Chapter 3 Secondary Data, Literature Reviews, and Hypotheses McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Learning Objectives • Understand the nature and role of secondary data • Describe how to conduct a literature review • Identify sources of internal and external secondary data • Discuss conceptualization and its role in model development • Understand hypotheses and independent and dependent variables 3-2 Nature, Scope, and Role of Secondary Data • Secondary data: Data not gathered for the immediate study at hand but for some other purpose – Internal secondary data: Data collected by the individual company for accounting purposes or marketing activity reports – External secondary data: Data collected by outside agencies such as the federal government, trade associations, or periodicals 3-3 Nature, Scope, and Role of Secondary Data • Secondary data research has gained substantial importance in marketing research with: – Increased emphasis on business and competitive intelligence – Ever-increasing availability of information from online sources • Used to examine marketing problems because of relative speed and cost-effectiveness of obtaining the data 3-4 What is a Literature Review? • It is a comprehensive examination of available information that is related to. your research topic – Can help clarify and define the research problem and research questions – Can suggest research hypotheses to investigate – Can identify scales to measure variables and research methodologies that have been used successfully to study similar topics 3-5 Criteria Used to Evaluate Secondary Data Sources • • • • • • Purpose Accuracy Consistency Credibility Methodology Bias 3-6 Exhibit 3.1 - Key Descriptive Variables Sought in Secondary Data Search 3-7 Exhibit 3.2 - Common Sources of Internal Secondary Data 3-8 Exhibit 3.3 - Additional Sources of Secondary Data 3-9 External Sources of Secondary Data • Primary sources of external secondary data: – Popular sources – Scholarly sources – Government sources – North American Industry Classification System (NAICS): A system that codes numerical industrial listings designed to promote uniformity in data reporting procedures for the U.S. government 3-10 Exhibit 3.5 - Common Government Documents Used as Secondary Data Sources 3-11 External Sources of Secondary Data – Commercial sources • • • • Syndicated (or commercial) data Consumer panels Media panels Store audits 3-12 Synthesizing Secondary Research for the Literature Review • Divergent perspectives and findings need to be included – Differences between findings of studies include estimates of descriptive data • Three major causes of discrepancies in online retail estimates – Inclusion (or not) of travel spending – Methodological differences – Some degree of sampling error 3-13 Developing a Conceptual Model • Literature reviews can help conceptualize a model that summarizes the relationships you hope to predict • Elements required to conceptualize and test a model: – Variables – Constructs – Relationships 3-14 Variable • An observable item that is used as a measure on a questionnaire Construct • An unobservable concept that is measured by a group of related variables Relationships • Associations between two or more variables Independent Variable • The variable or construct that predicts or explains the outcome variable of interest Dependent Variable • The variable or construct researchers are seeking to explain 3-15 Developing Hypotheses and Drawing Conceptual Models • Two types of hypotheses: – Descriptive hypotheses – Causal hypotheses 3-16 Descriptive Hypotheses • Possible answers to a specific applied research problem • Its development involves: – Reviewing the research problem or opportunity – Writing down the questions that flow from the research problem or opportunity – Brainstorming possible answers to the research questions 3-17 Causal Hypotheses • Theoretical statements about relationships between variables • Two hypotheses can formally be stated: – Hypothesis 1: Higher spending on advertising leads to higher sales – Hypothesis 2: Higher prices lead to lower sales 3-18 Causal Hypotheses • Positive relationship: An association between two variables in which they increase or decrease together • Negative relationship: An association between two variables in which one increases while the other decreases 3-19 Characteristics of Good Hypotheses • Follow from research questions • Written clearly and simply • Must be testable 3-20 Conceptualization • Development of a model that shows variables and hypothesized or proposed relationships between variables • Involves: – Identifying the variables for your research – Specifying hypotheses and relationships – Preparing a diagram (conceptual model) that visually represents the relationships you will study 3-21 Process of Conceptualization • Identify variables for research • Specify hypotheses and relationships • Prepare a diagram that represents the relationships visually 3-22 Exhibit 3.8 - A Model of New Technology Adoption 3-23 Hypothesis Testing • Hypothesis: An empirically testable though yet unproven statement developed in order to explain phenomena – Null hypothesis: A statistical hypothesis that is tested for possible rejection under the assumption that it is true – Alternative hypothesis: The hypothesis contrary to the null hypothesis, it usually suggests that two variables are related 3-24 Hypothesis Testing • A null hypothesis refers to a population parameter, not a sample statistic – Parameter: The true value of a variable – Sample statistic: The value of a variable that is estimated from a sample 3-25 Marketing Research in Action: The Santa Fe Grill Mexican Restaurant • Should the owners of the Santa Fe Grill Mexican restaurant go back and restate their questions? – If “no,” why not? If “yes,” why? – Suggest how the research questions could be restated. 3-26 Marketing Research in Action: The Santa Fe Grill Mexican Restaurant • Regarding the owners’ desire to understand the interrelationships between customer satisfaction, restaurant store image, and customer loyalty, develop a set of hypotheses that might be used to investigate these interrelationships. 3-27