chapter 3

Question 1

Secondary data vs primary

Answer 1

Secondary data: consist of information that has already been gathered and mogt be relevant to the study at hand
Primary data: new data gathered to help solve the problem under investigation
This is the study of what data is collected not who collected it
Data you collected previously for a different study are considered secondary data if you are using it for your current study
Data collected for the current study is primary

Question 2

There are two basic sources of secondary data:

Answer 2

the company itself
Secondary information originating within the company includes annual reports, reports to shareholders, sales data, customer profiles, purchase patterns, proeiuct testing results

outside the company
Outside sources of secondary data information include government sources, deprtammets and agencies

Question 3

Avdnatages of secondary data

Answer 3

Marketers use secondary data because it can be obtained at a fraction of the cost, time and inconvenience associated with primary data collection
Page 61
More advantages of secondary data
Helps to clarify or redefine the pprblem during the exporarty process
May actually provide a solution to the problem
May provide alternative methods for primary data research
May alert the marketing researcher to potential problems and or difficulties
May provide necessary background information and build credibility for the research report
May provide the sample frame

Question 4

disvdnatages of secondary data

Answer 4

The main disadvantages of secondary info is the lack of availability, lack of relevance, accuracy and insufficiency

Question 5

lack of availability

Answer 5

Ex: Cupcakes by heather wants to evaluate the taste, texture and colour of 3 of their new cupcakes, no secondary data exists that can answer thesee questions; consumers must try each cupcake and theme valuate it
If mcdondal’s wants to evaluate its image in halifax it needs to gather data

Question 6

lack of relevance

Answer 6

Secondary data may be expressed in units or measures that cannot be used by the researcher
Ex: calgary based retailer for rugs wanted to open a store in alberta and determine her customers usually have incomes between 40K and 80K, however the only secondary info she could find was either outdated or gave breakdowns of incomes of 15k to 30k which was not useful

Question 7

inaccuracy

Answer 7

There are many number of potential sources of error when a researcher gathers, codes, analyzes and presents data

Question 8

Need to analyze these questions to determine the accuracy of secondary data:

Answer 8

1. Who gathered the data? The source of the secondary data is key to the accuracy: gov agencies and marketing agencies can usually be trusted
2. What was the purpose of the study → understanding the motivation for the research can provide clues to the quality of the data
3. What information was collected? A researcher should always identify exactly what info was gathered and from whom ex: in a dog food study, did respondents have a pet? What type of food do they feed them(dry, moist, etc)?
4. When was the info collected? A shopping mall study that surveyed shoppers only on weekends would not reflect the opinions of typical mall patrons
5. How was the info collected? Were the data collected by mail, telephone, internet, personal interview? What was the refusal rate? Were the decision-makers or their reps interviewed> the researcher must determine the amount of bias injected into the data by the info gathering process ( a mail survey with a 1% response rate probably contains a lot go self selection bias)
6. Is the info consistent with other info? A lack of consistency between secondary data sets should dictate caution, differences in the sample, time frame, sampling methods, questionnaire structure and other factors can lead to variations in studies, researcher should assess validity of different studies

Question 9

insufficiency

Answer 9

A researcher may determine that available data are relevant and accurate but still not sufficient to make a decision or bring closure to a problem ex: a manager may have a ton of sufficient secondary data (income, family size, etc) but be missing one critical element such as traffic counts, therefore they would have to gather primary data

Question 10

Internal databases

Answer 10

An internal database is a collection of related info developed from data within the org (usually about customers and prospects)

Question 11

The growing importance of internal database marketing

Answer 11

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
Database marketing is sometimes called micromarketing because its customized advertising and individual messages

Question 12

neural network

Answer 12

A computer program that mimics the processes of the human brain and thus is capable of learning from examples to find patterns
in data

Question 13

data mining

Answer 13

The use of statistical and other advanced software to discover non-obvious patterns hidden in a database

Question 14

what is data mining used for

Answer 14

customer acquisition
customer retention
customer abandonment t
market based analysis

Question 15

behaviour targeting

Answer 15

The use of online and offline data to understand a consumer’s habits, demographics, and social networks in order to increase the effectiveness of online advertising