Chapter Four

Exploratory Research Design:

Secondary Data
 4-2

Chapter Outline
1) Overview
2) Primary versus Secondary Data
3) Advantages & Uses of Secondary Data
4) Disadvantages of Secondary Data
 4-3

Chapter Outline
5) Criteria for Evaluating Secondary Data
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
 4-4

Chapter Outline
6) Classification of Secondary Data
7) Internal Secondary Data
8) Published External Secondary Sources
i. General Business Sources
a. Guides
b. Directories
c. Indexes
d. Non-governmental Statistical Data
 4-5

Chapter Outline
ii. Government Sources Censu
s
a. Census Data Data

b. Other Government Publications

9) Computerized Databases
i. Classification of Computerized Databases
ii. Directories of Databases
10) Syndicate Sources of Secondary Data
 4-6

Chapter Outline
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
 4-7

Chapter Outline
12) Electronic Scanner Services
i. Volume Tracking Data
a. Scanner Diary Panels
b. Scanner Diary Panels with Cable TV
c. Uses of Scanner Services
d. Advantages & Disadvantages
13) Syndicated Data from Institutions
i. Retailers & Wholesalers
a. Uses of Audit Data
b. Advantages & Disadvantages of Audit Data
 4-8

Chapter Outline
ii. Industry Services
a. Uses of Industry Services
b. Advantages & Disadvantages of
Industry Services
14) Combining Information from Different
Sources: Single-Source Data
15) Applications of Secondary Data
i. Computer Mapping
 4-9

Chapter Outline
16) International Marketing Research
17) Ethics in Marketing Research
18) Internet and Computer Applications
19) Focus on Burke
20) Summary
21) Key Terms & Concepts
 4-10

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 which 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 4-11

Data
Table 4.1

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
 4-12

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 4-13

Data
 Specifications: Methodology Used to
Collect the Data
 Error: Accuracy of the Data
 Currency: When the Data Were
Collected
 Objective(s): The Purpose for Which
the Data Were Collected
 Nature: The Content of the Data
 Dependability: Overall, How
Dependable Are the Data
 Criteria for Evaluating Secondary 4-14

Data
Table 4.2

Criteria Issues Remarks

Specifications Data collection method, Data should be

& response rate, quality & analysis reliable, valid, &
Methodology of data, sampling technique & generalizable to the
size, questionnaire design, problem.
fieldwork.
Error & Examine errors in approach, Assess accuracy by
Accuracy research design, sampling, data comparing data from
collection & analysis, & different sources.
reporting.
Currency Census data are
Time lag between collection & updated by syndicated
Objective publication, frequency of firms.
updates. The objective
Nature Why were the data collected? determines the
relevance of data.
Definition of key variables, units Reconfigure the data to
Dependability of increase their
measurement, categories used, usefulness.
 A Classification of Secondary 4-15

Data
Fig. 4.1

Secondary Data

Internal External

Ready to Requires Published Computerized Syndicated

Use Further Materials Databases Services
Processing
 4-16

Internal Secondary 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.

 Type of Individual/Household Level Data
4-17

Available from Syndicated Firms

I. Demographic Data
- Identification (name, address, 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
 Type of Individual/Household Level Data
4-18

Available from Syndicated 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.
 A Classification of Published Secondary
4-19

Sources
Fig. 4.2

Published
Secondary Data

General Business Government

Sources Sources

Guides Directories Indexes Statistical Census Other

Data Data Government
Publications
 InfoUSA: :
4-20

Here, There, Everywhere

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
113 million residential listings and 14 million
business listings, as of 2003. These are verified
with over 16 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.
 A Classification of Computerized
4-21

Databases
Fig. 4.3

Computerized
Databases

Online Internet Off-Line

Bibliographic Numeric Full-Text Directory Special-

Databases Databases Databases Databases Purpose
Databases
Published External Secondary 4-22

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 4-23

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.
 4-24

Syndicated Services
 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 4-25

Services
Fig. 4.4

Unit of
Measuremen
t

Households/
Institutions
Consumers
 4-26

Syndicated Services: Consumers

Fig. 4.4 cont.
Households /
Consumers

Panels

Electronic
Purchase Media scanner services

Surveys Volume Scanner Scanner

Tracking Diary Panels Diary Panels
Data with Cable
TV
Psychograph Advertising
General
ic Evaluation
 4-27

Syndicated Services: Institutions

Fig. 4.4 cont.
Institutions

Retailers Wholesalers Industrial firms

Audits

Direct Clipping Corporate

Inquiries Services Reports
 4-28

Overview of Syndicated Services

Table 4.3
Type Characteristics Advantages Disadvantages Uses
Surveys Surveys conducted at Most flexible way of Interviewer errors; Market
regular intervals obtaining data; respondent errors segmentation,
information on advertising theme
underlying motives selection and
advertising
effectiveness
Purchase Households provide Recorded purchase Lack of Forecasting sales,
Panels specific information behavior can be representativeness; market share and
regularly over an linked to the response bias; trends; establishing
extended period of demographic/ maturation consumer profiles,
time; respondent psychographic brand loyalty and
asked to record characteristics switching; evaluating
specific behaviors as test markets,
they occur advertising, and
distribution
Media Panels Electronic devices Same as purchase Same as purchase Establishing
automatically panel panel advertising rates;
recording behavior, selecting media
supplemented by a program or air time;
diary establishing viewer
profiles
 4-29

Overview of Syndicated Services

Table 4.3
Type cont.
Characteristics A
dvantages Disadvantages
ScannerVolume H ouseholdpurchases D atareflectactual D atam aynotbe
TrackingData arerecordedthrough purchases;tim elydata, representative;errorsin
electronicscannersin lessexpensive recordingpurchases;
superm arkets difficulttolink
purchasestoelem ents
ofm arketingm ixother
thanprice
ScannerD iaryPanels Scannerpanelsof D atareflectactual D atam aynotbe
withCableT V householdsthat purchases;sam ple representative;quality
subscribetocableTV control;abilitytolink ofdatalim ited
paneldatatohousehold
characteristics
 4-30

Overview of Syndicated Services

Table 4.3
Characteristics cont.
Advantages Disadvantages Uses
V erificationofproduct R elativelyprecise C overagem aybe M easurem entof
m ovem entby inform ationatthe incom plete;m atching consum ersalesand
exam iningphysical retailandw holesale ofdataoncom petitive m arketshare,
recordsorperform ing levels activitym aybe com petitiveactivity,
inventoryanalysis difficult analyzingdistribution
patterns;trackingof
newproducts
D atabankson Im portantsourceof D ataarelackingin D eterm iningm arket
industrial inform ationon term sofcontent, potentialbygeographic
establishm entscreated industrialfirms, quantity,andquality area,definingsales
throughdirectinquiries particularlyusefulin territories,allocating
ofcom panies,clipping initialphasesofthe advertisingbudget
services,andcorporate projects
reports
 4-31

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.
 The NYT on the Web: A New Way
4-32

To Target Customers

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 10 million registrants as of 2003.
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.
 The NYT on the Web: A New Way
4-33

To Target Customers

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.
 A Classification of International 4-34

Sources
Fig. 4.5

International Secondary Data

Domestic International Organizations in

Organizations in Organizations in Foreign Countries
the United States the United
States

Governme Nongovernment International Trade

Governments Organizations Associatio
nt Sources Sources
ns