62 Essentials of Marketing Research

3 Develop a sampling plan.

4 Formulate an appropriate research design (e.g. by identifying the key variables to measu:-=
or understand).
5 Answer certain research questions and generate hypotheses.
6 Interpret primary data with more insight.
7 Validate qualitative research findings.

Given these advantages and uses of secondary data, we state the following general rule:
Examination of available secondary data is a prerequisite to the collection ofprimary
data. Start with secondary data. Proceed to primary data only when the secondary data
sources have been exhausted or yield marginal returns.
The rich dividends obtained by following this rule are illustrated in the example at the star
of this chapter. It shows that the collection and analysis of even one relevant secondary dat.::.
source can provide valuable insights. The decision maker and researcher can use the idec
generated in secondary data as a very strong foundation to primary data design and collec­
tion. However, the researcher should be cautious in using secondary data, because they ha,·�
some limitations and disadvantages.

L Disadvantages of secondary data

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Because secondary data have been collected for purposes other than the problem at hanc
their usefulness to the current problem may be limited in several important ways, includin;
relevance and accuracy. The objectives, nature and methods used to collect the seconda!"'
data may not be appropriate to the present situation. Also, secondary data may be lackin;
in accuracy or may not be completely current or dependable. Before using secondary data,
is important to evaluate them according to a series of factors. These factors are discussed ir.
more detail in the following section.

The quality of secondary data should be routinely evaluated, using the criteria presented i.­
Table 3.1 and the discussion in the following sections.

Specifications: research design and how the data was collected

The specifications of the research design used to collect tu, :ata should be critically examine.:
to identify possible sources of bias. Such design considerations include size and nature of tht
sample, response rate and quality, questionnaire design and administration, procedures usec
for fieldwork and data analysis and reporting procedures. These checks provide informatio::
on the reliability and validity of the data and help determine whether they can be generalised k
the problem at hand. The reliability and validity can be further ascertained by an examinatior:.
of the error, currency, objectives, nature and dependability associated with the secondary data

Error: accuracy of the data

The researcher must determine whether the data are accurate enough for the purposes of th,
present study. Secondary data can have a number of sources of error or inaccuracy, includ­
ing errors in the approach, research design, sampling, data collection, analysis, and reportin;
 _________
_________
 Chapter 3 Secondary data collection and analysis: internal and external sources 67

From the researchers' perspective, many benefits also accrue from the internally generated
secondary data from databases and a CRM system. The following list summarises the benefits
to the researcher:

1 Profiles of customers can be built up. The types of individual that are being attracted to
a business, particular types of product and responses to different types of promotion can
be monitored. The returns and contributions made by particular types of customer can
be measured. Profiles of the 'ideal' customer type can be built up, and plans developed to
attract potential customers based upon these profiles.
2 One big laboratory. The monitoring of customers, markets and interrelated marketing mix
activities allows for many causal inferences to be established. For example, what is the
effect, and upon whom, of raising the price of Haagen Dazs ice cream by 10 per cent?
What is the effect of inserting a cut-out coupon to give a discount on after-sun lotion,
placed in Cosmopolitan magazine?
3 Refining the marketing process. With time series of responses to planned marketing activi­
ties, statistical models of consumer response can be built with associated probabilities of
a particular outcome. Likewise, models of the consumers over their lifetimes can be built.
Again, statistical models can be built with associated probabilities of particular types of
product being bought at different stages of a consumer's life.
4 Developing a clear understanding of'gaps' in the knowledge of consumers. The customer da­
tabase records observed behaviour but do not encapsulate attitudinal data. The nature and
levels of satisfaction, what is perceived as good-quality service, or what image is associated
with a particular brand are examples of attitudinal data. The use of the database helps to
identify target populations to measure and the attitudinal data that need to be collected.
In all, there can be a much greater clarity in the nature of primary marketing research that
tackles attitudinal issues.
5 Linking behavioural and attitudinal data. If attitudinal data are elicited from consumers,
the data gathered can be analysed in their own right. It is possible, however, to link the
gathered data back to the behavioural data in the database. The notion of linking together
databases and survey data from different sources is at the heart of building a strong under­
standing of both the behaviour and motivation of consumers.

