Marketing Research

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Data Gathering

Module 006 Data: Getting Data

Course Learning Outcomes:

1. Learn how to find secondary data and decide in its suitability
2. Collect primary data
3. Design a basic questionnaire

Introduction
In the previous module, we discussed some of the key theoretical
concepts and choices associated with collecting data. These concepts and
choices included validity, reliability, sampling, and sample sizes. We also
discussed different types of data. This module discusses the practicalities of
collecting data. First, we discuss how to work with secondary data. Market
researchers should always consider secondary data before collecting primary
data, as secondary data usually takes less time to collect and does not depend
on the respondents’ willingness to participate. Although secondary data are
already collected data, you usually need to spend considerable effort
preparing it for analysis. If you find that secondary data are unavailable or
outdated, primary data may have to be collected. In the sections that follow,
we discuss how to collect primary data through observations and surveys.
Thereafter, we discuss experiments.
We introduce the practicalities of secondary data prior to those of
primary data. In Figure 6.1, we provide an overview of some types of
secondary and primary data.

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 Figure 6.1 Types of Primary and Secondary Data Sources

Secondary Data
Secondary data are data that have already been gathered, often for a
different research purpose and some time ago. Secondary data comprises
internal secondary data, external secondary data, or a mix of both.
Internal Secondary Data
Internal secondary data are data that companies compiled for various
reporting and analysis purposes. Much of this data are collected and
stored with the idea that “you can’t manage what you don’t
measure.”(Peter Drucker). Large companies have systems in place,
such as accounting and Enterprise Resource Planning (ERP) systems,
in which vast amounts of data on customers, transactions, and
performance are stored. In general terms, internal secondary data
comprise the following:
– Company records,
– Sales reports, and
– Existing research studies.

Company records are a firm’s repository of information. They may

contain data from different business functions, such as finance, or Customer
Relationship Management (CRM). Finance may provide internal reviews of
organizations’ financial well-being and may provide strategic advice as they
have access to a firm’s financial and operational data. CRM is a term that
refers to a system of databases and analysis software to track and predict
customer behavior. Firms such as IBM, Microsoft, and Oracle market the
database systems on which the analysis software runs. These database
management systems often include information on, for example, purchasing
behavior, (geo-) demographic customer data, and the after-sales service
provided. This information is compiled to allow marketers to track individual
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customers over different sales channels and types of products in order to

tailor their offerings to their customers. A number of information technology
companies, such as SAP, Oracle, and Salesforce.com sell the analysis software
that runs on top of these databases. Companies often use CRM systems to, for
example, identify customer trends, calculate the profitability per customer,
or identify opportunities for selling new or different products. The CRM
market is substantial, generating over $20 billion in 2013.
Sales reports are created when products and services are sold to
business-tobusiness clients. Many of these reports detail discussions held
with clients and the products and services sold. Consequently, they can
provide insights into customers’ needs. Sales reports are also a means of
retaining customers’ suggestions regarding products and services and can
therefore be a productive source of information. For example, DeMonaco et
al. (2005) discovered that 59% of existing drugs had uses other than those
that the producing company described. Because it is important to be aware of
a drug’s uses, sales discussions with doctors, hospitals, and research
institutes can help the company market these drugs. When sales reports are
available, they are often part of a CRM system.
Existing research studies are a good source of secondary data. You
should carefully consider whether existing research studies are still useful
and what you can learn from them. Even if you believe the findings of such
studies to be outdated, the measures that they contain may be very useful. In
order to use existing research studies, it is important that enough of their
details should be available.

External Secondary Data

External secondary data has been compiled outside the company for
many purposes. The important sources of secondary data, which we discuss
next, include:
– Governments,
– Trade associations,
– Market research firms,
– Consulting firms,
– (Literature) databases, and
– Internet & social networks

Governments often provide data that can be used for market research
purposes. For example, The CIA World Fact Book provides information on
the economy, politics, and other issues of nearly every country in the world.
Eurostat (the statistics office of the European Union) provides detailed

