Secondary Data and Databases Chapter Three

Chapter Three Objectives To understand how firms create an internal database. To learn about the advantages of creating a database from Web site visitors. To become familiar with data mining. To understand the advantages and disadvantages of using secondary data. To understand the role of the Internet in obtaining secondary data. To learn about types of information management systems. Chapter Three

Can help to clarify or refine the issue or problem; Might provide solution to research problem; Might provide primary data research alternatives; Can alert the researcher to other problems; Provides background information enhancing research credibility. Information Secondary Data Data that have been previously gathered Chapter Three

Might be outdated or questionable; Qualitative nature makes analyses difficult; Could be misapplied to your situation; Might be biased - intentionally or unintentionally; Lack of available data on your topic. Secondary Data Data that have been previously gathered Chapter Three

Relevance: Does the data measure what we think it measures? Does it apply to the audience we think it applies to? Timeliness: Have we received it in time to make decisions/conclusions? Are data out of date / when were the data collected? Quality / Accuracy: How were the data obtained - what methods were used? Who collected the data – were there any biases? Why and for what purpose was the data collected? Completeness: Is the whole story captured - are we parsing the data? Is there a sufficient amount of data to tell the story? Insufficiency: Not enough good data exists to make a sound decision. Relevance: Does the data measure what we think it measures? Does it apply to the audience we think it applies to? Timeliness: Have we received it in time to make decisions/conclusions? Are data out of date / when were the data collected? Quality / Accuracy: How were the data obtained - what methods were used? Who collected the data – were there any biases? Why and for what purpose was the data collected? Completeness: Is the whole story captured - are we parsing the data? Is there a sufficient amount of data to tell the story? Insufficiency: Not enough good data exists to make a sound decision. Secondary Data Data that have been previously gathered Determining its Quality & Application Limitations Chapter Three

Primary Data New data gathered to help solve the problem under investigation Gathered directly from customer or end user; It can be expensive; It is often time consuming; It can be representative of the population; Is generally for use related to research issue. Key Methods: Surveys Focus groups Interviews Observation Studies Market Testing Experiments Gathered directly from customer or end user; It can be expensive; It is often time consuming; It can be representative of the population; Is generally for use related to research issue. Key Methods: Surveys Focus groups Interviews Observation Studies Market Testing Experiments Chapter Three

Database Marketing: Marketing that relies on the creation of a large computerized file of customers’ and potential customers’ profiles and purchase patterns to create a target marketing mix. Cookie: A text file placed on a user’s computer in order to identify the user when the user revisits the Web site. Internal Databases “A collection of related information developed from data within the organization.” Chapter Three

Creation of large - up to date - computerized file; Can include current, past, or potential customers; Might be focused on demographic, purchase behaviors; A development of customer profiles results; Should enable one to generated direct marketing mailers / s targeted at specific customers based on their buying behavior; Can be used to collect customer information from your Web site; Should be organized to enable you to search the database using queries; Should be compatible with database software that will enhance analysis. Some Key Features: Internal Databases Chapter Three

Neural Network: A computer program that mimics the processes of the human brain and thus is capable of learning from examples to find patterns in data. Data Mining: The use of statistical and other advanced software to discover non-obvious patterns hidden in a database. Some Applications: Customer acquisition Customer retention Customer abandonment Market basket analysis Internal Databases - Data Mining Reading between the computer lines Chapter Three

Battling Over Privacy Gramm-Leach-Bliley Act Health Insurance Portability and Accountable Act Schumer-Nelson ID Theft Bill Chapter Three

imshealth.com arbitron.com synovate.com idpa.com npd.com abtassociates.com irwonline.com marketstrategies.com icrsurvey.com knowledgenetworks.com walkerinfo.com liebermanresearch.com vanderveer.com Secondary Data on the Internet 30 of the top marketing research firms. Click to go to respective site Chapter Three

US Small Business Administration US Bureau of Labor Statistics US Federal Statistics US Census Bureau Data on the Internet Some Helpful Links Some Links From Wiley Chapter Three

Newsgroup: An Internet site where people can read and post messages devoted to a specific topic. Geographic Information Systems - GIS: A computer-based system that uses secondary and/or primary data to generate maps that visually display various types of data geographically. Decision Support Systems - DSS: An interactive, personalized information management system designed to be initiated and controlled by individual decision makers. Key Components: Interactive Flexible Discovery Oriented Easy to Learn and Use Information Management Some Other Tools Chapter Three

Manager Environment Modeling DatabaseAnalysis Display MDSS Database Structure Chapter Three

Data Mining Marketing Decision Support Systems Primary Data/Research Secondary Data/Research Thirty Largest MR Firms Index