Chapter Four

Exploratory Research Design:

Secondary Data
 4-2

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.
 4-3

A Comparison of Primary & Secondary 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
 4-4

Criteria for Evaluating Secondary 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
 4-5

A Classification of Secondary Data

Fig. 4.1

Secondary Data

Internal External

Ready to Requires Published Computerized Syndicated

Use Further Materials Databases Services
Processing
 4-6

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.
 4-7

Database Marketing

 Involves the use of

computers to capture
and track customer
profile and purchase
detail
 4-8

A Classification of Published Secondary Sources

Fig. 4.2

Published Secondary
Data

General Business Government

Sources Sources

Guides Directories Indexes Statistical Census Other

Data Data Government
Publications
 4-9

Published External Secondary 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

 Ex. American Marketing Association Series, Encyclopedia

of Business Information Sources

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
 4-10

Published External Secondary Sources

 Indices
- Helpful in locating information on a particular topic in
several different publications
- Ex. Wall Street Journal Index, Business Periodical Index

Nongovernmental Statistical Data

- Ex. A Guide to Consumer Markets, Predicasts Forecasts,
Sales and Marketing Management Survey of Buying
Power, Standard and Poor’s Statistical Service
 4-11

A Classification of Computerized Databases

Fig. 4.3

Computerized
Databases

Online Internet Off-Line

 4-12

A Classification of Computerized Databases

1. Online Databases
- Consists of central data bank, which is
accessed with a computer via a
telecommunications network
2. Internet databases
- Can be accessed, searched and analyzed
on the internet
3. Offline databases
- Make the information available on diskettes
and CD-Rom disks
 4-13

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.
 4-14

A Classification of Syndicated Services

Fig. 4.4

Unit of
Measurement

Households/
Institutions
Consumers
 4-15

Syndicated Services: Consumers

Fig. 4.4 cont.
Households /
Consumers

Panels

Electronic scanner
Purchase Media services

Surveys Volume Scanner Diary Scanner Diary

Tracking Data Panels Panels with
Cable TV

Psychographic Advertising
General
& Lifestyles Evaluation
 4-16

Syndicated Services: Institutions

Fig. 4.4 cont.
Institutions

Retailers Wholesalers Industrial firms

Audits

Direct Clipping Corporate

Inquiries Services Reports
 4-17

Surveys

 Interviews with a large

number of respondents using
a predesigned questionnaire
 4-18

Classification of Surveys
1. Psychographics and Lifestyles
2. Advertising Evaluation
3. General Surveys
 4-19

Panels

 Sample of respondents
who provide specified
information at regular
intervals over an extended
period of time.
 4-20

Classifications of Panel
1. Purchase Panel
- Respondents record their purchases of
variety of different products.
2. Media Panel

- Electronic devices automatically record

viewing behavior
 4-21

Electronic Scanner Services

1. Volume tracking data
- data obtained by passing merchandise
over a laser scanner that reads the
UPC code from the packages
- data collected from checkout scanner
tapes that provide information on
purchases by brand, size, price and
flavor.
 4-22

2. Scanner panel- Each household

member is given an id card that can be
read by the electronic scanner at the
cash register.

3. Scanner panel with cable TV- combines

scanner panels with new technologies
growing out of the cable industry.
 4-23

Syndicated Data from Institutions

1. Retailer and Wholesaler Audit
- Audit- a data collection process derived

from physical records or by performing

inventory analysis.

2. Industry services- provide syndicated

data about industrial firms, businesses
and other institutions.