secondary data Flashcards
(20 cards)
What is secondary data?
Data previously collected for some purpose other than the one at hand.
Examples include data collected for another study, past cyclic surveys, household income surveys, consumer satisfaction surveys, historical data, and past sales data.
What are two features of secondary data?
Easily available and saves time & dollars.
Secondary data can generate new insights from previous analyses and identify trends.
What are some caveats of secondary data?
- Information could be outdated
- Variation in definition of terms
- Differences in the units of analysis
- Lack of information to verify the data’s accuracy
- Not designed specifically to meet the researchers’ needs
How do you decide whether to use secondary data?
Evaluate its suitability and objectives that can be achieved.
Objectives can include fact-finding, tracking trends, model building, and decision support.
What is the purpose of Customer Lifetime Value (CLV)?
Indicates the total revenue a business can expect from a single customer account.
What are two fundamentals of data?
- Consistency and reproducibility
- Accuracy and meaningfulness
What does reliability and validity of secondary data refer to?
The degree to which the data can be trusted and accurately represents the intended information.
What are internal and proprietary data sources?
Sources that originate inside the organisation, such as sales invoices, customer complaints, and service records.
What are external data sources?
Data created, recorded, or generated by an entity other than the researcher’s organisation, found in published or electronic form.
True or False: Secondary data is always designed to meet the specific needs of researchers.
False.
Fill in the blank: _______ is the practice of using CRM databases to develop one-to-one relationships with customers.
Database marketing
What are some key questions that CLV can help answer?
- How much can we comfortably spend on customer acquisition?
- How much should we spend on customer service to retain an existing customer?
- Who are our most valuable customers?
- Who are our least valuable customers?
What is the formula for market share?
Market share (%) = (Total Sales of Company / Total Sales of the Market)
What is a predictive model in the context of secondary data?
A model built to estimate future market potential or entry costs.
What is the objective of environmental scanning in secondary data usage?
Tracking trends.
What is the significance of household income surveys in secondary data?
They provide insights into consumer behavior and spending patterns.
How can secondary data help in model building?
By providing historical data and trends for predictive analysis.
Fact finding
Identifying consumption patterns and tracking trends
Model building
Estimating market potential, forecasting sales, selecting trade areas and sites
Database marketing
Enhancing customer databases, developing prospective lists
