?
What Would YouPrefer — a Porsche
or a Ferrari?
What Would YouPrefer — a Porsche
or a Ferrari?
How OldAre You?How OldAre You?
In Whichof the Following Income Ranges
Do You Fall?
In Whichof the Following Income Ranges
Do You Fall?
Are You Maleor Female?
Are You Maleor Female?
Open-Ended Open-Ended QuestionsQuestions
Open-Ended Open-Ended QuestionsQuestions
In 100 Words or Less, Describe Your
Experience With This Product
In 100 Words or Less, Describe Your
Experience With This Product
Internet CompatibilityLowHigh
Exhibit 15.13: Survey Questions
Chapter 15: Customer Information Systems
Understanding Marketing Research
Benefits and Uses of Marketing Research
Framework for Marketing Research
Data Collection in Marketing Research
Comparisons for Offline and Online Marketing Research Methods
Guidelines for Conducting Data Analysis and Utilization
Conclusion
Exhibit 15.14: Comparison of Offline & Online Marketing Research Methods
HighLowEthical Issues (privacy)
LowHigh to MediumAnonymity guarantee
UnlimitedLimitedGeographical Coverage
LowHighInterviewer Bias
UnlimitedLimitedDelivery/Illustration
High to Uncontrollable**ControllableSample-selection Bias
InaccurateAccurateSampling
LowHighResearcher Control
HighMediumData Quality*
Labor-NonintensiveLabor-IntensiveEffort
QuickSlowTurnaround Time
LowHighCost
Online MethodOffline MethodDecision Factor
* Quality of data is defined here as ease and timeliness of data collection and entry.
** As the Internet becomes ubiquitous, this issue is becoming less important.
Chapter 15: Customer Information Systems
Understanding Marketing Research
Benefits and Uses of Marketing Research
Framework for Marketing Research
Data Collection in Marketing Research
Comparisons for Offline and Online Marketing Research Methods
Guidelines for Conducting Data Analysis and Utilization
Conclusion
Data Analysis ProceduresData Analysis Procedures
BasicStatistics
BasicStatistics
Descriptive Statistics
Descriptive Statistics
Inferential StatisticsInferential Statistics
Econometric Analysis
Econometric Analysis
Frequency tables
Cross-tabulation
Graphicrepresentation
Others
Mean
Standard deviation
Median
Inter-quartile range
Mode
Range
T-test
Correlation
Linear regression
Nonlinear regression
Logit modeling
Clustering analysis
Turf analysis
Logistic regression
Complexity
Exhibit 15.15: Data Analysis
Validation:Are my results
realistic?
Validation:Are my results
realistic?
Internal Validation: What happens to
my results if I change one study parameter?
Internal Validation: What happens to
my results if I change one study parameter?
External Validation: How does my study
compare to actual data or other studies?
External Validation: How does my study
compare to actual data or other studies?
Validation
Exhibit 15.16: Database Marketing Program Plan
I. Marketing objectivesII. Market analysis
A. Customer analysis and segmentationB. CompetitionC. Environment
III. Offer and market fitIV. Assessment of performance with similar programsV. Communication strategy
A. Targeting and positioningB. Unique selling propositionC. Media and list decisionsD. Message strategy
VI. Database requirementsA. DevelopmentB. UtilizationC. Enhancement
VII. Program budgetVIII. TimelineIX. Accountability
Exhibit 15.18: Provider-Consumer Interaction Matrix
Chapter 15: Customer Information Systems
Understanding Marketing Research
Benefits and Uses of Marketing Research
Framework for Marketing Research
Data Collection in Marketing Research
Comparisons for Offline and Online Marketing Research Methods
Guidelines for Conducting Data Analysis and Utilization
Conclusion
Customer Information Systems — Conclusion
A general marketing research framework involves the following seven steps: 1) opportunity or problem definition, 2) research design, 3) data collection and entry, 4) data analysis, and 5) final report and data utilization
Offline marketing research methods are generally reliable but expensive and labor-intensive. Online methods significantly reduce the turnaround time and cost, but it may be difficult to draw a random and representative sample.
Internet-based marketing research works best when: A representative sample can be drawn from the population
There is no issue with confidentiality of the data
The topic is sufficiently straightforward that it can be communicated via a short, relatively simple survey
