1. Secondary Data, Databases,
the Internet,
and Decision
Support Systems
CHAPTER
four
Copyright © 2000 South-Western College Publishing Co.

2. Learning Objectives
1. To understand how firms create an internal database.
2. To become familiar with the growing popularity of firms using their websites to build a database.
3. To learn about data mining.
4. To distinguish between primary and secondary data and understand the advantages and disadvantages of each.

3. Learning Objectives
5. To understand the role of the Internet in obtaining secondary data.
6. To learn the nature of decision support systems.

4. Creating An Internal Database a collection of related information
To understand how firms create an internal database.
THE NATURE OF SECONDARY DATA
Secondary data:
Information that has been gathered and only might be relevant to the problem at hand.
Primary Data:
Survey, observation, or experiment data collected to solve a particular problem.
Creating An Internal Database
a collection of related information

5. The Growing Importance of Internal Database Marketing
To understand how firms create an internal database.
THE NATURE OF SECONDARY DATA
The Growing Importance of Internal Database Marketing
A large computerized file of customer and purchase patterns.
Internal Databases as Collective Memory Banks
Internal Databases Can Even Be Created From Conversations

6. Web Site Databases - A Marketer’s Dream Web Retailing Web Advertising
To become familiar with using Web sites to build a database.
THE NATURE OF SECONDARY DATA
Web Site Databases - A Marketer’s Dream
Web Retailing
Web Advertising
Using Cookies:
A text file on a user’s computer in order to identify them when he or she revisits the Web site.
Data Mining
Statistical software to discover non-obvious patterns hidden in a database.

7. Data mining uses in marketing: Computer acquisition Customer retention
To learn about data mining.
THE NATURE OF SECONDARY DATA
Data mining uses in marketing:
Computer acquisition
Customer retention
Customer abandonment
Market basket analysis

8. External: government, trade associations
To distinguish between primary and secondary data.
PUBLISHED SECONDARY DATA
Internal: annual reports, reports to stockholders, product testing results
External: government, trade associations
Advantages of Secondary Data
1. May help clarify or redefine the definition of the problem as part of the exploratory research process.
2. May provide a solution to the problem.
3. May provide primary data research method alternatives.

9. Limitations of Secondary Data Lack of Availability Lack of Relevance
To distinguish between primary and secondary data.
PUBLISHED SECONDARY DATA
4. May alert the marketing researcher to potential problems or difficulties.
5. May provide necessary background information and build creativity for the research report.
Limitations of Secondary Data
Lack of Availability
Lack of Relevance
Inaccuracy

10. Guidelines for determining secondary data accuracy:
To distinguish between primary and secondary data.
PUBLISHED SECONDARY DATA
Guidelines for determining secondary data accuracy:
1. Who gathered the data?
2. What was the purpose of the data?
3. What information was collected?
4. When was the information collected?
5. How was the information collected?
6. Is the information consistent with other information?
Insufficient data

11. Finding Secondary Data on the Internet Search Engines
To understand the role of the Internet in obtaining secondary data.
THE NEW AGE OF SECONDARY INFORRMATION: THE INTERNET AND WORLD WIDE WEB
Finding Secondary Data on the Internet
Search Engines
Use search engine
Enter search request
Click on “search” button
View list of sites that meets your criteria
Look at the number of sites listed

12. There are 70 federal agencies that publish data Statistical Universe
To understand the role of the Internet in obtaining secondary data.
FINDING FEDERAL GOVERNMENT DATA ON THE INTERNET
There are 70 federal agencies that publish data
Statistical Universe
FEDSTATS
White House Briefing Room
Internet Discussion Groups and Special Interest Groups as Sources of Secondary Data
Newsgroups: to focus on a particular topic

13. BusinessUSA: 10 million businesses
To understand the role of the Internet in obtaining secondary data.
DATABASES ON CD-ROM
BusinessUSA: 10 million businesses
HouseholdsUSA: 100 million households
Physicians & Surgeons: 575,000 physicians
Big Businesses: 177,000 top firms
Manufacturers: 612,000 manufacturers
Small Business Owners: 4.5 million
Geographic Information Systems (GIS)
a demographic database, digitized maps, a computer, and software to add corporate data to the mix.

14. Information Management
To learn the nature of decision support systems.
DATABASES ON CD-ROM
Information Management
A system for capturing, processing, and storing information so that it can be readily found and retrieved.
Decision Support Systems (DSS)
1. Interactive
2. Flexible
3. Discovery orientated
4. Easy to learn and use
Using DSS

15. A Decision Support System
Figure 4.2
A Decision Support System
DATABASES ON CD-ROM

16. 1. Substantial cost savings.
To learn the nature of decision support systems.
DATABASES ON CD-ROM
A Move Toward DSS
1. Substantial cost savings.
2. Understanding of the decision environment has increased.
3. Decision-making effectiveness is upgraded.
4. Information value is improved.

17. The End
Copyright © 2000 South-Western College Publishing Co.