Definition and Meaning of Decision Alternative or Decision Making in Marketing Research

The value of research information can be assessed by several means, one of which is decision alternative. Markets change constantly and businesses need to have a clear understanding of both the supply and demand. The principal role of market research, therefore, is to provide a business with a comprehensive view of consumers in order to develop products and services that satisfy their needs better than the competition. Also given the increased complexity of the business environment, it is not longer enough to make key decision using a ‘gut-feel’ approach alone. Decisions need to be informed and make research helps to support this process, significantly reducing the level of financial risk attached with investment decisions.

In the business world, to make a proper decision is related to success directly. Every manager is confronted with the same question which is how to complete this mission. Economists cannot figure out a solution to gain the 100% of correct rate in decision making, but they build a number of models and find many methods to increase the possibility.

Decision making is the cognitive process of reaching a decision; “a good executive must be good at decision making.

 OBJECTIVES

At the end of this unit, you should be able to:

• define decision making 
• identify some of the usefulness of making effective decision in marketing research. 
• evaluating/analyzing decision making using certain conditions. 
• explain the concept of decision tree or flow diagram. 
• describe the various phases in decision making 
• explain the relevant decision making models in marketing research and decision under a risk 

Definition and Meaning of Decision Alternative or Decision Making in Marketing Research

Problem solving and decision–making are important skills for business, marketing and life problem-solving often involves decision making, and decision–making is especially important for management and leadership.

According to Fishburn, solving the decision model consist of finding a strategy or action, the expected relative values of which is at least a great as the expected  value of any other strategy set. The prescriptive criterion of a strategy will be maximization of the decision-makers total expected relative value.

However, decision–making or decision alternative is an embracing activity taking place at every level in the organization covering both the short and long term.

Yalokwu (1999); posits that “Decision-making is important to all managers, customers and administrators, that the real test of managerial effectiveness will depend on the managers anxiety to make decision.

According to Lucy (1992), decision–alternative is defined as “making choice between future, uncertain alternatives. He also emphasized that all decision–making relates to the future and that a decision can be choice between alternatives in pursuit of an objective. Where no alternative exists, no decision can be made.

• Ofsad (1961) defined a decision as follows: “To say that a person has made a decision may mean: 
• That he (customer) has started a series of behavioural reactions in favour of a product or service. 
• That the consumer/customer has made up his or her mind to do a certain action, which he (the researcher in this case) has no doubts that he ought to do. 
•  To make a judgment regarding what one ought to do in a certain situation after having deliberated on some alternative courses of action. 
• In a nutshell, decision-alternative is the cognitive process of reaching a decision. 
• Hence, the strategy by which an individual operates to reach a decision or solve a problem is termed cognitive style.