Secondary Data

What is Secondary Data? Data gathered and recorded previously for purposes other than the current project. Usually historical and already assembled Require no access to respondents or subjects

Table 4.1 A Comparison of Primary and Secondary Data

Advantages Time savings Relevance Availability Obtainable in a short period of time Low cost Accessibility Complements primary data

Disadvantages May be inaccurate May be inconsistent Inconvenient to compare May be inaccessible Outdated information Collected for a purpose other than the purpose at hand Variations in definitions of terms Different units of measurement

Is the Secondary Data appropriate for your study? Is the subject matter consistent with your problem definition? Do the data apply to the population of interest? Do the data apply to the time period of interest? Do the data appear in the correct units of measurement? Do the data cover the subject of interest in adequate detail?

Additional Questions to Ask Who collected the data? For whom was the data collected? What was the purpose of the research? When was the data collected? How was the data collected? How was the data analyzed? How does the data compare with similar information from different sources?

Common Secondary Data Study Objectives Fact-finding Identifying consumption patterns Tracking trends Model building Estimating market potential Forecasting sales Selecting trade areas and sites Database marketing Enhancing customer databases Developing prospect lists

Index of Retail Saturation Calculation that describes the relationship between retail demand and supply Calculation Local market potential (demand) divided by Square feet of retailing space

Example Using the Index of Retail Saturation Assume Population = 261,785 Annual per capita shoe sales = $54.43 Local market potential = $14,249,000 Square feet of retail space used to sell shoes = 94,000 sq. ft. Index of retail saturation = 152 Compare to other areas to determine which sites have the greatest potential with the least amount of retail competition. Index values above 200 are considered to indicate exceptional opportunities.

Plagiarism Using someone’s work without giving credit or without obtaining permission, where necessary

Tips for Avoiding Plagiarism NEVER use someone else’s research and fail to cite the individual(s). Do not copy information from a source text without proper acknowledgement Always use quotation marks when reproducing material from a source text, and use proper documentation Do not paraphrase material from a source text without appropriate documentation Always cite the research service when purchasing completed research from the service Adapted from Strong, William S. (1993), The Copyright Book: A Practical Guide, (London: MIT Press), 1.

Getting Copyright Permission Determine if permission is needed Is the material protected under law? Would your use of the material violate the law? Identify the owner Identify the rights you need Plan ahead for permissions Negotiate whether payment is required Get it in writing Source: Stim, Richard (2000), Getting Permission: How to License & Clear Copyrighted Materials Online & Off, (Berkley, CA: Nolo Press), 1-6.

Figure 4.3 A Classification of Secondary Data Internal External Ready to Use Syndicated Services Published Materials Requires Further Processing Computerized Databases

Sources of Secondary Data Internal Sources Accounting records Marketing records Production personnel Information systems personnel Sales force Other expert employees

Sources of Secondary Data External Sources Government agencies Libraries The Internet Vendors Producers Books & Periodicals Media Sources Trade Associations Commercial Sources

Figure 4.4 A Classification of Published Secondary Sources Data Government Sources General Business Sources Statistical Data Census Data Guides Directories Other Government Publications Indexes

Figure 4.5 A Classification of Computerized Databases Online Internet Offline Special Purpose Databases Bibliographic Databases Numeric Databases Full- Text Databases Directory Databases

National Trade Data Bank (NTDB) Established by the Omnibus Trade and Competitiveness Act of 1988 Purpose was to provide reasonable public access, including electronic access, to an export promotion data system that was centralized, inexpensive, and easy to use Over 1,000 libraries offer access to the NTDB through the Federal Depository Library system.

Examples of Information Contained in the NTDB Agricultural commodity production & trade Basic export information Calendars of trade fairs Capital markets & export financing Exchange rates Export licensing info International trade terms directory Maritime & shipping information Market research reports Overseas contacts Price indexes Overseas & domestic industry information Small business info State exports State trade contacts

Syndicated Sources of Secondary Data

Syndicated Sources (Services) Firms that collect and sell common pools of data designed to serve information needs shared by a number of clients, including competing firms in the same industry.

Figure 5.3 A Classification of Syndicated Services Unit of Measurement Households/ Consumers Institutions

A Classification of Syndicated Services: Household/Consumers Electronic Scanner Services Household Consumers Figure 5.4 A Classification of Syndicated Services: Household/Consumers Mail Diary Panels Surveys Volume Tracking Data Purchase Psychographic & Lifestyles Scanner Diary Panels Media Advertising Evaluation Scanner Diary Panels w/ Cable TV General

Figure 5.5 Classification of Syndicated Survey Research Surveys by Syndicated Firms Periodic Panel Shared Figure 5.5 Classification of Syndicated Survey Research Psychographic and Lifestyles Advertising Evaluation General

Surveys Periodic Surveys Panel Surveys Shared Surveys Collect data on the same set of variables at regular intervals, each time sampling from a new group of respondents. Panel Surveys Measure the same group of respondents over time but not necessarily on the same variables. Shared Surveys Developed and executed for multiple clients, each of whom shares the expense.

Surveys Psychographic Surveys Lifestyle Surveys Quantified psychological profiles of individuals and psychologically based measures of lifestyles, such as brand loyalty and risk taking. Lifestyle Surveys Data that describes individuals’ distinctive pattern of living Described by the activities people engage in The interests they have The opinions they hold of themselves The opinions they hold of the world around them

Surveys Advertising Evaluation Surveys General Surveys Measure the size and profile of the advertising audience, and Assess the effectiveness of advertising using print and broadcast media General Surveys Conducted for a variety of other purposes (I.e., examination of purchase and consumption behavior)

Consumer Diary Panels Made up of a group of individuals and households that record their purchases and behavior in a diary over time. Frequent attempts are made to maintain the representativeness of the panel in relation to the U.S. population (on the basis of demographics)

Consumer Diary Panels Diary Purchase Panels Diary Media Panels Data-gathering technique in which respondents record their purchases in a diary. Diary Media Panels Data-gathering technique composed of samples of respondents whose television viewing behavior is automatically recorded by electronic devices Supplemented by the purchase information recorded in a diary

Electronic Scanner Services Scanner Data Data obtained by passing merchandise over a laser scanner that reads the UPC (Universal Product Code) from the packages. Volume-tracking Data Scanner data that provides information on purchases by brand, size, price, and flavor or formulation Scanner Diary Panels Panel members issued an ID card allowing panel members’ purchases to be linked to their identity Scanner Diary Panels with Cable TV Combination of scanner diary panels with manipulations of the advertising that is being broadcast by cable television companies.

Figure 5.6 Classification of Syndicated Services: Institutions Retailers Wholesalers Industrial Firms Audits Direct Inquiries Clipping Services Corporate Reports

Syndicated Data from Institutions Retailer and Wholesaler Audits Collect of product movement data for wholesalers & retailers Periodic audits may be A physical count of inventory, or May be managed through a link to the scanning process Track inventory flow, current inventory levels, and the impact of both promotional & pricing programs on inventory levels Industrial Research Services Secondary data derived from industrial sources & intended for industrial use