Market

Research
Secondary Data Analysis
Data Collection Methods and Forms

Information Sources

Secondary Data Primary Data

Data Collection Methods and Forms

Information Sources

Secondary Data Primary Data

Qualitative Quantitative
Research Research
Data Collection Methods and Forms

Information Sources

Secondary Data Primary Data

Qualitative Quantitative
Research Research
 Personal Interview  Survey
 Group Interview  Experiment
 Observation Techniques
 Projective Techniques
Secondary Data

“The act of sourcing, evaluating and analyzing secondary data can realize great
insights for decision makers. It is also vital to successful problem diagnosis, sample
planning and collection of primary data”

Malhotra & Birks (2003), Marketing Research, p. 83

Secondary Data: Applications

Secondary data can be useful to…

… diagnose the research problem

… develop an approach to the problem
… develop a sampling plan
… formulate an appropriate research design
… answer certain research questions and test some hypotheses
… interpret primary data with more insight
… validate qualitative research findings

Examination of available secondary data is a prerequisite to the

collection of primary data. Proceed to primary data only when the
secondary data sources have been exhausted or yield marginal
returns.
Sources of Secondary Data

 Sales/Patronage Results (Outcomes)

Primary  Marketing Activity (Inputs)
Data Internal  Cost Information
Data Records  Distribution Reports and Feedback
Sources  Customer Feedback

Secondary
Data  Government
Electronic  Trade
Associations
External Published  Periodicals
 Newspapers
Sources Data  Books
 Annual Reports
Printed  Private Studies
Standardized
Sources  Store Audits
of  Consumer Purchase Panels
 Single-Source Data
Marketing
 Nielsen’s Television Index
 Multimedia Services

Internet
Secondary Data – Example from OECD
Secondary Data – Example from CIA
Secondary Data – Example from Market Research.com
Secondary Data - Panel Data

Definition:
Fixed sample of elements (stores, dealers, individuals, or other entities)
who are measured (interviewed or observed) repeatedly over time with
respect to the same variables.
Source: Churchill, Marketing Research Methodological Foundations, 1991

Types

Special panel Retail panel Household panel

Household Panel - Definition

Diary Panel: Data is collected through written questionnaires and shopping lists.

Scanner Panel: Scanner automatically record the purchase data of consumers

Data Collected

Brand and
Purchase Data Price Place
Package Size

Providers: GfK
TNS
Nielsen
Homescan
Diary Panel – Recording Form

Illustration of recording forms used in mail diary panels

Household Panel – Information Provided

Information collected through household panels could be useful for:

 Direct record of demand behavior (= avoid pipeline effects )

 Information on market volume of competitor‘s market share
 Basis for the estimation of market response functions
 Information about market segmentation
 Competitor relations
 Brand-switching behavior (detectable only on the basis of panel data)
 Brand loyalty

Household panels provide decisive information for assessing a

company’s performance in a dynamic competitive environment.
Household Panel - Information Provided

Information from Household Panels

 Size of the market, % of households buying over time, and amount purchased per buyer
 Manufacturer and brand shares over time
 Brand loyalty and brand-switching behavior
 Frequency of purchase and amount purchased per transaction
 Influence of price and special price deals, as well as average price paid
 Characteristics of heavy buyers
 Impact of a new manufacturer or brand on the established brands
 Effect of a change in advertising or distribution strategy

Source: Churchill G., Iacobucci D., Marketing Research: Methodological Foundations 9th Edition, Thomson South-Western, 2004, p.187
Applications of Panel Research

Demand change / Foundation for

market segmentation Distribution
Sales forecast
according to: policy
 Causes of market share  Industry
 Distribution level
changes  Company size
 Purchase and storage
 Sales volume without  Market region
policy of the retailer
pipeline effects  Buyers‘ groups
 Sales and promotion
 First purchase and (demographic,
policy of the retailer
repurchase rates psychographic and
 Analysis of competitor’s buying characteristics)
marketing
Content of a Nielsen Store Audit Report
Each of the following variables can be subdivided as follows:
a. Sales districts
b. Size of country (A, B, C, or D)
c. Type of store (for example, chain versus large-medium-small independents)
d. Thirty-two largest metropolitan markets

1 Sales (volume, trend, and share) on the basis of retail dollars and units, pounds or equivalent cases for total
market, and major brands by sizes, flavors, types, etc., as appropriate to the category

2 Distribution
a. Percentage of all stores, and all commodity sales, carrying each brand, and size
b. Out-of-stock conditions
c. Retail inventories
d. Stock cover (the length of time the stock will last, assuming current rates of sales)
e. Source of delivery (wholesaler, rack jobbers, manufacturer, chain warehouse, or interstore transfers)
3 Selling Prices and volume sold at each price or deal

4 Retailer Support in terms of shelf facings, special displays, in-store advertising, and newspaper advertising

5 Media advertising for total market and major brands

6 Special analyses (illustrative)

a. Analyses of combinations of brands stocked to determine the extent to which individual brands compete
together
b. Cumulative distribution of new products
Evaluating Secondary Data

Key Questions

 What was the purpose of the study?

 Who collected the information?
 What information was collected?
 How was the information obtained?
 How consistent is the information with other information?

Source: Burns A., Bush F., Marketing Research 4th Edition, Pearson, 2005, p.160
Evaluation Criteria for Secondary Data
Issues Remarks
Data collection method; response rate; Data should be reliable, valid and
Specifications and population definition; sampling method; generalizable to the research problem at
research design sample size; questionnaire design; hand
fieldwork; data analysis

Examine errors in research design; Assess accuracy by comparing data from

Error and accuracy sampling; data collection; data analysis; different sources
reporting

Time lag between data collection and Time lag should not be too long
Currency
publication; frequency of updates

Initial objective of data collection will

Objective Why were the data collected? determine their relevance for the
concrete research problem

Definition of key variables; units of

Nature measurement; categories used; Reconfigure the data to increase their
usefulness (if possible)
relationships examined

Expertise, credibility, reputation and Data should be obtained from an original

Reliability
trustworthiness of source rather than an acquired source
Use of Secondary Data - Example

What is the market potential for product or service?

– What are the estimate of proportions of potential customers in the target markets?
– How might the marketplace be segmented?
– What are the recent sales histories in the industry?
– Who are the major competitors, and what are their approximate relative market shares?
– What are the existing environmental influences that will impact the success of this
venture?

Secondary data cannot answer all research questions but they:

– Help clarify the problem under investigation
– Suggest improved methods or data for investigating the problem
– Provide comparative benchmarks against which primary data can be more insightfully
interpreted

Source: Churchill G., Iacobucci D., Marketing Research: Methodological Foundations 9th Edition, Thomson South-Western, 2004, p.169
Benefits and Limitations of Secondary Data

Benefits Limitations

 Low cost  Collected for some other purpose

 Less effort expended  No control over data collection
 Less time taken  May not be very accurate
 Sometimes more accurate than  May not be reported in the required
primary data form
 Some information can be obtained  May be outdated
only from secondary data
 May not meet
data requirements
 Assumptions
have to be made