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

Copyright © 2000 by Harcourt, Inc. All rights reserved.

Government Data Is Often Free

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?

Does the data apply tothe time period of interest?

Does the data apply tothe population of interest?

Applicabilityto projectobjectives

Do the other terms and variable classifications presented apply?

Are the units ofmeasurement comparable?

If possible, go to the original source of thedata?

Evaluating Secondary Data (continued)

Applicabilityto projectobjectives

Accuracyof the data

Is the cost of dataacquisition worth it?

Accuracyof the data

Is there a possibility of bias?

Can the accuracy of data collection be verified?

Objectives for Secondary Data Studies

• Fact Finding

• Model Building

• Data Based Marketing

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

Common Research Objectives for Secondary Data Studies

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

Information Producer(Federal Government)

Library(Storage ofgovernmentdocumentsand books)

Company User

Traditional DistributionIndirect Channel Using Intermediary

Information Producer(Federal Government)

Company User

Traditional DistributionDirect Channel

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(Federal government-

census data)

Information producer B(Grocery store-retail

scanner data)

Information producer C(Audience research company-

television viewing data)

Vendor/externaldistributor

(Computerized databaseintegrating all three data

sources for anygeographic 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 Islandernon-Hispanic 194,571 32,324 1,977 9,532Hispanic 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