Module - IV

Primary and Secondary Data

Business Research Methods

Dr. Vinod H. Kamble

 DATA COLLECTION
PRIMARY DATA - CONCEPT

These are the data that are collected for the first time by an
investigator for a specific purpose.

Primary data are ‘pure’ in the sense that no statistical operations

have been performed on them and they are original.

An example of primary data is the Census of India.

It is in the form of raw materials and requires further processing.

This data is more reliable and suitable for the enquiry because it is
collected for a particular purpose.

Collecting primary data is quite expensive both in time and money

terms.
 DATA COLLECTION
PRIMARY DATA - METHODS

A) Observation

The researcher obtains information of the respondents

under study with the help of observation rather than by way
of interviewing.

Eg. A researcher studying newspaper reading habits of

students; then he/she would visit the college library and
observe the behaviour of the students in terms of:

 Whether girls or boys read newspaper?

 How much time they spend reading newspaper?

 Which section of newspaper they prefer to read?

 DATA COLLECTION
PRIMARY DATA - METHODS

Advantages:

 There is no respondent bias. Because the respondents are

not interviewed. They are just observed and they may not
be aware about it.

 Multiple respondents may be observed at one place at

a time which saves time, money and energy of researcher.

 Problem of depending on respondents is decreased.

 The information collected is reliable and accurate

DATA COLLECTION
PRIMARY DATA - METHODS

Disadvantages:

 Observation is time taking process. Researcher cannot

complete his/her investigation in a short period through

observation.

 It is expensive method, as trained and competent staff is

required to record observations

 In-depth interviewing is not possible

 There may be bias of the researcher, as he may record

certain observations as per his own judgement or feelings.

 DATA COLLECTION
PRIMARY DATA - METHODS
Types:

1) Structured and Unstructured Observation

In structured observation, the researcher identifies the

elements to be observed in advance. The time allotted for
observation and type of information to be collected is pre-
decided.

In unstructured observation is non-planned by researcher

and observes the elements as and when the events take place.
 DATA COLLECTION
PRIMARY DATA - METHODS

2) Disguised and Undisguised Observation

In case of disguised observation, the researcher acts as an

observer as well as a participant of the sample group.
However, he will conceal his identity and purpose so that the
sample group behaves naturally.

In case of undisguised observation, the researcher acts as

an observer and is physically present as a part of
phenomenon with formal consent. The researcher does not
conceal his identity.
 DATA COLLECTION
PRIMARY DATA - METHODS
3) Mechanical Observation

When the researcher uses mechanical devices like cameras,

tape recorder, video tape, and other electronic devices, then
it is called as mechanical observation.

Generally when the physical presence of the researcher

may not be possible then this method is used.
 DATA COLLECTION
PRIMARY DATA - METHODS
B ) Experimentation

With the help of experimentation, the researcher may like to study

the cause-effect relationship between two or more variables.

This method can also be used in development of a new product.

Eg. A school teacher wants to study effectiveness of a online

teaching method on the students.

So the teacher would conduct offline lectures and conduct test to

find out result.

Again teacher would conduct online lectures and conduct test to

Test Result
find out result.
 DATA COLLECTION
PRIMARY DATA - METHODS

Advantages:

 It is usually objective since the data recorded are

results of a process.

 It provides reliable and relevant information.

 The researcher may be in position to develop new

techniques/methods.
DATA COLLECTION
PRIMARY DATA - METHODS

Disadvantages:

 It may be very expensive as lot of money may be

required for experimentation.

 At times, lot of time and effort is required on the part

of the researcher.
 DATA COLLECTION
PRIMARY DATA - METHODS

Types:

1) Field Experiments

It is conducted at the market place but the purpose is not

known to the participants in the experiment.

It is usually conducted in test marketing in order to find out

the acceptability of the new product by consumers.
 DATA COLLECTION
PRIMARY DATA - METHODS

2) Laboratory Experiments

This method is accurate but more artificial due to controlled

conditions.

Such experiments may be in the form of calling limited

persons, offering them a product and asking them about
their reactions.

The purpose of experiment is made known to the participants

and this makes them conscious.
 DATA COLLECTION
PRIMARY DATA - METHODS

C) Interview

This method involves face-to-face interaction of the

researcher with the respondents.

The purpose of interview is to collect as much as possible

information from the respondents.

Such interview is possible with consumers, dealers, suppliers

etc.
 DATA COLLECTION
PRIMARY DATA - METHODS
Advantages:

 It provides detailed and reliable information.

 Researcher gets additional information through general

talk between the interviewer and the respondent.

 It offers flexibility

 There is personal touch in the information collection

process.

