Methodology

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Chapter Four
Secondary Data and Databases
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Chapter Four Secondary Data and Databases

• Understand how firms create internal databases
• Learn about the advantages of creating a
  database from Web site visitors
• Become familiar with data mining
• Understand the advantages and disadvantages of
  using secondary data
• Understand the role of the Internet in obtaining
  secondary data
• Learn about types of information management
  systems.

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The Nature of Secondary Data

• Secondary Research
• Data than have been previously collected.
• Primary Research
• New data gathered to help solve the problem
  under investigation.

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Advantages of Secondary Data
Information

• Key Pros

• Can help to clarify or refine the issue or
  problem
• Might provide a solution to a research problem
• Might provide primary data research
  alternatives
• Can alert the researcher to other problems
• Provides background information enhancing
  research credibility.

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Disadvantages of Secondary Data

• Key Cons

• Might be outdated or questionable
• Could be hard to analyze
• Might be misapplied to your situation
• Might be biased - intentionally or
  unintentionally
• Might not be any available data on your topic.

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Assessing Secondary Data

• Relevance
• Does the data measure what we think it measures?
• Does it apply to the audience we think it
  applies to?
• Timeliness
• Have we received it in time to make
  decisions/conclusions?
• Are data out of date / when were the data
  collected?
• Quality / Accuracy
• How was the data obtained - what methods were
  used?
• Who collected the data?
• Why and for what purpose was the data collected?
• Completeness
• Is the whole story captured - are we parsing the
  data?
• Is there a sufficient amount of data to tell the
  story?
• Insufficiency
• Not enough data exists to make a sound decision

• Determining
• Quality

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Primary Data

• Gathered directly from customer/end user
• Can be expensive
• Is often time consuming
• Can be representative of the population
• Generally for use related to research issue.
• Methods
• Surveys
• Focus groups
• Interviews
• Observation Studies
• Market Testing
• Experiments

• Key Componets

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Internal Databases A Collection of Related
Information Developed from Data Within an
Organization

• Database Marketing
• Marketing that relies on the creation of a large
  computerized file of customers and potential
  customers profiles and purchase patterns to
  create a target marketing mix.
• Cookie
• A text file placed on a users computer in order
  to identify the user when she or he revisits the
  Web site.

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Internal Databases A Collection of Related
Information Developed from Data Within an
Organization
Some Key Features

• Creation of large - up to date - computerized
  file
• Can include current, past, or potential
  customers
• Might be focused on demographic / purchase
  behaviors
• Development of customer profiles results
• Should enable one to generated direct marketing
  mailers /e-mails
• targeted at specific customers based on their
  buying behavior
• Can be used to collect customer information from
  your Web site
• Should be organized to enable you to search the
  database using queries
• Should be compatible with database software that
  will enhance analysis.

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Internal Databases A Collection of Related
Information Developed from Data Within an
Organization

• Neutral Network
• A computer program that mimics the processes of
  the human brain and thus is capable of learning
  from examples to find patterns in data.
• Data Mining
• The use of statistical and other advanced
  software
• to discover non-obvious patterns hidden in a
  database.
• Some Applications
• Customer acquisition
• Customer retention
• Customer abandonment
• Market basket analysis

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Information Management Key Tools

• Newsgroup
• An Internet site where people can read and post
  messages devoted to a specific topic.
• Geographic Information Systems - GIS
• A computer-based system that uses secondary
  and/or primary data to generate maps that
  visually display various types of data
  geographically.
• Decision Support Systems - DSS
• An interactive, personalized information
  management system designed to be initiated and
  controlled by individual decision makers.
• Key Components
• Interactive
• Flexible
• Discovery Oriented
• Easy to Learn and Use

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MDSS Database Structure
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Topical Index
Probability Sampling Techniques Problem
Definition Process Questionnaire
Design Questionnaire Dos and Don'ts Questionnaire
Flow Ratio Data Reliability Defined Research
Design Research Report Request for
Proposal Scatterplots Secondary Research Sample
Size Determination Sampling Defined Sampling
Non-Sampling Errors Sampling Stages Scaling
Tips Scaling Measurement Types Statistical
Testing of Differences Sum of Squares Survey
Types Testing Reliability Testing Validity Thirty
Largest MR Firms Type I and Type II
Errors Validity Defined Ways of Looking at the
Data
Applied Research Basic Research Bivariate
Analysis Causal Research Defined Casual Research
Determination Census Defined Choosing The
Research Design Comparing Qualitative/Quantitative
Cross-sectional Surveys Cross-tabulation Data
Analysis Overview Data Mining Deciding on Survey
Method Depth Interviews Descriptive
Research Descriptive Statistics Error in Survey
Research Ethics in Marketing Research Evaluating
/ Limitations of Data Experimentation
Overview Experimentation Examples/Notation Explora
tory Research Extraneous Variables Factors
Influencing MR Decisions Finite Multiplier Focus
Groups Global Research Issues Hypothesis Testing
- Common Types
Hypothesis Testing - Steps Internet Issues
Interval Data Least Squares Longitudinal
Surveys Market Testing Marketing Decision Support
Systems Marketing Research Defined Marketing
Research Process Measurement Scales
Defined Measures of Association Measures of
Central Tendency Measures of Dispersion Mystery
Shopping Nominal Data Non-Probability Sampling
Defined Non-Probability Sampling
Techniques Normal Distribution Observation
Methods Observation Research Defined Open and
Closed-ended Questions Ordinal Data Over
Sampling Perceptual Mapping Presenting the
Research Results Primary Research
Defined Probability Sampling Defined
Topical Index