Chapter 4 Exploratory Research Design: Secondary Data

desertcockatooData Management

Nov 20, 2013 (3 years and 10 months ago)

120 views

34

Chapter 4


Exploratory Research Design: Secondary Data


True/False Questions


1.

Secondary data is data originated by the researcher for the specific purpose of addressing the research
problem.


False (easy, page 97)


2.

Primary data represents any data
that have already been collected for purposes other than the problem at
hand.


False (easy, page 97)


3.

According to the text, the collection process of secondary data is rapid and easy compared to the collection
process of primary data.


True (easy, pa
ge 99)


4.

Compared to the collection cost of primary data, secondary data is more expensive.


False (moderate, page 99)


5.

According to the test, a basic rule of research is to examine secondary data first.


True (moderate, page 99)


6.

The value of se
condary data is typically limited by their degree of fit with the current research problem and
by concerns regarding data accuracy.


True (moderate, page 100)


7.

The research design specifications or the methodology used to collect secondary data should
be examined to
identify sources of bias.


True (easy, page 100)


8.

Availability is mentioned in the text as a primary criterion for evaluating secondary data.


False (moderate, page 101)


9.

An overall indication of the dependability of the data may be
obtained by examining the cost of the source.


False (moderate, page 103)


10.

External data is data that originates outside of the client organization.


True (moderate, page 103)


11.

Accounting records, sales reports, and internal experts are typical s
ources of internal secondary data.


True (moderate, page 103)


12.

Claritas' PRIZM features lifestyle clusters of every US neighborhood based on geo
-
coding.


True (moderate, page 103)


13.

Data mining is marketing that involves using powerful computers w
ith advanced statistical and other
software to analyze large databases to discover hidden patterns in the data.


True (moderate, page 104)


14.

CRM databases can be analyzed in terms of a customer's activity over the life of the business relationship.


Tr
ue (moderate, page 105)


15.

Published external sources may be broadly classified as general business data or government data.


True (moderate, page 106)


35

16.

A focus group is an example of a general business source of external secondary data.


False (m
oderate, page 106)


17.

Guides provide a path to other sources of secondary data contained in directories or published by
professional or trade associations.


True (moderate, page 106)


18.

According to the text, bibliographies are organized alphabeticall
y by topic.


True (moderate, page 106)


19.

Directories are helpful for identifying manufacturers operating in your market, for compiling names and
addresses of associations in your sales territory, or for verifying names and addresses of prospective
cust
omers who carry a specific job title.


True (moderate, page 107)


20.

Indexes and bibliographies are general business sources of external secondary data that provide brief
descriptions of companies, organizations, or individuals.


False (moderate, page 1
06)


21.

According to the text, A.C. Neilsen is the largest source of secondary data in the United States.


False (moderate, page 107)


22.

The North American Industry Classification System (NAICS) has been replaced by the Standard Industrial
Code (SIC).


False (moderate, pages 108
-
109)


23.

The phenomenal growth of databases is a result of the advantages of electronic dissemination of data over
printed data that include more accurate information.


False (difficult, page 109)


24.

Online, Internet, and o
ffline are classifications of computerized databases in terms of how they are
distributed.


True (moderate, page 110)


25.

Online databases are databases stored in computers that require a telecommunications network to access.


True (moderate, page 110)


26.

Databases that can be searched, accessed, or analyzed on the Internet are called Internet databases.


True (easy, page 110)


27.

Online describes databases that are available on diskette or CD
-
ROM.


False (moderate, page 110)


28.

According to the t
ext, the governmental database is a major type of database.


False (moderate, page 111)


29.

Bibliographic databases are indexes of studies and reports published in journals, magazines, and
newspapers.


True (moderate, page 111)


30.

For marketers, one o
f the largest bibliographic databases is the FIND/SVP.


True (moderate, page 111)


31.

Full
-
text databases are databases that contain the complete text of secondary source documents comprising
the database.


True (moderate, page 111)

36


32.

