Chapter Four

Exploratory Research Design: Secondary Data

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Objectives
1) 2) 3) 4) 5)
i. ii. iii. iv. v. vi.

Overview Primary versus Secondary Data Advantages & Uses of Secondary Data Disadvantages of Secondary Data Criteria for Evaluating Secondary Data
Specifications: Methodology for Data Collection Error: Accuracy of the Data Currency: When the Data Were Collected Objective(s): The Purpose for Data Collection Nature: The Content of the Data Dependability: Overall, Dependability of Data

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Objectives
6) 7) 8) i. Classification of Secondary Data Internal Secondary Data Published External Secondary Sources General Business Sources a. b. c. d. ii. a. b. Guides Directories Indexes Non-governmental Statistical Data Census Data Other Government Publications

Government Sources

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Objectives
9) i. ii. 10) 11) i. Computerized Databases Classification of Computerized Databases Directories of Databases Syndicate Sources of Secondary Data Syndicated Data from Households Surveys a. b. c. d. e. ii. a. b. c. d. Psychographics & Lifestyles Advertising Evaluation General Surveys Uses of Surveys Advantages & Disadvantages of Surveys Purchase Panels Media Panels Uses of Panels Advantages & Disadvantages of Panels

Census Data

Panels

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Objectives
12) i. Electronic Scanner Services Volume Tracking Data a. b. c. d. 13) i. Scanner Diary Panels Scanner Diary Panels with Cable TV Uses of Scanner Services Advantages & Disadvantages

Syndicated Data from Institutions Retailers & Wholesalers a. b. ii. a. b. Uses of Audit Data Advantages & Disadvantages of Audit Data Uses of Industry Services Advantages & Disadvantages of Industry Services

Industry Services

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Objectives
14) 15) 16) 17) 18) Combining Information from Different Sources: Single-Source Data Applications of Secondary Data - Computer Mapping International Marketing Research Ethics in Marketing Research Internet and Computer Applications

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Primary vs. Secondary Data

Primary data are originated by a researcher for the specific purpose of addressing the problem at hand. The collection of primary data involves all six steps of the marketing research process (Chapter 1). Secondary data are data which have already been collected for purposes other than the problem at hand. These data can be located quickly and inexpensively.

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A Comparison of Primary & Secondary Data

Table 4.1

Primary Data Collection Collection Collection Collection purpose process cost time For the problem at hand Very involved High Long

Secondary Data For other problems Rapid & easy Relatively low Short

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Uses of Secondary Data

Identify the problem Better define the problem Develop an approach to the problem Formulate an appropriate research design (for example, by identifying the key variables) Answer certain research questions and test some hypotheses Interpret primary data more insightfully

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Criteria for Evaluating Secondary Data

Specifications: Methodology Used to Collect the Data Error: Accuracy of the Data Currency: When the Data Were Collected Objective(s): The Purpose for Which the Data Were Collected Nature: The Content of the Data Dependability: Overall, How Dependable Are the Data

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Criteria for Evaluating Secondary Data

Table 4.2
Criteria Issues Remarks

Specifications & Data collection method, response rate, Data should be reliable, valid, & generalizable to quality & analysis of data, sampling Methodology the problem. technique & size, questionnaire design, fieldwork. Assess accuracy by Error & Accuracy Examine errors in approach, comparing data from research design, sampling, data different sources. collection & analysis, & reporting. Currency Census data are updated Time lag between collection & by syndicated firms. publication, frequency of updates. Objective The objective determines Why were the data collected? the relevance of data. Nature Reconfigure the data to Definition of key variables, units of increase their usefulness. measurement, categories used, relationships examined. Dependability Data should be obtained Expertise, credibility, reputation, & from an original source. trustworthiness of the source.
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A Classification of Secondary Data

Fig. 4.1

Secondary Data

Internal

External

Ready to Use

Requires Further Processing

Published Materials

Computerized Databases

Syndicated Services

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Internal Secondary Data

Department Store Example
Sales were analyzed to obtain: Sales by product line Sales by major department (e.g., men's wear, house wares) Sales by specific stores Sales by geographical region Sales by cash versus credit purchases Sales in specific time periods Sales by size of purchase Sales trends in many of these classifications were also examined.

