Secondary Data

Selection of Appropriate Method

of Data Collection
 Complexity of the Problem
 Type of Data
 Non-response
 Respondents Preference
 Resources Avaliable
Secondary Data - Overview

Secondary data are pieces of information

that have already been collected for a
different purpose, but may be relevant to
the research problems at hand. Primary
data, in contrast, are survey, observation,
or experimental data collected to address
the problem currently under
investigation.
 Importance/Usefulness

 Secondary data are useful for addressing a

number of research questions, for example:
 Estimating market potential
 Analyzing competitors
 Sales forecasting
 Assessing industry trends
 Alerting the manager to potential problems
 Providing preliminary information to guide
subsequent primary data collection
 Advantages of Secondary Data

 Low Cost
 Ease of access
 Less Effort
 More Timely
 Some info is available only from secondary
data sources; for example:
 Market shares
 Industry data from trade associations
Sources of Secondary Data
There are two key sources of secondary data:

The Company Itself Other Organizations or

Persons
(Internal Databases)
(External Databases)
 Internal Databases
 Database
 Is the creation of large computerized files of
customers’ and potential customers’ profiles
and/or purchase patterns.
 Is the fastest-growing use of internal
database technology.
 External Sources of Secondary Data
 Government publications – Census, http://www.census.gov/
Bureau of Labor Statistics, etc. http://www.bls.gov/

 Trade Associations - Newsletters,

special reports, annual “state of the
industry” reports, etc.
 Other publications - periodicals (e.g.,
WSJ, Fortune), annual reports,
http://www.moodys.com/
Moody’s, Dun & Bradstreet
http://www.dnb.com/us/
 Computer retrievable databases
(syndicated) - Lexis/Nexis, scanner
data
 Internet
 Computer Retrievable
Sources of Secondary Data

 Surfing the web –Search Engines

 Newsgroups on the Internet
 Internet
sites devoted to a specific topic
where people can read and post messages.
 Databases
A number of companies offer database
packages on DVD for personal computers
or by subscription over the internet.
Other Sources of Secondary Data

 Geographic Information Systems

 Computer-based systems that use
secondary and/or primary data to generate
maps that visually display answers to
research questions.
 Limitations of Secondary Information

 Lack of Availability
 For some research questions there are
simply no available data. For example, if
Kraft General Foods wanted to evaluate the
taste, texture, and color of three new
gourmet brownie mixes, there are no
secondary data that would answer these
questions.
 Limitations of Secondary Information

 Lack of Relevance
 May be measured in units that cannot be
used by the researcher.
 May relate to a sample other than the
intended target.
 May be outdated.
 Inaccuracy
 Always assess the accuracy of the data.
There are a number of potential sources of
error when a researcher gathers, codes,
analyzes, and presents data.
 Summary of Key Points

 Secondary data are information previously

gathered for a different purpose that may be
relevant to the problem at hand.
 Secondary data can come from sources
internal to the organization or external.
 The internet has, in many ways, enabled the
gathering of secondary data.
 Secondary data are generally useful, low-
cost, rapidly available sources of information.

Always look for secondary data first