Chapter 4: Secondary Data & Big Data Analytics

Difference between SECONDARY and PRIMARY data
• Secondary: data that has been previously gathered
• Primary: new data gathered to help solve the problem under investigation
Is SECONDARY data internal or external?
Both
Two types of EXTERNAL secondary data:
Define each.
• Scanner research (data generated electronically via point-of-purchase)
• Panel research (group of recruits to take part in research sessions over period of time).
Examples of EXTERNAL secondary data
• Government publications:
– Statistical abstracts
– Census data
– Federal reserve bulletins

• Periodicals and Books
– Trade magazines (e.g., Marketing Health Services)

• News media articles / internet data

• Syndicated/commercial data (Conducted by a market research firm in an area that may be of interest to multiple companies or organizations within a particular industry)

Advantages of secondary data
Advantages of secondary data
• Helps clarify the problem;
• May provide a solution;
• Can provide primary research alternatives;
• Alerts researcher to other problems;
• Provides background information;
• Provides sample frame
Disadvantages of secondary data
• Lack of availability;
• Lacks relevance;
• Inaccurate;
• Insufficient
Questions to ask about secondary research:
• WHO gathered the data?
• PURPOSE of the study?
• WHAT INFORMATION was collected?
• WHEN was the data collected?
• HOW was the information collected?
• Is the information CONSISTENT with other information?
Define INTERNAL DATABASE
• Collection of related information developed from data WITHIN an organization
Features of INTERNAL DATABASE
– Creates large computerized files
– Includes current, past, or potential customers
– Focuses on demographic/purchase behaviors
– Develop customer profiles
– Generates customer e-mails via buying behaviors
– Collects customer info for website
– Enables database search queries
– Compatible with database software, to enhance analysis
Define DATABASE MARKETING
• Marketing relying on the creation of a large computerized file of (potential) customers’ profiles, purchase patterns
• Creates a targeted marketing mix
Define DATA MINING
• Using statistical data and other advanced software to discover hidden information;
• Methods to find information not visible on the surface
Define the “80/20 rule”
80% of effects come from 20% of causes
Example application of PREDICTING DEMAND
– Using learning experience from Hurricane Charley to PREDICT DEMAND of Hurricane Frances
Examples of DATA MINING applications
– Customer acquisition
– Customer retention
– Customer abandonment
– Market based analysis
Define BEHAVIORAL TARGETING
What is its purpose?
• Use of online and offline data to understand consumer habits, demographics, social networks
• Increases effectiveness of online advertising
Define BIG DATA ANALYTICS
What does it offer?
• The accumulation and analysis of massive quantities of info
• Offers:
– Deeper insights
– Broader insights
Define GEOGRAPHICAL INFORMATION SYSTEMS
What does it visually display?
Define GEOGRAPHICAL INFORMATION SYSTEMS
What does it visually display?
• Computer-based system using secondary data to generate maps • Various types of geographical data
Define DECISION SUPPORT SYSTEMS (DSS)
What is its purpose?
• Interactive, personalized information management system
• To give individual decision makers the power to control and initiate
Example uses of DECISION SUPPORT SYSTEMS (DSS):
• Conduct sales analysis
• Forecast sales
• Evaluate advertising
• Analyze product lines
• Keep tabs on market trends/competitors’ actions
Key components of DECISION SUPPORT SYSTEMS (DSS):
• Interactive (quick and live data)
• Flexible (manipulate data)
• Discovery-oriented
• Easy to learn, use