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Chapter 4
Secondary Data
Focus
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definition, pluses and minuses
internal and external sources
syndicated sources
application
Definition
• data collected for some purpose other than the
problem at hand
• store patronage project--criteria used for selecting
stores
– Journal of Retailing
– Journal of Marketing
– Journal of Marketing Research
• primary data: data originated by the researcher for
the specific purpose of addressing the research
problem
Advantages
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easily accessible
relatively inexpensive
quickly obtained
can provide valuable insights and lay the
foundation for designing studies to collect
primary data
Disadvantages
• usefulness to the current problem may be
limited
– relevance
– accuracy (CPI Index)
• currency (Census data)
Internal Secondary Data
• lots of data inside the organization
• some ready to use, while others require
processing
• e.g., sales, service, warranty, complaints,
letters
• not fully exploited by companies
• how to exploit: e.g. data base marketing
Data Base Marketing
• capture and track customer profiles and purchase details
• use in designing marketing programs
• start by transferring raw sales information
– customer name, address, product bought, quantity, price, etc
• overlay with demographic and psychographic data on the
customer
• internally generated or bought from external sources
• update this information and use over the lifetime of the
relationship
• example
External Secondary Sources
• General Business Data
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Guides
Directories
Indexes
Nongovernment statistical data
• Government Sources
– Census data
– other government publications
Computerized Databases
• Online
• Internet
• Off-line
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Bibliographic databases
Numeric databases
Full-text databases
Directory databases
Syndicated Sources of Data
• collect and sell common pools of data
designed to serve information needs shared
by a number of clients
• e.g. Nielsen TV Audience information
• can be personalized to fit customer needs
Types of Syndicated Data
• Households
– Surveys
– Mail Diary Panels
– Electronic Scanner Services
• Institutions
– Retailer and Wholesaler audits
– Industrial Firms
• direct inquiries
• clipping services
• corporate reports
Surveys
• interviews with a large number of respondents
using a predesigned questionnaire
• Psychographics and Lifestyles
– Yankelovich Monitor
– Stanford Research Institute (VALS)
– Audits and Surveys - leisure/travel/recreation
businesses
• Advertising Evaluation
– Starch Readership Survey
– TV effectiveness studies
Uses of Surveys
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market segmentation
establishing consumer profiles
evaluating advertising effectiveness
identifying ad themes
Pluses and Minuses
• primary means of collecting data on
motives, attitudes, and preferences
• variety of data can be collected
• from specific to general audiences
• however, may be subject to response errors
• samples may be biased
• interviewers/designers have to be welltrained
Diary Panels
• samples of respondents who provide
specified information at regular intervals
• respondents record specific behaviors as
they occur in a diary
• compensation - gifts, cash, coupons,
information
• two types-purchase and media panels
Purchase Panels
• respondents record their purchases
• NPD, MRCA, NFO
• can be done on the Internet
Media Panels
• electronic devices automatically record viewing
behavior
• Nielsen Television index
• n = 5000 households
• supplemented with audilogs (who was watching)
• number and % of all TV households viewing a
given show
• disaggregated by 10 demographic and
socioeconomic characteristics
• useful for media selection
Uses of Diary Panels
• purchase panels
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estimate market share
forecast sales
assess brand loyalty
establish profiles
measuring promotional effectiveness
• media panels
– establishing advertising rates
– selecting appropriate programming
– profiling viewers
Pluses/ Minuses
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can provide longitudinal data
more and higher quality data
eliminates recall/human errors
however, lack of representativeness
maturation bias
high rate of attrition
Electronic Scanner Services
• Data obtained by passing merchandise over a laser
scanner, which reads the UPC code from the
packages
• linked to current price of the merchandise stored
in the computer
• Volume Tracking Data
• Scanner Diary Panels
• Scanner Diary Panels with Cable TV
Uses
• tracking sales, price, distribution and promotion
data
• testing new products, repositioning existing ones
• making advertising and pricing decisions
Pluses/Minuses
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not subject to any biases
in-store variables are part of the data set
current and obtained quickly
provide a highly controlled test environment
however, may not be representative
quality may be suspect
no data on underlying motives and attitudes
Retailer and Wholesaler Audit
• Audit - a formal examination and verification of
product movement carried out by examining
physical records or analyzing inventory
• compensation- reports, cash
• Nielsen Retail Index
– biweekly audit of supermarkets, drugstores, and mass
merchandisers
– 11350 retail stores
• Wholesale audits monitor warehouse withdrawals
Uses
• size of the total market and distribution by
geographical unit
• brand shares and competitive activity
• identifying shelf space allocation and inventory
problems
• analyzing distribution problems
• developing sales potential and forecasts
• promotional strategy tracking
Pluses/Minuses
• provide accurate data on movement at both retail
and wholesale levels
• by brand, geographical area, and type of outlet
• however, their coverage is limited
• data may not be timely (lag of 8 weeks)
• data cannot be linked to consumer characteristics,
advertising expenditures and other marketing
efforts
Industry Services
• provide syndicated data on companies
• on the basis of data gathered from direct inquiries,
clipping services and corporate reports
• Dun and Bradstreet Market Identifiers
• Fortune’s Input-Output Matrix reports
• McGraw Hill’s Dodge Reports
Uses
• Sales management
– identifying prospects
– defining territories
– setting sales quotas
• Advertising Strategy
• Market segmentation
Pluses/Minuses
• only source for industrial products
• however, limited in content and quality
Single-Source Data
• Combining data from several sources can add to
the usefulness of secondary data
• Single source research follows a person’s TV,
reading and shopping habits
• V8 example
Computer Mapping
• combines geography, demography with a
company’s sales or other data
• color-coded maps
• where are customers for product XYZ located?
• Useful in rollout of a new product