Marketing Research Module 2 Secondary Data

Cha pter F our Exploratory Research Design: Secondary Data

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Cha pter Ou tl ine 1)

Overview

2)

Primary Versus Secondary Data

3)

Advantages & Uses of Secondary Data

4)

Disadvantages of Secondary Data

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Cha pter Ou tl ine Criteria for Evaluating Secondary Data

1)

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i.

Specifications: Methodology Used to Collect the Data

ii.

Error: Accuracy of the Data

iii.

Currency: When the Data Were Collected

iv.

Objective(s): The Purpose for Which the Data Were Collected

v.

Nature: The Content of the Data

vi.

Dependability: Overall, How Dependable are the Data 4-3

Cha pter Outl ine 1)

Classification of Secondary Data

2)

Internal Secondary Data

3)

Published External Secondary Sources i.

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General Business Sources a.

Guides

b.

Directories

c.

Indexes

d.

Non-governmental Statistical Data

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Ch apter O utl ine Government Sources

i.

a.

Census Data

b.

Other Government Publications

Computerized Databases

1)

2)

Census Data

i.

Classification of Computerized Databases

ii.

Directories of Databases Syndicate Sources of Secondary Data

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Cha pter Outl ine 11) Syndicated Data from Households i. Surveys a. Psychographics & Lifestyles b. Advertising Evaluation c. General Surveys d. Uses of Surveys e. Advantages & Disadvantages of Surveys ii. Panels a. Purchase Panels b. Media Panels c. Uses of Panels d. Advantages & Disadvantages of Panels © 2007 Prentice Hall

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Cha pter Outl ine Electronic Scanner Services

1) i.

a.

Scanner Diary Panels

b.

Scanner Diary Panels with Cable TV

c.

Uses of Scanner Services

d.

Advantages & Disadvantages

Syndicated Data from Institutions

2) i.

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Volume Tracking Data

Retailers & Wholesalers a.

Uses of Audit Data

b.

Advantages & Disadvantages of Audit Data 4-7

Ch apter O utl ine Industry Services

i.

a.

Uses of Industry Services

b.

Advantages & Disadvantages of Industry Services

1)

Combining Information from Different Sources: Single-Source Data

2)

Applications of Secondary Data i.

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Computer Mapping

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Cha pter Ou tl ine

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1)

International Marketing Research

2)

Ethics in Marketing Research

3)

Summary

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Pr imary Vs. S econda ry Data 

Pr imar y dat a 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).



Seco nda ry da ta are data that have already been collected for purposes other than the problem at hand. These data can be located quickly and inexpensively.

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A Co mpar is on of P rim ary & Se condary Da ta Table 4.1

Primary Dat a Collection Collection Collection Collection

purpose process cost time

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For the problem at hand Very involved High Long

Secon dary D ata For other problems Rapid & easy Relatively low Short

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Uses of S econda ry 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

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Criteri a for E valua ti ng Seconda ry D ata 

Speci ficatio ns : Methodology Used to Collect the Data



Err or: Accuracy of the Data



Cu rren cy : When the Data Were Collected



Object iv e( s) : The Purpose for Which the Data Were Collected



Natu re: The Content of the Data



Depe nda bi li ty: Overall, How Dependable Are the Data

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Cri teri a for Eva lua ti ng Sec onda ry Dat a Table 4.2 Crit er ia

Issues

Dat a co llec tion met hod, resp ons e Sp ec if ic at ions & Metho dol ogy rat e, quali ty & a nal ys is of dat a, sam pling tec hniq ue & si ze, quest ionnair e desi gn, fi eld work . Ex am ine e rrors i n ap proac h, Erro r & resea rch d es ign, sa mp ling , d at a Acc urac y co llection & a nal ysi s, & rep or ting . Currenc y Ob jec tive Nat ure Dep end ab ility

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Re ma rk s Dat a shoul d be reli ab le, val id, & general izab le to the pro blem. Asse ss acc uracy by co mpari ng dat a fro m diff erent sourc es.

