Where do data come from?

• We’ve seen our data for this lab, all nice and
collated in a database – from:
– Insurance companies (claims, medications,
procedures, diagnoses, etc.)
– Firms (demographic data, productivity
data, etc.)
PRIMARY & SECONDARY DATA

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 Primary Data

• Primary data are originated by a

researcher for the specific purpose of
addressing the problem at hand. The
collection of primary data involves all
six steps of the marketing research
process (Problem to Report)

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 A Classification of Primary Data Source

Primary Data

Observation Projective Interview Survey Questionnaire Experiment

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 Advantages of Primary Data

• Data interpretation is better

• Targeted issues are addressed
• Efficient spending for information
• Address specific research issue
• Greater control

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 Secondary Data
Secondary data are data which have
already been collected for purposes
other than the problem at hand.
These data can be located quickly and
inexpensively.

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 PURPOSE OF SECONDARY DATA
• Extracting the relevant information from other sources,
previous studies
• Fact findings: Descriptive information to support
research
• Model Building: specifying relationship between two or
more variables
• Data mining : Exploring data through computer . Using
computer technology to go through volumes of data to
discover trends about an organization’s sales customers
and products. IT is primarily used
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Secondary Data – Examples of Sources
• Vital Statistics – birth, death certificates
• Hospital, clinic, school nurse records
• Private and foundation databases
• City and county governments
• Surveillance data from state government
programs
• National statistics - Census, weather etc.
 Case: High Touch Goes High Tech
• In many ageing nations - decline in the number of young (16-24 age) workers
• This potential shortage of young workers has caused many fast food restaurant to switch
from a “high touch” to a “high tech” services orientation
• Many services formally rendered by workers are now performed by consumers by using
high-tech equipment
• Touch screen kiosks is becoming a popular trend that provides a new avenue to cut
labour
cost and increase customer service.

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 A Comparison of Primary & Secondary Data

Particulars Primary Data Secondary Data

• Collection purpose For the problem at hand For other problems

• Collection process Very involved Rapid & easy
• Collection cost High Relatively low
• Collection time Long Short

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 Advantages of secondary data
• Less expensive and time saving.
• No need to reinvent the wheel.
• Can result in unforeseen discoveries through data reanalyzes.
• Permanent and available.

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 Disadvantages of secondary data
• May be collected for a purpose that does not match your need.
• May be out of date for what you want to analyze.
• May not have been collected long enough for detecting trends.
• Access may be difficult or costly when data is collected for commercial reason.
• Aggregations processes and definitions may be unsuitable.
• No real control for data quality.(Missing data)
• Initial purpose may dictate how data are presented. e.g., published company reports presented
different from unpublished, also newspaper report.

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 A Classification of Secondary Data

Secondary Data

Internal External

Ready to Use Requires Publishe Computerized Syndicated

Further d Databases Services
Processin Materials
g

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 Internal Data
Internal data are data available within the organization for which the research is
being
conducted

• Ready to use : It may be in the form of ready to use such as information routinely supplied
by management decision support system

• Require further processing: On the other hand, it may be in raw form that requires further
processing before they are useful to the management such as sales invoice

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 External Data
External data are data generated by sources outside the organization.
• Published Material: Sources of published external secondary data include federal, state and
local governments, nonprofit organizations (e.g. chamber of commerce), trade association
and professional marketing research firm.
• It includes
 Guides
 Directories
 Indexes
 Statistical Data
 Census
 Other Government Publication
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 Computerized Database
• Computerized Database: Computerized database consist of information that has been made
available in computer-readable form for electronic distribution
• It includes:
 Online database
 Offline database
 Internet database

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 Syndicated Services
• Syndicated services: Syndicated services also referred to as syndicated sources, are
companies that collect and sell common pools of data of known commercial value designed
to serve information needs shared by a number of clients
• Syndicated sources can be classified based on the unit of measurement
(households/consumers or institutions).
 It includes:
 Survey
 Panels
 Electronic scanner service
 Audit

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RESEARCH ERROR

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Potential Sources of Error in Research
Designs Total Error

Random Non-sampling
Sampling Error Error

Response Non-response
Error Error

Researcher Interviewer Respondent

Error Error Error

Surrogate Information Error Respondent Selection Error Inability Error

Measurement Error
Population Definition Error
Sampling Frame Error
Data Analysis Error
Questioning Error Unwillingness Error
Recording Error
Cheating Error
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 Click to add text
Errors in Marketing Research
• The total error is the variation between the true mean value in the population of
the variable of interest and the observed mean value obtained in the marketing
research project.

• Random sampling error is the variation between the true mean value for the
population and the true mean value for the original sample.

• Non-sampling errors can be attributed to sources other than sampling, and they
may be random or nonrandom: including errors in problem definition, approach,
scales, questionnaire design, interviewing methods, and data preparation and
analysis. Non-sampling errors consist of non-response errors and response errors.

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 Errors in Marketing Research
• Non-response error arises when some of the respondents included in the
sample do not respond.
• Response error arises when respondents give inaccurate answers or their
answers are misrecorded or misanalyzed.

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 Errors in Marketing Research
Response error (by researcher)
• Surrogate information error may be defined as the between
variation needed for the marketing research problem and the information
information the
sought by the researcher.
• Measurement error may be defined as the variation between the information
sought and information generated by the measurement process employed by the
researcher.
• Population definition error may be defined as the variation between the actual
population relevant to the problem at hand and the population as defined by the
researcher.

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 Errors in Marketing Research
• Sampling frame error may be defined as the variation between the population
defined by the researcher and the population as implied by the sampling frame
(list) used.
• Data analysis error encompasses errors that occur while raw data from
questionnaires are transformed into research findings.

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 Errors in Marketing Research
Response error (by interviewer)
• Respondent selection error occurs when interviewers select respondents other
than those specified by the sampling design or in a manner inconsistent with the
sampling design.
• Questioning error denotes errors made in asking questions of the respondents
or
in not probing, when more information is needed.
• Recording error arises due to errors in hearing, interpreting and recording the
answers given by the respondents.
• Cheating error arises when the interviewer fabricates answers to a part or the
whole of the interview.
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 Errors in Marketing Research
Response error (by respondent)
• Inability error results from the respondent’s inability to provide accurate answers.
Respondents may provide inaccurate answers because of unfamiliarity, fatigue,
boredom, faulty recall, question format, question content and other factors.
• Unwillingness error arises from the respondent’s unwillingness to provide
accurate information.

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