Chapter Six: Secondary Data Research in a Digital Age
Chapter 6
Secondary Data Research in a Digital Age
AT-A-GLANCE
I. Introduction
II. Using Secondary Data in Marketing Research
A. Advantages
B. Disadvantages
2. Reliability and validity
III. Typical Objectives for Secondary-Data Research Designs
A. Fact-finding
1. Identification of consumer behavior for a product category
3. Environmental scanning
B. Model building
2. Forecasting sales
4. Advertising response
C. Data mining
D. Database marketing and customer relationship management
IV. Sources of Internal Secondary Data
A. Internal and proprietary data
V. External Secondary Data Sources
A. Information as a product and its distribution channels
1. Libraries
3. Vendors
4. Producers
a. Periodicals
b. Government sources
c. Media sources
d. Trade association sources
e. Commercial sources
i. Market-share data
ii. Consumer attitude and public opinion research
iii. Consumption and purchase behavior data
iv. Advertising research
f. Consumer data
Chapter Six: Secondary Data Research in a Digital Age
VI. Single-Source and Global Research in the Big Data Era
A. Single-source data-integration information
B. Government agencies
LEARNING OUTCOMES
2. Understand common objectives addressed by secondary data.
4. Give examples of various external sources of secondary data.
5. Describe the impact of single-source data and globalization on big data research.
CHAPTER VIGNETTE: You Bet Your Life!
Research suggests that the majority of healthcare customers do research before receiving critical
services. In fact, nine out of ten consumers say they would believe information about hospitals
posted in social networks. Numerous organizations, including insurance companies and
government agencies, publish healthcare statistics online. One controversial statistic, available
SURVEY THIS!
When students participated in the survey, they contributed to a database that the instructor can use
to illustrate concepts and provide assignments. However, taking part in the survey and collecting
fresh data by having the class respond is more similar to primary data collection. In most primary
data collections, the researcher can probably find some secondary data source that may not
provide the precise information needed to address a research question, but it might at least be in
RESEARCH SNAPSHOTS
➢ Does it Matter?
Secondary data allows researchers to address research questions that would be difficult to
approach using primary data collection techniques. For example, what matters when it comes
to a firm’s performance? This question cannot be addressed by surveys, because a firm’s
performance cannot be measured directly.
Chapter Six: Secondary Data Research in a Digital Age
Therefore, researchers turn to secondary data to try to isolate controllable variables that drive
a firm’s performance. By doing so, a researcher can find what really matters.
➢ What’s that Buzzing Sound?
With tens of millions of blogs available on the Internet, there is no way to read them all to get
a feeling of what current or potential customers are thinking. One solution is data-mining
software designed for the Blogosphere. Buzzmetrics, a part of Nielsen online, serves firms by
➢ Uncle Sam Finds You!
It is challenging to find recruits for an all-volunteer military during a time of war. One way
that the Department of Defense meets this challenge is by reviewing data from a variety of
sources. The Joint Advertising, Marketing Research & Studies (JAMRS) project operates
several research initiatives that make data available to recruiters, and many apply secondary
TIPS OF THE TRADE
➢ Always consider the possibility that secondary data may exist which can address the research
question at hand adequately.
➢ Check on the reliability and validity of secondary data. Most reputable sources provide
details describing the research methods that allow the data quality to be assessed. Try to use
multiple sources to corroborate data.
Chapter Six: Secondary Data Research in a Digital Age
OUTLINE
I. INTRODUCTION
A. Market researchers are always working under budget constraints.
B. Secondary data can save time and money.
II. USING SECONDARY DATA IN MARKETING RESEARCH
A. Secondary data – gathered and recorded by someone else prior to (and for purposes
other than) the current project
B. Require no access to respondents or subjects
C. Advantages
2. Almost always faster and less expensive than acquiring primary data
3. Essential in instances when data cannot be obtained using primary data collection
procedures
B. Disadvantages
2. Even when available, it can be inadequate because:
a. Outdated information
3. Units of Measurement
a. May cause problems if they do not conform exactly to a researcher’s needs
4. Reliability and Validity
a. User has no control over their accuracy.
b. Data can be biased.
