Transcript Slide 1

Chapter Three Secondary Data and Databases

Chapter Three

Chapter Three Objectives

To understand how firms create an internal database.

To learn about the advantages of creating a database from Web site visitors.

To become familiar with data mining.

To understand the advantages and disadvantages of using secondary data.

To understand the role of the Internet in obtaining secondary data.

To learn about types of information management systems.

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Secondary Data

Data that have been previously gathered

Information • Can help to clarify or refine the issue or problem; • Might provide solution to research problem; • Might provide primary data research alternatives; • Can alert the researcher to other problems; • Provides background information enhancing research credibility.

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Secondary Data

Data that have been previously gathered

• Might be outdated or questionable; • Qualitative nature makes analyses difficult; • Could be misapplied to your situation; • Might be biased - intentionally or unintentionally; • Lack of available data on your topic.

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Determining its Quality & Application Limitations

Secondary Data

Data that have been previously gathered

Relevance:

• Does the data measure what we think it measures?

• Does it apply to the audience we think it applies to?

Timeliness:

• Have we received it in time to make decisions/conclusions?

• Are data out of date / when were the data collected?

Quality / Accuracy:

• How were the data obtained - what methods were used?

• Who collected the data – were there any biases?

• Why and for what purpose was the data collected?

Completeness:

• Is the whole story captured - are we parsing the data?

• Is there a sufficient amount of data to tell the story?

Insufficiency:

• Not enough good data exists to make a sound decision.

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Primary Data

New data gathered to help solve the problem under investigation

• Gathered directly from customer or end user; • It can be expensive; • It is often time consuming; • It can be representative of the population; • Is generally for use related to research issue.

• Key Methods: •

Surveys

Focus groups

• •

Interviews Observation Studies

• •

Market Testing Experiments

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Internal Databases

“A collection of related information developed from data within the organization.”

Database Marketing:

• Marketing that relies on the creation of a large computerized file of customers’ and potential customers’ profiles and purchase patterns to create a target marketing mix.

Cookie:

• A text file placed on a user’s computer in order to identify the user when the user revisits the Web site.

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Internal Databases Some Key Features:

• Creation of large - up to date - computerized file; • Can include current, past, or potential customers; • Might be focused on demographic, purchase behaviors; • A development of customer profiles results; • Should enable one to generated direct marketing mailers /e-mails targeted at specific customers based on their buying behavior; • Can be used to collect customer information from your Web site; • Should be organized to enable you to search the database using queries; • Should be compatible with database software that will enhance analysis.

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Internal Databases - Data Mining

Reading between the computer lines

Neural Network:

• A computer program that mimics the processes of the human brain and thus is capable of learning from examples to find patterns in data.

Data Mining:

• The use of statistical and other advanced software to discover non-obvious patterns hidden in a database.

•Some Applications: •

Customer acquisition

Customer retention

Customer abandonment

Market basket analysis

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Battling Over Privacy

Gramm-Leach-Bliley Act Health Insurance Portability and Accountable Act Schumer-Nelson ID Theft Bill

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Secondary Data on the Internet

30 of the top marketing research firms. Click to go to respective site

www.vnu.inc

www.ipsos-na.com

marketstrategies.com

imshealth.com

www.morpace.com

www.infores.com

www.maritzresearch.com

idpa.com

www.customerresearch.com

icrsurvey.com

www.westat.com

npd.com

www.kantargroup.com

arbitron.com

www.harrisinteractive.com

www.opinionresearch.com

www.burke.com

knowledgenetworks.com

www.nopworld.com

www.tns-global.com

www.nfow.com

synovate.com

www.crresearch.com

abtassociates.com

irwonline.com

www.wirthlin.com

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walkerinfo.com

liebermanresearch.com

www.nationalresearch.com

vanderveer.com

Data on the Internet

Some Helpful Links

Some Links From Wiley US Federal Statistics US Small Business Administration US Bureau of Labor Statistics US Census Bureau

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Information Management

Some Other Tools

Newsgroup:

• An Internet site where people can read and post messages devoted to a specific topic.

Geographic Information Systems - GIS:

• A computer-based system that uses secondary and/or primary data to generate maps that visually display various types of data geographically.

Decision Support Systems - DSS:

• An interactive, personalized information management system designed to be initiated and controlled by individual decision makers.

Key Components:

Interactive

MDSS Database Structure:

Manager •

Flexible

Modeling Display • •

Discovery Oriented Easy to Learn and Use

Analysis Database Environment 45

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MDSS Database Structure

Manager Modeling Analysis Display Database Environment

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Data Mining

Marketing Decision Support Systems

Primary Data/Research

Secondary Data/Research

Thirty Largest MR Firms

Index

Index