Chapter 6

• Definition of Secondary Data:

  • Data that have been previously collected for some purpose other than the one at hand
• Advantages of Secondary Data:

  • Available
  • Faster than acquiring primary data
  • Requires no access to subjects
  • Inexpensive
  • May provide information otherwise not accessible
• Disadvantages of Secondary Data:

  • The data are too old
  • Variation in definitions of terms
  • The use of different units of measurement
  • Inadequate information to verify the data’s validity or to allow any potential explanation for behavior
• Units of measurement may cause problems if they do not conform exactly to a researcher’s needs

  • Data transformation is the process of changing the original form of the data to a format suitable to achieve the research objective
• The usefulness of secondary data results still depends on data quality

  • Reliability represents data accuracy
  • Validity represents data trustworthiness
  • The researcher must work diligently to assess the reputation of the organization that gathers and reports data
  • Cross-checks are the comparison of data from one source with data from another source to determine the similarity of independent projects
• Typical Objectives for Secondary Data Research Designs:

  • Fact-Finding: Identification of consumer behavior for a product category, trend analysis, market tracking, environmental scanning
  • Model Building: Estimating market potential for geographic areas, forecasting sales, analysis of trade areas and sites, index of retail saturation, advertising analytics and metrics
• Site Analysis Techniques use secondary data to select the best location for retail or wholesale operations
• Index of Retail Saturation describes the relationship between retail demand and supply
• Data Mining is the use of powerful computers to dig through volumes of data to discover patterns about an organization's customers and products
• Neural Network is a form of artificial intelligence in which a computer is programmed to mimic the way human brains process information
• Market-Basket Analysis is a form of data mining that analyzes anonymous point-of-sale transaction databases to identify coinciding purchases or relationships between products purchased and other retail shopping information
• Customer Discovery involves mining data to look for patterns identifying who is likely to be a valuable customer
• Internal and Proprietary Data originate inside the organization and are owned and controlled by the organization
• External Data is data created, recorded, or generated by an entity other than the researcher's organization
• External Secondary Data sources include government census, statistical abstracts, trade associations, media, libraries, the Internet, vendors, producers, publishers of books and periodicals, and commercial sources and consumer data
• Information as a product and its distribution channels include libraries, the Internet, vendors, producers, government, media, trade associations, and commercial sources
• Commercial Sources provide various types of data for marketing research:
• Market-share data
• Demographic and census updates
• Consumer attitude and public opinion research
• Consumption and purchase behavior data
• Advertising research
• Market Share Data Companies provide information about sales volume and brand share over time
• Many organizations supply census updates in easy-to-use or custom formats
• Specialized syndicated services report findings from attitude research and opinion polls
• Single-Source Data is diverse types of data offered by a single company, usually integrated based on a common variable such as geographic area or store
• Single-Source Data includes television viewing and scanner purchase data collected from devices like PRIZM and ClusterPlus
• PRIZM groups segment people and locations into marketable groups based on demographic factors like education, affluence, family life cycle, urbanization, race and ethnicity, and mobility
• Global secondary data has limitations similar to domestic secondary data
• Additional pitfalls of global secondary data include unavailability in some countries, questionable accuracy due to political influences, and lack of standardized research terminology
• CIA’s World Factbook and National Trade Data Bank are useful for overseas marketing
• Advantages of Secondary Data
• Using Secondary Data in Marketing Research


  • Are facts and information gathered and recorded by someone else prior to and for a purpose other than the current project
  • Historical and already assembled
• Market researchers are always working under budget constraints
• Secondary Data is: "Data that have been previously collected for some purpose other than the one at hand." - Babin & Zikmund, Page 123
• If the data for a given research question already exists, it can save both time and money
• Disadvantages of Secondary Data
• Advantages of Secondary Data

  • Available
  • Faster than acquiring primary data
  • Requires no access to subjects
  • Inexpensive
  • May provide information otherwise not accessible
• Disadvantages of Secondary Data

  • The data are too old
  • Variation in definitions of terms
  • The use of different units of measurement
  • Inadequate information to verify the data’s validity or to allow any potential explanation for behavior
• Summary: Advantages and Disadvantages of Secondary Data

  • Advantages: Available, Faster and less expensive than acquiring primary data, Requires no access to subjects, Inexpensive—government data is often free, May provide information otherwise not accessible
  • Disadvantages: Uncertain accuracy, Data not consistent with needs, Inappropriate units of measurement, Time period inappropriate (outdated)