Secondary Data

1
Chapter 4

• Secondary Data

2
Focus

• definition, pluses and minuses
• internal and external sources
• syndicated sources
• application

3
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

4
Advantages

• easily accessible
• relatively inexpensive
• quickly obtained
• can provide valuable insights and lay the
  foundation for designing studies to collect
  primary data

5
Disadvantages

• usefulness to the current problem may be limited
• relevance
• accuracy (CPI Index)
• currency (Census data)

6
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

7
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

8
External Secondary Sources

• General Business Data
• Guides
• Directories
• Indexes
• Nongovernment statistical data
• Government Sources
• Census data
• other government publications

9
Computerized Databases

• Online
• Internet
• Off-line
• Bibliographic databases
• Numeric databases
• Full-text databases
• Directory databases

10
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

11
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

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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
• General Surveys

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Uses of Surveys

• market segmentation
• establishing consumer profiles
• evaluating advertising effectiveness
• identifying ad themes

14
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 well-trained

15
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

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Purchase Panels

• respondents record their purchases
• NPD, MRCA, NFO
• can be done on the Internet

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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

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Uses of Diary Panels

• purchase panels
• estimate market share
• forecast sales
• assess brand loyalty
• establish profiles
• measuring promotional effectiveness
• media panels
• establishing advertising rates
• selecting appropriate programming
• profiling viewers

19
Pluses/ Minuses

• can provide longitudinal data
• more and higher quality data
• eliminates recall/human errors
• however, lack of representativeness
• maturation bias
• high rate of attrition

20
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

21
Uses

• tracking sales, price, distribution and promotion
  data
• testing new products, repositioning existing ones
• making advertising and pricing decisions

22
Pluses/Minuses

• 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

23
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

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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

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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

26
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
• Fortunes Input-Output Matrix reports
• McGraw Hills Dodge Reports

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Uses

• Sales management
• identifying prospects
• defining territories
• setting sales quotas
• Advertising Strategy
• Market segmentation

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Pluses/Minuses

• only source for industrial products
• however, limited in content and quality

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Single-Source Data

• Combining data from several sources can add to
  the usefulness of secondary data
• Single source research follows a persons TV,
  reading and shopping habits
• V8 example

30
Computer Mapping

• combines geography, demography with a companys
  sales or other data
• color-coded maps
• where are customers for product XYZ located?
• Useful in rollout of a new product