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information on the economy and different market sectors of the European
Union. Much of this information is free of charge and is an easy starting point
for market research studies.
Trade associations are organizations representing different
companies whose purpose is to promote their common interests. For
example, the Auto Alliance – which consists of US automakers – provides
information on the sector and lists the key issues it faces. The European
Federation of Pharmaceutical Industries and Associations represents 1,900
pharmaceutical companies operating in Europe. The federation provides a
detailed list of key figures and facts, and regularly offers statistics on the
industry. Most other trade associations also provide lists that include the
members’ names and addresses.
Market research firms are another source of secondary data.
Particularly large market research firms provide syndicated data that
different clients can use. Syndicated data are standardized, processed
information made available to multiple (potential) clients, usually for a
substantial fee. Syndicated data often allows the client’s key measures (such
as satisfaction or market share) to be compared against the rest of the
market. Some examples of syndicated data include the J.D. Power Initial
Quality Study, which provides insights into the initial quality of cars in the
US, while the J.D. Power Vehicle Ownership Satisfaction Study contains
similar data on other markets, such as New Zealand and Germany.
Consulting firms are a rich source of secondary data. Most firms
publish full reports or summaries of reports on their website. For example,
McKinsey & Company publish the McKinsey Quarterly, a business journal
that includes articles on current business trends, issues, problems, and
solutions. Oliver Wyman publishes regular reports on trends and issues
across many different industries. Other consulting firms, such as Gartner and
Forrester provide panel data on various topics. This data can be purchased
and used for secondary analysis. For example, Forrester maintains databases
on market segmentation, the allocation of budgets across firms, and the
degree to which consumers adopt various innovations. Consulting firms
provide general advice, information, and knowledge, while market research
firms only focus on marketing-related applications. In practice, there is some
overlap in the activities that consulting and market research firms undertake.
(Literature) databases comprise professional and academic journals,
newspapers, and books. Some of the prominent literature databases are
ProQuest (http://www. proquest.co.uk) and JSTOR (http://www.jstor.org).
ProQuest contains over 9,000 trade journals, business publications, and
leading academic journals, including highly regarded publications such as the
Journal of Marketing and the Journal of Marketing Research. A subscription is
needed to gain access. Academic institutions often provide their students,
and sometimes their alumni, with access to these journals. JSTOR is similar to
ProQuest but is mostly aimed at academics. Consequently, it provides access
to nearly all leading academic journals. A helpful feature of JSTOR is that the
first page of academic articles (which usually contains the abstract) can be
read free of charge.
Internet data are a catchall term that refers to data stored to track
peoples’ behavior on the Internet. Such data consists of page requests and
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sessions. A page request refers to people clicking on a link or entering a

specific Internet address. A session is a series of these requests and is often
identified by the IP number, a specific address that uniquely identifies the
receiver for a period of time, or through a tracking cookie. With this
information, researchers can calculate when and why people move from one
page to another. A specific type of information that often interests
researchers is the conversion rate, which is the ratio of the number of
purchases relative to the number of unique visitors (often identified by their
IP address or login details).
Social networking data, such as that provided by LinkedIn, Twitter, or
Facebook, provides valuable information in the form of social networking
profiles, which include personal details and information. This information
reflects how people would like others to perceive them and, thus, indicates
consumers’ intentions. Product or company-related user groups are of
specific interest to market researchers. Take, for example, comments posted
on a Facebook group site, such as that of BMW or Heineken. An analysis of
the postings helps provide an understanding of how people perceive these
brands. Interpretations of such postings usually include analyzing five
elements: the agent (who is posting?), the act (what happened, i.e., what
aspect does the posting refer to?), the agency (what media is used to perform
the action), the scene (what is the background situation?), and the purpose
(why do the agents act?). Social websites also provide quantitative
information. For example, Facebook’s Ad Manager, provides information on
the effectiveness of advertising on Facebook, including measures, such as the
click-through-rate, and demographics, such as gender or location.

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References and Supplementary Materials
Books and Journals
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Journal of Marketing Research, 14(3), 396–403.
Bearden, W. O., Netemeyer, R. G., & Haws, K. L. (2011). Handbook of marketing scales.
Multi-item measures for marketing and consumer behavior research (3rd ed.). Thousand
Oaks, CA: Sage.
DeVellis, R. F. (2011). Scale development: Theory and applications (3rd ed.). Thousand
Oaks, CA: Sage.
Diamantopoulos, A., Riefler, P., & Roth, K. P. (2008). Advancing formative measurement
models. Journal of Business Research, 61(12), 1203–1218.
Diamantopoulos, A., Sarstedt, M., Fuchs, C., Wilczynski, P., & Kaiser, S. (2012).
Guidelines for choosing between multi-item and single-item scales for construct
measurement: A predictive validity perspective. Journal of the Academy of Marketing
Science, 40(3), 434–449.
Diamantopoulos, A., & Winklhofer, H. M. (2001). Index construction with formative
indicators: An alternative to scale development. Journal of Marketing Research, 38(2), 269–
277.
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measurement specification of the future time perspective scale. International Journal of
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applications. Thousand Oaks, CA: Sage.
Sarstedt, M., & Schloderer, M. P. (2010). Developing a measurement approach for
reputation of nonprofit organizations. International Journal of Nonprofit and Voluntary
Sector Marketing, 15(3), 276–299.