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Chapter FourExploratory Research Design: Secondary Data

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Primary vs. Secondary DataPrimary 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.

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A Comparison of Primary & Secondary Data Primary Data Secondary DataCollection purposeFor the problem at handFor other problemsCollection processVery involvedRapid & easyCollection costHighRelatively lowCollection timeLongShortTable 4.1

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Uses of Secondary DataIdentify the problemBetter define the problemDevelop an approach to the problemFormulate an appropriate research design (for example, by identifying the key variables)Answer certain research questions and test some hypothesesInterpret primary data more insightfully

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Criteria for Evaluating Secondary DataSpecifications: Methodology Used to Collect the Data Error: Accuracy of the Data Objective(s): The Purpose for Which the Data Were CollectedNature: The Content of the DataDependability: Overall, How Dependable Are the Data

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Criteria for Evaluating Secondary DataCriteria Issues RemarksSpecifications & Methodology

Error & Accuracy

Objective

Nature

DependabilityData collection method, response rate, quality & analysis of data, sampling technique & size, questionnaire design, fieldwork.Examine errors in approach,research design, sampling, datacollection & analysis, & reporting.

Why were the data collected?

Definition of key variables, units of measurement, categories used, relationships examined.Expertise, credibility, reputation, & trustworthiness of the source.Data should be reliable, valid, & generalizable to the problem.

Assess accuracy by comparing data from different sources.

The objective determines the relevance of data.

Reconfigure the data to increase their usefulness.

Data should be obtained from an original source.

Table 4.2

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A Classification of Secondary DataFig. 4.1

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Internal Secondary DataDepartment Store ProjectSales were analyzed to obtain:Sales by product lineSales by major department (e.g., men's wear, house wares)Sales by specific storesSales by geographical regionSales by cash versus credit purchasesSales in specific time periodsSales by size of purchaseSales trends in many of these classifications were also examined.

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Type of Individual/Household Level DataAvailable 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

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Type of Individual/Household Level Data Available from Syndicated Firms

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A Classification of Published Secondary SourcesFig. 4.2Published Secondary DataGeneral Business SourcesGovernment Sources

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Published External Secondary SourcesGuidesAn excellent source of standard or recurring informationHelpful in identifying other important sources of directories, trade associations, and trade publicationsOne of the first sources a researcher should consult

DirectoriesHelpful for identifying individuals or organizations that collect specific dataExamples: Consultants and Consulting Organizations Directory, Encyclopedia of Associations, FINDEX: The Directory of Market Research Reports, Studies and Surveys, and Research Services Directory

IndicesHelpful in locating information on a particular topic in several different publications

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A Classification of Computerized DatabasesFig. 4.3

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Classification of Computerized DatabasesBibliographic 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.

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Syndicated ServicesCompanies 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.

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A Classification of Syndicated ServicesFig. 4.4Households/ConsumersInstitutions

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Syndicated Services: ConsumersFig. 4.4 cont.

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Syndicated Services: InstitutionsFig. 4.4 cont.

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Overview of Syndicated ServicesTable 4.3

Sheet1

U.S. rankOrganizationHeadquartersWeb siteWorldwide researchNon-U.S. researchPercent

2001 2000revenues*revenues*non-U.S.