Numeric databas
es provide information on individuals, organizations, and services.


False (moderate, page 111)


33.

According to the text, the largest database of companies in the United States is contained in the national
Electronic Yellow Pages.


True (moderate, page

111)


34.

Special
-
purpose databases are databases that contain information of a specific nature, for example, data on a
specialized industry.


True (easy, page 112)


35

Computer mapping involves merging internal customer data with external geographic, de
mographic, and
lifestyle data on the same customers.


False (moderate, page 114)


36.

Computer mapping is a product of Geographic Information Systems (GIS).


True (moderate, page 114)



Multiple Choice


37.

______________ is data originated by the resear
cher for the specific purpose of addressing the research
problem.

a.

Primary data (easy, page 97)

b.

Secondary data

c.

Experimental data

d.

Virtual data

e.

Problem
-
focused data


38.

Which of the following types of data represent any data that have already been collected

for purposes other
than the problem at hand?

a.

Primary data

b.

Secondary data (easy, page 97)

c.

Experimental data

d.

Virtual data

e.

Special data


39.

According to the text, the collection process of secondary data is ______________ compared to the
collection process

of primary data.

a.

very involved

b.

the same

c.

rapid and easy (easy, page 99)

d.

not correlated

e.

long and involved


40.

Compared to the collection cost of primary data, secondary data is ______________.

a.

more expensive.

b.

approximately the same cost.

c.

less expensive.
(moderate, page 99)

d.

nonexistent.

e.

more elusive

37


41.

According to the text, a basic rule of research is to " ______________."

a.

examine primary data first

b.

examine secondary data first (moderate, page 99)

c.

examine experimental data first

d.

examine virtual data f
irst

e.

examine special data first


42.

Which of the following is NOT mentioned in the text as a primary criterion for evaluating secondary data?

a.

specifications

b.

error

c.

currency

d.

availability (moderate, page 101)

e.

objective (why were the data collected?)


43.

An overall indication of the dependability of the data may be obtained by examining all of the following
EXCEPT:

a.

the expertise of the source.

b.

the reputation of the source.

c.

the trustworthiness of the source.

d.

the cost of the source. (moderate, page 103)

e.

the source being the original source rather than an acquired source.


44.

______________ is data that originates outside of the client organization.

a.

Internal data

b.

External data (easy, page 103)

c.

Modular data

d.

Secondary data

e.

Supporting data


45.

All of the
following are typical sources of internal secondary data EXCEPT:

a.

accounting records.

b.

sales reports.

c.

internal experts.

d.

focus groups. (moderate, page 103)

e.

production or operation reports.


46.

_____________ is marketing that involves using powerful compu
ters with advanced statistical and other
software to analyze large databases to discover hidden patterns in the data.

a.

Data mining (moderate, page 104)

b.

Mass marketing

c.

Parallel marketing

d.

Traditional marketing

e.

Competitive intelligence


47.

_____________ is a
centralized database that consolidates company
-
wide data from a variety of operational
systems.


a.

syndicated service


b.

bibliography


c.

competitive intelligence


d.

Standard Industry Classification (SIC) system


e.

data warehouse (moderate, page 104)

38


48.

Psychographics refers to


______________.

a.

qualitative inventories of business personalities

b.

pictorial renderings of individuals' psychological traits

c.

psychological assessments of consumers' behavior

d.

graphic depictions of psychological testing
results

e.

psychological profiles of consumers' activities, interests and opinions (moderate, page 104)


49.

Published external sources may be broadly classified as ______________ or _____________.

a.

syndicated data or nonsyndicated data

b.

general business data o
r government data (difficult, page 106)

c.

internal data or external data

d.

primary data or secondary data

e.

lead or support data


50.

All of the following are examples of general business sources of external secondary data EXCEPT:

a.

guides

b.

directories

c.

indexes

d.

foc
us groups (moderate, page 106)

e.

statistical data


51.

