Commercial Research Firms Like Nielsen And J. D. Power And Associates Are Sources Of
A. primary data.
B. internal secondary data.
C. data mining.
D. syndicated data.
E. public data.
The Correct Answer Is:
D. syndicated data.
Correct Answer: D. Syndicated Data
Commercial research firms like Nielsen and J.D. Power and Associates are primarily sources of syndicated data. Syndicated data refers to data collected by a market research firm from a variety of sources and made available for sale to multiple clients.
These firms gather information on various aspects of consumer behavior, preferences, and market trends across different industries. They conduct extensive surveys, collect sales data, and monitor various channels to compile comprehensive reports.
This data is then aggregated, analyzed, and packaged into reports that are sold to a wide range of clients, including businesses, marketers, and other organizations.
Why Syndicated Data is the Correct Answer:
i. Wide Availability:
Syndicated data is available to multiple clients who purchase the reports. It is not tailored to a specific company’s needs or gathered for a specific purpose. In the case of Nielsen and J.D. Power, their reports are used by a broad range of clients in various industries.
ii. Objective and Impartial:
The data collected by firms like Nielsen and J.D. Power is gathered impartially and objectively. It is not influenced by the specific needs or interests of any single client. This makes it a reliable source for businesses and organizations seeking unbiased market insights.
iii. Standardized Data:
Syndicated data is usually standardized, meaning it follows consistent measurement and data collection methods. This allows for easy comparison and analysis across different industries and markets.
iv. Large Sample Sizes:
These firms often have access to large sample sizes, which can provide more accurate and representative data about consumer behavior, preferences, and market trends.
Why the Other Answers are Not Correct:
A. primary data.
Primary data refers to data that is collected firsthand by an organization or researcher for a specific research purpose. It is unique to a particular study and is not readily available to others.
Commercial research firms like Nielsen and J.D. Power do collect primary data during their research processes, but this data is usually gathered with the intention of creating syndicated reports that can be sold to multiple clients.
It is not the primary focus of their business to provide primary data to individual clients. Their primary business model revolves around aggregating and selling syndicated data that is collected from various sources for widespread use. Therefore, they are not primarily sources of primary data.
B. Internal Secondary Data:
Internal secondary data is data that an organization collects and maintains for its own use. It’s typically used for internal decision-making and analysis.
Commercial research firms like Nielsen and J.D. Power do not collect data for their internal use; their data collection is extensive and conducted for the purpose of creating syndicated reports for external clients. They do not provide internal secondary data to other organizations.
C. Data Mining:
Data mining involves the process of discovering patterns or insights from large sets of data. While commercial research firms may employ data mining techniques in their data analysis process, they are not primarily sources of data mining.
Data mining is a technique used to extract valuable information from data, whereas commercial research firms provide the end product of market research, which includes reports, insights, and recommendations based on data analysis. Data mining is just one of the tools they use to generate these reports.
E. Public Data:
Public data is information that is openly available to the general public. It can be accessed freely and does not require a subscription or purchase. The data provided by commercial research firms like Nielsen and J.D. Power is not public data.
It is proprietary information that is gathered, analyzed, and packaged for sale to clients. This data is their product, and clients typically pay a fee to access their reports, making it distinct from public data.
In summary, the primary focus of commercial research firms like Nielsen and J.D. Power is to collect, analyze, and package data from various sources into syndicated reports for sale to multiple clients.
While they may collect primary data during their research process and use data mining techniques, these are not their primary offerings. They do not provide internal secondary data, and the data they offer is not public; it is proprietary and subject to fees for access.
Therefore, the correct answer remains D, syndicated data, as this is the core business model of these firms.