($, in millions)($, in millions)revenues

1 2VNU Inc.New Yorkvnu.com$2,400.00$1,100.0045.80%

2 3IMS Health IncFairfield, Conn.imshealth.com1,171.0070260

3 4Information Resources Inc.Chicagoinfores.com555.9135.624.4

4 6The Kantar GroupFairfield, Conn.kantargroup.com962.3663.268.9

5 5Westat Inc.Rockville, Md.westat.com285.8

6 7Arbitron Inc.New Yorkarbitron.com227.57.93.5

7 NOP World USNew Yorknopworld.com224.117.57.8

8 8NFO WorldGroupGreenwich, Conn.nfow.com452.9289.964

9 9Market Facts, Inc.Arlington Heights, Ill.marketfacts.com189.733.517.7

10 11Taylor Nelson Sofres USALondontnsofres.com166.916.49.8

11 11Maritz ResearchFenton, MO.maritzresearch.com181.754.630

12 23IpsosNew Yorkipsos.com204.391.444.7

13 15J.D. Power and AssociatesWestlake Village, Calif.jdpa.com12818.714.6

14 14Opinion Research Corp.Princeton, N.J.opinionresearch.com133.642.231.6

15 10The NPD Group Inc.Port Washington, N.Y.npd.com101.71312.8

16 17Jupiter Media Metrix Inc.New Yorkjmm.com85.817.220

17 18Harris Interactive Inc.Rochester, N.Y.harrisinteractive.com75.410.513.9

18 20Abt Associates Inc.Cambridge, Mass.abtassociates.com62.89.415

19 19C&R Research Services Inc.Chicagocrresearch.com43.6

20 22Wirthlin WorldwideMcLean, Va.wirthlin.com46.87.215.4

21 24Lieberman Research WorldwideLos Angeleslrwonline.com43.14.310

22 25Burke Inc.Cincinnatiburke.com45.511.224.6

23 21MORPACE International Inc.Farmington Hills, Mich.morpace.com48.315.932.9

24 26Market Strategies Inc.Livonia, Mich.marketstrategies.com31.71.54.7

25 30GfK Custom Research Inc.Minneapoliscustomresearch.com29.80.93.9




26 32ICR/Intl Communications ResearchMedia, Pa.icsurvey.com28.80.31

27 29M/A/R/C ResearchIrving, Texasmarcresearch.com24.50.52

28 31Elrick & Lavidge Marketing ResearchTucker, Ga.elrickandlavidge.com22.9

29 36RDA Group Inc.Bloomfield Hills, Mich.rdagroup.com263.613.8

30 33Lieberman Research GroupGreat Neck, N.Y.liebermanresearch.com22.30.52.2

31 Knowledge Networks Inc.Menlo Park, Calif.knowledgenetworks.com21.4

32 34Walker InformationIndianapoliswalkerinfo.com26.85.520.5

33 37National Research Corp.Lincoln, Neb.nationalresearch.com17.7

34 38Directions Research Inc.Cincinnatidirectionsrsch.com16.7

35 48Marketing and Planning Systems Inc.Waltham, Mass.mapsnet.com19.73.216.2

36 Alliance Research Inc.Crestview Hills, Ky.allianceresearch.com15.4

37 40Data Development Corp.New Yorkdatadc.com15.60.31.9

38 46Marketing Analysts Inc.Charleston, S.C.marketinganalysts.com15.10.42.6

39 Marketing Research Services Inc.Cincinnatimrsi.com14.3

40 43Greenfield Online Inc.Wilton, Conn.greenfield.com14.2

41 42Greenfield Consulting Group Inc.Westport, Conn.greenfieldgroup.com140.11

42 45Savitz Research CompaniesDallassavitzresearch.com13.2

43 44The PreTesting Co. Inc.Tenafly, N.J.pretesting.com13.10.75.3

44 39Schulman, Ronca, & Bucuvalas Inc.New Yorksrbi.com12.10.75.8

45 49CheskinRedwood Shores, Calif.cheskin.com14.33.122

46 The Marketing Workshop Inc.Norcross, Ga.mwshop.com10.6

47 Symmetrical Holdings Inc.Deerfield Beach, Fla.symmetrical.com10.4

48 comScore Networks Inc.Reston, Va.comscore.com10

48 MarketVision Research Inc.Cincinnatimarketvisionresearch.com10

50 47The B/R/S Group Inc.San Rafael, Calif.brsgroup.com10.92.220

Sheet2

TypeCharacteristicsAdvantagesDisadvantagesUses

Scanner Volume Tracking DataHousehold purchases are recorded through electronic scanners in supermarketsData reflects actual purchases; timely data, less expensiveData may not be representative; errors in recording purchases; difficult to link purchases to elements of marketing mix other than pricePrice tracking, modeling, effectiveness of in-store promotions