Which of the following general business sources of external secondary data provides a path to other sources
of secondary data contained in directories or published by professional or trade associatio
ns?

a.

guides (moderate, page 106)

b.

indexes and bibliographies

c.

directories

d.

nongovernmental statistical data

e.

conditional data


52.

All of the following are examples of guides that a researcher should first consult when proceeding with a
marketing research proj
ect EXCEPT:

a.

Business Information Sources.

b.

Monthly Catalog of US Government Publications.

c.

Encyclopedia of Business Information Sources.

d.

A Guide to Consumer Markets

(difficult, page 106)

e.

a and c


53.

According to the text, bibliographies are organized al
phabetically ______________.

a.

by author

b.

by title

c.

by company

d.

by topic (moderate, page 106)

e.


by date


54.

Which of the following general business sources are helpful for identifying manufacturers operating in your
market, for compiling names and addresses

of associations in your sales territory, or for verifying names
and addresses of prospective customers who carry a specific job title?

a.

guides

b.

indexes and bibliographies

c.

directories (moderate, page 107)

d.

nongovernmental statistical data

e.

census data

39


55.

_
_____________ are general business sources of external secondary data that provide brief descriptions of
companies, organizations, or individuals.

a.

Guides

b.

Indexes and bibliographies

c.

Directories (moderate, page 107)

d.

Nongovernmental statistical data

e.

Standard

Industrial Classification (SIC) codes


56.

According to the text, ______________ is the largest source of secondary data in the United States.

a.

A.C. Neilsen

b.

Yahoo!

c.

Arbitron

d.

the U.S. government (moderate, page 107)

e.

VNU N. V.


57.

Metropolitan Statistica
l Areas (MSAs)

______________.

a.

are defined by local communities

b.

have a population of at least 50,000

c.

comprise counties containing a central city

d.

have a population as low as 4,000

e.

b and c (difficult, page 108)


58. Which of the following is
true about census data?

a.

The information in census data is available in only one form.

b.

The data can be geographically categorized at various levels of detail. (moderate, page 108)

c.

Census data does not need to be detailed as long as it is accurate.

d.

Integrating enhanced census data with internal company databases is a waste of secondary sources.

e.

All of the above


59.

The phenomenal growth of databases is a result of the advantages of electronic dissemination of data over
printed data that inc
lude all of the following reasons EXCEPT:

a.

more current information.

b.

faster data search.

c.

convenience.

d.

more accurate information. (difficult, page 109)

e.

low cost.


60.

Which of the following is NOT a classification of computerized databases in terms of ho
w they are
distributed?

a.

online

b.

Internet

c.

offline

d.

parallel (difficult, page 110)

e.

a and b


61.

______________ databases are databases stored in computers that require a telecommunications network to
access.

a.

Online (moderate, page 110)

b.

Internet

c.

Offline

d.

P
arallel

e.

Support

40


62.

Databases that can be searched, accessed, or analyzed on the Internet are called _____________ databases.

a.

online

b.

Internet (moderate, page 110)

c.

offline

d.

parallel

e.

access


63.

All of the following are examples of some of the many Inter
net search services on the Internet EXCEPT:

a.

Lycos.

b.

Yahoo!

c.

Webcrawler.

d.

A.C. Neilsen (moderate, page 110)

e.

Google


64.

Which of the following classifications describes databases that are available on diskette or CD
-
ROM?

a.

online

b.

Internet

c.

offline (moderate
, page 110)

d.

parallel

e.

"data in a box"


65.

According to the text, all of the following represent major types of databases EXCEPT:

a.

bibliographic databases.

b.

numeric databases.

c.

directory databases.

d.

governmental databases. (difficult, page 111)

e.

full
-
text d
atabases


66.

______________ are indexes of studies and reports published in journals, magazines, and newspapers.

a.

Bibliographic databases (moderate, page 111)

b.

Numeric databases

c.

Directory databases

d.

Full
-
text databases

e.

Special
-
purpose databases


67.