Cen sus dat a are up dat ed by sy nd ic at ed fi rms. The object ive det erm ines the rel evanc e of dat a. Defi nit ion of key vari ab les , uni ts of Reco nfi gure t he d ata t o increase thei r measurem ent , cat eg ori es used , useful ness. rel at io nshi ps ex amined . Ex pert ise, cred ibil ity, rep ut ati on, and trust wo rt hi nes s of the so urc e. Dat a shoul d be obtai ne d fr om an ori ginal so urce. Time lag b et ween col lect ion & pub lic at ion, freq ue nc y of up dat es. Why were the dat a col lect ed ?

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A Class ifi ca ti on of Sec ondar y Data Fig. 4.1

Secondary Data

Internal

Ready to Use

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Requires Further Processing

External

Published Materials

Computerized Databases

Syndicated Services

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Inte rn al Se co ndar y Data Department Store Project Sales were analyzed to obtain:  Sales by product line  Sales by major department (e.g., men's wear, house wares)  Sales by specific stores  Sales by geographical region  Sales by cash versus credit purchases  Sales in specific time periods  Sales by size of purchase  Sales trends in many of these classifications were also examined © 2007 Prentice Hall

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Typ e of In dividual /H ous eho ld Lev el Dat a Availa ble fro m Syn di cat ed F irm s

I. Demographic Data - Identification (name, address, email, telephone) - Sex - Marital status - Names of family members - Age (including ages of family members) - Income - Occupation - Number of children present - Home ownership - Length of residence - Number and make of cars owned © 2007 Prentice Hall

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Typ e of Ind iv idu al/ Hous ehol d Lev el D ata Ava ila bl e f rom Syndi cat ed Firms II.

Psychographic Lifestyle Data - Interest in golf - Interest in snow skiing - Interest in book reading - Interest in running - Interest in bicycling - Interest in pets - Interest in fishing - Interest in electronics - Interest in cable television

There are also firms such as Dun & Bradstreet and American Business Information which collect demographic data on businesses. © 2007 Prentice Hall

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A C lassi fication o f P ubli sh ed Seconda ry S ou rc es Fig. 4.2 Published Secondary Data

Government Sources

General Business Sources

Guides

Directories

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Indexes

Statistical Data

Census Data

Other Government Publications 4-19

Info USA: : Here , The re , Ever yw her e InfoUSA (www.infousa.com) markets subsets of its data in a number of forms, including the professional online services (LEXIS-NEXIS and DIALOG), the general online services (CompuServe and Microsoft Network), the Internet (look-ups), and on CD-ROM. The underlying database on which all these products are based contains information on 115 million residential listings and 14 million business listings, as of 2005. These are verified with over 17 million phone calls annually. The products derived from these databases include sales leads, mailing lists, business directories, mapping products, and also delivery of data on the Internet. © 2007 Prentice Hall

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A C lassi fication o f C om put eri zed Da taba ses Fig. 4.3 Computerized Databases

Online

Bibliographic Databases

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Numeric Databases

Internet

Full-Text Databases

Off-Line

Directory Databases

SpecialPurpose Databases 4-21

Publ ishe d Ex tern al Seconda ry S ou rc es Guide s  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 Dir ectorie s  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 In dices  Helpful in locating information on a particular topic in several different publications © 2007 Prentice Hall

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Classi fication o f C omput eri zed Da taba se s 

Bibl io gr ap hic dat ab as es are composed of citations to articles



Numer ic da ta ba ses contain numerical and statistical information



Fu ll- tex t dat aba ses contain the complete text of the source documents comprising the database



Dir ect ory dat aba ses provide information on individuals, organizations, and services



Spe cial -pu rpose d ata ba ses provide specialized information

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Sy ndi cate d Se rvices 

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

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A Cl assif icat ion o f Syndi cate d Se rvices Fig. 4.4

Households/ Consumers

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Unit of Measurement

Institutions

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Syndi ca ted Se rvi ces: Consu mer s Fig. 4.4 cont.

