Chapter 5: Decision Support Systems (Introduction)

Identify the components of a decision support system

A decision support system has three major components: the data system, the model system, and the dialog system. The data system collects and stores data from internal and external sources. It creates the database. The model system consists of routines that allow the user to manipulate data in order to analyze them as desired. It is the analytical component. The dialog system serves as the user interface permitting marketers to use the system models to produce reports based on criteria, they specify themselves. It is the output component.

Define what is meant by a marketing information system (MIS) and a decision support system (DSS)

A marketing information system is a set of procedures and methods for the regular, planned collection, analysis, and presentation of information for use in making marketing decisions. A decision support system combines data, models for guiding decisions, and a user interface that allow users to interact with the system to produce customized information.

Define the difference between secondary data and primary data

Secondary data are data that have already been collected, often for some other purpose or by some other organization. Primary data are data collected specifically for the investigation at hand.

Discuss knowledge management

Some of an organization's greatest assets are what its people know about customers, its products and processes, and its marketplace. Knowledge management is an effort to systematically collect organizational knowledge from employees and make it accessible to others.

List the advantages and disadvantages of working with secondary data

The most significant advantages offered by secondary data are time savings and money savings for the researcher. Two disadvantages that commonly arise when secondary data are used are (1) they do not completely fit the problem and (2) they are not completely accurate.