SECONDARY SOURCES OF DATA

Secondary data have several disadvantages as well.  The investigator must examine the quality of both the source of the data and the data itself before deciding to use the data.  The main problems with the secondary sources of data may be categorized as follows: 

The researcher must take care once making use of secondary data and the definitions used by those responsible for its preparation. For example, if researchers are interested in rural consumers and their average family size and the published statistics are consulted then an enquiry must be conducted on the way terms such as ‘family size’ have been explained.  They may refer only to the nucleus family or include the extended family.    However the definitions may change over time and where this is not recognized erroneous conclusions may be taken.

Measurement error: 

When a researcher conducts fieldwork she/he is possibly about to estimate inaccuracies in measurement through the standard deviation and standard error, however these are many times not disclosed in secondary sources of data.  The single solution is to try to speak to the individuals involved in the collection of the data to obtain some guidance on the level of accuracy of the data.  The problem is sometimes not so much ‘error’ but differences in levels of accuracy decision makers require. When the research has to do with large investments, the management will want to set very tight margins of error in making market estimates.  In other cases, having a high level of accuracy is not so critical.

Source Bias: Researchers have to be aware of vested interests when they consult secondary source.  Those responsible for their compilation may have reasons for wishing to present a more optimistic or pessimistic set of results for their organization. For instance, market researcher may present biased information about market shares of various brands of soft drinks depending on which organization commissioned the research.

Reliability: The reliability of published statistics may differ from time to time. Even the systems of collecting data change over time. This need not to be disclosed to the reader of published statistics.  Government may change geographical or administrative boundaries or the basis for stratifying a sample may have changed. The sample size, rate of response, design of questionnaire and techniques of analysis are salient aspects of research methodology that affect the reliability of secondary data.

Time Scale: Most censuses take place at 10 years intervals, so data from this and other published sources may be out-of-data at the time the researcher wants to make use of the statistics.  The period in which secondary data was first complied may have a substantial effect upon the nature of the data. For example the substantial increase in the prices of good could significantly change the market demand estimates. Whenever possible, marketing researchers might use multiple sources of secondary data.  Thus, different sources can be cross-checked as confirmation of one another.  Where differences occurs an explanation for these must be found or the data should be set aside.

Sources of Information: Secondary sources of information may be divided into two categories: Internal sources and external sources.

Organizational Sources of Secondary Information

Sales Data: All organizations collect information in the course of their everyday operations.  They receive orders, deliver goods, record costs, sales personnel submit visit reports, invoices are send out invoices, record return-sales and so on.  A lot of this information is of potential use in marketing research however, little data is actually utilized.  Organizations usually overlook this valuable resource by not beginning their search of secondary sources with an interval audit of sales orders, inquiries about products, invoices, orders, inquiries, sales returns and sales force customer calling sheets. For instance, the following information can be obtained from sales orders and invoices:

• Sales by territory 
• Sales as per type of customer  
• Prices and discounts 

Average size of order by customer, customer type, geographical are Sales by size and type of pack type. Financial data: An organization generates a lot of data within its files on the production cost, storage, transport and marketing each of its products and product lines.

Transport data: Companies that maintain good records concerning their transport operations are in a better position to establish the most profitable routes, the amount of loads and the most cost effective routing patterns.

Storage data: Storage data helps in estimating stock turnover, stock handling costs, evaluating the efficiency of marketing operations and the efficiency of the marketing system as a whole.

Sources of Secondary Information
The marketing researchers who seriously look for useful secondary data finds such data is in abundance. Too often, the researcher concludes from the outset that topic of study is so unique or specialized that a research of secondary sources is futile. The major Sources of external Secondary Sources are:  

• Government publications 
•  Trade associations 
•  Commercial services  
•  National and International institutions.

Government Statistics include all or some of the following: 

1. Population censuses 
2. Social surveys, family expenditure surveys 
3. Import/export statistics 
4. Production statistics  
5. Agricultural statistics

Qualitative Research: 

Information obtained from the decision maker, business specialist through secondary sources may not be sufficient to define the research question.  In certain cases qualitative research must be undertaken to comprehend the problem and its factors.  Qualitative research is unstructured, exploratory in nature conducted on the basis of small samples. This may utilize common qualitative techniques like focus-groups, word association, and interviews conducted in depth.  Pilot surveys with small samples of respondents may also be undertaken.

Although research undertaken at this stage may not be conducted in a formal way, it can provide valuable insights into the problem, as illustrated by Harley Davidson in the opening example.  Industry experts indicated the importance of brand loyalty, which also emerged as a major factor in focus groups. Secondary data revealed that most motorcycle owners also owned automobiles such as cars, SUVs, and trucks.   Focus groups further indicated that motorcycles were used primarily as a means of recreation. The insights qualitative research provides, along with discussions with decision makers, interviews with industry experts, and secondary data analysis help the researcher to understand the environmental context of the problem.

Primary Data:

Primary data collection is necessary when a researcher is unable to find the data needed that secondary sources provide.  Marketing researchers are interested in primary data about demographic/ socioeconomic characteristics, attitudes, awareness, intentions, motivation and behavior.  Three basis means of getting primary data are observation, surveys, and experiments.  The nature of the problem and the availability of time and money influence the choice.

Personal Approaches :

Marketers can learn by personally observing actions and situations.  For example, when a retail organization is selecting a fresh location, it would like to observe the conditions in the neighborhood.  Also, marketers of pet products and baby products are extremely interested in how respondents react to new products, but hesitate to ask them to describe their opinions.  They must depend on observational research.