Business

Research Methods

William G. Zikmund

Chapter 8:
Secondary Data
Research in a Digital Age
 Secondary Data
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

Does the data help to

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

Does the data apply to

the population of
interest?
 Evaluating Secondary Data (continued)

Do the other terms

and variable
classifications
Applicability presented apply?
to project
objectives
Are the units of
measurement
comparable?

If possible, go to the
original source of the
Accuracy data?
of the data
 Is the cost of data
acquisition worth it?

Accuracy Is there a possibility

of the data 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 government- (Grocery store-retail (Audience research company-
census data) scanner data) television viewing data)

Vendor/external
distributor
(Computerized database
integrating all three data
sources for any
geographic area)

Information producer A
(Federal government-
census 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 Black American Indian Asian & Pacific

& Alaska Native Islander
non-Hispanic 194,571 32,324 1,977 9,532
Hispanic 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 ClusterPlus
 Global Secondary Data
• Typical limitations
• Additional pitfalls
• Unavailable
• Questionable accuracy
• Lack of standardized terminology