Chapter Four Exploratory Research Design: Secondary Data

Chapter Outline Primary Versus Secondary Data Uses and criteria of Secondary Data Classification of Secondary Data Internal Secondary Data External Secondary Data Summary Questions for Revision

Primary Vs. Secondary Data Primary data are originated by a researcher for the specific purpose of addressing the problem at hand. obtaining primary data can be expensive and time consuming. 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.

A Comparison of Primary & Secondary Data Primary Data Secondary Data Collection purpose For the problem at hand For other problems Collection process Very involved (complicated) Rapid & easy Collection cost High Relatively low Collection time Long Short Involved = complicated

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 But: the quality of the secondary data should be evaluated using some criteria.

Criteria for Evaluating Secondary Data Criteria Issues Remarks Specifications (Methodology) Error (data Accuracy) Currency Objective Nature Dependability Data collection method, response rate, quality & analysis of data, sampling technique & size, questionnaire design, fieldwork. Examine errors in approach, research design, sampling, data collection & analysis, & reporting. Time lag between collection & publication, frequency of updates. Why were the data collected? Definition of key variables, units of measurement, categories used, relationships examined. Expertise, credibility, reputation, and trustworthiness of the source. Data should be reliable, valid, & generalizable to the problem. Assess accuracy by comparing data from different sources. Census data are updated by syndicated firms. The objective determines the relevance of data. Reconfigure the data to increase their usefulness. Data should be obtained from an original source. Examination of available secondary data is a prerequisite to the collection of primary data. Start with secondary data. Proceed to primary data only when the secondary data sources have been exhuasted. Specifications: Methodology Used to Collect the Data. Objective: Data collected with a specific objective may not be appropriate in another situations. Eg. Collected aggregate data about detergents’ sales to examine consumers’ expenditure on different types of products would be of limited value in a study aimed at understanding how households select specific brands and their repeat purchase. 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

A Classification of Secondary Data Internal data: are those generated within the organization for which the research is being conducted. sources of these data are data mining, customer relationship management, and database marketing. External Data: are those generated by sources outside the organization for which the research is being conducted. Sources of these data are published materials, computerized databases, and syndicated services. Data mining is a powerful new technology with great potential to help companies focus on the most important information in the data they have. It discovers information within the data that queries and reports can't effectively reveal. data mining (sometimes called data or knowledge discovery) is the process of analyzing data from different perspectives and summarizing it into useful information - information that can be used to increase revenue, cuts costs, or both. Data mining software is one of a number of analytical tools for analyzing data. It allows users to analyze data from many different dimensions or angles, categorize it, and summarize the relationships identified. Technically, data mining is the process of finding correlations or patterns among dozens of fields in large relational databases. Customer relationship management (CRM) is a system for managing a company’s interactions with current and future customers. It often involves using technology to organize, automate and synchronize sales, marketing,customer service, and technical support. Database marketing involves the use of computers to capture and track customer profiles and purchase details.

A Classification of Secondary Data Ready to Use Requires Further Processing Published Materials Computerized Databases Syndicated Services Internal External Ready-to-use data: eg. Sales value Requires further processing: sales according to product type or brand. These data need to be processed in order to be ready to use.

Internal Secondary Data Example: 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

External Secondary Data A Classification of Published Secondary Sources Statistical Data Guides Directories Indexes Census Data Other Government Publications Published Secondary Data General Business Sources Government 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

External Secondary Data A Classification of Computerized Databases Bibliographic Databases Numeric Databases Full-Text Databases Directory Databases Special-Purpose Databases Computerized Databases Online Off-Line Internet Online, Internet, and offline may be further classified as bibliographic, numeric, full-text, directory, or special-purpose databases. Offline = e.g. C.D.

External Secondary Data A Classification of Computerized Databases Online databases: Consists of a central data bank which is accessed with a computer via a telecommunications network. Internet databases: can be accessed, searched, and analyzed on the Internet. Offline Databases make information available on CD-ROM disks. Online, Internet, and offline may be further classified as bibliographic, numeric, full-text, directory, or special-purpose 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. eg. The Profit Impact of Market Strategies (PIMS) database.

External Secondary Data: Syndicated Services Syndicated services are companies that collect and sell common data of known commercial value designed to serve a number of clients. Syndicated sources can be classified based on the data unit of measurement to: Household/consumer data: obtained from surveys, diary panels, or electronic scanner services Institutional data: obtained from retailers, wholesalers, or industrial firms

External Secondary Data A Classification of Syndicated Services Unit of Measurement Households/ consumers Institutions

Syndicated Services: household/consumers Psychographic & Lifestyles General Advertising Evaluation Households / consumers Scanner Panels with Cable TV Surveys Volume Tracking Data Panels Electronic scanner services Purchase Media Those data are not collected for a specific research problem but can be useful for a research. data are collected and sold to whom it may concern. Advertising evaluation: to assess the effectiveness of advertising using print or broadcast media. General: Surveys conducted for a variety of other purposes including examination of purchase and consumption behavior. Purchase panel: respondents record their purchases of the variety of different products. Media panel: a data-gathering technique that is comprised of sample of respondents whose television viewing behavior is automatically recorded by electronic devices. Volume tracking data: provide information on purchases by brand, size, price, …. Etc. Scanner panels: members of the panel have ID card scan it when entering the store. Their purchase data are recorded such as day and time of purchase. These members may be given a handed scanner to scan his purchase at home. Scanner panel with cable T.V. Eg. Testing advertising on cable T.V. subscribers.

External Secondary Data Type of Individual/Household Level Data 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 - Number cars owned

External Secondary Data Type of Individual/Household Level Data 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.

Syndicated Services: Institutions Audits Direct Inquiries Clipping Services Corporate Reports Institutions Retailers Wholesalers Industrial firms Retailer and wholesaler audit: the audit is the most popular means of obtaining data from retailers and wholesalers. Audit is a data collection process derived from physical records or by performing inventory analysis. Data are collected personally by the researcher or by representatives of the researcher, and data are based on counts. Audit data focus on the products sold through the outlets. Industrial services: provide syndicated financial, operating, and employment data about industrial firms and other types of institutions. Direct inquiry: asking the firm for data Clipping services: collecting data from newspapers, trade press, or broadcast. Corporate reports: reports issued by the firm eg. annual report.

Syndicated Services: Institutions Retailer and wholesaler audit: the audit is the most popular means of obtaining data from retailers and wholesalers. Audit is a data collection process derived from physical records or by performing inventory analysis. Data are collected personally by the researcher or by representatives of the researcher, and data are based on counts. Audit data focus on the products sold through the outlets. Industrial services: provide syndicated financial, operating, and employment data about industrial firms and other types of institutions. Direct inquiry: asking the firm for data. Clipping services: collecting data from newspapers, trade press, or broadcast. Corporate reports: reports issued by the firm eg. annual report.

Database marketing involves the use of computers to capture and track customer profiles and purchase details.

Questions for Revision What are the differences between primary and secondary data? (Slides 3-4) 2. Differentiate, with giving examples, between internal and external secondary data. (slides 7-8) 3. Mention 3 uses of secondary data. (slide 5) 4. Briefly explain 3 criteria for evaluating secondary data? (slide 6) What is meant by Syndicated services as a source of secondary data in marketing research. (slide 13) Mention 3 examples of both demographic and psychographic data(slide 16-17)