Exploratory Research

Design:
Secondary Data

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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 that have
already been collected for purposes other
than the problem at hand. These data can
be located quickly and inexpensively.

Copyright © 2010 Pearson Education, Inc. 4-2

 A Comparison of Primary & Secondary Data

Table 4.1

Primary Data Secondary Data

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

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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

Copyright © 2010 Pearson Education, Inc. 4-5

 Criteria for Evaluating Secondary Data
Table 4.2

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

Fig. 4.1

Secondary Data

Internal External

Ready Requires Published Computerize Syndicate

to Use Further Materials d Databases d
Processin Services
g
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 Internal Secondary 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

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 Type of Individual/Household Level Data
Available from Syndicated Firms
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
4-9
- Number and make of cars owned
Copyright © 2010 Pearson Education, Inc.
 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.
Copyright © 2010 Pearson Education, Inc. 4-10
 A Classification of Published Secondary
Sources

Fig. 4.2

Published
Secondary Data

General Government
Business Sources
Sources

Guides Directories Indexes Statistical Census Other

Data Data Governmen
t
Publications
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 A Classification of Computerized
Databases

Fig. 4.3

Computerized
Databases

Online Internet Off-Line

Bibliographic Numeric Full-Text Directory Special-

Databases Database Database Databases Purpose
s s Database
s
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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

Copyright © 2010 Pearson Education, Inc. 4-14

 Syndicated Services

• Syndicated services are 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

Measureme
nt

Households/
Institution
Consumers
s

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 Syndicated Services: Consumers
Fig. 4.4 cont.
Households /
Consumers

Panels

Electronic
Purchase Media scanner
services

Surveys

Psychograph Advertising
General
ic Evaluation
& Lifestyles
Copyright © 2010 Pearson Education, Inc. 4-17
 Syndicated Services: Institutions
Fig. 4.4 cont.
Institutions

Retailers Wholesaler Industrial firms

s

Audits

Direct Clipping Corporate

Inquiries Services Reports
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 Overview of Syndicated Services
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
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 Overview of Syndicated Services

Table 4.3
cont.Diary Panels
Scanner 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

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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

Copyright © 2010 Pearson Education, Inc. 4-21

 A Classification of International Sources

Fig. 4.5

International Secondary Data

Domestic International Organizations

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

Governme Nongovernment International Trade

Governments Organizations Associatio
nt Sources Sources
ns
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Copyright © 2010 Pearson Education, Inc. 4-23
Copyright © 2010 Pearson Education, Inc. 4-24