Part 2
Designing Research
Studies
SECONDARY DATA
RESEARCH IN A
DIGITAL AGE
Copyright © 2008 by Nelson, a division of Thomson Canada Limited
Chapter
6
LEARNING OBJECTIVES
What you will learn in this chapter
1. To discuss the advantages and disadvantages of
secondary data
2. To give typical examples of secondary data analysis
conducted by marketing managers
3. To understand the nature of model building with
secondary data
4. To discuss and give examples of the various internal
and proprietary sources of secondary data
5. To discuss the channels of distribution for external
sources of secondary data
Copyright © 2008 by Nelson, a division of Thomson Canada Limited
6–1
LEARNING OBJECTIVES (cont’d)
What you will learn in this chapter
6. To identify and give examples of various external
sources of secondary data
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6–2
Secondary Data Research
• Secondary Data
Data that have been previously collected for some
purpose other than the one at hand
• Advantages
Availability
Inexpensive
Obtained rapidly
 Many of the activities normally associated with primary data
collection (for example, sampling and data processing) are
eliminated
Information is not otherwise accessible
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6–3
Secondary Data Research (cont’d)
• Disadvantages
Not designed specifically to meet researchers’ needs
Time period inappropriate (outdated)
Inappropriate units of measurement
 Data conversion: The process of changing the original form
of the data to a format suitable to achieve the research
objective, also called data transformation
Uncertain accuracy
 Cross-checks: The comparison of data from one source with
data from another source to determine the similarity of
independent projects
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6–4
Typical Objectives for Secondary Data
Research Designs
• Fact-Finding
Identification of consumer behaviour for a product
category
Trend analysis
 Market tracking: The observation and analysis of trends in
industry volume and brand share over time
Environmental scanning
 Information gathering and fact-finding that is designed to
detect indications of environmental changes in their initial
stages of development
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6–6
Typical Objectives for Secondary Data
Research Designs (cont’d)
• Model Building
The use of secondary data to help specify
relationships between two or more variables. Model
building can involve the development of descriptive
or predictive equations
Estimating market potential for geographic areas
Forecasting sales
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6–7
Typical Objectives for Secondary Data
Research Designs (cont’d)
• Model Building (cont’d)
Analysis of trade areas and sites
 Site analysis techniques: Techniques that use secondary
data to select the best location for retail or wholesale
operations
 Index of retail saturation: A calculation that describes the
relationship between retail demand and supply
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6–8
Typical Objectives for Secondary Data
Research Designs (cont’d)
• Data Mining
The use of powerful computers to dig through
volumes of data to discover patterns about an
organization’s customers and products. It is a broad
term that applies to many different forms of analysis
Neural network
 A form of artificial intelligence in which a computer is
programmed to mimic the way that human brains process
information
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6–9
Typical Objectives for Secondary Data
Research Designs (cont’d)
• Customer Relationship Management
A decision support system that manages the
interactions between an organization and its
customers
 A CRM maintains customer databases containing customers’
names, addresses, phone numbers, past purchases, responses to
past promotional offers, demographics, financial data
• Database Marketing
The use of CRM databases to promote one-to-one
relationships with customers and create precisely
targeted promotions
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6–10
Sources of Secondary Data
• Internal and Proprietary Data
Secondary data that originate inside the organization
• Internal and Proprietary Data Sources
Sales information and backorders
Customer complaints, service records, warranty card
returns
• External Data: The Distribution System
External data
 Data created, recorded, or generated by an entity other than
the researcher’s organization
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6–11
Sources of Secondary Data (cont’d)
• Information as a Product and Its Distribution
Channels:
Libraries
The Internet
Vendors
Producers
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6–13
Single-Source Data-Integrated Information
• Single-Source Data
Diverse types of data offered by a single company.
The data are usually integrated on the basis of a
common variable such as geographic area or store
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6–14
Sources for Global Research
• Global Secondary Data
Typical limitations of secondary data
Additional pitfalls
 Unavailable in some countries
 Questionable accuracy
 Lack of standardized research terminology
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6–15