SECONDARY DATA

Concept map for secondary data

Step 1: Step 2: Step 3: Problem Definition Approach to the problem Research Design

Secondary data
Internal External

Primary data

Primary Data
Data originated by the researcher for the specific purpose of addressing the research problem at hand. The collection of primary data involves all six steps of the marketing research process ( Problem definition, Development of an approach to the problem, Research design formulation, Fieldwork or data collection, Data preparation and analysis, Report preparation and presentation) Obtaining primary data maybe expensive and time consuming.

Secondary Data
In a research design before the collection of primary data is formulated the researcher should analyse the relevant secondary data which will help define the marketing research problem and develop an approach. Secondary Data is the data collected for some other purpose other than the problem at hand. These data are easily available, relatively inexpensive and can be quickly obtained. Examination of available secondary data should be a pre requisite to the collection of primary data, after the secondary data sources have been exhausted or yield marginal returns.

Comparison of Primary & Secondary Data

Primary Data Collection Purpose For the problem at hand Secondary Data For other problems

Collection
Process

Very involved

Rapid and easy

Collection Cost High Collection Time Long

Relatively low Short

Advantages of Secondary Data

Secondary data are easily available, relatively inexpensive and quickly obtained. These data can help to:
Identify the problem Define the problem accurately Develop an approach to the problem Formulate an appropriate research design Answer certain research questions and test some hypotheses Interpret primary data more insightfully

Analysis of secondary data can provide valuable insights and lay foundation for conducting primary data analysis.

Disadvantages of Secondary Data:

As secondary data have been collected for purposes other than the problem at hand, their usefulness to the current problem may be limited in several important ways, less relevant or less accurate The objectives, nature and methods used to collect the secondary data may not be appropriate to the present situation. Secondary data may be lacking in accuracy or they may not be completely accurate or dependable.

Criteria for evaluating secondary data before using them

Specifications/ Methodology used to collect data should be critically examined to identify possible sources of bias. The issues to be looked into are size and nature of sample, sampling techniques, response rate and data quality, questionnaire design & administration, procedures used for fieldwork, data analysis & reporting procedures. These checks provide information on the reliability and validity of the data and determine whether they can be generalized to the problem at hand. Error/ Accuracy Secondary data can have some sources of error or inaccuracy like errors in the approach, research design, sampling, data collection, analysis and in reporting. Accuracy should be accessed by comparing data from different sources. Currency The time lag between data collection and publication may be long ( census data) or data may not be updated frequently enough for the purpose of the problem at hand and hence the value of the data will diminish. There are several marketing research firms which update data periodically and make current information available on a syndicated basis. These sources should be tapped.

Criteria for evaluating secondary data (contd.)

Objective The objective for collecting data will ultimately determine the purpose for which that information is relevant and useful. Data collected with a specific objective in mind may not be appropriate in another situation. Nature The nature or content of the data depends on the specific definition of key variables, the units of measurement, categories used and relationships examined or else the usefulness of the data will be limited. So the data should be reconfigured, if required, to increase their usefulness. Dependability- An indication of the dependability of data obtained depends on the expertise, credibility, reputation and trustworthiness of the source which should also be checked with others who have used information from that source. Thus secondary data should be secured from an original, rather than an acquired source since an original source is likely to be more accurate and complete and generally specifies the details of the data collection methodology.

Classification of Secondary Data

SECONDARY DATA

Internal

External

Ready to use

Requires further Processing

Published Materials

Computerized Databases

Syndicated Services

Data mining, Database Marketing

Internal Data
Secondary Internal Data are available within the organisation for which the research is being conducted. The data may be available in
Ready to use format such as information routinely supplied by the management decision support system. Data may be available in the organisation but may require considerable processing before they are useful for the research purpose.

Internal Data have 2 significant advantages. They are easily available and inexpensive. Importance of internal data has increased with the increased popularity of database marketing.

Database Marketing
Database Marketing involves the use of computers to capture and track customer profiles and purchase detail. This available information serves as a foundation for marketing programs or as an internal source of information related to customer behaviour over the life of the business relationship. Profiles like heavy versus low users, signs of change in usage relationships or events like anniversaries, birthdays etc. can be identified and acted upon. These databases provide the essential tool needed to nurture, expand and protect the customer relationship.

External Data
Data generated by sources outside the organisation. Before collecting secondary data, it is important to analyse internal secondary data. These data may exist in the form of
Published materials They can be classified as general business data (comprising of guides, directories, indexes and statistical data) or government data (categorized as census data or other publications). Computerized database They contain information stored in computers been made available in computer-readable form for electronic distribution. Computerized databases maybe classified as
Online (consists of central data bank which can be accessed with a computer via a telecommunication network), Internet (can be accessed, searched and analysed on the internet, data can also be downloaded and stored) and Offline (data available on diskette or CD-ROM and can be accessed at the users location without use of external telecommunication network).

Information from syndicated services Information services offered by marketing research organisations that provide information from a common database to different firms that subscribe to their services. Some types of services are surveys, panels, electronic scanner services, audits and industrial product syndicated services.

Combining information from different sources

It is important to combine secondary information obtained from different sources as it allows the researcher to compensate for the weakness of one method with the strengths of others. Single-source data - Combining data from different sources by gathering integrated information on household and marketing variables applicable to the same set of respondents. Computer mapping Maps that solve marketing problems are called thematic maps. They combine geography with demographic information and a companys sales data or other proprietary information and are generated by a computer. They are colour coded and are used by managers for decision making. International marketing research A wide variety of secondary data are available for international marketing research from both government and non-government sources. SPSS Windows SPSS Maps integrates seamlessly with SPSS base menus, enabling a researcher to map a variety of data from six base thematic maps or create other maps by combining map options. These maps can be used for a variety of purposes.