Topic 7: Research design: Secondary data

Question 1

What is secondary data?

Answer 1

Data that has been previously collected for some purpose other than the one at hand

Question 2

What are the advantages of secondary data?

Answer 2

• Availability (Often readily and easily available instantaneously)
• Faster and cheaper to obtain
• Can eliminate activities associated with primary data collection such as data sampling and processing
• Some data is impossible/impractical for a private firm to obtain using primary methods

Question 3

What are the disadvantages of secondary data collection and which questions should be asked about a secondary data set?

Answer 3

• Data was not designed to specifically meet the researcher’s needs
• Questions to be asked: Is the subject matter consistent with our problem definition?
• Does the data apply to our population of interest?
• Does the data have the correct time period associated with it?
• Is the data measured in the correct/appropriate unit of measurement
• Does the data cover the subject of interest in adequate detail?

Question 4

Why does secondary data sometimes not adequately satisfy research needs?

Answer 4

• There is variation in definition of terms
• different measurement units used
• inadequate information to verify data validity
• data is too old/outdated

Question 4

What are the 3 types of secondary data analysis?

Answer 4

• Fact-finding (seeking information about a product or identifying a market trend)
• Model building (specifying relationships between 2 or more variables)
• Data-based marketing (maintainting customer databases with their details)

Question 5

What are the external sources of secondary data?

Answer 5

• Libraries act as distribution channels of secondary data
• The internet allows for easy digital distribution and access to lots of secondary data
• Vendors will gather lots of data and organise it together in one place as a product to sell

Question 6

Who are the producers of external secondary data?

Answer 6

• Publishers of books and periodicals
• Government sources
• Media sources
• Trade associations (provide data for specific industries)
• commercial sources (private firms specializing in publishing useful data)

Question 7

Describe the process of evaluating secondary data.

Answer 7

First consider whether secondary data is actually applicable by answering the following questions:
* Does the data assist in answering problem statement questions?
* Is the data of an appropriate time frame/period and also not outdated?
* Is the population of interest relevant to your study? (secondary data could have correct time frame and variables but have been done on a different population of people)
* Are the terms and variables in the data set appropriate or reworkable for your study?
* Is the unit of measurement appropriate or reworkable for your study?
* Can you access the original source of the data to check for validity?
* Is the benefit of accessing the data worth the potential cost (if any) of accessing it?

Once applicability has been established, the accuracy of the data must be considered:
* Consider the possibility of bias in the data, depending on its source. (Check original source of data if possible)
* Can accuracy of data collection method be verified?
* Is it worth the risk of using this data? If Yes, then use it.