Cha pter F our

Exploratory Research Design:

Secondary Data

© 2007 Prentice Hall 4-1

 Cha pter Ou tl ine

1) Overview
2) Primary Versus Secondary Data
3) Advantages & Uses of Secondary Data
4) Disadvantages of Secondary Data

© 2007 Prentice Hall 4-2

 Cha pter Ou tl ine
1) Criteria for Evaluating Secondary Data
i. Specifications: Methodology Used to
Collect the Data
ii. Error: Accuracy of the Data
iii. Currency: When the Data Were Collected
iv. Objective(s): The Purpose for Which the
Data Were Collected
v. Nature: The Content of the Data
vi. Dependability: Overall, How Dependable
are the Data
© 2007 Prentice Hall 4-3
 Cha pter
Outl ine

1) Classification of Secondary Data

2) Internal Secondary Data
3) Published External Secondary Sources
i. General Business Sources
a. Guides
b. Directories
c. Indexes
d. Non-governmental Statistical Data

© 2007 Prentice Hall 4-4

 Ch apter O utl ine Census
Data

i. Government Sources
a. Census Data
b. Other Government Publications
1) Computerized Databases
i. Classification of Computerized
Databases
ii. Directories of Databases
2) Syndicate Sources of Secondary Data

© 2007 Prentice Hall 4-5

 Cha pter
Outl ine
11) Syndicated Data from Households
i. Surveys
a. Psychographics & Lifestyles
b. Advertising Evaluation
c. General Surveys
d. Uses of Surveys
e. Advantages & Disadvantages of Surveys
ii. Panels
a. Purchase Panels
b. Media Panels
c. Uses of Panels
d. Advantages & Disadvantages of Panels

© 2007 Prentice Hall 4-6

 Cha pter
Outl ine
1) Electronic Scanner Services
i. Volume Tracking Data
a. Scanner Diary Panels
b. Scanner Diary Panels with Cable TV
c. Uses of Scanner Services
d. Advantages & Disadvantages
2) Syndicated Data from Institutions
i. Retailers & Wholesalers
a. Uses of Audit Data
b. Advantages & Disadvantages of Audit Data
© 2007 Prentice Hall 4-7
 Ch apter O utl ine
i. Industry Services
a. Uses of Industry Services
b. Advantages & Disadvantages of
Industry Services
1) Combining Information from Different
Sources: Single-Source Data
2) Applications of Secondary Data
i. Computer Mapping

© 2007 Prentice Hall 4-8

 Cha pter Ou tl ine

1) International Marketing Research

2) Ethics in Marketing Research
3) Summary

© 2007 Prentice Hall 4-9

 Pr imary Vs. S econda ry
Data

 Pr imar y dat a 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).
 Seco nda ry da ta are data that have already
been collected for purposes other than the
problem at hand. These data can be located
quickly and inexpensively.

© 2007 Prentice Hall 4-10

 A Co mpar is on of P rim ary &
Se condary Da ta
Table 4.1

Primary Dat a Secon dary D ata

Collection purpose For the problem at hand For other problems

Collection process Very involved Rapid & easy
Collection cost High Relatively low
Collection time Long Short

© 2007 Prentice Hall 4-11

 Uses of S econda ry
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

© 2007 Prentice Hall 4-12

 Criteri a for E valua ti ng
Seconda ry D ata

 Speci ficatio ns : Methodology Used to Collect the Data

 Err or: Accuracy of the Data
 Cu rren cy : When the Data Were Collected
 Object iv e( s) : The Purpose for Which the Data Were
Collected
 Natu re: The Content of the Data
 Depe nda bi li ty: Overall, How Dependable Are the
Data

© 2007 Prentice Hall 4-13

 Cri teri a for Eva lua ti ng Sec onda ry
Dat a
Table 4.2

Crit er ia Issues Re ma rk s

Sp ec if ic at ions Dat a co llec tion met hod, resp ons e Dat a shoul d be reli ab le,
& Metho dol ogy rat e, quali ty & a nal ys is of dat a, val id, & general izab le to
sam pling tec hniq ue & si ze, the pro blem.
quest ionnair e desi gn, fi eld work .
Erro r & Ex am ine e rrors i n ap proac h, Asse ss acc uracy by
Acc urac y resea rch d es ign, sa mp ling , d at a co mpari ng dat a fro m
co llection & a nal ysi s, & rep or ting . diff erent sourc es.

Currenc y Time lag b et ween col lect ion & Cen sus dat a are up dat ed
pub lic at ion, freq ue nc y of up dat es. by sy nd ic at ed fi rms.
Ob jec tive Why were the dat a col lect ed ? The object ive det erm ines
the rel evanc e of dat a.
Nat ure Defi nit ion of key vari ab les , uni ts of Reco nfi gure t he d ata t o
measurem ent , cat eg ori es used , increase thei r
rel at io nshi ps ex amined . useful ness.
Dep end ab ility Ex pert ise, cred ibil ity, rep ut ati on,
and trust wo rt hi nes s of the so urc e. Dat a shoul d be obtai ne d
fr om an ori ginal so urce.
© 2007 Prentice Hall 4-14
 A Class ifi ca ti on of Sec ondar y
Data
Fig. 4.1

Secondary Data

Internal External

Ready to Requires Published Computerized Syndicated

Use Further Materials Databases Services
Processing

© 2007 Prentice Hall 4-15

 Inte rn al Se co ndar y
Data
Department Store Project
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