In the development of good research designs, the customer database can be seen as a vital
resource to the researcher when conducting internal secondary data searches. The idea of access­
ing a customer database represents a clear opportunity for researchers, but such a resource may
not be singular and can be integrated with many other databases and systems. There are a whole
array of different means to electronically capture customer transaction behaviour and even
potential customers through their search for information to buy services and products.

_________
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External secondary data

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------ ---�
Sources of published external secondary data include local authorities, regional and national
governments, the EU, non-profit organisations (e.g. Chambers of Commerce), trade associa­
tions and professional organisations, commercial publishers, investment brokerage firms and
professional marketing research firms.7 Such a quantity of data is available that the researcher
can be overwhelmed. Therefore, it is important to classify published sources (see Figure 3.2).
Published external sources may be broadly classified as general business data or government
data. General business sources comprise guides, directories, indexes and statistical data.
Government sources may be broadly categorised as census data and other publications.
 Chapter 3 Secondary data collection and analysis: internal and external sources 75

General surveys Syndicated surveys are also conducted for a variety of other purposes,
including examination of purchase and consumption behaviour. Because a variety of data
can be obtained, survey data have numerous uses. They can be used for market segmentation,
as with psychographic and lifestyle data, and for establishing consumer profiles. Surveys are
also useful for determining product image, measurement and positioning, and conducting
price perception analysis.
The advantage of surveys lies in their flexibility in eliciting data from participants. The
researcher can focus on only a certain segment of the population, e.g. teenagers, owners of
holiday homes or students aged 18 to 20. Surveys are the primary means of obtaining infor­
mation about consumers' motives, attitudes and preferences. A variety of questions can be
asked and visual aids, packages, products or other props can be used during interviews. Prop­
erly analysed, survey data can be manipulated in many ways so that the researcher can look at
inter-group differences, examine the effects of independent variables, such as age or income,
or even predict future behaviour. On the other hand, survey data may be limited in several
significant ways. The researcher has to rely primarily upon participants' self-reports. There
can be a gap between what people say and what they actually do. Errors may occur because

_________
participants remember incorrectly or give socially desirable responses. Furthermore, samples
may be biased, questions poorly phrased, interviewers not properly instructed or supervised
and results misinterpreted.
_________
Purchase and media panels
About a fifth of all research budgets are spent on panels in their various formats, among the
largest investors in this format in Europe being Switzerland at 38 per cent, Germany 34 per
cent and the Netherlands 31 per cent. 15 Panels are samples of participants who provide speci­
fied information at regular intervals over an extended period of time. These participants may
be organisations, households or individuals, although household panels are most common.
The distinguishing feature of panels is that the participants record specific behaviours as they
occur. Previously, behaviour was recorded in a handwritten diary, and the diary returned to
the research organisation every one to four weeks. Panel diaries have been gradually replaced
by electronic diaries and blog diaries. 16 Now, most panels are online and consumption and
media behaviour is recorded electronically, either entered online by the participants or
recorded automatically by electronic devices.
;;·-=· 1g technique
In media panels, electronic devices automatically record viewing behaviour, thus supple­
-:: :' samples menting a diary. Media panels yield information helpful for establishing advertising rates
_ :-2-:s whose
by radio and TV networks, selecting appropriate programming, and profiling viewer or lis­
tener subgroups. Advertisers, media planners and buyers find panel information particularly
-� ::e1aviour is
- :.: , recorded
:- : .::'evices, useful. Another media vehicle that competes heavily for advertising budgets is the Internet.
The following example illustrates how TNS use media panels to understand the likelihood of
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ciary or biog. viewers responding to advertisements.

lleal research Targeting ad responders17

The Skyview panel, conceived and developed by BSkyB (www.sky.com) and TNS (www
.tnsglobal.com),comprises 33,000 Sky households, from which detailed second-by­

I
second TV viewing data covering all television channels is collected via a set-top box.
Of these homes, 6,000 are also members of Worldpanel, the service operated by TNS I

J
which provides detail on each household's purchasing of grocery products on a contin-
uous basis. Sky Media (www.skymedia.co.uk) is the media sales arm of BSkyB and it
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