The Market Survey Decision Tree and Strategic Decision Making

by | May 15, 2015 | Market Research Expertise |

When knowledgeable business professionals and seasoned executives need to make decisions that will directly affect the course of the company, they need all the information that can help them. Often, they will rely on marketing research consultants to gather and process the relevant decision-making criteria. A combination of professionally designed market surveys, focus groups, and polling are then fed into a market survey decision tree. Especially for complex decisions, utilizing a market survey decision tree provides both clarity and confidence.

Market Survey Decision Tree

The primary goal of market surveys, focus groups, and polling is to gather relevant, actionable information. Though the results only derive from those who participate, the information is then extrapolated, and the inferences applied to groups at large. That information is then utilized both to drive the creation of a market survey decision tree, and to ensure the fidelity of the decision-making process. According to a recent McKinsey & Company survey, a sound strategic planning process is integral to avoiding poor results.

Decisions made at companies without any strategic planning process are twice as likely to have generated extremely poor results as extremely good ones—more than a fifth of them generated revenue 75 percent or more below expectations. This may indicate an overall lack of rigor at these companies.

Market surveys, focus groups, and polling can be used in academic studies as well. For example, one could have an academic interest in the study habits of university students. One could compose a poll comparing a student’s performance in the classroom with the number of hours they studied per week. Then, one could calculate and determine if there is a correlation between a student’s hours studied per week and their performance.

Corporations make great use of the market survey decision tree. For example, if a fast-food chain wants to figure out where its meat products are most popular and likewise for their vegetarian products. The corporation can distribute market surveys throughout its stores over time. The results are then correlated by marketing research professionals, and the fast-food chain determine where people prefer their meat and where they prefer vegetarian products. This information is then made part of the market survey decision tree so the corporation can allocate its food resources accordingly.

The unique feature of the decision tree is that it allows management to combine analytical techniques such as discounted cash flow and present value methods with a clear portrayal of the impact of future decision alternatives and events. Using the decision tree, management can consider various courses of action with greater ease and clarity. The interactions between present decision alternatives, uncertain events, and future choices and their results become more visible.

The marketing research consultants at New Perspectives have proven experience successfully implementing market surveys, focus groups, and polling that can provide the information necessary to form an accurate market survey decision tree. For more information, contact New Perspectives today.