Exploring Marketing Research William G Zikmund Chapter 7

Exploring Marketing Research William G. Zikmund Chapter 7: Secondary Data Research in a Digital Age

Secondary Data gathered and recorded by someone else prior to and for a purpose other than the current project Is often: • Historical • Already assembled • Needs no access to subjects

Advantages of Secondary Data • Inexpensive • Obtained Rapidly • Information is not Otherwise Accessible

Government Data Is Often Free Copyright © 2000 by Harcourt, Inc. All rights reserved.

Disadvantages of Secondary Data • • Uncertain Accuracy Data Not Consistent with Needs Inappropriate Units of Measurement Time Period Inappropriate (Dated)

Secondary Data may be Dated The Economic Census profiles the U. S. economy every 5 years, from the national to the local level.

Evaluating Secondary Data Applicability to project objectives Does the data help to answer questions set out in the problem definition? Does the data apply to the time period of interest? Does the data apply to the population of interest?

Evaluating Secondary Data (continued) Applicability to project objectives Accuracy of the data Do the other terms and variable classifications presented apply? Are the units of measurement comparable? If possible, go to the original source of the data?

Is the cost of data acquisition worth it? Accuracy of the data Is there a possibility of bias? Can the accuracy of data collection be verified?

Objectives for Secondary Data Studies • Fact Finding • Model Building • Data Based Marketing

Common Research Objectives for Secondary Data Studies Fact Finding - Identifying consumption patterns - Tracking trends Model building - Estimating market potential - Forecasting sales - Selecting trade areas and sites Data Base Marketing - Development of Prospect Lists - Enhancement of Customer Lists

Fact Finding • Identify consumer behavior • Trend analysis • Environmental scanning

Model Building • Market potential • Forecasting sales • Analysis of trade areas

Data Based Marketing • • • Practice of maintaining a customer data base Names Addresses Past purchases Responses to past efforts Data from numerous sources

Internal Data Internal and proprietary data is more descriptive • • Accounting information Sales information Backorders Customer complaints

Data Mining

Traditional Distribution Indirect Channel Using Intermediary Information Producer (Federal Government) Library (Storage of government documents and books) Company User

Traditional Distribution Direct Channel Information Producer (Federal Government) Company User

Direct, Computerized Distribution Using Intermediary Information producer’s (Just-in-time inventory partner) computerized database Company user

Modern Distribution of Secondary Data Information producer A Information producer B Information producer C (Federal governmentcensus data) (Grocery store-retail scanner data) (Audience research companytelevision viewing data) Vendor/external distributor (Computerized database integrating all three data sources for any geographic area) Information producer A (Federal governmentcensus data)

External Data • Created, recorded, or generated by an entity other than the researcher’s organization • Government • Trade associations • Newspapers and journals

External Data • • • Libraries The Internet Vendors Producers Books and periodicals

External Data • Government sources • Media sources • Commercial sources

Government Sources

U. S. Population by Race and Hispanic Origin, July 1, 1997 (in thousands) White non-Hispanic Black American Indian Asian & Pacific & Alaska Native Islander 194, 571 32, 324 1, 977 9, 532 26, 746 1, 649 347 598

Race and Ethnicity • The race and Hispanic origin categories used by the Census Bureau are mandated by Office of Management and Budget • All federal record keeping and data presentation to use four race categories (White, Black, American Indian and Alaska Native, Asian and Pacific Islander) and two ethnicity categories (Hispanic, non-Hispanic). • These classifications are not intended to be scientific in nature, but are designed to promote consistency in federal record keeping and data presentation.

Commercial Sources • Market share data companies like A. C. Nielsen provide information about sales volume and brand share over time • Demographic and census updates—many organizations supply census updates, in easy -to-use or custom formats

Commercial Sources • Attitude and public opinion research— syndicated services report the findings of opinion polls • Consumption and purchase behavior data • Advertising research—readership and audience data

Single Source Data • Diverse types of data offered from a single source - e. g. , television viewing and scanner purchase data - e. g. , Prizim and Cluster. Plus

Global Secondary Data • • • Typical limitations Additional pitfalls Unavailable Questionable accuracy Lack of standardized terminology