For mar
keters, an example of a bibliographic database is ______________.

a.

A.C. Neilsen

b.

the U.S. government

c.

ABI/INFORM (moderate, page 111)

d.

Arbitron

e.

D & B


68.

Which of the following major types of databases specialize in disseminating statistical information, suc
h as
survey and time series data?

a.

bibliographic databases

b.

numeric databases (moderate, page 111)

c.

directory databases

d.

full
-
text databases

e.

special
-
purpose databases

41


69.

______________ are databases that contain the complete text of secondary source docume
nts comprising
the database.

a.

Bibliographic databases

b.

Numeric databases

c.

Directory databases

d.

Full
-
text databases (moderate, page 111)

e.

Special
-
purpose databases


70.

According to the text, one of the most useful ______________ can be accessed through Mead Da
ta
Central's Nexis service.

a.

bibliographic databases

b.

numeric databases

c.

directory databases

d.

full
-
text databases (difficult, page 111)

e.

special
-
purpose databases


71.

Which of the following major types of databases provide information on individuals, organiza
tions, and
services?

a.

bibliographic databases

b.

numeric databases

c.

directory databases (moderate, page 111)

d.

full
-
text databases

e.

special
-
purpose databases


72.

According to the text, the largest database of companies in the United States is contained in
______
_______.

a.

the FIND/SVP database

b.

the national Electronic Yellow Pages (moderate, page 111)

c.

the A.C. Neilsen Selling Area database

d.

the U.S. Census database

e.

D & B database


73.

______________ are databases that contain information of a specific nature, for ex
ample, data on a
specialized industry.

a.

Bibliographic databases

b.

Numeric databases

c.

Special
-
purpose databases (moderate, page 112)

d.

Full
-
text databases

e.

Directory databases


74.

______________ involves merging internal customer data with external geographic, d
emographic, and
lifestyle data on the same customers.

a.

Geo
-
demographic coding (moderate, page 113)

b.

Syndicated coding

c.

Psychographic coding

d.

Computer mapping

e.

Construction coding


75.

Which of the following describes information services offered by marketing r
esearch organizations that
provide information from a common database to firms that subscribe to the service?

a.

syndicated services (moderate, page 113)

b.

primary services

c.

secondary services

d.

modular services

e.

online services

42


76.

Comparisons between numerical
data from different countries can be difficult because of all of the
following EXCEPT:

a.

units of measurement might differ.

b.

accuracy may vary across countries.

c.

frequency of census data collection can differ.

d.

differences in tax evasion rates affec
ts reported business income.

e.

language differs across countries. (moderate, page 116)


77.

According to the text, what is an ethical responsibility of a research agency?

a.

To use all forms of data, as well as data obtained from any source
-

internal or
external.

b.

Discussion about all issues surrounding the relevance and accuracy of the secondary data used with the

client should be done only when required by law.

c.

After a detailed analysis of secondary data has been conducted, the researcher should r
eexamine

the collection of primary data stipulated in the proposal. (moderate, page 118)

d.

Privacy related to the client's issues are not as important as safe keeping of the client's databases.

e.

b and d are valid statement


Essay Questions


78.

In a sh
ort essay, discuss the advantages and uses of secondary data. Include a discussion of the
disadvantages of secondary data to support your answer.



Answer

a.

The main advantages of secondary data are the time and money they can save. While it is rare for
se
condary data to provide all the answers to a nonroutine research problem, analysis of secondary data
should always be the first step taken toward solving a research problem. Secondary data can help a
researcher (1) identify the problem, (2) better underst
and and define the problem, (3) develop an
approach to the problem, (4) formulate an appropriate research design, (5) answer certain research
questions and test some hypotheses, and (6) interpret primary data with more insight. Given these
advantages and
uses of secondary data, the basic rule of research is to examine available secondary
data first. The research project should proceed to primary data collection only when secondary data
sources have been exhausted or yield marginal returns.

b.

