Chapter Eight Interactive Exercise – Types of Data Instructions for the Professor: Overview: The purpose of this exercise is to help students understand the nature of primary and secondary data. Four statements describing various types of data are presented; students are challenged to identify whether the statement in question describes secondary internal data, secondary external data, observation based primary data or questioning based primary data. Concept Review: As part of the situational analysis conducted during the marketing researching process, the researcher seeks out secondary data that may be helpful in either understanding the problem better, or which may actually solve the problem being investigated. Secondary data is always looked for prior to implementing any primary data collection study as it is typically less expensive, faster to collect and sometimes more accurate than primary data. Secondary data is considered to be any information that has been previously collected or published. Internal sources of secondary data include any existing information that a company may have in its databases, archives, records, accounting systems, inventory systems and the like. External sources of secondary data include the government, news organizations, trade associations, syndicated marketing research firms, universities, Internet portals and similar organizations. While these other secondary data sources often engage in primary research to develop the data, the information is considered to be secondary data to other marketers/researchers as it was gathered prior to and for some other purpose than solving the marketer/researcher’s specific problem. Primary data, by contrast, is data that is collected by the researcher specifically for the purpose of investigating the problem at hand. Observation based data collection, whether undertaken by people such as mystery shoppers or via machines such as traffic counters, represents one form of primary data. Data collected via open-ended questioning techniques such as those used in focus groups or depth interviews is labeled qualitative primary data and are usually administered to relatively small-sized samples. Quantitative primary data, in contrast, is typically collected via structured questionnaires that are administered to larger, more representative samples. 1 Using the Exercise: Initial Screen: 1. This screen introduces the four types of research data in a 2 x 2 table grid. Each table cell will transition briefly in some fashion. To begin the exercise the professor clicks anywhere on the screen. Clicking within the table heading itself is not necessary. The exercise will automatically transition to the next screen. Next Screen: 2. Screen #1 appears. A data scenario statement is shown above the 2 x 2 table grid. The professor reads the data scenario statement to the class. The professor then challenges students to determine the correct data type classification exemplified by the scenario under consideration. The professor clicks on the table cell corresponding to the student’s answer. If the wrong response is given, a buzzer will sound, and the chosen data type will briefly turn red. For details related to right and wrong answers, refer to the ANSWERS AND EXPLANATION section below. The selection process is repeated until the correct answer is chosen. o When this happens, an abbreviated version of the data scenario statement will appear within the correct table cell and a cash register “Ch-ching!” sound will be heard. o The table cell will also change color to indicate that it unavailable for future selections. o The slide automatically transitions to the next data scenario screen as described below in step 3. Next Screen: 3. The second data scenario screen appears. A new data scenario appears above the 2 x 2 data type classification table. The professor reads the data scenario statement to the class. The professor repeats the selection process described in step #2. Next Screen 4. The third data scenario screen appears and the selection processes described in steps 2 and 3 are repeated once again. 2 Next Screen: 5. The final data scenario screen appears. A new data scenario appears above the 2 x 2 data type classification table. The professor reads the data scenario statement to the class. A pop-up box appears that asks students to identify whether the data scenario is best described as primary questioning data that is quantitative or qualitative in nature. The professor clicks on the “Qualitative” or “Quantitative” button in response to the student’s selection. If the wrong response is given, a buzzer will sound. The professor should then click on the alternate button. When the correct button is selected, a cash register “Ch-ching!” sound will be heard. The slide automatically transitions to the final screen as described below in step 6. Final Screen 6. The final screen matches each data scenario to the correct data type classification. 7. The professor clicks the “X” icon in the upper left hand corner of the screen to end the exercise. NOTE: Clicking the “X” at any time will end the exercise. Answers and Explanations LOWE’S USES DATA PURCHASED FROM MARKET FACTS CORRECT ANSWER: External Secondary Data If confusion occurs it is most likely that students will incorrectly type this example as either observation data or primary questioning data; in both cases, they would be failing to recognize the fundamental difference between primary and secondary data. The information being purchased by Lowe’s has been previously collected by the Market Facts company specifically for the purpose of being sold to any and all interested firms, ultimately resulting in profit for the Market Facts corporation. Market Facts is an example of a syndicated marketing research firm that provides subscribers with access to the same data, meaning that both Lowe’s and competitor Home Depot could purchase the identical rating information. As the data in question was not collected solely for the specific purpose of aiding in the merchandise planning efforts of the Lowe’s organization, it is correctly classified as a form of external secondary data. 3 WALGREEN’S HIRES SECRET SHOPPERS CORRECT ANSWER: Observation research Secret shoppers were clearly identified in the text as a form of observation research in which “shoppers” pose as customers and record the manner in which they are treated by store personnel. FRITO-LAY ESTIMATES NEW PRODUCT DEMAND CORRECT ANSWER: Internal Secondary Data Daily sales data collected by the sales force and sent to the company via telephone lines becomes part of the marketing information system. The original purpose in collecting this information was NOT related to estimating new product demand, therefore it is best classified as internal secondary data. MALL INTERCEPT / STRUCTURED QUESTIONNAIRE CORRECT ANSWER: Quantitative Primary Questioning Data Focus groups, in-depth one-on-one interviews, and projective techniques such as word association, sentence completion, balloon tests and the like represent forms of qualitative primary research. Structured questionnaires featuring a fixed number of responses allow for quantitative analysis of the data. 4