© 2007 Prentice Hall 4-16

 Typ e of In dividual /H ous eho ld Lev el
Dat a
Availa ble fro m Syn di cat ed F irm s
I. Demographic Data
- Identification (name, address, email,
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
- Number and make of cars owned
© 2007 Prentice Hall 4-17
 Typ e of Ind iv idu al/ Hous ehol d Lev el D ata
Ava ila bl e f rom Syndi cat ed 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.
© 2007 Prentice Hall 4-18
 A C lassi fication o f P ubli sh ed
Seconda ry S ou rc es
Fig. 4.2

Published Secondary
Data

General Business Government

Sources Sources

Guides Directories Indexes Statistical Census Other

Data Data Government
Publications

© 2007 Prentice Hall 4-19

 Info USA: : Here , The re ,
Ever yw her e
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
115 million residential listings and 14 million business
listings, as of 2005. These are verified with over 17 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.
© 2007 Prentice Hall 4-20
 A C lassi fication o f C om put eri zed
Da taba ses
Fig. 4.3

Computerized
Databases

Online Internet Off-Line

Bibliographic Numeric Full-Text Directory Special-

Databases Databases Databases Databases Purpose
Databases

© 2007 Prentice Hall 4-21

 Publ ishe d Ex tern al
Seconda ry S ou rc es
Guide s
 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

Dir ectorie s
 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

In dices
 Helpful in locating information on a particular topic in several
different publications
© 2007 Prentice Hall 4-22
 Classi fication o f C omput eri zed
Da taba se s

 Bibl io gr ap hic dat ab as es are composed of

citations to articles
 Numer ic da ta ba ses contain numerical and
statistical information
 Fu ll- tex t dat aba ses contain the complete text
of the source documents comprising the database
 Dir ect ory dat aba ses provide information on
individuals, organizations, and services
 Spe cial -pu rpose d ata ba ses provide
specialized information

© 2007 Prentice Hall 4-23

 Sy ndi cate d Se rvices

 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

© 2007 Prentice Hall 4-24

 A Cl assif icat ion o f
Syndi cate d Se rvices

Fig. 4.4 Unit of

Measurement

Households/
Institutions
Consumers

© 2007 Prentice Hall 4-25

 Syndi ca ted Se rvi ces: Consu mer s
Fig. 4.4 cont.
Households /
Consumers

Panels

Electronic
Purchase Media scanner services

Surveys Volume Scanner Scanner

Tracking Data Panels Panels with
Cable TV
Psychographic Advertising
General
& Lifestyles Evaluation
© 2007 Prentice Hall 4-26
 Syndi cated S erv ices: I nst itut ion s
Fig. 4.4 cont.
Institutions

Retailers Wholesalers Industrial firms

Audits

Direct Clipping Corporate

Inquiries Services Reports

© 2007 Prentice Hall 4-27

 Ov er vie w o f S yn di cated S erv ices
Table 4.3
Type Characteristics Advantages Disadvantages Uses

Surveys Surveys conducted at  Most flexible way of  Interviewer errors;  Market  

regular intervals obtaining data;   respondent errors segmentation, 
information  on  advertising theme 
underlying motives selection and 
advertising 
effectiveness
Purchase  Households provide  Recorded purchase  Lack of  Forecasting sales, 
Panels specific information  behavior can be  representativeness;  market share and 
regularly over an  linked to the  response bias;  trends; establishing 
extended period of  demographic/  maturation consumer profiles, 
time; respondent  psychographic   brand loyalty and 
asked to record  characteristics switching; evaluating 
specific behaviors as  test markets, 
they occur advertising, and 
distribution 
Media Panels Electronic devices  Same as purchase  Same as purchase  Establishing 
automatically   panel panel advertising rates; 
recording behavior,  selecting media 
supplemented by a  program or air time; 
diary establishing viewer 
profiles
© 2007 Prentice Hall 4-28
 Serv ice s
Table 4.3 cont.
Scanner Diary Panels  Scanner panels of  Data reflect actual  Data may not be  Promotional mix 
with Cable TV households that  purchases; sample  representative; quality  analyses, copy testing, 
subscribe to cable TV control; ability to link  of data limited new product testing, 
panel data to household  positioning
characteristics

Audit services Verification  of  Relatively precise  Coverage may be  Measurement of 

product movement by  information at the  incomplete; matching  consumer sales and 
examining physical  retail and wholesale  of data on competitive  market share, 
records or performing  levels activity may be  competitive activity, 
inventory analysis difficult analyzing distribution 
patterns: tracking of 
new products
Industrial Product  Data banks on  Important source of  Data are lacking in  Determining market 
Syndicated Services industrial  information on  terms of content,  potential by geographic 
establishments created  industrial firms,  quantity, and quality area, defining sales 
through direct inquiries  particularly useful in  territories, allocating 
of companies, clipping  initial phases of the  advertising budget
services, and corporate  projects
reports

© 2007 Prentice Hall 4-29

 Singl e-S ource Da ta
Sin gle -so urce da ta 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
© 2007 Prentice Hall 4-30
 The N YT on t he Web: A Ne w Wa y
To Ta rget C usto me rs
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 11.4 million
national unique users as of October 2005. 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.
© 2007 Prentice Hall 4-31
 Th e NYT o n th e Web: A New
Way
To Tar get Cu sto mer s
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.

© 2007 Prentice Hall 4-32

 A C lassi fication o f I nt erna tion al
Sour ce s
Fig. 4.5

International Secondary Data

Domestic International Organizations in

Organizations in Organizations in Foreign Countries
the United States the United States

Government Nongovernment International Trade

Governments Organizations Associations
Sources Sources

© 2007 Prentice Hall 4-33