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Type of Individual/Household Level Data Available from Syndicated Firms

I. Demographic Data - Identification (name, address, telephone) - Sex - Marital status - Names of family members - Age (including ages of family members) - Income - Occupation - Number of children present - Home ownership - Length of residence
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- Number and make of cars owned

Type of Individual/Household Level Data Available from Syndicated Firms

II. Psychographic Lifestyle Data - Interest in golf - Interest in snow skiing - Interest in book reading - Interest in running - Interest in bicycling - Interest in pets - Interest in fishing - Interest in electronics - Interest in cable television There are also firms such as Dun & Bradstreet and American Business Information which collect demographic data on businesses.
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4-16

A Classification of Published Secondary Sources

Fig. 4.2 Published Secondary Data

General Business Sources

Government Sources

Guides

Directories

Indexes

Statistical Data

Census Data

Other Government Publications

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InfoUSA: Here, There, Everywhere

InfoUSA (www.infousa.com) markets subsets of its data in a number of forms, including the professional online services (LEXIS-NEXIS and DIALOG), the general online services (CompuServe and Microsoft Network), the Internet (look-ups), and on CD-ROM. The underlying database on which all these products are based contains information on 113 million residential listings and 14 million business listings, as of 2003. These are verified with over 16 million phone calls annually. The products derived from these databases include sales leads, mailing lists, business directories, mapping products, and also delivery of data on the Internet.
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A Classification of Computerized Databases

Fig. 4.3 Computerized Databases

Online

Internet

Off-Line

Bibliographic Databases

Numeric Databases

Full-Text Databases

Directory Databases

SpecialPurpose Databases

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Published External Secondary Sources

Guides An excellent source of standard or recurring information Helpful in identifying other important sources of directories, trade associations, and trade publications One of the first sources a researcher should consult Directories Helpful for identifying individuals or organizations that collect specific data Examples: Consultants and Consulting Organizations Directory, Encyclopedia of Associations, FINDEX: The Directory of Market Research Reports, Studies and Surveys, and Research Services Directory Indices Helpful in locating information on a particular topic in several different publications

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Classification of Computerized Databases

Bibliographic databases are composed of citations to articles. Numeric databases contain numerical and statistical information. Full-text databases contain the complete text of the source documents comprising the database. Directory databases provide information on individuals, organizations, and services. Special-purpose databases provide specialized information.

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Syndicated Services

Companies that collect and sell common pools of data of known commercial value designed to serve a number of clients. Syndicated sources can be classified based on the unit of measurement (households/consumers or institutions). Household/consumer data may be obtained from surveys, diary panels, or electronic scanner services. Institutional data may be obtained from retailers, wholesalers, or industrial firms.

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A Classification of Syndicated Services

Fig. 4.4

Unit of Measurement

Households/ Consumers

Institutions

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Syndicated Services: Consumers

Fig. 4.4 cont. Households / Consumers

Panels Electronic scanner services

Purchase

Media

Surveys

Volume Scanner Diary Scanner Diary Tracking Data Panels Panels with Cable TV Advertising Evaluation

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Syndicated Services: Institutions

Fig. 4.4 cont. Institutions

Retailers

Wholesalers

Industrial firms

Audits

Direct Inquiries
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Clipping Services

Corporate Reports

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Overview of Syndicated Services

Table 4.3
Type
Surveys

Characteristics
Surveys conducted at regular intervals

Advantages
M ost flexible way of obtaining data; information on underlying motives

Disadvantages
Interviewer errors; respondent errors

Uses
M arket segmentation, advertising theme selection and advertising effectiveness Forecasting sales, market share and trends; establishing consumer profiles, brand loyalty and switching; evaluating test markets, advertising, and distribution Establishing advertising rates; selecting media program or air time; establishing viewer profiles

Purchase Panels

Households provide specific information regularly over an extended period of time; respondent asked to record specific behaviors as they occur Electronic devices automatically recording behavior, supplemented by a diary

Recorded purchase behavior can be linked to the demographic/ psychographic characteristics

Lack of representativeness; response bias; maturation

M edia Panels

Same as purchase panel

Same as purchase panel

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Overview of Syndicated Services

Table 4.3 cont.
T y p e
S c a n n e rV o l u m e T r a c k i n gD a t a

C h a r a c t e r i s t i c s
H o u s e h o l d p u r c h a s e s a r er e c o r d e d t h r o u g h e l e c t r o n i cs c a n n e r si n s u p e r m a r k e t s

