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 to
the time period of
interest?

Does the data apply to
the population of
interest?

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

If possible, go to the
original source of the
data?

Evaluating Secondary Data (continued)
Applicability
to project
objectives
Accuracy
of the data
Is the cost of data
acquisition worth it?


Accuracy
of 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 of
government
documents
and books)
Company User
Traditional Distribution
Indirect Channel Using Intermediary
Information Producer
(Federal Government)
Company User
Traditional Distribution
Direct Channel
Direct, Computerized Distribution Using Intermediary
Information producers
(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/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 researchers 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 updatesmany
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 researchreadership 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