ZIKMUNDBABIN

CARR GRIFFIN
Chapter 8
Secondary Data
BUSINESS Research in a
MARKET Digital Age

RESEARCH

EIGHTH EDITION

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 LEARNING OUTCOMES
After studying this chapter, you should be able to
1. Discuss the advantages and disadvantages of
secondary data
2. Define types of secondary data analysis conducted by
business research managers
3. Identify various internal and proprietary sources of
secondary data
4. Give examples of various external sources of
secondary data
5. Describe the impact of single-source data and
globalization on secondary data research
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 Secondary Data Research
Secondary Data
Data gathered and recorded by someone else prior to
and for a purpose other than the current project.
Advantages Disadvantages
Available Uncertain accuracy
Faster and less expensive Data not consistent with
than acquiring primary needs
data Inappropriate units of
Requires no access to measurement
subjects Time period inappropriate
Inexpensivegovernment (outdated)
data is often free
May provide information
otherwise not accessible
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 EXHIBIT 8.1 Evaluating Secondary Data

Is it possible to go to the
original data source?

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 Secondary Data Research (contd)
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
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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 EXHIBIT 8.2 Common Research Objectives for Secondary-Data Studies

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 Typical Objectives for Secondary-Data
Research Designs
Fact Finding
Identification of consumer behavior for a product
category
Trend Analysis
Market trackingthe 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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 EXHIBIT 8.3 Colas Share of the Carbonated Soft-Drink Market

Source: Theresa Howard,Cengage

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Learning. Newreserved.
All rights Path LeadsMayto Success,
not be USA Today,
March 6, 2001, p. 6b. From USA Today a division of Gannett Co., Inc.
scanned, copied or duplicated, or posted to a publically accessible Reprinted with Permission.
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 Model Building

Estimating Market Forecasting

Potential Sales

Model
Building

Analysis of Trade
Areas and Sites

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 EXHIBIT 8.4 Market Potential for Beer in Four Countries

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 EXHIBIT 8.5 Sales Forecast Using Secondary Data and Moving Averages

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 EXHIBIT 8.6 Secondary Data for Calculating an Index of Retail Saturation

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 Data Mining
Data Mining
The use of powerful computers to dig through
volumes of data to discover patterns about an
organizations customers and products; applies to
many different forms of analysis.
Neural Network
A form of artificial intelligence in which a computer is
programmed to mimic the way that human brains
process information.

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 Data Mining (contd)
Market-Basket Analysis
A form of data mining that analyzes anonymous point-
of-sale transaction databases to identify coinciding
purchases or relationships between products
purchased and other retail shopping information.
Customer Discovery
Involves mining data to look for patterns identifying
who is likely to be a valuable customer.

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 Database Marketing and Customer
Relationship Management
Database Marketing
The use of customer relationship management (CRM)
databases to promote one-to-one relationships with
customers and create precisely targeted promotions.
The practice of maintaining a customer database of:
Names and addresses
Past purchases
Responses to past efforts
Data from numerous other outside sources

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 Sources of Internal Secondary Data
Internal and Proprietary Data
Accounting information
Sales information and backorders
Customer complaints, service records, warranty card
returns, and other records.
Intranets

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 External Secondary Data Sources
External Data
Generated or recorded by an entity other than the researchers
organization.
Information as a product and its distribution
Libraries
Internet
Vendors
Producers
Books and periodicals
Government
Media
Trade associations
Commercial sources
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 EXHIBIT 8.7
Information as
a Product and
Its Distribution
Channels

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 Commercial Sources
Market-share data
Demographic and census updates
Consumer attitude and public opinion research
Consumption and purchase behavior data
Advertising research

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 Single-Source and Global Research Data
Single-Source Data
Diverse types of data offered by a single company.
Usually integrated on the basis of a common variable
(i.e., geographic area or store).
Government Agencies
Global secondary data
Typical limitations of secondary data
Additional pitfalls
Unavailable in some countries
Questionable accuracy (political influences)
Lack of standardized research terminology
CIAs World Factbook; National Trade Data Bank
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 EXHIBIT 8.9 Examples of Single-Source Databases

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 Research Snapshot: Around the World of Data

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 EXHIBIT 8.10 Examples of Information Contained in the NTDB

Agricultural commodity production and Labor, employment, and productivity

trade
Maritime and shipping information
Basic export information
Market research reports
Calendars of trade fairs and exhibitions
Overseas contacts
Capital markets and export financing
Overseas and domestic industry
Country reports on economic and social information
policies and trade practices
Price indexes
Energy production, supply, and
Small business information
inventories
State exports
Exchange rates
State trade contacts
Export licensing information
Trade opportunities
Guides to doing business in foreign
countries U.S. export regulations
International trade terms directory U.S. import and export statistics by
country and commodity
How-to guides
U.S. international transactions
International trade
regulations/agreements World Fact Book
International trade agreements World minerals production
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