Chapter Four Exploratory Research Design: Secondary Data

Chapter Outline Overview Primary Versus Secondary Data Advantages & Uses of Secondary Data Types of Secondary Data

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.

A Comparison of Primary & Secondary Data 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 Table 4.1

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

Criteria for Evaluating Secondary Data Criteria Issues Remarks Specifications & Methodology Error & 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. Table 4.2

A Classification of Secondary Data Ready to Use Requires Further Processing Published Materials Computerized Databases Syndicated Services Fig. 4.1 Internal External

Sources of Internal Secondary Data Sales invoices Accounts receivable reports Quarterly sales reports Sales activity reports Online registration Web data Customer letters/ comments Call center records Mail-order forms Credit applications Warranty cards Past studies Sales person expense forms

What can one learn from external secondary data? Demographic dimensions Employment characteristics Economic data Competitive characteristics Supply characteristics Regulations International market characteristics

Government statistics · Population censuses · Social surveys, family expenditure surveys · Import/export statistics · Production statistics · Agricultural statistics. Trade associations Trade associations differ widely in the extent of their data collection and information dissemination activities. At the very least one would normally expect that they would produce a trade directory and, perhaps, a yearbook. Commercial services Published market research reports and other publications are available from a wide range of organizations which charge for their information. Typically, marketing people are interested in media statistics and consumer information which has been obtained from large scale consumer or farmer panels. National and international institutions Bank economic reviews, university research reports, journals and articles are all useful sources to contact. International agencies such as World Bank, IMF, IFAD, UNDP, ITC, FAO and ILO produce a plethora of secondary data which can prove extremely useful to the marketing researcher.

Turkish secondary data sources www.tuik.gov.tr Bakanlıklar Müsteşarlıklar (örn. www.dtm.org.tr) Devlet Planlama Teşkilatı Bakanlıklar ve bağlı kuruluşlar İhracatı Geliştirme Etüd Merkezi Odalar, borsalar, Sektörel birlik ve dernekler, TUSIAD... Üniversite kütüphaneleri, veri tabanları Konuya/sektöre göre değişmekle beraber daha onlarca…

A Classification of Published Secondary Sources Statistical Data Guides Directories Indexes Census Data Other Government Publications Fig. 4.2 Published Secondary Data General Business Sources Government Sources

A Classification of Computerized Databases Bibliographic Databases Numeric Databases Full-Text Databases Directory Databases Special-Purpose Databases Fig. 4.3 Computerized Databases Online Off-Line Internet

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 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

A Classification of Syndicated Services Unit of Measurement Fig. 4.4 Households/ Consumers Institutions

Overview of Syndicated Services Table 4.3 Overview of Syndicated Services

Overview of Syndicated Services Table 4.3 cont.

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

Benefits Risks Consumer Panels Lower cost than other methods Rapid availability and timeliness Accurate reporting of sensitive purchases High level of specificity e.g.www.agbnielsen.net Risks Sampling error (low minority representation) Turnover of panel members Response bias

Store Audits Examination of how much of a particular product or brand has sold at retail level Product sales in relation to competition Effectiveness of shelf space/POP displays Sales at various price points Effectiveness of coupons Direct sales by store type, location, etc e.g. www.tr.nielsen.com

Nielsen Retail Index https://www.youtube.com/watch?v=7wskKs85Yu8

A Classification of International Sources International Organizations Government Sources Nongovernment Sources Governments Trade Associations Domestic Organizations in the home country International Organizations in the home country Organizations in Foreign Countries International Secondary Data

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