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Marketing Research: An Applied Orientation: Global Edition, 6/E

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  1. 1. Chapter Four Exploratory Research Design: Secondary Data
  2. 2. 4-2 Chapter Outline1) Overview2) Primary versus Secondary Data3) Advantages & Uses of Secondary Data4) Disadvantages of Secondary Data
  3. 3. 4-3Chapter Outline5) Criteria for Evaluating Secondary Data i. Specifications: Methodology Used to Collect the Data ii. Error: Accuracy of the Data iii. Currency: When the Data Were Collected iv. Objective(s): The Purpose for Which the Data Were Collected v. Nature: The Content of the Data vi. Dependability: Overall, How Dependable are the Data
  4. 4. 4-4Chapter Outline6) Classification of Secondary Data7) Internal Secondary Data8) Published External Secondary Sources i. General Business Sources a. Guides b. Directories c. Indexes d. Non-governmental Statistical Data
  5. 5. 4-5Chapter Outline s ii. Government Sources Censu Data a. Census Data b. Other Government Publications9) Computerized Databases i. Classification of Computerized Databases ii. Directories of Databases10) Syndicate Sources of Secondary Data
  6. 6. 4-6Chapter Outline11) Syndicated Data from Households i. Surveys a. Psychographics & Lifestyles b. Advertising Evaluation c. General Surveys d. Uses of Surveys e. Advantages & Disadvantages of Surveys ii. Panels a. Purchase Panels b. Media Panels c. Uses of Panels d. Advantages & Disadvantages of Panels
  7. 7. 4-7Chapter Outline12) Electronic Scanner Services i. Volume Tracking Data a. Scanner Diary Panels b. Scanner Diary Panels with Cable TV c. Uses of Scanner Services d. Advantages & Disadvantages13) Syndicated Data from Institutions i. Retailers & Wholesalers a. Uses of Audit Data b. Advantages & Disadvantages of Audit Data
  8. 8. 4-8Chapter Outline ii. Industry Services a. Uses of Industry Services b. Advantages & Disadvantages of Industry Services14) Combining Information from Different Sources: Single-Source Data15) Applications of Secondary Data i. Computer Mapping
  9. 9. 4-9Chapter Outline16) International Marketing Research17) Ethics in Marketing Research18) Internet and Computer Applications19) Focus on Burke20) Summary21) Key Terms & Concepts
  10. 10. 4-10Primary 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.
  11. 11. 4-11 A Comparison of Primary & Secondary Data Table 4.1 Primary Data Secondary DataCollection purpose For the problem at hand For other problemsCollection process Very involved Rapid & easyCollection cost High Relatively lowCollection time Long Short
  12. 12. 4-12Uses of Secondary Data Identify the problem Better define the problem Develop an approach to the problem Formulate an appropriate research design (for example, by identifying the key variables) Answer certain research questions and test some hypotheses Interpret primary data more insightfully
  13. 13. 4-13Criteria 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
  14. 14. 4-14 Criteria for Evaluating Secondary Data Table 4.2Criteria Issues RemarksSpecifications Data collection method, response Data should be reliable,& Methodology rate, quality & analysis of data, valid, & generalizable to sampling technique & size, the problem. questionnaire design, fieldwork.Error & Examine errors in approach, Assess accuracy byAccuracy research design, sampling, data comparing data from collection & analysis, & reporting. different sources.Currency Time lag between collection & Census data are updated publication, frequency of updates. by syndicated firms.Objective Why were the data collected? The objective determines the relevance of data.Nature Definition of key variables, units of Reconfigure the data to measurement, categories used, increase their relationships examined. usefulness.Dependability Expertise, credibility, reputation, & trustworthiness of the source. Data should be obtained from an original source.
  15. 15. 4-15 A Classification of Secondary Data Fig. 4.1 Secondary Data Internal ExternalReady to Requires Published Computerized SyndicatedUse Further Materials Databases Services Processing
  16. 16. 4-16Internal Secondary DataDepartment Store ProjectSales were analyzed to obtain: Sales by product line Sales by major department (e.g., mens 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.
  17. 17. Type of Individual/Household Level Data 4-17 Available from Syndicated FirmsI. Demographic Data - Identification (name, address, telephone) - Sex - Marital status - Names of family members - Age (including ages of family members) - Income - Occupation - Number of children present - Home ownership - Length of residence - Number and make of cars owned
  18. 18. Type of Individual/Household Level Data 4-18 Available from Syndicated FirmsII. Psychographic Lifestyle Data - Interest in golf - Interest in snow skiing - Interest in book reading - Interest in running - Interest in bicycling - Interest in pets - Interest in fishing - Interest in electronics - Interest in cable televisionThere are also firms such as Dun & Bradstreet and AmericanBusiness Information which collect demographic data on businesses.
  19. 19. A Classification of Published Secondary 4-19 Sources Fig. 4.2 Published Secondary Data General Business Government Sources SourcesGuides Directories Indexes Statistical Census Other Data Data Government Publications
  20. 20. InfoUSA: : 4-20 Here, There, EverywhereInfoUSA ( markets subsets of its data ina number of forms, including the professional onlineservices (LEXIS-NEXIS and DIALOG), the general onlineservices (CompuServe and Microsoft Network), the Internet(look-ups), and on CD-ROM. The underlying database onwhich all these products are based contains information on113 million residential listings and 14 million businesslistings, as of 2003. These are verified with over 16 millionphone calls annually. The products derived from thesedatabases include sales leads, mailing lists, businessdirectories, mapping products, and also delivery of data onthe Internet.
