Secondary Data,

Literature Reviews, and

Hypotheses

McGraw-Hill/Irwin Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved.
 Learning Objectives
 Understand the nature and role of secondary
data
 Describe how to conduct a literature review
 Identify sources of internal and external
secondary data
 Discuss conceptualization and its role in
model development
 Understand hypotheses and independent and
dependent variables
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Cisco’s Connect Online

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 Nature and Scope of Secondary Data

 The term secondary data refers to data gathered for

some other purpose than the immediate study.
 Also called “desk research” as opposed to “field
research.”

Internal External

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 What is a Literature Review?

 A literature review is a comprehensive

examination of available secondary
information that is related to your research
topic

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 Reasons for
Conducting a Literature Review
 Clarify the research problem and questions
 Uncover existing studies
 Suggest research hypotheses
 Identify scales to measure variables and
methods

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 Assessing Quality
of Secondary Data

Purpose Credibility

Accuracy Methodology

Consistency Bias

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 Descriptive Variables Sought in
Secondary Data Research
 Demographic dimensions
 Employment characteristics
 Economic data
 Competitive characteristics
 Supply characteristics
 Regulations
 International market characteristics

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 Sources of Internal
Secondary Data
 Sales invoices  Customer letters/
 Accounts receivable comments
reports  Mail-order forms
 Quarterly sales  Credit applications
reports  Warranty cards
 Sales activity  Past studies
reports  Sales person
 Online registration expense forms

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 Sources of
External Data
Popular Sources

Scholarly Sources

Government Sources

NAICS

Guidebooks

Commercial Sources

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Seth Godin’s Blog

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Google Scholar

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Lexus Nexus

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 Secondary Data,
U.S. Government
 U.S. Census Data
 U.S. Census Reports
 U.S. Department of Commerce Data
 Additional Reports

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 Syndicated Sources

 Commercial vendors collect information and

sell the reports
 80%+ of firms said they purchase and use
reports and spend 10 hours per week
analyzing this information

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 Consumer Panels

 Benefits  Risks
 Lower cost than other  Sampling error (low
methods minority
 Rapid availability and representation)
timeliness  Turnover of panel
 Accurate reporting of members
sensitive purchases  Response bias (SDR)
 High level of
specificity

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NPD Group

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Sample Media Panel
Data Sources

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 Store Audits

 Examination of how much of a particular

product or brand has sold at retail level
 Product sales in relation to competition
 Effectiveness of shelf space/POP displays
 Sales at various price points
 Effectiveness of POS coupons
 Direct sales by store type, location, etc

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 Components of a Conceptual Model

 A construct is an unobservable concept that is

measured by a group of related variables
 A variable is an observable item that is used as a
measured on a questionnaire
 Independent variables are variables or constructs
that predict or explain the outcome of interest
 Dependent variables are variables or constructs
that researchers seek to explain
 Relationships are associations between two or more
variables
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 Conceptualization

 Conceptualization refers to the development

of a model that shows variables and
hypothesized or proposed relationships
between variables

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 Process of Conceptualization

 Identify variables for research

 Specify hypotheses and relationships
 Prepare a diagram that represents the
relationships visually

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 Relationships Among Variables

 Hypotheses can suggest negative or positive

relationships
 An association between two variables in
which they increase or decrease together
suggests a positive relationship
 An association between two variables in
which one increases while the other
decreases describes a negative
relationship
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 Exhibit 3.8 A Model of
New Technology Adoption

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 Hypotheses

 A hypothesis is an empirically testable though

yet unproven statement developed in order to
explain phenomena
 Types of hypotheses include
 Null
 Alternate
 Nondirectional
 Inverse (negative) directional
 Direct (positive) directional
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 Parameters and Sample Statistics

 A parameter is the true value of a variable,

while a sample statistic is the value of a
variable based on estimates from a sample

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 Examples:
Null Hypotheses
 There is no significant difference between the
preferences toward specific banking method
exhibited by white-collar customers and blue-collar
customers.
 No significant differences exist in requests for
specific medical treatments from emergency walk-
in clinics between users and nonusers of annual
preventive maintenance health care programs.

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 Examples:
Alternate Hypotheses, Nondirectional
 There is a significant difference in the
satisfaction levels reported for iPod users and
those reported for Zune users
 Significant differences exist between males
and females exist in the hours spent playing
online games

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 Examples:
Alternate Hypotheses, Inverse
 Students with high GPAs consume less
alcohol than those with lower GPAs.
 The more pressure to close sales perceived
by salespeople, the fewer follow up,
“relationship-building” sales calls made.

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 Examples:
Alternate Hypotheses, Direct
 Positive study habits are related positively to
GPA.
 Students with high GPAs and good overall
study habits will exhibit high tendencies to
participate in campus leadership
opportunities.

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