Marketing Management Decision-Making and the Role of Decision Support Systems.

Abstract

Through an experimental inquiry, this paper explores the effects on marketing management decision making processes and decision quality that can be derived from usage of a computerized Decision Support System. The theoretical framework on which the study is based draws from literature in Marketing, Cognitive Psychology, and Information Systems. It proposes that modeling of the DSS usage process should be performed in an environment that is as realistic as possible. Experienced and specially trained marketing planners participated in a comprehensive, realistic computerized product management simulation. Half of the subjects were provided access to simulated market research and company performance information through a sophisticated computerized Decision Support System. The other half were given access to the same information in traditional "paper" report form. All subjects were required to develop comprehensive strategic and tactical plans for their simulated corporation. Subjects were asked to record their activities as they developed their plans. In addition, each completed a questionnaire which captured their activities attitudes toward the process. Their tactical plans were entered into the computerized simulation to derive short term corporate performance results. Modeling of process differences using Partial Least Squares (a latent variable analytic technique) suggests that usage of the Decision Support System may have its most direct benefits in supporting analytic activities (which relate to assessment of the market situation). Results also suggest the possibility that use of the Decision Support System may inhibit synthetic activities (which include the development and evaluation of strategic alternatives). Both groups developed plans that were similar in terms of short term and likely long term performance for the simulated corporation. Results also suggest that training with the Decision Support System may provide the planner with a different, exp and ed perspective on the possibilities for analysis and planning. This change in perspective may result even without extensive usage of the system. The study provides a valuable first step in this important area as well as an interesting framework for future research. Specifically, it suggests that further exploration of the concept of marketing planning process effectiveness may provide insights into improvement of the design and consequent value of computerized Decision Support Systems.