Business Research Methods William G. Zikmund Chapter 8: Secondary Data

Chapter 8: Exploratory Research and Qualitative Analysis 1. Definition of Secondary Data 2. Advantages & Disadvantages of Secondary Data 3. Typical Objectives for Secondary Data Research Designs 4. Classification of Secondary Data

1. Definition of Secondary Data Data gathered and recorded by someone else prior to and for a purpose other than the current project Is often: Historical Already assembled Needs no access to subjects

2. Advantages & Disadvantages of Secondary Data Inexpensive Obtained Rapidly Information is not Otherwise Accessible Disadvantages: Uncertain Accuracy Data Not Consistent with Needs Inappropriate Units of Measurement Time Period Inappropriate; Secondary Data may be Dated

Evaluating Secondary Data Does the data help to answer questions set out in the problem definition? Applicability to project objectives Does the data apply to the time period of interest? Does the data apply to the population of interest?

Evaluating Secondary Data (continued) Do the other terms and variable classifications presented apply? Applicability to project objectives Are the units of measurement comparable? If possible, go to the original source of the data? Accuracy of the data

Is the cost of data acquisition worth it? Is there a possibility Accuracy of the data Is there a possibility of bias? Can the accuracy of data collection be verified? Use data

3. Typical Objectives for Secondary Data Research Designs Fact Finding: Identifying consumption patterns Tracking trends Model building: Estimating market potential Forecasting sales Selecting trade areas and sites Data Base Marketing (Data Mining): Development of Prospect Lists Enhancement of Customer Lists

3.1. Fact Finding Aim: to collect descriptive and comparative information to support decision making. Comparing company’s data with (e.g. total annual sales) company’s competitors data and/or Comparing company’s present data with company’s own data in other time periods.

3.2. Model Building Aim: to calculate a dependent variable by using independent variable(s) having specific effects on this dependent variable. First, facts about one or more independent variables are collected; Then, the effects or ratios of these independent variables on the dependent varible will be specified Finally, the dependent variable will be calculated.

3.3. Data Based Marketing (Data Mining) Aim: to dig through and analyze volumes of data to discover patterns about a company’s customers, products, and activities. Practice of maintaining a customer data base Names Addresses Past purchases Customers’ responses to company’s past efforts Data from numerous sources

4. Classification of Secondary Data Data can be classified according to the origin: Internal Data External Data

4.1. Internal Data Internal and proprietary data are more descriptive Examples for internal data: Accounting information Sales information Backorders or rejected orders Customer complaints

4.2. External Data Data created, recorded, or generated by an entity other than the researcher’s organization Examples for External Data sources: Government Trade associations Newspapers and journals Libraries, Books and periodicals The Internet Vendors and Producers, etc.