  21. 21. 4-21 A Classification of Computerized Databases Fig. 4.3 Computerized Databases Online Internet Off-LineBibliographic Numeric Full-Text Directory Special-Databases Databases Databases Databases Purpose Databases
  22. 22. 4-22Published External Secondary SourcesGuides 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 consultDirectories 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 DirectoryIndices Helpful in locating information on a particular topic in several different publications
  23. 23. 4-23Classification of Computerized Databases Bibliographic databases are composed of citations to articles. Numeric databases contain numerical and statistical information. Full-text databases contain the complete text of the source documents comprising the database. Directory databases provide information on individuals, organizations, and services. Special-purpose databases provide specialized information.
  24. 24. 4-24Syndicated 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.
  25. 25. 4-25A Classification of Syndicated ServicesFig. 4.4 Unit of Measurement Households/ Institutions Consumers
  26. 26. 4-26 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 TVPsychographic Advertising General & Lifestyles Evaluation
  27. 27. 4-27 Syndicated Services: Institutions Fig. 4.4 cont. InstitutionsRetailers Wholesalers Industrial firms Audits Direct Clipping Corporate Inquiries Services Reports
  28. 28. 4-28 Overview of Syndicated Services Table 4.3Type Characteristics Advantages Disadvantages UsesSurveys Surveys conducted at Most flexible way of Interviewer errors; Market regular intervals obtaining data; respondent errors segmentation, information on advertising theme underlying motives selection and advertising effectivenessPurchase Households provide Recorded purchase Lack of Forecasting sales,Panels specific information behavior can be representativeness; market share and regularly over an linked to the response bias; trends; establishing extended period of demographic/ maturation consumer profiles, time; respondent psychographic brand loyalty and asked to record characteristics switching; evaluating specific behaviors as test markets, they occur advertising, and distributionMedia Panels Electronic devices Same as purchase Same as purchase Establishing automatically panel panel advertising rates; recording behavior, selecting media supplemented by a program or air time; diary establishing viewer profiles
  29. 29. 4-29 Overview of Syndicated Services Table 4.3 cont.Type Characteristics Advantages DisadvantagesScan er V m n olu e H ousehold purchases D reflect actual ata D m not be ata ayT ack g D r in ata are recorded through purchases; tim data, representative; errors in ely electronic scanners in less expensive recording purchases; superm arkets difficult to link purchases to elem ents of m arketing m other ix than priceScan er D y Pan n iar els Scanner panels of D reflect actual ata D m not be ata ayw C le T ith ab V households that purchases; sam ple representative; quality subscribe to cable TV control; ability to link of data lim ited panel data to household characteristics
  30. 30. 4-30 Overview of Syndicated Services Table 4.3 cont.Characteristics Advantages Disadvantages UsesV erification of product R elatively precise C overage m be ay M easurem ent ofm ovem ent by inform ation at the incom plete; matching consum sales and erexam ining physical retail and w holesale of data on com petitive m arket share,records or perform ing levels activity m be ay com petitive activity,inventory analy sis difficult analy zing distribution patterns; tracking of new productsD banks on ata Im portant source of D are lacking in ata D eterm ining m arketindustrial inform ation on term of content, s potential by geographicestablishm ents created industrial firm s, quantity and quality , area, defining salesthrough direct inquiries particularly useful in territories, allocatingof com panies, clipping initial phases of the advertising budgetservices, and corporate projectsreports
  31. 31. 4-31Single-Source DataSingle-source data provide integrated information onhousehold variables, including media consumption andpurchases, and marketing variables, such as productsales, price, advertising, promotion, and in-storemarketing effort. Recruit a test panel of households and meter each homes TV sets. Survey households periodically on what they read. Grocery purchases are tracked by UPC scanners. Track retail data, such as sales, advertising, and promotion.
  32. 32. The NYT on the Web: A New Way 4-32 To Target CustomersTo handle alternate forms of interaction and updates, TheNew York Times created a separate unit, The New YorkTimes Electronic Media Co. The New York Times on theWeb ( has drawn over 10 millionregistrants as of 2003. The database containsdemographic information, such as age, gender, income,and zip code, that ties to an e-mail address for each of themembers. This new database marketing system canidentify and customize user groups, target Web messagesto specific segments of the population, and adjust themessage based on audience reaction. It can also increasetargeting opportunities through third-party data or additionalinformation supplied by the user.
  33. 33. The NYT on the Web: A New Way 4-33 To Target CustomersFor example, the database enables an automobile firm toemphasize safety to older customers, luxury to affluentones, and roominess to families. The system is set up sothat near real-time data can be received from the Web thatindicates how well ads are performing relative to age,gender, and income characteristics. Thus, this systemallows a firm to maintain up-to-date information onaudiences in order to position its products effectively.
  34. 34. 4-34 A Classification of International Sources Fig. 4.5 International Secondary Data Domestic International Organizations in Organizations in Organizations in Foreign Countries the United States the United StatesGovernment Nongovernment International Trade Governments Organizations Associations Sources Sources