III. TYPICAL OBJECTIVES FOR SECONDARY-DATA RESEARCH DESIGNS
A. Exhibit 6.2 shows three general categories of research objectives: fact-finding, model
building, and database marketing.
B. Fact-Finding
1. The simplest form of secondary data research.
a. Can serve more complex purposes as well.
2. Identification of Consumer Behavior for a Product Category
3. Trend Analysis
Chapter Six: Secondary Data Research in a Digital Age
4. Environmental Scanning
a. Entails information gathering and fact-finding designed to detect indications
C. Model Building
2. Model building involves specifying relationships between two or more
variables.
4. Three common objectives: estimating marketing potential, forecasting sales, and
selecting sites.
5. Estimating Market Potential for Geographic Areas
a. Marketers often estimate market potential using secondary data.
6. Forecasting Sales
a. Marketing managers need information about the future (e.g., company sales).
b. Sales forecasting is the process of predicting sales totals over a specific time
period.
7. Analysis of Trade Areas and Sites
a. Managers examine trade areas and use site analysis techniques to select the
best locations for retail or wholesale operations.
b. Secondary data research helps managers make the site selection decision.
c. The index of retail saturation offers one way to investigate retail sites and
to describe the relationship between retail demand and supply.
Chapter Six: Secondary Data Research in a Digital Age
V. EXTERNAL SECONDARY DATA SOURCES
A. External data are generated or recorded by an entity other than the researcher’s
B. Computerized data archives and electronic data interchange make this data as
accessible as internal data.
C. Information as a Product and Its Distribution Channels
2. Libraries
2. The Internet
a. Exhibit 6.6 lists some of the more popular Internet addresses where
3. Vendors
4. Producers
a. Classifying external secondary data by the nature of the producer of
information yields five basic sources:
i. Periodicals – professional journals and commercial business periodicals
contain much useful information material.
automotive field).
(a) Market Share Data – wholesale or retail sales volume based on
product movement (e.g., INFOSCAN from Information Resources,
Inc, ACNielsen’s ScanTrack, and Wal–Mart’s RetailLink).
(b) Consumer Attitude and Public Opinion Research – firms offering
Chapter Six: Secondary Data Research in a Digital Age
VI. SINGLE-SOURCE DATA AND GLOBAL RESEARCH DATA
A. Single-Source Data-Integrated Information
1. Nielsen Company offers data from both its television meters and scanner
2. Many other syndicated databases report product purchase behavior, media usage,
demographic characteristics, lifestyle variables, and business activity by
3. The marketing research industry uses the term single-source data for diverse
types of data offered by a single company.
B. Government Agencies
4. Secondary data compiled outside the U.S. have the same limitations as domestic
secondary data.
5. However, international researchers should watch for certain pitfalls that
frequently are associated with foreign data and cross-cultural research:
6. The U.S. government and other organizations compile databases that may aid
international marketers:
Chapter Six: Secondary Data Research in a Digital Age
QUESTIONS FOR REVIEW AND CRITICAL THINKING/ANSWERS
1. Define secondary data. What is the primary advantage of using secondary data to a marketing
researcher?
2. Thinking of secondary data as advantageous, how might a bank or healthcare organization
use a big data approach using secondary data to predict peak periods for loans or emergency
care?
3. What questions should a researcher ask about secondary data in deciding whether or not the
data are useful?
4. What factors might discourage a researcher from using a particular secondary data source?
A researcher may decide to not use a particular secondary data source when one of the following
conditions is in play:
2. Variation in definition of terms
4. Lack of information to verify the data’s accuracy
5. In what ways might a researcher determine if a specific secondary data source is sufficiently
reliable and valid to address a research question presuming the source does not describe the
study methodology in detail?
Chapter Six: Secondary Data Research in a Digital Age
b. European trends in automobile ownership
c. Divorce trends in the United States
d. Use of Facebook and Twitter by age and region
f. Top ten websites ranked by unique visitors
g. Attendance at professional sports events held in Canada and China
9. Suppose you are a marketing research consultant and a client comes to your office and says,
“I must have the latest information on the supply of and demand for Idaho potatoes within the
next 24 hours.” What would you do?
10. What type of data source does the CIA World Factbook represent? What kind of data can one
find there?
