Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
Chapter 8
Secondary Data Research in a Digital Age
AT-A-GLANCE
I. Introduction
A. Advantages of secondary data
B. Disadvantages of secondary data
II. Typical Objectives for Secondary-Data Research Designs
A. Fact-finding
Identification of consumer behavior for a product category
Trend analysis
oEnvironmental scanning
B. Model building
Estimating market potential for geographic areas
Forecasting sales
Analysis of trade areas and sites
C. Data mining
D. Database marketing and customer relationship management
III. Sources of Secondary Data
A. Sources of internal and proprietary data
B. External data: The distribution system
C. Information as a product and its distribution channels
Libraries
The Internet
Vendors
Producers
Books and periodicals
Government sources
Media sources
Trade association sources
Commercial sources
Market share data
Demographic and census updates
Consumer attitude and public opinion research
Consumption and purchase behavior data
Advertising research
IV. Single-Source Data – Integrated Information
V. Sources for Global Research
LEARNING OUTCOMES
1. Discuss the advantages and disadvantages of secondary data
2. Define types of secondary data analysis conducted by business research managers
3. Identify various internal and proprietary sources of secondary data
4. Give examples of various external sources of secondary data
5. Describe the impact of single-source data and globalization on secondary data research
CHAPTER VIGNETTE: Business Facts on a Grand Scale
The use of secondary data (i.e., data that has been collected previously for other purposes) has exploded
with the advent of large-scale electronic information sources and the Web. One company that has taken
full advantage of integrating various business related information sources is Nielsen Claritas (a merger of
the Nielsen Company and Claritas). Claritas is known for (1) PRIZM, which provides market
segmentation information; (2) Consumer Point, a target marketing analysis solution for different industry
spaces; and (3) Business-Facts, which provides accurate business data for market support and strategic
planning and holds great promise as a secondary data source for existing companies. All of the
information sources within Nielsen Claritas add value to business users by satisfying two very critical
needs: expertise in linking different data streams into a cohesive system and geographically-based
information systems.
SURVEY THIS!
The data in the online survey provide qualitative and quantitative data based upon responses from
students around the world. Some of the data variables are similar to the kinds of data gathered from
public opinion research, such as how a person’s job affects them outside of work. Students are asked to
do a Google search on terms like “work tension opinions” and “work stress study” and asked if the results
obtained from the online survey appear consistent with other opinion study results.
RESEARCH SNAPSHOTS
Does It Matter?
With secondary data, researchers can test research questions that would be difficult to examine
any other way. For example, what matters when it comes to firm performance? Secondary data
sources such as the Nielsen database, Compustat, and the American Consumer Satisfaction Index
(ASCI) can be useful. What should companies emphasize? It seems like firms should allocate
scarce resources toward increasing services and deliver greater value.
Mining Data from Blogs
With tens of millions of blogs available on the Internet, there is no way to read them all to learn
what people are thinking. One solution is data-mining software designed for the Blogosphere.
Umbria Communications offers a program called Buzz Report, which searches 13 million blogs.
Marketers can buy the service to find out what people are saying about their products or to
explore unmet needs. The program can identify positive and negative messages, estimate the
writer’s age range and sex, and recognize sarcasm.
What’s That Buzzing Sound?
For large companies, companies like Buzzmetrics, a part of Nielsen online, monitor thousands of
websites for brand mentions and whether those mentions are positive or negative.
Around the World of Data
With the Internet, we can quickly go around the world and find data. Several Web sites are
provided for countries around the world.
OUTLINE
I. INTRODUCTION
Secondary data – data gathered and recorded by someone else prior to (and for purposes
other than) the current project.
Require no access to respondents or subjects.
Advantages of Secondary Data
Primary advantage is their availability.
Essential in instances when data cannot be obtained using primary data collection
procedures.
Disadvantages of Secondary Data
Data not designed specifically to meet the researchers’ needs.
