Chapter 6: Primary and Secondary Data Sources
Chapter 6: Primary and Secondary DataSources
Sr. No.TopicPage No.
1.The Sources of Research data2i.Nature of Secondary data3ii.Internal Sources of Secondary data5iii.External Sources of Secondary data72.Commercial Surveys, Audits & Panels9i.Commercial Surveys9ii.Audits11iii.Panels123.Survey Research15
THE SOURCES OF RESEARCH DATA
The design of the research project specifies both the data that are needed and howthey are to be obtained. The first step in the data-collection process is to look for
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Chapter 6: Primary and Secondary Data Sources
secondary data.
These are data that were developed for some purpose other thanfor helping to solve the problem at hand. The data that are still needed after thatsearch is completed will have to be developed specifically for the research projectand are known as primary
data.
The secondary data that are available are relatively quick and inexpensive to obtain,especially now that computerized bibliographic search services and databases areavailable. The various sources of the secondary data and how they can be obtainedand used are described ahead.Most secondary data are generated by specialized firms and are sold to marketersto help them deal with a category of problems. Nielsen’s television ratings, whichmarketers use in making advertising decisions, is the best-known example. Many of these services, broadly categorized as audits, commercial surveys, and panels,allow some degree of customization and thus fall between secondary and primarydata. These sources are treated in detail ahead.An important source of primary data is survey
research.
The various types of surveys (personal, mail, computer, and telephone), are described ahead.Experiments are another important source of data for marketing research projects.The nature of experimentation, the types of experimental designs, and the uses andlimitations of this method of obtaining data are also explained ahead. Experimentsare conducted in either a laboratory setting (most advertising copy pretests) or in afield setting (test marketing). Electronic and computer technologies haverevolutionized both these environments, which are described later.
Secondary Data
In April 1991, Buick and its advertising agency, McMann-Erickson Worldwide,launched its new Roadmaster station wagon with a revolutionary new advertisingapproach. A major component of the advertising for Roadster is a print campaignwith ads appearing in
Time, Newsweek, U.S.
News. & World
Report, People, SportsIllustrated, Entertainment Weekly,
and Money. However, not all subscribers will seethese ads. In fact, only 4,940 of the more than 40,000 ZIP codes in the UnitedStates will receive the ads. Subscribers is these ZIP codes
will
not only have achance to see the ads, their magazines' will come with a personal addressed cardinviting them to send for more information on the Roadmaster.The target households, which are located mainly in affluent suburbs in the Northeastand Midwest, represent less than 20 percent of US households. However, thesehouseholds buy over 50 percent of all large Station wagons. Buick was able toselect the appropriate ZIP codes by using McMann-Erickson McMapping database.McMapping is based on data from several syndicated sources as well as the U.S.Census. It describes ZIP codes (and larger areas) in terms of standarddemographics, values, primary lifestyle and media use. It works by matching thecharacteristics of the firm's target market with the characteristics of ZIP coderesidents.
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Chapter 6: Primary and Secondary Data Sources
McMapping does more than simply allow precise targeting of ads and efficientmedia buys. It also helps develop effective commercials. For example, a traditionalsystem might describe the typical buyer of a specific pickup truck as a mate between25 and 54 with a household income of $30,000. The McMapping profile might addsuch information as he lives alone, owns a dog, likes sports which he often watcheson cable with friends in a bar, and has a very macho self image. Obviously, thisadded information would be invaluable in developing effective ad copy.In a few short years the increase in the number of commercially available databasesand of computers on which to access them have brought about dramatic changes inthe utilization of secondary data. In this chapter we describe this development anddiscuss the traditional sources of secondary data.
The Nature of Secondary Data
Primary data are data that are collected to help solve a problem or take advantageof an opportunity on which a decision is pending. Secondary data are data that weredeveloped for some purpose other than helping to solve the problem at hand.Obviously, the U.S Census was not conducted primarily to help target potentialbuyers of Buick station wagons. However, as the opening example illustrates,Census data and other data collected for other purposes can be used to targetpotential buyers or for other business applications.
Advantages of Secondary Data
Secondary data can be gathered quickly and inexpensively, compared to primarydata (data gathered specifically for the problem at hand). It clearly would have beenfoolish for Buick to collect information directly on the population characteristics,values and lifestyles of every ZIP code in the United States. Such data are alreadyavailable and can be obtained much faster and at a fraction of the cost of collectingthem again.
Problems Encountered with Secondary Data
Secondary data tend to cost substantially less than primary data and can becollected in less time. Why, then, do we ever bother with primary data? Beforesecondary data can be used as the only source of information to help solve amarketing problem, they must be available, relevant, accurateand sufficient. If oneor more of these criteria are not met, primary data may have to be used.
Availability
For some marketing problems, no secondary data are available. For example,suppose J.C. Penney’s management was interested in obtaining consumer evaluations of the physical layout of the company's current catalog as a guide for developing next year’s catalog. It is unlikely that such information is available fromsecondary sources. It is probable that no other organization that had collected suchdata would be willing to make it available. Sears may have performed such a studyto guide in the development of their catalogs; it is, however, unlikely that acompetitor would supply it to Penney’s.
In this case, the company would have toconduct interviews of consumers to obtain the desired information. Secondary dataon the spending patterns, media preferences, and lifestyles of some population
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Primary and Secondary Data Sources
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