Scanner Diary Panels with Cable TVScanner panels of households that subscribe to cable TVData reflect actual purchases; sample control; ability to link panel data to household characteristicsData may not be representative; quality of data limitedPromotional mix analyses, copy testing, new product testing, positioning

Audit servicesVerification of product movement by examining physical records or performing inventory analysisRelatively precise information at the retail and wholesale levelsCoverage may be incomplete; matching of data on competitive activity may be difficultMeasurement of consumer sales and market share, competitive activity, analyzing distribution patterns: tracking of new products

Industrial Product Syndicated ServicesData banks on industrial establishments created through direct inquiries of companies, clipping services, and corporate reportsImportant source of information on industrial firms, particularly useful in initial phases of the projectsData are lacking in terms of content, quantity, and qualityDetermining market potential by geographic area, defining sales territories, allocating advertising budget

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SurveysSurveys conducted at regular intervalsMost flexible way of obtaining data; information on underlying motivesInterviewer errors; respondent errorsMarket segmentation, advertising theme selection and advertising effectiveness

Purchase PanelsHouseholds provide specific information regularly over an extended period of time; respondent asked to record specific behaviors as they occurRecorded purchase behavior can be linked to the demographic/ psychographic characteristicsLack of representativeness; response bias; maturationForecasting sales, market share and trends; establishing consumer profiles, brand loyalty and switching; evaluating test markets, advertising, and distribution

Media PanelsElectronic devices automatically recording behavior, supplemented by a diarySame as purchase panelSame as purchase panelEstablishing advertising rates; selecting media program or air time; establishing viewer profiles

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Table 4.3 cont.Overview of Syndicated Services

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Scanner Volume Tracking DataHousehold purchases are recorded through electronic scanners in supermarketsData reflect actual purchases; timely data, less expensiveData may not be representative; errors in recording purchases; difficult to link purchases to elements of marketing mix other than pricePrice tracking, modeling, effectiveness of in-store promotions


Audit servicesVerification of product movement by examining physical records or performing inventory analysisRelatively precise information at the retail and wholesale levelsCoverage may be incomplete; matching of data on competitive activity may be difficultMeasurement of consumer sales and market share, competitive activity, analyzing distribution patterns: tracking of new products

Industrial Product Syndicated ServicesData banks on industrial establishments created through direct inquiries of companies, clipping services, and corporate reportsImportant source of information on industrial firms, particularly useful in initial phases of the projectsData are lacking in terms of content, quantity, and qualityDetermining market potential by geographic area, defining sales territories, allocating advertising budget

Sheet3

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Table 4.3 cont.Overview of Syndicated Services

Sheet1

























































Sheet2


Scanner Volume Tracking DataHousehold purchases are recorded through electronic scanners in supermarketsData reflects actual purchases; timely data, less expensiveData may not be representative; errors in recording purchases; difficult to link purchases to elements of marketing mix other than pricePrice tracking, modeling, effectiveness of in-store promotions



Audit ServicesVerification of product movement by examining physical records or performing inventory analysisRelatively precise information at the retail and wholesale levelsCoverage may be incomplete; matching of data on competitive activity may be difficultMeasurement of consumer sales and market share, competitive activity, analyzing distribution patterns; tracking of new productsAUDIT SERVICES

Industrial Product Syndicated ServicesData banks on industrial establishments created through direct inquiries of companies, clipping services, and corporate reportsImportant source of information on industrial firms, particularly useful in initial phases of the projectsData are lacking in terms of content, quantity, and qualityDetermining market potential by geographic area, defining sales territories, allocating advertising budgetINDUSTRIAL PRODUCT SYNDICATED SERVICES

Sheet3

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Single-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 home's 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.

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