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 or respondents
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A Comparison of Primary and Secondary Data

Table 4.1 A Comparison of Primary and Secondary Data

__________________________________________________________________________ PRIMARY DATA SECONDARY DATA

________________________________________________________________ Collection purpose For the problem at hand For other problems

Collection process

Very involved

Rapid and easy

Collection cost

High

Relatively low

Collection time

Long

Short

______________________________________________________________________

Advantages of Secondary Data

1. Easy availability Secondary is easily available from a wide variety of sources 2. Faster to collect Compared to primary data, secondary data can generally be collected faster suitable for projects with time constraints 3. Cheaper to collect Secondary data is generally cheaper to collect than primary data

Advantages
Time savings Relevance Availability Obtainable in a short period of time Low cost Accessibility Complements primary data

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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63

Disadvantages
May be inaccurate May be inconsistent Inconvenient to compare May be inaccessible Outdated information Collected for a purpose other than the purpose at hand Variations in definitions of terms Different units of measurement

Disadvantages of Secondary Data

1. Currency - Available information may be outdated and not suitable for our needs 2. Suitability of Units of Measurement - Units of measurement may not match needs of the current project Data conversion may be necessary 3. Suitability of Terminology - Terminology used to describe the data may be defined differently than needed for the current project 4. Lack of Control Researcher has no control over accuracy of the data Need for cross-checks and cross verification

Secondary Data Research (contd)

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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F i g u r e 4 . 3 A C l a s s i f i c a t i o n o f S e c o n d a r y D a t a

A Classification of Secondary Data

Secondary Data

Internal

External

Ready to Use

Requires Further Processing

Published Materials

Syndicated Services Computerized Databases

Internal Data
Internal and Proprietary data is more descriptive Accounting information Sales information Backorders Customer complaints

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Sources of Secondary Data

Internal Sources
Accounting records Marketing records Production personnel Information systems personnel Sales force Other expert employees

Internal Sources of Secondary Data

Accounting system, routine company documents, Salespeoples call reports, Customer complaints, Customer service records, Warranty return cards, etc
Often used in data mining projects (the use of computers to dig through volumes of data to discover patterns). Applications include: Market basket analysis - analyzing anonymous pointof-sale transactions to identify coinciding purchases or relationships between products purchased and other retail information. Customer discovery - data mining to discover customer segments (e.g. loyal vs. non-loyal) Sequence discovery - mining data to detect patterns in customer purchase sequences

External Sources - Producers

1. 2. 3. 4. 5. Publishers of books and periodicals Government departments Media Trade associations Commercial establishments two types of which are:
Single-source data providers, and Specialized data providers Examples of Types of Data Provided:
Market share data Demographic and census updates Consumer attitude and public opinion research Consumption and purchase behavior data Advertising research, etc

External Sources - Distributors

1. The Internet

2. Libraries
3. Commercial vendors

Selected Sources of Secondary Data in Saudi Arabia

1. Government Ministries and Departments e.g. the Central Department of Statistics, Ministry of Planning collects and compiles data from most government departments 2. Chambers of Commerce 3. Saudi Arabian Monetary Agency (SAMA) Banking and financial statistics 4. Annual reports of companies listed on the stock exchange 5. Commercial research suppliers, e.g. Amer Research, Pan-Arab Research Center.

EXHIBIT 6.6

Information as a Product and Its Distribution Channels

EXHIBIT 6.6

Information as a Product and Its Distribution Channels (contd)

Modern Distribution of Secondary Data

A Classification of Published Secondary Sources Published Secondary Data General Business Sources Statistical Data

Government Sources

Guides

Census Data

Directories

Indexes

Other Government Publications

External Data
Created, recorded, or generated by an entity other than the researchers organization Government Trade associations Newspapers and journals

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External Data
Libraries The Internet Vendors Producers Books and Periodicals

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External Data
Government sources Media sources Commercial sources

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Government Sources

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Commercial Sources
Market share data companies like A.C. Nielsen provide information about sales volume and brand share over time Demographic and census updatesmany organizations supply census updates, in easy-to-use or custom formats

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Commercial Sources
Attitude and public opinion research syndicated services report the findings of opinion polls Consumption and purchase behavior data Advertising researchreadership and audience data

Copyright 2000 by Harcourt, Inc. All rights reserved.

Common Research Objectives for Secondary Data Studies

Fact Finding - Identifying consumption patterns - Tracking trends
- Estimating market potential - Forecasting sales - Selecting trade areas and sites

Model building

Data Base Marketing - Development of Prospect Lists - Enhancement of Customer Lists

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Commercial Sources
Market Share Data Companies
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.

Consumer Attitude and Public Opinion Research

Specialized syndicated services that report findings from attitude research and opinion polls.

Other Sources of External Data

Single-Source Data-Integrated Information
Diverse types of data offered by a single company
Television viewing and scanner purchase data collected from such devices as Prizim and ClusterPlus.

Sources for Global Research

Global secondary data
Typical limitations of secondary data Additional pitfalls
Unavailable in some countries Questionable accuracy (political influences) Lack of standardized research terminology

EXHIBIT 6.8

Examples of Single-Source Databases

FACT FINDING

Fact Finding
Identify Consumer Behavior Trend Analysis Environmental Scanning

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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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MODEL BUILDING

Model Building
Estimating Market Potential Forecasting Sales

Model Building

Analysis of Trade Areas and Sites

EXHIBIT 6.3

Market Potential for Beer in Four Countries

Source: Population data from Population Division of the Department of Economic and Social Affairs of the United Nations Secretariat, World Population Prospects: The 2004 Revision and World Urbanization Prospects; The 2003 Revision, http://esa.un.org/unpp, accessed February 9, 2006. Consumption data from Spanish Beer Producers Face Flatter Times, http://just-drinks.com, March 1, 2005, downloaded from Business & Company Resource Center, http://galenet.galegroup.com; and China Ranked Largest Beer Consumer in 2004, Kyodo News International, December 15, 2005, http://galenet.galegroup.com.

EXHIBIT 6.4

Sales Forecast Using Secondary Data and Moving Averages

EXHIBIT 6.5

Secondary Data for Calculating an Index of Retail Saturation

Typical Objectives for Secondary Data Research Designs (contd)

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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Typical Objectives for Secondary Data Research Designs (contd)

Model Building (contd)
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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