CH02 Secondary Data: A Potential Big Data Input Flashcards
secondary data defined
secondary data: data that have been previously gathered
primary data defined
primary data: new data gathered to help solve the problem under investigation
what are the 2 basic sources of secondary data?
- the company itself (internal databases)
- other organizations, such as Acxion (external databases)
eg.
list examples of internal secondary data
eg. annual reports, reports to stockholders, sales data, customer profiles, purchase patterns, product testing results, internet and mobile tracking of customers, company website tracking, and house periodicals composed by company personnel for communication to employees, customers, or others
list examples of external secondary data
eg. innumerable government (federal, state, and local) departments and agencies that compile and publish summaries of business data, as well as trade and industry associations, business periodicals, and other news media that regularly publish studies and articles on the economy, specific industries, and even individual companies
what are the advantages of secondary data?
- problem clarification and redefinition
- potential solution discovery
- alternative research methods
- identification of potential challenges
- background information and credibility
- sample frame provision
overall, secondary data provides cost and time advantages, aids problem-solving, and enhances the research process through various valuable contributions
what are the limitations of secondary data?
- lack of availability
- lack of relevance
- inaccuracy
- insufficiency
it is important for researchers to critically evaluate the limitations of secondary data to determine its suitability for their research objectives and make informed decisions about its usage
what is an internal database?
it is a collection of related information developed from data within the organization
define database marketing
database marketing: relies on the creation of a large computerized file of customers’ and potential customers’ profiles and purchase patterns to create a targeted marketing mix
it allows for individualized direct marketing and customer relationship management (CRM)
what is first party data?
it is a firm’s internal database
in other words, it is a firm’s data that it collected actively, such as through a questionnaire, or passively.
what is passive data collection?
passive data collection: a methodology that takes place without “participants” awareness and without them having anything towards the research
define secondary party data
it is first party data that two or more firms decide to share on a “private basis”
eg. a global hotel chain is partnering with a leading airline to boost hotel sales
define third party data
it is collected about people who aren’t known to your organization
what is behavioral targeting?
it’s the use of big data to understand a consumer’s habits, demographics, and social networks in order to increase the effectiveness of online advertising
eg. targeted ads based on your online shopping habits
name the 4 key federal laws passed to protect consumers’ data privacy
- gramm-leach-bliley act (financial services modernization act): aimed at financial companies
- health insurance portability and accountability act: aimed at healthcare industries
- the fair credit reporting act (FCRA): enforced by the federal trade commisison
- the children’s online privacy protection act (COPPA): aims to give parents control over what information is collected from their children online and how such information may be used