Households / Consumers

Panels

Purchase

Psychographic & Lifestyles © 2007 Prentice Hall

Media Volume Tracking Data

Surveys

General

Electronic scanner services Scanner Panels

Scanner Panels with Cable TV

Advertising Evaluation 4-26

Syndi cated S erv ices: I nst itut ion s Fig. 4.4 cont. Institutions

Retailers

Wholesalers

Industrial firms

Audits

Direct Inquiries © 2007 Prentice Hall

Clipping Services

Corporate Reports 4-27

Ov er vie w o f S yn di cated S erv ices

Table 4.3 Type

Characteristics Advantages

Surveys

Surveys conducted at  Most flexible way of  Interviewer errors;  regular intervals obtaining data;   respondent errors information  on  underlying motives

Purchase  Panels

Households provide  specific information  regularly over an  extended period of  time; respondent  asked to record  specific behaviors as  they occur

Recorded purchase  behavior can be  linked to the  demographic/  psychographic   characteristics

Lack of  representativeness;  response bias;  maturation

Media Panels

Electronic devices  automatically   recording behavior,  supplemented by a  diary

Same as purchase  panel

Same as purchase  panel

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Disadvantages Uses Market   segmentation,  advertising theme  selection and  advertising  effectiveness Forecasting sales,  market share and  trends; establishing  consumer profiles,  brand loyalty and  switching; evaluating  test markets,  advertising, and  distribution  Establishing  advertising rates;  selecting media  program or air time;  establishing viewer  profiles 4-28

Serv ice s Table 4.3 cont. Scanner Diary Panels  Scanner panels of  households that  with Cable TV subscribe to cable TV

Data reflect actual  Data may not be  purchases; sample  representative; quality  control; ability to link  of data limited panel data to household  characteristics

Promotional mix  analyses, copy testing,  new product testing,  positioning

Audit services

Verification  of  product movement by  examining physical  records or performing  inventory analysis

Relatively precise  information at the  retail and wholesale  levels

Industrial Product  Syndicated Services

Data banks on  Important source of  industrial  information on  establishments created  industrial firms,  through direct inquiries  particularly useful in  of companies, clipping  initial phases of the  services, and corporate  projects reports

Measurement of  consumer sales and  market share,  competitive activity,  analyzing distribution  patterns: tracking of  new products Determining market  potential by geographic  area, defining sales  territories, allocating  advertising budget

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Coverage may be  incomplete; matching  of data on competitive  activity may be  difficult Data are lacking in  terms of content,  quantity, and quality

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Singl e-S ource Da ta Sin gle -so urce da ta 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

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The N YT on t he Web: A Ne w Wa y To Ta rget C usto me rs To handle alternate forms of interaction and updates, The New York Times created a separate unit, The New York Times Electronic Media Co. The New York Times on the Web (www.nytimes.com) has drawn over 11.4 million national unique users as of October 2005. The database contains demographic information, such as age, gender, income, and zip code, that ties to an e-mail address for each of the members. This new database marketing system can identify and customize user groups, target Web messages to specific segments of the population, and adjust the message based on audience reaction. It can also increase targeting opportunities through third-party data or additional information supplied by the user. © 2007 Prentice Hall

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Th e NYT o n th e Web: A Way To Tar get Cu sto mer s

New

For example, the database enables an automobile firm to emphasize safety to older customers, luxury to affluent ones, and roominess to families. The system is set up so that near real-time data can be received from the Web that indicates how well ads are performing relative to age, gender, and income characteristics. Thus, this system allows a firm to maintain up-to-date information on audiences in order to position its products effectively.

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A C lassi fication o f I nt erna tion al Sour ce s Fig. 4.5 International Secondary Data

Domestic Organizations in the United States

Government Sources © 2007 Prentice Hall

International Organizations in the United States

Nongovernment Sources

Governments

Organizations in Foreign Countries

International Organizations

Trade Associations 4-33