Even when available, it can be inadequate because:
1. variation in definition of terms
2. different units of measurement
3. lack of information to verify the data’s validity
4. outdated information
Data conversion (a.k.a. data transformation) is the process of changing the original form
of the data to a format suitable to achieve the research objective.
User has no control over their validity.
Data can be biased.
Cross-checks of data from multiple sources (i.e., comparison of the data from one source
with data from another) should be made to determine the similarity of independent
projects.
Exhibit 8.1 illustrates a series of questions that should be asked to evaluate secondary
data.
II. TYPICAL OBJECTIVES FOR SECONDARY-DATA RESEARCH DESIGNS
Exhibit 8.2 shows three general categories of research objectives: fact-finding, model
building, and database marketing.
Fact-Finding
The simplest form of secondary data research.
Identification of Consumer Behavior for a Product Category
A typical objective for a secondary research study might be to uncover all available
information about consumption patterns for a particular product category or to
identify demographic trends that affect an industry.
Trend Analysis
Market tracking is the observation and analysis of trends in industry volume and
brand share over time.
Scanner research services and other organizations provide facts about sales volume.
Most large consumer goods companies routinely investigate brand and product
category sales volume using secondary data.
Environmental Scanning
Entails information gathering and fact-finding designed to detect indications of
environmental changes in their initial stages of development.
Push technology is an Internet information technology that automatically delivers
content to the researcher’s or manager’s computer.
Model Building
More complicated than simple fact-finding.
Model building involves specifying relationships between two or more variables.
Need not include complicated mathematics, though.
Estimating Market Potential for Geographic Areas
Business researchers often estimate market potential using secondary data.
Exact figures may be published by a trade association or another source.
Researcher may estimate market potential by transforming secondary data from two
or more sources.
Forecasting Sales
Sales forecasting is the process of predicting sales totals over a specific time period.
Accurate sales forecasts, especially when products are in mature, stable markets,
frequently are the result of secondary data research that identify trends and
extrapolates past performance into the future.
A rudimentary model would multiply past sales volume by an expected growth rate.
Exhibit 8.5 illustrates a trend projection using a moving average projection of growth
rates.
Moving average forecasting is best suited to a static competitive
environment.
Analysis of Trade Areas and Sites
Managers examine trade areas and use site analysis techniques to select the best
locations for retail or wholesale operations.
Secondary data research helps managers make the site selection decision.
The index of retail saturation offers one way to investigate retail sites and to
describe the relationship between retail demand and supply.
It describes the relationship between retail demand and retail supply.
Index of retail saturation = Local market potential Local marketing
retailing space.
Can compare this index figure with those of other areas to determine
which sites have the greatest market potential with the least amount of
retail competition.
Data Mining
The term data mining refers to the use of powerful computers to dig through volumes of
data to discover patterns about an organization's customers and products.
Neural networks are a form of artificial intelligence in which a computer is programmed
to mimic the way that human brains process information.
Market-basket analysis is a form of data mining that analyzes anonymous point-of-sale
transaction databases to identify coinciding purchases and relationships between products
purchased and other retail shopping information.
Customer discovery involves mining data to look for patterns that identify who is likely
to be a valuable customer.
The use of data mining to detect sequence patterns is a popular application among direct
marketers (i.e., catalog retailers).
Data mining requires sophisticated computer resources, and it is expensive.
Companies (e.g., DataMind, IBM, Oracle) offer data-mining services – they do
the “number crunching.”
Database Marketing and Customer Relationship Management
CRM (customer relationship management) systems are a decision support system that
manages the interactions between and organization and its customers.
A CRM maintains customer databases containing names, addresses, phone numbers, past
purchases, responses to promotional efforts, and other relevant data (i.e., demographic,
financial).
Database marketing is the practice of using CRM databases to develop one-to-one
relationships and precisely targeted promotional efforts with individual customers.
Secondary data are often acquired for developing or enhancing databases.
III. SOURCES OF SECONDARY DATA
Secondary data can be classified as either internal to the organization or external.
