Transcript Chapter 3

Chapter Three
Primary Data or Secondary
Data: A Case for the Latter
Copyright  2007 McGraw-Hill Pty Ltd
PPTs t/a Marketing Research 2e by Hair, Lukas, Bush and Ortinau
Slides prepared by Judy Rex
3-1
Learning Objectives
 Distinguish between primary and
secondary data.
 Understand how secondary data fits
into the marketing research process.
 Demonstrate how secondary data can
be used to solve problems.
 Identify and list sources of traditional
internal secondary data.
Copyright  2007 McGraw-Hill Pty Ltd
PPTs t/a Marketing Research 2e by Hair, Lukas, Bush and Ortinau
Slides prepared by Judy Rex
3-2
Learning Objectives
 Demonstrate how to obtain external
sources of secondary data.
 Identify and list sources of external
secondary data.
 Assess the availability and use of
syndicated sources of secondary data.
 Identify and use important Internet
sources of secondary data.
 Understand the changing focus of
secondary data usage.
Copyright  2007 McGraw-Hill Pty Ltd
PPTs t/a Marketing Research 2e by Hair, Lukas, Bush and Ortinau
Slides prepared by Judy Rex
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Introduction
The researcher must decide what
information sources are the most
appropriate for providing the
necessary data.
 Does the data already exist?
 Which primary and secondary data
sources are available for addressing
the marketing research questions?
Copyright  2007 McGraw-Hill Pty Ltd
PPTs t/a Marketing Research 2e by Hair, Lukas, Bush and Ortinau
Slides prepared by Judy Rex
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Introduction
 Determine the data needs
 Determine the data needed to execute the
research.
 Assess what types of information sources
would be most appropriate.
 Evaluate existing data availability and
quality
 Can the specific research question be
addressed with existing data?
 Does the question require new, first hand
data?
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Slides prepared by Judy Rex
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Evaluate the Types and
Sources of Data

Classification of data is based on
three fundamental dimensions:
1. The extent to which the data exists.
2. The degree to which the data have been
interpreted.
3. The extent to which it is understood why
the data were collected and assembled.
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Slides prepared by Judy Rex
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Evaluate the Types and
Sources of Data
Classification of data typically falls into
two categories:
 Secondary data
 Data that have been previously collected for some
research project other than the current situation.
 Primary data
 Data collected explicitly for the research project at
hand.
 Through a formalised process for a specific, new
problem situation.
Copyright  2007 McGraw-Hill Pty Ltd
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Slides prepared by Judy Rex
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Compared to Primary Data,
Secondary Data is:
Readily available
Can be more valid
Usually less expensive
Copyright  2007 McGraw-Hill Pty Ltd
PPTs t/a Marketing Research 2e by Hair, Lukas, Bush and Ortinau
Slides prepared by Judy Rex
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Secondary Data Research Tasks and
the Marketing Research Process
Secondary data can:
 Save time and costs if appropriately
selected for specific situations.
 Serve as the starting point for actual
research.
Because of this, all potential secondary
data sources should first be considered.
Copyright  2007 McGraw-Hill Pty Ltd
PPTs t/a Marketing Research 2e by Hair, Lukas, Bush and Ortinau
Slides prepared by Judy Rex
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The Functional Roles of
Secondary Data Research
Copyright  2007 McGraw-Hill Pty Ltd
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Slides prepared by Judy Rex
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The Uses of Secondary Data
 Monitoring competitive and business intelligence
(82%)
 Providing functional support for primary research
projects (75%)
 Managerial presentations (59%)
 Specific business decisions (57%)
 Validating internal date and primary date collection
(48%)
 Source: US based society of competitive intelligence
professionals
Copyright  2007 McGraw-Hill Pty Ltd
PPTs t/a Marketing Research 2e by Hair, Lukas, Bush and Ortinau
Slides prepared by Judy Rex
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The Use and Evaluation of
Secondary Data Sources
Aside from saving time and money
 Secondary data should be assessed
according to 6 fundamental principles:
1 Purpose
2 Accuracy
3 Consistency
4 Credibility
5 Methodology
6 Bias
Copyright  2007 McGraw-Hill Pty Ltd
PPTs t/a Marketing Research 2e by Hair, Lukas, Bush and Ortinau
Slides prepared by Judy Rex
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Purpose
 Why was the data collected?
 Are the objectives consistent
with objectives of the current
study?
Copyright  2007 McGraw-Hill Pty Ltd
PPTs t/a Marketing Research 2e by Hair, Lukas, Bush and Ortinau
Slides prepared by Judy Rex
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Accuracy
What was actually measured?
Is the data generalisable?
What was the sample?
How were the measures
developed?
When was the data collected?
Copyright  2007 McGraw-Hill Pty Ltd
PPTs t/a Marketing Research 2e by Hair, Lukas, Bush and Ortinau
Slides prepared by Judy Rex
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Consistency and Credibility
Consistency
 Are there multiple sources available of
the same data?
