We study the process by which model-based Decision Support Systems (DSSs) influence managerial decision making in the context of marketing budgeting and resource allocation. We focus on identifying whether and how DSSs influence the decision process (e.g., cognitive effort deployed, discussion quality, and decision alternatives considered), and as a result, how these DSSs influence decision outcomes (e.g., profit and satisfaction both with the decision process and the outcome). We study two specific marketing resource allocation decisions in a laboratory context: sales effort allocation and customer targeting. We find that decision makers who use high-quality model-based DSSs make objectively better decisions than do decision makers who only have access to a generic decision tool (Microsoft Excel). However, their subjective evaluations (perceptions) of both their decisions and the processes that lead to those decisions do not necessarily improve as a result of DSS use. And expert judges, serving as surrogates for top management, have a difficult time assessing the objective quality of those decisions.

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doi.org/10.1287/isre.1040.0026, hdl.handle.net/1765/2665
ERIM Top-Core Articles
Information Systems Research
Erasmus Research Institute of Management

Lilien, G.L, Rangaswamy, A, van Bruggen, G.H, & Starke, K. (2004). DSS effectiveness in marketing resource allocation decisions: reality versus perceptions. Information Systems Research (Vol. 15, pp. 216–235). doi:10.1287/isre.1040.0026