Title: King Fahd University of Petroleum
1King Fahd University of Petroleum
MineralsDepartment of Management and
MarketingMKT 345 Marketing ResearchDr.
Alhassan G. Abdul-Muhmin
- Secondary Data Research Reference Zikmund,
Chapter 7
2Learning Objectives
- At the end of the discussion you should be able
to - Define secondary data and distinguish it from
primary data - Explain the advantages and disadvantages of
secondary data - List and explain the various uses of secondary
data in marketing research - Identify the possible internal sources of
secondary data - Identify the possible external sources of
secondary data generally, and specifically in
Saudi Arabia
3Secondary Data
- Data gathered and recorded by someone else prior
to, and for a purpose other than the current
research project. - Usually historical and requires no direct access
to respondents or subjects
4Advantages of Secondary Data
- Easy availability Secondary is easily available
from a wide variety of sources - Faster to collect Compared to primary data,
secondary data can generally be collected faster
? suitable for projects with time constraints - Cheaper to collect Secondary data is generally
cheaper to collect than primary data
5Disadvantages of Secondary Data
- Currency - Available information may be outdated
and not suitable for our needs - Suitability of Units of Measurement - Units of
measurement may not match needs of the current
project ? Data conversion may be necessary - Suitability of Terminology - Terminology used to
describe the data may be defined differently than
needed for the current project - Lack of Control Researcher has no control over
accuracy of the data ? Need for cross-checks and
cross verification
6Evaluation of Secondary Data
- Often secondary data needs to be evaluated to
determine its suitability for the current
project. - Common evaluation Criteria
- Applicability of the data to objectives of the
current project in terms of - Relevance to current projects problem definition
- Applicability of time period
- Applicability to relevant population
- Applicability of terminology and variable
classifications - Applicability of units of measurement
-
- Accuracy of the data
- Possibility of bias
- Verification of accuracy of data collection
- Cross-validation from original source
7Uses of Secondary Data
- In exploratory research to understand the
background and nature of marketing problems,
define research problem, and formulate hypotheses
for testing - Fact-finding (descriptive research)
- Identification of industry characteristics
- Identification of consumer behavior for a product
category - Trend analysis
- Environmental scanning
8Using Secondary Data in Fact-Finding
9Using Secondary Data in Fact-Finding
10Uses of Secondary Data
- Model Building ? e.g.
- Estimating geographic market potentials
- Forecasting ? (a) environmental forecasting (b)
sales forecasting - Analysis of Trade Areas and Sites
- Database Marketing - marketing activities that
are based on maintaining customer databases with
customers' names, addresses, phone numbers, past
purchases, demographic information, etc
11Forecasting - Linear Trend Extrapolation
12Forecasting - Nonlinear Trend Extrapolation
13Forecasting - Regression
14Forecasting - Regression
- Contract Awards (t) 0.351 Permits Issued at t-1
1477 Oil Price at (t-1) 35614 - R-square 0.85
- Contract Awards (t) 0.191 Permits Issued at
(t-1) 4347 - R-square 0.72
15Sources of Secondary Data
- Internal and proprietary sources
- External sources
- Producers of secondary data
- Distributors of secondary data
16Internal Sources of Secondary Data
- Accounting system, routine company documents,
Salespeoples call reports, Customer complaints,
Customer service records, Warranty return cards,
etc - Often used in data mining projects (the use of
computers to dig through volumes of data to
discover patterns). Applications include - Market basket analysis - analyzing anonymous
point-of-sale transactions to identify coinciding
purchases or relationships between products
purchased and other retail information. - Customer discovery - data mining to discover
customer segments (e.g. loyal vs. non-loyal) - Sequence discovery - mining data to detect
patterns in customer purchase sequences
17External Sources - Producers
- Publishers of books and periodicals
- Government departments
- Media
- Trade associations
- Commercial establishments ? two types of which
are - Single-source data providers, and
- Specialized data providers
- Examples of Types of Data Provided
- Market share data
- Demographic and census updates
- Consumer attitude and public opinion research
- Consumption and purchase behavior data
- Advertising research, etc
18External Sources - Distributors
- The Internet
- Libraries
- Commercial vendors
19Selected Sources of Secondary Data in Saudi Arabia
- Government Ministries and Departments ? e.g. the
Central Department of Statistics, Ministry of
Planning collects and compiles data from most
government departments - Chambers of Commerce
- Saudi Arabian Monetary Agency (SAMA) Banking
and financial statistics - Annual reports of companies listed on the stock
exchange - Commercial research suppliers, e.g. Amer
Research, Pan-Arab Research Center.