Credibility
 What was the technical competence
service quality, reputation and training
and expertise of the organization that
gathered the data?
Copyright  2007 McGraw-Hill Pty Ltd
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Slides prepared by Judy Rex
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Methodology and Bias
Methodology
 What methodology was used?
Bias
 Was there any bias in the
secondary data?
Copyright  2007 McGraw-Hill Pty Ltd
PPTs t/a Marketing Research 2e by Hair, Lukas, Bush and Ortinau
Slides prepared by Judy Rex
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Traditional Internal Sources of
Secondary Data
 Internal information is the logical
starting point for the secondary data
search.
 Sources can include:
 Sales invoices
 Accounts receivable reports
 Quarterly sales reports
 Sales activity reports
 Other types such as customer
complaints (see exhibit 3.3)
 See exhibit 3.2
Copyright  2007 McGraw-Hill Pty Ltd
PPTs t/a Marketing Research 2e by Hair, Lukas, Bush and Ortinau
Slides prepared by Judy Rex
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External Sources of Secondary
Data
 External information is the next
logical source in the secondary
data search.
 Sources can include:
 Published data
 External data compiled from outside
sources such as syndicated data.
 Data contained in online databases.
Copyright  2007 McGraw-Hill Pty Ltd
PPTs t/a Marketing Research 2e by Hair, Lukas, Bush and Ortinau
Slides prepared by Judy Rex
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Detail External Sources of
Secondary Data
 Planning the external secondary data
search entails following the following
plan or strategy:
 The GO-CART approach
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Establish goals
Develop objectives
Define specific information characteristics
Outline specific research activities
Establish reliability
Document using tabulation mechanisms
Copyright  2007 McGraw-Hill Pty Ltd
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Slides prepared by Judy Rex
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External Sources of Secondary Data
 Key sources of external secondary data
include:
 The 2006 ANZSIC codes (see exhibit 3.4)
 Government documents
 Key sources of syndicated secondary
data include:
 Consumer panels
 Store audits
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Slides prepared by Judy Rex
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Syndicated Data
Data compiled by a contracted
marketing research firm
according to some
standardised procedure and
customised and provided to a
client for a fee.
Such as market share, adeffectiveness, sales tracking.
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Slides prepared by Judy Rex
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Consumer Panels
Large samples of households
that provide specific, detailed
data for an extended period of
time.
Can track sales, usage,
purchasing, etc.
Copyright  2007 McGraw-Hill Pty Ltd
PPTs t/a Marketing Research 2e by Hair, Lukas, Bush and Ortinau
Slides prepared by Judy Rex
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Single Source Data
A large secondary data base which
is collected from a single source,
i.e. A single respondent.
The Roy Morgan Research Centre
interviews 50,000+ people annually
on issues such as demographics,
media habits, finance, tourism, etc.
Copyright  2007 McGraw-Hill Pty Ltd
PPTs t/a Marketing Research 2e by Hair, Lukas, Bush and Ortinau
Slides prepared by Judy Rex
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Add in Roy Morgan
 Steps to power
(a) We interview over 50,000 Australians and large samples in the USA, UK, New
Zealand and Indonesia
No Assumptions. No guesses. Just pure hard facts. It's the only way you can be sure
that you're targeting your customer.
(b) which gives us Single Source Data
The ultimate data bank. Incredibly versatile, powerful information which even in its raw
form yields the path to successful marketing and advertising solutions.
(c) that forms the basis of 14 powerful Roy Morgan Products (MAPS)
Our experts have analysed the wealth of information and have created exciting
packages which are designed to discover an edge for a range of users - from publishers
and advertising agencies to manufacturers, retailers and service industries.
See: http://www.roymorgan.com/products/single-source/single-source_home.cfm
Copyright  2007 McGraw-Hill Pty Ltd
PPTs t/a Marketing Research 2e by Hair, Lukas, Bush and Ortinau
Slides prepared by Judy Rex
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Store Audits
ACNielsen | Retail Index
 Design/Methodology:
Continuous monitor of market trends based on audit data
inputs. Data can be monthly or bi-monthly.
 Marketing Issues Addressed:
Market volume and value sales trends, stock position,
distribution levels, average prices.
 Analyses Delivered:
Consumer Sales, Retailer Purchases, Stocks, Distribution (instock and OOS), Average Price.
 Works With:
ScanTrack, M&A, Explorer.
See: http://au.acnielsen.com/products/crs_retailindex.shtml
Copyright  2007 McGraw-Hill Pty Ltd
PPTs t/a Marketing Research 2e by Hair, Lukas, Bush and Ortinau
Slides prepared by Judy Rex
3-25
The Internet as a Source of
Secondary Data
Secondary data is now more
accessible because of the
internet.
www.census.gov
www.abs.gov.au
The role of secondary research
will continue to change.
Copyright  2007 McGraw-Hill Pty Ltd
PPTs t/a Marketing Research 2e by Hair, Lukas, Bush and Ortinau
Slides prepared by Judy Rex
3-26