The value of se
condary data is typically limited by their degree of fit to the current research problem
and by concerns regarding data accuracy. The objectives, nature, and methods used to collect
secondary data may not be compatible with the present situation. Also, s
econdary data may be lacking
in terms of its accuracy, compatibility of units of measurement, or time frame.


(easy, pages 99
-
101)


79.

In a short essay, list and discuss at least five specific criteria that are essential for evaluating secondary data.



A
nswer

a.

Specifications: Methodology used to collect the data


the research design specifications should be
critically examined to identify possible sources of bias. Factors such as the size and nature of the
sample, response rate and quality, questionnaire

design and administration, procedures used for field
work, and data analysis and reporting procedures are all important in identifying potential error as well
as relevance of the data.

b.

Error: Accuracy of the data


both secondary and primary data can have

errors, stemming from the
research approach, research design, sampling, data collection, analysis, and reporting stages of the
project. Moreover, it is difficult to evaluate the accuracy of secondary data when the researcher has not
directly participated

in the research. The further removed the inquiring research is from the originating
data source, the greater the possibility of problems with accuracy.

c.

Currency: When the data were collected


secondary data may not be current. There may be a time lag
b
etween data collection and publication, as is the case with census data. Additionally, the data may not
43

be updated frequently enough to answer questions related to the problem at hand. Marketing research
requires current data; therefore, the value of sec
ondary data is diminished as they become dated.

d.

Objective: The purpose for the study


understanding why secondary data were originally collected can
sensitize the researcher to the limitations of using them for the current marketing problem. The
originat
ing purpose of a previous research study may be irrelevant to the research problem at hand.

e.

Nature: The content of the data


the nature, or content, of the data should be examined with special
attention to the definition of key variables, the units of mea
surement, categories used, and the
relationships examined. One of the most frustrating limitations of secondary data comes from
differences in definition, units of measurement, time frame examined, or questionable assumptions
regarding the relationships o
f key variables.

f.

Dependability: Overall, how dependable are the data?


an overall indication of the dependability of the
data may be obtained by examining the expertise, credibility, reputation, and trustworthiness of the
source. This information can be
obtained by checking with others who have used information this
source provides.


(difficult, pages 100
-
103)


80.

In a short essay, list and describe the four forms of general business sources that are categorized as external
secondary data.



Answer

a.

Gui
des


standard or recurring information is summarized in guides. Guides provide a path to other
sources of secondary data contained in directories or published by professional or trade associations.
Because guides can open the door to other sources of da
ta, they are one of the first sources a researcher
should consult.

b.

Indexes and bibliographies


bibliographies, which are organized alphabetically by topic, are another
good place to start external secondary research. Current or historic discussion of a p
articular topic of
interest will be indexed in these references, leading the researcher to a number of authors. Several
indexes are available for referencing both academic and business topics.

c.

Directories


directories provide brief descriptions of compan
ies, organizations, or individuals. They
are helpful for identifying manufacturers operating in a specific market, for compiling names and
addresses of associations in a sales territory, or for verifying names and addresses of prospective
customers who ca
rry a specific job title.

d.

Nongovernmental statistical data


business research often involves compilation of statistical data
reflecting market or industry factors. A historic perspective of industry participation and growth rates
can provide a context fo
r market share analysis. Market statistics related to population demographics,
purchasing levels, television viewership, and product usage are just some of the types of governmental
statistics available from secondary sources.


(moderate, pages 106
-
07)


8
1.

In a short essay, list and discuss the four specific advantages of electronic dissemination of data over
printed data that has led to the phenomenal growth of databases.



Answer

a.

Current information


because printing is no longer an essential step in i
nformation dissemination, data
can be updated continuously. Publishers who use computers to edit and publish their periodicals can
now electronically transfer those documents to relevant databases, making them available with
remarkable speed, as compared
to the traditional methods of print production and physical distribution.

b.

