1. Secondary Data, Literature Reviews, and Hypotheses
Chapter 3
Secondary Data, Literature Reviews, and Hypotheses
McGraw-Hill/Irwin
Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

2. Learning Objectives Understand the nature and role of secondary data
Describe how to conduct a literature review
Identify sources of internal and external secondary data
Discuss conceptualization and its role in model development
Understand hypotheses and independent and dependent variables

3. Nature, Scope, and Role of Secondary Data
Secondary data: Data not gathered for the immediate study at hand but for some other purpose
Internal secondary data: Data collected by the individual company for accounting purposes or marketing activity reports
External secondary data: Data collected by outside agencies such as the federal government, trade associations, or periodicals

4. Nature, Scope, and Role of Secondary Data
Secondary data research has gained substantial importance in marketing research with:
Increased emphasis on business and competitive intelligence
Ever-increasing availability of information from online sources
Used to examine marketing problems because of relative speed and cost-effectiveness of obtaining the data

5. What is a Literature Review?
It is a comprehensive examination of available information that is related to. your research topic
Can help clarify and define the research problem and research questions
Can suggest research hypotheses to investigate
Can identify scales to measure variables and research methodologies that have been used successfully to study similar topics

6. Criteria Used to Evaluate Secondary Data Sources
Purpose
Accuracy
Consistency
Credibility
Methodology
Bias

7. Exhibit 3.1 - Key Descriptive Variables Sought in Secondary Data Search

8. Exhibit 3.2 - Common Sources of Internal Secondary Data

9. Exhibit 3.3 - Additional Sources of Secondary Data

10. External Sources of Secondary Data
Primary sources of external secondary data:
Popular sources
Scholarly sources
Government sources
North American Industry Classification System (NAICS): A system that codes numerical industrial listings designed to promote uniformity in data reporting procedures for the U.S. government

11. Exhibit 3.5 - Common Government Documents Used as Secondary Data Sources

12. External Sources of Secondary Data
Commercial sources
Syndicated (or commercial) data
Consumer panels
Media panels
Store audits

13. Synthesizing Secondary Research for the Literature Review
Divergent perspectives and findings need to be included
Differences between findings of studies include estimates of descriptive data
Three major causes of discrepancies in online retail estimates
Inclusion (or not) of travel spending
Methodological differences
Some degree of sampling error

14. Developing a Conceptual Model
Literature reviews can help conceptualize a model that summarizes the relationships you hope to predict
Elements required to conceptualize and test a model:
Variables
Constructs
Relationships

15. Variable Construct Relationships Independent Variable
An observable item that is used as a measure on a questionnaire
Construct
An unobservable concept that is measured by a group of related variables
Relationships
Associations between two or more variables
Independent Variable
The variable or construct that predicts or explains the outcome variable of interest
Dependent Variable
The variable or construct researchers are seeking to explain

16. Developing Hypotheses and Drawing Conceptual Models
Two types of hypotheses:
Descriptive hypotheses
Causal hypotheses

17. Descriptive Hypotheses
Possible answers to a specific applied research problem
Its development involves:
Reviewing the research problem or opportunity
Writing down the questions that flow from the research problem or opportunity
Brainstorming possible answers to the research questions

18. Causal Hypotheses
Theoretical statements about relationships between variables
Two hypotheses can formally be stated:
Hypothesis 1: Higher spending on advertising leads to higher sales
Hypothesis 2: Higher prices lead to lower sales

19. Causal Hypotheses
Positive relationship: An association between two variables in which they increase or decrease together
Negative relationship: An association between two variables in which one increases while the other decreases

20. Characteristics of Good Hypotheses
Follow from research questions
Written clearly and simply
Must be testable

21. Conceptualization
Development of a model that shows variables and hypothesized or proposed relationships between variables
Involves:
Identifying the variables for your research
Specifying hypotheses and relationships
Preparing a diagram (conceptual model) that visually represents the relationships you will study

22. Process of Conceptualization
Identify variables for research
Specify hypotheses and relationships
Prepare a diagram that represents the relationships visually

23. Exhibit 3.8 - A Model of New Technology Adoption

24. Hypothesis Testing
Hypothesis: An empirically testable though yet unproven statement developed in order to explain phenomena
Null hypothesis: A statistical hypothesis that is tested for possible rejection under the assumption that it is true
Alternative hypothesis: The hypothesis contrary to the null hypothesis, it usually suggests that two variables are related

25. Hypothesis Testing
A null hypothesis refers to a population parameter, not a sample statistic
Parameter: The true value of a variable
Sample statistic: The value of a variable that is estimated from a sample

26. Marketing Research in Action: The Santa Fe Grill Mexican Restaurant
Should the owners of the Santa Fe Grill Mexican restaurant go back and restate their questions?
If “no,” why not? If “yes,” why?
Suggest how the research questions could be restated.

27. Marketing Research in Action: The Santa Fe Grill Mexican Restaurant
Regarding the owners’ desire to understand the interrelationships between customer satisfaction, restaurant store image, and customer loyalty, develop a set of hypotheses that might be used to investigate these interrelationships.