Session 5

Secondary Data
 So what is secondary data?
• Secondary data is data which exists
• Secondary data is a reflection of a
situation which occurred at some time in
the past
• Secondary data is therefore always
historic
• Primary data is data which does not
exist, at least in the time frame required
Always remember, never forget!

• YOU ALWAYS COLLECT SECONDARY

DATA BEFORE PRIMARY DATA

Why? Because it is cheaper !!!

The problems with secondary data!
• It was not originally collected with you in mind
• It may be out of date
• It may use different forms of measurement
• Is the data consistent with our problem?
• Is there adequate detail?
• How accurate is it?
• Do the authors have a vested interest in it?
• Can it be cross checked?
Ways to lie with secondary data
• Change the criteria of measurement
• Include the mid point in your calculations
• Elongate the scale
• Position your typography to be suggestive
• Inconsistency between facts and
conclusions
• Selective perception / selective retention
 Data Mining at Tesco’s
• Data is collected by POS from shoppers, 92% of
whom are Clubcard members and who get a 1%
discount on all their goods.
• Data is cross tabulated and cluster analysed into
groups of customers who are “customised”
through multimedia channels of promotion
• Data mining adds 3.5% to Tesco’s profit (2.8%
net). Being done in Thailand by Tops (?)
Classification of Secondary data
• Based on two criteria:

• Cost (ranging from free to expensive!)

• Availability (open access to very restricted)

• Cost normally determined by method of

funding / funding agency.
 Free and open access sources
• The Internet
• Books, periodicals and journals
• Governmental sources (national and
regional), census and consumption
• Media sources
• Commercial sources
• Investment analysis
 Cost and Limited access
• ACORN and TGI
• Mintel and Keynote (UK only)
• Customer derived data from POS
 A Classification Of Residential
Neighbourhoods
• Based on UK census data
• Derived by cluster analysis of selected
variables taken from the data
• Each of 1.6 million postcodes has a
unique ACORN classification, split into 54
types, 17 categories and 5 groups.
• Used to determine patterns of
consumption in conjunction with TGI
(Target Group Index)
 What is ACORN used for?
• Market potential estimation
• Retail outlet determination
• Customer targeting
• Sample selection
• Media selection

“ACORN / TGI is used by over 85% of

retailers in the UK, and all major ones”
 Target Group Index
• Based on 25,000 annual survey covering
over 5,000 products in 600 categories
• Data expressed as an index where 100 =
national average consumption
• Used in conjunction with ACORN for store
location
• Used extensively by the media for
evaluation of different mediums.