Chapter 4 Secondary Data
Mar 15, 2016
Chapter 4
Secondary Data
Focus
• 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
• 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– Guides– Directories– Indexes– Nongovernment statistical data
• Government Sources– Census data– other government publications
Computerized Databases
• Online• Internet• Off-line
– 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
• General Surveys
Uses of Surveys
• 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 well-trained
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– 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
• 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
• 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