Faster data search


online vendors provide increasing uniformity in the search process, enabling even
a relative novice at secondary research to access data more quickly and complet
ely.

c.

Low cost


the relative cost of accessing computerized databases is low.

d.

Convenience


this has become perhaps one of the greatest benefits, computerized databases have
delivered. Information providers now have a direct link to the end user equipped
with a microcomputer
and modem. They are no longer forced to distribute their products through libraries or retail outlets.


(moderate, page 109)


44

82.

In a short essay, list and describe at least four major types of databases. Include a specific example
of each
type of database to support your answer.



Answer

a.

Bibliographic databases are indexes of studies and reports published in journals, magazines, and
newspapers. They can be on any subject, ranging from marketing research to technical reports and
gov
ernment documents. Summaries of the report findings are often provided. For marketers, one of
the largest bibliographic databases is the FIND/SVP. It reflects the work of over 500 research firms on
subjects such as consumer and product studies, store au
dit reports, subscription research services, and
surveys of 55 industries worldwide.

b.

Numeric databases specialize in disseminating statistical information, such as survey and time series
data. Economic and industry data lend themselves to time series pres
entations, which are developed
when the same variables are repeatedly measured over time. This type of data is particularly relevant
for assessing market potential, making sales forecasts, or setting sales quotas. Vendors such as Boeing
Computer Services,

Data Resources, Evans Economics, and the Office of Economic Coordination and
Development all provide time series data.

c.

Full
-
text databases contain the complete text of the source documents contained in the database. One
of the most useful full
-
text busin
ess databases can be accessed through Nexis. Mead Data Central's
Nexis service provides full
-
text access to hundreds of business data sources, including selected
newspapers, periodicals, company annual reports, and investment firm reports.

d.

Directory datab
ases provide information on individuals, organizations, and services. Standard & Poor's
Corporate Descriptions is an example of a directory database that provides summary data on publicly
held U.S. corporations. A secondary researcher wanting to compile
information on a competitor or
prospective customer can obtain data related to the growth of that organization, the size of its
workforce, and its financial performance.

e.

Special
-
purpose databases are more focused in their scope, such as the Profit Impact o
f Market
Strategies (PIMS). The Strategic Planning Institute in Cambridge, Massachusetts, maintains PIMS,
which reflects its research and analysis on business strategies from more than 250 companies,
representing over 2,000 businesses.


(difficult, pages
111
-
112)


83.

In a short essay, explain the appeal of census data to marketers.



Answer

a.

Relevant data captured. Census data are useful in a variety of marketing research projects. The
demographic data collected by the Census Bureau includes informati
on about household types, sex, age,
marital status, and race. Consumption detail related to automobile ownership, housing characteristics,
work status, and practices as well as occupations are just a few of the categories of information
available.

b.

Ge
ographical focus. What makes this demographic information particularly valuable to marketers is
that these data can be geographically categorized at various levels of detail. These data can be
summarized at various levels: city block, block group, census

tract, metropolitan statistical area (MSA),
consolidated metropolitan statistical area (CMSA), region (Northeast, Midwest, South, and West), or
they can be aggregated for the nation as a whole. Census tracts have a population of more than 4000
and are de
fined by local communities. In urban areas, the MSAs have a population of at least 50000
and comprise of counties containing a central city. In addition, census data are available by civil
divisions such as ward, cities, counties, and state.

c.

High qu
ality of data. In general, the quality of census data is quite high, and the data are often
extremely detailed.

d.

Available in a variety of forms. To facilitate business analysis, this information is available in multiple
forms. One can purchase compu
ter tapes, diskettes, or CD
-
ROMs from the Census Bureau for a
nominal fee and recast this information into the desired format. Important census data include Census
of Housing, Census of Manufacturers, Census of Population, Census of Retail Trade, Census o
f Service
Industries, and Census of Wholesale Trade. Claritas' PRIZM uses census data. Integrating enhanced
census data with internal company databases is a useful application of multiple secondary sources.


(moderate, page 108)