Final answer:
The Management Decision Problem (MDP) involves identifying management issues, while the Marketing Research Problem (MRP) involves determining how to collect and analyze data to understand these issues. A cost/benefit analysis can be an essential tool in these processes.
Step-by-step explanation:
The difference between Management Decision Problem (MDP) and Marketing Research Problem (MRP) lies in their focus and the type of problem they aim to solve. The Management Decision Problem is about identifying the symptoms of issues faced by management, such as declining sales or customer dissatisfaction. It is more concerned with what the problem is and often involves a strategic decision that management needs to make. On the other hand, the Marketing Research Problem is concerned with determining the information required, and the best way in which that information can be obtained to understand the root cause of the symptoms observed by management. It looks at how to gather and analyze data to provide insights into the MDP. When making these decisions, management might employ a cost/benefit analysis to weigh the pros and cons of potential actions. This includes comparing marginal costs, which is the extra cost of adding an additional unit, against marginal benefits, the additional gain from adding that unit. Using tools like the Cost Benefit Analysis a T-shaped chart where costs are listed on one side and benefits on the other can be instrumental in guiding these decisions.