A d v a n t a g e s
D a t ar e f l e c ta c t u a l p u r c h a s e s ;t i m e l y d a ta , l e s se x p e n s i v e

D is a d v a n t a g e s
D a t am a y n o tb e r e p r e s e n t a t iv e ;e r r o r si n r e c o r d i n g p u r c h a s e s ; d i f f i c u l tt ol i n k p u r c h a s e st oe l e m e n t s o fm a r k e t i n g m i x o t h e r t h a n p r i c e D a t am a y n o tb e r e p r e s e n t a t iv e ;q u a l i t y o fd a t al i m it e d

S c a n n e rD i a r y P a n e l s w i t h C a b l eT V

S c a n n e rp a n e l so f h o u s e h o l d st h a t s u b s c r i b et oc a b l eT V

D a t ar e f l e c ta c t u a l p u r c h a s e s ;s a m p l e c o n t r o l ;a b i l i t y t ol i n k p a n e ld a t at oh o u s e h o l d c h a r a c t e r i s t i c s

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Overview of Syndicated Services

Table 4.3 cont.
C h a r a c t e r i s t ic s
V e r i f i c a t i o n o fp r o d u c t m o v e m e n tb y e x a m i n i n g p h y s i c a l r e c o r d so rp e r f o r m i n g i n v e n t o r y a n a l y s i s

A d v a n t a g e s
R e l a t i v e l y p r e c i s e i n f o r m a ti o n a tt h e r e t a i la n d w h o l e s a l e l e v e l s

D is a d v a n t a g e s
C o v e r a g em a y b e i n c o m p l e t e ;m a t c h i n g o fd a t ao n c o m p e t i t i v e a c t i v it y m a y b e d i f f i c u l t

U s e s
M e a s u r e m e n to f c o n s u m e rs a l e sa n d m a r k e ts h a r e , c o m p e t i t i v ea c t i v i t y , a n a l y z i n g d i s t r i b u t i o n p a t t e r n s ;t r a c k i n g o f n e w p r o d u c t s D e t e r m i n i n g m a r k e t p o t e n t i a lb y g e o g r a p h i c a r e a ,d e f i n i n g s a l e s t e r r i t o r ie s ,a l l o c a t i n g a d v e r t i s i n g b u d g e t

D a t ab a n k so n i n d u s t r i a l e s ta b l i s h m e n t sc r e a t e d t h r o u g h d i r e c ti n q u i r i e s o fc o m p a n i e s ,c l i p p i n g s e r v i c e s ,a n d c o r p o r a t e r e p o r t s

I m p o r t a n ts o u r c eo f i n f o r m a ti o n o n i n d u s t r i a lf i r m s , p a r t i c u l a r l y u s e f u li n i n i t i a lp h a s e so ft h e p r o j e c t s

D a t aa r el a c k i n g i n t e r m so fc o n t e n t , q u a n ti t y ,a n d q u a l i t y

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Single-Source Data
Single-source data provide integrated information on household variables, including media consumption and purchases, and marketing variables, such as product sales, price, advertising, promotion, and in-store marketing effort.

Recruit a test panel of households and meter each home's TV sets. Survey households periodically on what they read. Grocery purchases are tracked by UPC scanners. Track retail data, such as sales, advertising, and promotion.

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The NYT on the Web: A New Way To Target Customers

To handle alternate forms of interaction and updates, The New York Times created a separate unit, The New York Times Electronic Media Co. The New York Times on the Web (www.nytimes.com) has drawn over 10 million registrants as of 2003. The database contains demographic information, such as age, gender, income, and zip code, that ties to an e-mail address for each of the members. This new database marketing system can identify and customize user groups, target Web messages to specific segments of the population, and adjust the message based on audience reaction. It can also increase targeting opportunities through third-party data or additional information supplied by the user.
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The NYT on the Web: A New Way To Target Customers

For example, the database enables an automobile firm to emphasize safety to older customers, luxury to affluent ones, and roominess to families. The system is set up so that near real-time data can be received from the Web that indicates how well ads are performing relative to age, gender, and income characteristics. Thus, this system allows a firm to maintain up-to-date information on audiences in order to position its products effectively.

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A Classification of International Sources

Fig. 4.5 International Secondary Data

Domestic Organizations in the United States

International Organizations in the United States

Organizations in Foreign Countries

Government Sources

Nongovernment Sources

Governments

International Organizations

Trade Associations

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