Business Research Methods
William G. Zikmund
Chapter 8:
Secondary Data
Research in a Digital Age
Secondary Data
Data gathered and recorded by someone else prior to and for a purpose other than the current project
Is often:
• Historical
• Already assembled
• Needs no access to subjects
Advantages of Secondary Data
• Inexpensive
• Obtained Rapidly
• Information is not Otherwise Accessible
Copyright © 2000 by Harcourt, Inc. All rights reserved.
Government Data Is Often Free
Disadvantages of Secondary Data
• Uncertain Accuracy
• Data Not Consistent with Needs
• Inappropriate Units of Measurement
• Time Period Inappropriate (Dated)
Secondary Data may be Dated
The Economic Census profiles the U.S. economy every 5 years, from the
national to the local level.
Evaluating Secondary Data
Does the data help to answer questions set out in the problem definition?
Does the data apply tothe time period of interest?
Does the data apply tothe population of interest?
Applicabilityto projectobjectives
Do the other terms and variable classifications presented apply?
Are the units ofmeasurement comparable?
If possible, go to the original source of thedata?
Evaluating Secondary Data (continued)
Applicabilityto projectobjectives
Accuracyof the data
Is the cost of dataacquisition worth it?
Accuracyof the data
Is there a possibility of bias?
Can the accuracy of data collection be verified?
Objectives for Secondary Data Studies
• Fact Finding
• Model Building
• Data Based Marketing
Fact Finding - Identifying consumption patterns- Tracking trends
Model building - Estimating market potential- Forecasting sales- Selecting trade areas and sites
Data Base Marketing - Development of Prospect Lists- Enhancement of Customer Lists
Common Research Objectives for Secondary Data Studies
Fact Finding
• Identify consumer behavior
• Trend analysis• Environmental
scanning
Model Building
• Market potential• Forecasting sales• Analysis of trade areas
Data Based Marketing
• Practice of maintaining a customer data base
• Names
• Addresses
• Past purchases
• Responses to past efforts
• Data from numerous sources
Internal Data
Internal and proprietary data is more descriptive
• Accounting information• Sales information• Backorders• Customer complaints
Data Mining
Information Producer(Federal Government)
Library(Storage ofgovernmentdocumentsand books)
Company User
Traditional DistributionIndirect Channel Using Intermediary
Information Producer(Federal Government)
Company User
Traditional DistributionDirect Channel
Direct, Computerized Distribution Using Intermediary
Information producer’s(Just-in-time inventory partner)
computerized database
Company user
Modern Distribution of Secondary Data
Information producer A(Federal government-
census data)
Information producer B(Grocery store-retail
scanner data)
Information producer C(Audience research company-
television viewing data)
Vendor/externaldistributor
(Computerized databaseintegrating all three data
sources for anygeographic area)
Information producer A(Federal government-
census data)
External Data
• Created, recorded, or generated by an entity other than the researcher’s organization
• Government
• Trade associations
• Newspapers and journals
External Data
• Libraries
• The Internet
• Vendors
• Producers
• Books and periodicals
External Data
• Government sources
• Media sources
• Commercial sources
Government Sources
U.S. Population by Race and Hispanic Origin, July 1, 1997
(in thousands)
White Black American Indian Asian & Pacific
& Alaska Native Islandernon-Hispanic 194,571 32,324 1,977 9,532Hispanic 26,746 1,649 347 598
Race and Ethnicity
• The race and Hispanic origin categories used by the Census Bureau are mandated by Office of Management and Budget
• All federal record keeping and data presentation to use four race categories (White, Black, American Indian and Alaska Native, Asian and Pacific Islander) and two ethnicity categories (Hispanic, non-Hispanic).
• These classifications are not intended to be scientific in nature, but are designed to promote consistency in federal record keeping and data presentation.
Commercial Sources
• Market share data companies like A.C. Nielsen provide information about sales volume and brand share over time
• Demographic and census updates—many organizations supply census updates, in easy-to-use or custom formats
Commercial Sources
• Attitude and public opinion research—syndicated services report the findings of opinion polls
• Consumption and purchase behavior data
• Advertising research—readership and audience data
Single Source Data
• Diverse types of data offered from a single source
- e.g., television viewing and scanner purchase data
- e.g., Prizim and ClusterPlus
Global Secondary Data
• Typical limitations
• Additional pitfalls
• Unavailable
• Questionable accuracy
• Lack of standardized terminology