Internal data – data that originated in the organization, or data created, recorded, or generated
by the organization.
Internal and proprietary data is a more descriptive term.
Sources of Internal and Proprietary Data
Sources include:
organization’s accounting system
salespeoples’ call reports
customer complaints
service records
warranty card returns
Researchers frequently aggregate or disaggregate internal data.
Internet technology is making it easier to research this type of data.
External Data: The Distribution System
External data are generated or recorded by an entity other than the researcher’s
organization (e.g., government, newspapers and journals, trade associations, etc.).
Computerized data archives and electronic data interchange make this data as accessible
as internal data.
Information as a Product and Its Distribution Channels
Because secondary data have value, they can be bought and sold like other products.
Libraries
Traditionally, libraries’ vast storehouses of information have served as a
bridge between users and producers of secondary data.
Many major corporations and government agencies also have libraries.
The Internet
Exhibit 8.8 lists some of the more popular Internet addresses where
secondary data may be found.
Vendors
Intermediaries.
Some allow managers to access thousands of external databases via desktop
computers and telecommunications systems (e.g., Hoovers).
Producers
Classifying external secondary data by the nature of the producer of
information yields five basic sources:
1. Books and Periodicals – professional journals and commercial business
periodicals contain much useful information material.
2. Government Sources – most data published by the federal government
can be counted on for accuracy and quality.
3. Media Sources – frequently commission research studies about various
aspects of Americans’ lives (i.e., financial affairs) and make reports of
findings available to potential advertisers for free, often in the form of a
media kit.
4. Trade Association Sources – serve the information needs of a particular
industry (e.g., data on market size and trends).
5. Commercial Sources – numerous firms specialize in selling and/or
publishing information (e.g., Polk Company publishes information on the
automotive field).
Market-Share Data – wholesale or retail sales volume based on
product movement (e.g., INFOSCAN from Information Resources,
Inc, Nielsen’s ScanTrack, and Wal-Mart’s RetailLink).
Demographic and Census Updates – a number of firms (i.e., CACI
Marketing Systems) offer computerized U.S. census files and
updates of these data broken down by small geographic areas (i.e.,
zip codes).
Consumer Attitude and Public Opinion Research – firms offering
specialized syndicated services that report findings from attitude
research and opinion polls (e.g., Yankelovich and Harris Interactive).
Consumption and Purchase Behavior Data – diary panel data are
diaries kept by a group of households that have agreed to record their
consumption behavior over time (e.g., NPD’s National Eating
Trends).
Advertising Research – advertisers can purchase readership and
audience data from a number of firms (i.e., Simmons – magazines;
Arbitron – radio; Nielsen – TV). Other firms assess the impact of
advertising (e.g., Simmons – magazines; Burke – TV).
IV. SINGLE-SOURCE DATA – INTEGRATED INFORMATION
The data and information industry uses the term single-source data for diverse types of data
offered by a single company.
Syndicated databases report product purchase behavior, media usage, demographic
characteristics, lifestyle variables, and business activity by geographic area such as zip code
(e.g., PRIZM by Nielsen Claritas).
V. SOURCE FOR GLOBAL RESEARCH
As business has become more global, so has the secondary data industry (e.g., the Japan
Management Association Research Institute maintains an office in San Diego).
Secondary data compiled outside the U.S. have the same limitations as domestic secondary
data.
However, international researchers should watch for certain pitfalls that frequently are
associated with foreign data and cross-cultural research:
1. data may simply be unavailable in certain countries
2. accuracy of some data may be questionable
3. various countries use different definitions and accounting and recording practices for
many economic reports
The U.S. government and other organizations compile databases that may aid international
marketers:
The European Union in the US (http://www.eurunion.org/) reports on historical and
current activity in the EU providing a reference guide on laws and regulations.
The CIA’s World Factbook and the National Trade Data Bank (DTDB) is the U.S.
government’s most comprehensive source of world trade data.
