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Chapter 8 Secondary Data Research

This chapter discusses secondary data research in business. It defines secondary data as data gathered previously for another purpose. The main advantages are availability, lower cost than primary research, and speed. Disadvantages include potential inaccuracies and lack of control over measurement. The chapter outlines various types of secondary analysis including trend analysis, market potential modeling, and data mining. It also provides examples of internal sources like sales data and external sources such as government and commercial databases.

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Amanda Samaras
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456 views

Chapter 8 Secondary Data Research

This chapter discusses secondary data research in business. It defines secondary data as data gathered previously for another purpose. The main advantages are availability, lower cost than primary research, and speed. Disadvantages include potential inaccuracies and lack of control over measurement. The chapter outlines various types of secondary analysis including trend analysis, market potential modeling, and data mining. It also provides examples of internal sources like sales data and external sources such as government and commercial databases.

Uploaded by

Amanda Samaras
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Chapter 8

SECONDARY DATA RESEARCH IN A DIGITAL AGE

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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
Available Faster and less expensive

Disadvantages
Uncertain accuracy Data not consistent with

than acquiring primary data Requires no access to subjects Inexpensivegovernment data is often free May provide information otherwise not accessible

needs Inappropriate units of measurement Time period inappropriate (outdated)


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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 SecondaryData 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

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Source: Theresa Howard, Coca-Cola Hopes Taking New Path Leads to Success, USA Today, March 6, 2001, p. 6b. From USA Today a division of Gannett Co., Inc. Reprinted with Permission.

Model Building
Estimating Market Potential Forecasting 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


Labor, employment, and productivity Maritime and shipping information Market research reports Overseas contacts Overseas and domestic industry information Price indexes Small business information State exports State trade contacts Trade opportunities U.S. export regulations U.S. import and export statistics by country and commodity U.S. international transactions World Fact Book World minerals production

Agricultural commodity production and trade Basic export information Calendars of trade fairs and exhibitions Capital markets and export financing Country reports on economic and social policies and trade practices Energy production, supply, and inventories

Exchange rates
Export licensing information Guides to doing business in foreign countries International trade terms directory

How-to guides
International trade regulations/agreements International trade agreements

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