CHAPTER FOUR

Exploratory Research Design:

Secondary Data
CHAPTER OUTLINE

1) Overview
2) Primary versus Secondary Data
3) Advantages & Uses of Secondary Data
4) Disadvantages of Secondary Data
5) Criteria for Evaluating Secondary Data
6) Classification of Secondary Data
CHAPTER OUTLINE

7) Internal Secondary Data

8) Published External Secondary Sources

9) Computerized Databases

10) Syndicate Sources of Secondary Data

11) Syndicated Data from Households

CHAPTER OUTLINE

12) Electronic Scanner Services

13) Syndicated Data from Institutions

14) Combining Information from Different

Sources: Single-Source Data

15) Applications of Secondary Data

CHAPTER OUTLINE

16) International Marketing Research

17) Ethics in Marketing Research

18) Internet and Computer Applications

19) Focus on Burke

20) Summary

21) Key Terms & Concepts

TYPES OF RESEARCH DESIGNS
 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.
A Comparison of Primary & Secondary Data
Table 4.1

Primary Data Secondary Data

Collection purpose For the problem at hand Very For other problems
Collection process involved Rapid & easy
Collection cost High Relatively low
Collection time Long Short
ADVANTAGES 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
DISADVANTAGES OF SECONDARY DATA
➢Limited usefulness to the current problem
(relevance and accuracy)
➢Inappropriate objectives, nature and methods.
➢Lack accuracy
➢Not completely current or dependable

Before using secondary

data, evaluate these factors.
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
CRITERIA FOR EVALUATING SECONDARY DATA
Table 4.2
A CLASSIFICATION OF
SECONDARY DATA
Fig. 4.1
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.
DATA BASE MARKETING
➢ The use of computers to capture and
track customer profiles and purchase
detail.
➢ Information serves as the foundation for
marketing programs or as an internal
sources of information related to
customer behavior.
➢ Email, blog, social contacts,
leads and customers, social media.
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
- 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.
A CLASSIFICATION OF PUBLISHED SECONDARY
SOURCES
Fig. 4.2
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.
A CLASSIFICATION OF COMPUTERIZED
DATABASES
Fig. 4.3
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
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.

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.
A CLASSIFICATION OF
SYNDICATED SERVICES
SYNDICATED SERVICES: CONSUMERS
SYNDICATED SERVICES: INSTITUTIONS
OVERVIEW OF SYNDICATED SERVICES
OVERVIEW OF SYNDICATED SERVICES
Table 4.3 cont.

Type Characteristics Advantages Disadvantages

ScannerVolume Household purchases Data reflect actual Data maynot be
Tracking Data are recorded through purchases; timely representative; errors
electronic scanners data, less expensive in recording
in supermarkets purchases; difficult to
link
purchases to elements
of marketing mix
other than price
ScannerDiary Panels Scanner panels of Data reflect actual Data may not be
withCable TV households that purchases; sample representative;
subscribe to cable control; ability to link quality of data
TV panel data to limited
household
characteristics
 OVERVIEW OF SYNDICATED SERVICES
Table 4.3 cont.

Characteristics Advantages Disadvantages Uses

Verification of product Relativelyprecise Coverage maybe Measurement of
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 maybe competitive activity,
inventory analysis difficult analyzing distribution
patterns; tracking of
new products
Data banks on Important source of Data are lacking in Determining market
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
 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.
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.
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.
A CLASSIFICATION OF INTERNATIONAL
SOURCES
SUMMARY
SUMMARY