Chapter 3: Secondary Data and Collection Management

Question 1

Secondary data

Answer 1

Data that have been previously gathered and might be relevant to the study at hand

Question 2

Advantages of secondary data

Answer 2

1. Cost effective
2. Efficient means of obtaining information
3. Helps clarify or refine problem
4. May provide alternative methods for primary data research
5. May provide potential problems and danger
6. Provides credibility in the reserach

Question 3

Sources of secondary data

Answer 3

Within the company through financial reports, sales data, and outside sources like gov departments, industry associations, business periodicals

Question 4

Limitation of secondary data

Answer 4

1. Lack of availability
2. Lack of relevance
3. Inaccuracy
4. Insufficiency

Question 5

Internal database

Answer 5

A collection of related information developed from data within the organization

Question 6

How to create internal database

Answer 6

Use firm’s sales or inquiry processing and tracking system, based on salespersons’ call reports

Question 7

Database marketing

Answer 7

Marketing that relies on the creation of a large computerized file of customers’ and potential customers’ profiles and purchase patterns to create a targeted marketing mix

Question 8

Customer relationship marketing software (CRM)

Answer 8

Helps marketers enhance their recruitment of new customers and also keep current clients

Question 9

Data mining

Answer 9

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

Question 10

Neural network

Answer 10

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 11

Use of data mining in marketing

Answer 11

1. Customer acquisition
2. Customer retention
3. Customer abandonment
4. Market basket analysis

Question 12

Customer acquisition with data mining

Answer 12

1. Apply data mining methods to discover customer attributes that predict responses to special offers
2. Attributes are matched to attributes to rented lists of non-customers

Question 13

Customer retention in data mining

Answer 13

Data mining identifies those customers who contribute the the company’s bottom line but who are likely to leave and go to a competitor

Question 14

Customer abandonment in data mining

Answer 14

Some customers cost more than they contribute and should be encouraged to take their business elsewhere

Question 15

Market basket analysis in data mining

Answer 15

By identifying the associations among product purchases in POS transactions, retailers and direct marketers can spot product affinities and develop focused promotion strategies that work more effectively than traditional one-size-fits-all approaches

Question 16

Behavioural targeting

Answer 16

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

Question 17

Marketing research aggregator

Answer 17

A company that acquires, catalogues, formulates, segments, and resells reports already published by large and small marketing research firms