Secondary Data In Marketing Research
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1 Secondary Data In Marketing Research Chunhua Wu The University of British Columbia Mon
2 Outline 1 Last Class Review 2 A Closer Look at Secondary Data 3 Research Using Secondary Data: Online Dating Services 4 Summary
3 Last Class Review
4 Research Approaches and Data Sources Research Approach Purpose Research Design Exploratory Provide insights - Focus groups Research - In-depth interviews Descriptive Describe market - Surveys Research characteristics - Observations Causal Determine cause-and-effect - Experiment Research relationship - A/B test markets Secondary Data In Marketing Research 4/42
5 Secondary Data Advantages (p.63-65) Advantages Provide background information, clarify research problem Provide alternative methods for primary data research Build up research credibility Sampling framework Provide a solution to the problem Secondary Data In Marketing Research 5/42
6 Secondary Data Limitations (p.65-67) Limitations Availability Relevance Accuracy Sufficiency Always check the existence of relevant, accurate secondary data that are sufficient to address the question before gathering primary data! Secondary Data In Marketing Research 6/42
7 A Closer Look at Secondary Data
8
9 Secondary Data Sources Publications Internal Data Sources Syndicated Sources Secondary Data Sources Social Media Data Sources Government Sources Other Data Sources Secondary Data In Marketing Research 9/42
10 Publications Your secondary data quiz: use UBC library IBIS World Passport GMID Print Measurement Bureau (PMB) Statistics Canada Business Source Complete Secondary Data In Marketing Research 10/42
11 Internal Data: Customer Database Data structure Secondary Data In Marketing Research 11/42
12 Internal Data: Customer Database Typical applications Promotion Targeting Pricing decision Product assortment Secondary Data In Marketing Research 12/42
13 Internal Data: Customer Database CRM / Direct Marketing RFM framework: Recency, Frequency, Monetary Ultimate goal: predict profitability Use SPSS Statistics direct marketing analysis to gain insight Secondary Data In Marketing Research 13/42
14 Internal Data: Web Analytics Raw web log data vs. aggregate services Google Analytics Secondary Data In Marketing Research 14/42
15 Internal Data: Web Analytics Typical applications Search Engine Optimization (SEO) Behavioral targeting Customer segmentation Secondary Data In Marketing Research 15/42
16 Government Data A census is the procedure of systematically acquiring and recording information about the members of a given population Application: market entry, etc. Percent of population by broad age groups, Canada, 1996 to 2011 Secondary Data In Marketing Research 16/42
17 Standardized/Syndicated Data IRI scanner panel data Provided by Information Resources Inc. Secondary Data In Marketing Research 17/42
18 IRI Product Categories Secondary Data In Marketing Research 18/42
19 IRI Panel Applications Typical applications Customer segmentation Market share and brand management Promotional effectiveness Pricing decision Exercise Q: sales, p: price c: unit cost, 40 cents Q = p What is the optimal price? Secondary Data In Marketing Research 19/42
20 Social Media Data: Customer Reviews/Feedbacks Review/Feedbacks from product website Secondary Data In Marketing Research 20/42
21 Customer Reviews/Feedbacks Applications New product development Service improvement UNIQLO Secondary Data In Marketing Research 21/42
22 Social Networks Data: User Activities Application Programming Interface (API) Facebook Analytics http: // Secondary Data In Marketing Research 22/42
23 A Little Bit on Privacy Issues Privacy issues Behavioral tracking: browser wars Identity theft Information in exchange for rewards: Airmiles card Personal information being sold PRISM Secondary Data In Marketing Research 23/42
24 Research Using Secondary Data: Online Dating Services
25 A Dating Platform Secondary Data In Marketing Research 25/42
26 Product Positioning Positioning map Free vs paid Young vs old Mass vs niche Machine vs human Traditional vs controversial Casual vs serious Secondary Data In Marketing Research 26/42
27 Pricing Revenue models of dating websites Free : OkCupid Ads Premium: Match.com, Chemistry.com, etc Membership fee Communication fee Viewing fee Freemium: POF A combination Secondary Data In Marketing Research 27/42
28 The Dating Process A B Registration Browsing Messaging C Leave Out E Dating D Reply User experience? Platform revenue? Secondary Data In Marketing Research 28/42
29 The Big Problem Websites incentives? Consistent with customer needs? Dead Profiles What is the implication? Chance people can reply? Number of messages you should send? Secondary Data In Marketing Research 29/42
30 Should You Pay for Online Dating? Never Why you should never pay for online dating? by Christian Rudder Paying for dates on match.com and eharmony is fundamentally broken //blog.okcupid.com/index.php/ why-you-should-never-pay-for-online-dating/ Secondary Data In Marketing Research 30/42
31 Reasonable Arguments? eharmony 20M users, $250M revenue (2009) Membership fee: $19.95/month(one year), $29.95/month (6-month), $59.95/month Subscriber turnover: 6.5 months What is the real number of subscribers? What is the chance that you are messaging to someone who could reply? Match.com Claimed profiles: 20,000,000; confirmed subscribers: 1,377,000 (6.9%) Secondary Data In Marketing Research 31/42
32 Reasonable Arguments? Desperation feedback loop Message to more people, less reply rate Less reply rate, need to message to more people Cost of online dating Match.com 4,380 people got married a year $342M revenue $137,000 per marriage Offline: 4.5% get married Match.com: 0.36% get married Secondary Data In Marketing Research 32/42
33 Anything Missing? Why Still in Business Member searching is non-random Local market Distinguish subscribers vs. non-subscribers Matching function provided by the website Recommendations Algorithms, i.e. chemistry.com Self selection If one could easily get married in the offline channel, he is less likely to move to the online dating services Try and learning Secondary Data In Marketing Research 33/42
34 Would Free Solve the Problem? Free means reduced user experience Dis-utility from ads Website less motivation in enhancing user experience Free does not necessarily solve the dead profile problem People try and leave Observation OkCupid was acquired by IAC/InterActiveCorp, operators of Match.com, for $50 million, in Feb 2011 The article was removed Secondary Data In Marketing Research 34/42
35 Bottom Line Online dating is a growing, billion dollar industry User experience and platform revenue interests are in conflicts Online dating service provides would leverage user experience concerns and profitability for long-term sustainability. Secondary Data In Marketing Research 35/42
36 One More Thing Angels Secondary Data In Marketing Research 36/42
37 Ashley Madison Source: Almost None of the Women in the Ashley Madison Database Ever Used the Site Secondary Data In Marketing Research 37/42
38 Summary
39 Critical Thinking Question No critical thinking question today. :) Focus on your research project! Secondary Data In Marketing Research 39/42
40 Punch Line Secondary data sources Applications for marketing research Online dating services industry Logic in the analysis A few numbers may help deeply understand the industry Criticize the arguments Secondary Data In Marketing Research 40/42
41 Next Class Content Qualitative research Focus groups Projective techniques Readings Chapter 4 What s due? Critical thinking question 3 Bring some used magzines to class Secondary Data In Marketing Research 41/42
42 Problem Formulation Research Design Data Collection Data Analysis Results & Recommendation Introduction Research Approaches Sampling Data Analysis Overview Advanced Topic Research Process Secondary Data TBD Hypothesis Test: Association TBD Qualitative Research Midterm Hypothesis Test: Means Presentation I Observation Statistical Lab Presentation II Measurement & Attitude Scales Correlation and Regression Experiment Survey Multiple Regression Statistical Lab II
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