Chapter_03_Secondary%20Data - Secondary Data and Sources...

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Unformatted text preview: Secondary Data and Sources Nature and Scope of Secondary Data . . . data gathered for some purpose other than the immediate study. Internal External lots! Cost low! Speed fast! Availability Assessing Secondary Data Quality Purpose Accuracy Consistency Credibility Methodology Bias Sources of Internal Secondary Data Sales invoices Accounts receivable reports Quarterly sales reports Sales activity reports Online registration Customer letters/ comments Mail-order forms Credit applications Warranty cards Past studies Salesperson expense forms Three Primary Sources of External Data Problem often is finding where informatio n is located! Published data Data available in online databases Compiled data outside vendors (fee) What can you learn from external secondary data? Millennials (Gen Y) 43 million people aged 18 29 Demographic information Employment characteristics Economic data Competitive characteristics Supply characteristics Regulations International market characteristics External Secondary Data . . . Examples Standard Industrial Classification (SIC) NAICS North American Industry Classification System Government documents Business sources o Editors and Publishers Market Guide o Source Book of Demographics and Buying Power for Every Zip Code in the USA SIC Division Structure Agriculture, Forestry and Fishing (01 09) Mining (10 14) Construction (15 17) Manufacturing (20 39) Transportation, Communication, Electric, Gas, & Sanitary Services (40 49) Wholesale Trade (50 51) Retail Trade (52 59) Finance, Insurance, and Real Estate (60 67) Services (70 89) Public Administration (90 99) SIC NAICS Example NAICS TO SIC COMPARISONS Code 11 21 23 31-33 22 42 44-45 72 52 53 51 54 56 61 62 71 81 92 55 NAICS Sectors Agriculture, Forestry, Hunting & Fishing Mining Construction Manufacturing Utilities Transportation and Warehousing Wholesale Trade Retail Trade Accommodation and Food Services Finance and Insurance Real Estate and Rental and Leasing Information Professional, Scientific, and Technical Services Admin Support; Waste Mmgt & Remediation Services Educational Services Health Care and Social Assistance Arts, Entertainment, and Recreation Other Services (except Public Administration) Public Administration Management of Companies and Enterprises SIC Divisions Agriculture, Forestry, and Fishing Mining Construction Manufacturing Transportation, Communications & Public Utilities Wholesale Trade Retail Trade Finance, Insurance, and Real Estate Services Public Administration (parts of all division) Marcive Catalog of Government Publications MarciveWeb DOCS is a reference product of citations to US government documents from 1976 to the present. External Secondary Data . . . Statistical sources of information o Standard and Poor's Industrial Surveys o American Statistics Index o Statistical Reference Index Commercial publications and newspapers External Secondary Data . . . Syndicated Sources Commercial vendors collect and compile information using a systematic process. Over 80% of firms purchase and use syndicated report information. Typical methods of data collection: Panel data Store audits Optical scanning Consumer Panels . . . a representative sample agrees to answer questions at periodic intervals . . . there are panels of consumer households, building contractors, supermarkets, physicians, lawyers, university professors, dog owners, kids (ages 6 14), and many other groups. Panel members record purchases using diaries or scanners, e.g. ACNielsen or Data is used to measure brand switching, market share, awareness, etc. Descriptive Research Cross-Sectional Longitudinal Field Study Field Survey True Panel Omnibus Panel Consumer Panels Consumer Panels Typical costs are $750 per question per market, asked of a 2,000 sample. NPD Group Consumer Panel Two Report Examples . . . CREST (Consumer Report on Eating Share Trends) NET (National Eating Trends) Another consumer panel company: National Family Opinion 450,000+ households complete product and concept tests, answer awareness, attitudes, brand usage, etc., studies. Be cautious about online paid panels! Online Paid Panels Be Careful! After searching, reviewing and testing 274 Online Paid Survey Sites, here's what we found: Only 3.6% of the sites offer the number of paying companies they advertised! (87.6% of them actually have less than 1/6 of their advertised database of paying companies.) Only 5.8% of them update their database regularly to ensure valid companies and working links! (An astonishing 90.5% of them have not updated their database for over 2 years resulting in a large number of outdated directories and non-working links!) More than 4/5 of the sites require you to pay additional fees in order to gain access to their so-called "premium high paying companies". These companies are actually listed for free on other reputable sites! Over 90% of them never replied to our emails and those that did completely denied our requests for refunds! Once they got our money, they insisted on keeping it. Imagine the number of people who got scammed and couldn't get their money back! Overall, we have rated 93.1% of them as Complete Utter SCAMS. Consumer Panels continued . . . Nielsen Media Research sells media panel data. National Television Index 5,000 households Panels Good & Bad! Benefits . . . Lower cost of data collection Rapid availability and timeliness Accurate reporting of sensitive purchases Actual behavior not intentions (e.g., product purchases or media habits) Risks . . . Sampling error (low minority representation) Panel member turnover Store Audits Reports on how much of a particular product or brand has sold at retail level; for example . . . o o o o o Product sales relative to competition Effectiveness of shelf space/POP displays Sales at various price points Effectiveness of POS coupons Direct sales by store type, location, etc Internet Sources Internet Sources = Corporate Information ...
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