 It helps in formation of hypothesis.

DATA COLLECTION
PRIMARY DATA - METHODS

Disadvantages:

 This method is costly and time consuming.

 After collection of information, processing of information is

necessary. This leads to increase in paper work and

conclusions are available after longer period.

 Respondent biasness as well as interviewer biasness is

possible. This leads to collection of inadequate and unreliable

information for research purpose.

 Selection of proper sample size is difficult particularly when

the size of the universe is large with wide area coverage.

 DATA COLLECTION
PRIMARY DATA - METHODS
Types:

 Structured Interview: The interview in which preset standardised

questions are used by the interviewer, which are asked to all the
candidates. It is also known as a patterned or guided interview.

 Unstructured Interview: The unstructured interview is one that does

not follow any formal rules and procedures. The discussion is free-
flowing, and questions are made up during the interview.

 Mixed Interview: It is a combination of structured and

unstructured interview, wherein a blend of predetermined and
spontaneous questions are asked by the interviewer to the respondent.
 DATA COLLECTION
PRIMARY DATA - METHODS

 Telephonic Interview: Telephonic interview is one that is

conducted over the telephone. It is the most economical

and less time consuming, which focuses on asking and
answering questions.

 Video Interview: An interview, in which a video

conference is being employed, to judge or evaluate the
respondent. Due to its flexibility, rapidity and
inexpensiveness, it is used increasingly.
 DATA COLLECTION
PRIMARY DATA - METHODS

D) Survey and Questionnaires

The Survey method is the technique of gathering data by asking questions

to people who are thought to have desired information.

A formal list of questionnaires is prepared.

The respondents are asked questions on their demographic interest

opinion.

The methods used to collect survey data have evolved with the technology
change.

From face-to-face surveys, and telephonic surveys to now online and email
surveys, the world of survey data collection has changed with time.
 DATA COLLECTION
PRIMARY DATA - METHODS

Advantages:

 As compared to other methods, this method produces a

broader range of information on socio-economic

characteristics, attitudes, opinions, motives etc.

 This method is usually faster and cheaper

 This method is simple to manage.

 Data is reliable
DATA COLLECTION
PRIMARY DATA - METHODS

Disadvantages:

 Unwillingness of respondents to provide information.

 Inability of the respondents to provide information

 Human Biases of the respondents

 It is difficult to state a given question in such a way that it

will mean exactly same thing to each respondent.

 DATA COLLECTION
PRIMARY DATA - METHODS
Types:

1) Face-to-face Survey:

It is the direct method of gathering information from the

respondents. It involves face to face communication between
the researcher and the respondents. Detailed and accurate
information can be collected by using this method. Personal
interview may be conducted with or without questionnaire.
 DATA COLLECTION
PRIMARY DATA - METHODS
Types:

2) Telephone Survey

Under this method, contact is made with respondents on

telephones asking them selected questions by the
researcher. The scope of this method is narrow as it can
cover only those respondents who have telephone.
Detailed investigation is not possible under this method.
This method is very popular in advanced countries like
U.S.A.
 DATA COLLECTION
PRIMARY DATA - METHODS

3) Mail Survey

In this method questionnaire is sent through post,

explaining the purpose of the questionnaire and a request
to complete and return it to the researcher. A reply-paid
envelops may also given to the respondent wherever possible
to encourage the respondents to promptly send the answers.

4) E-mail Survey

In this method questionnaire is emailed to the potential

respondents to get responses. It may be an easy method of
data collection.
 DATA COLLECTION
PRIMARY DATA - METHODS

E) Focus Group Discussion

 In 1991, marketing and psychological expert Ernest

Dichter coined the name “Focus Group.” The term
described meetings held with a limited group of
participants with the objective of discussion.

 The group’s purpose is not to arrive at a consensus or

agreement on the topic. Instead, it seeks to identify
and understand customer perceptions of a brand,
product, or service.
 DATA COLLECTION
PRIMARY DATA - METHODS

 A focus group is best defined as a small group of

carefully selected participants who contribute to open
discussions for research. The hosting organization
carefully selects participants for the study to represent
the larger population they’re attempting to target.

 The group might look at new products, feature updates,

or other topics of interest to generalize the entire
population’s reaction. This research includes a
moderator. Their job is to ensure legitimate results and
reduce bias in the discussions.
 DATA COLLECTION
PRIMARY DATA - METHODS

 You use a focus group in qualitative research. A group

of 6-10 people, usually 8, meet to explore and discuss
a topic, such as a new product. The group shares their
feedback, opinions, knowledge, and insights about the
topic at hand.

 Participants openly share opinions and are free to

convince other participants of their ideas.

 The mediator takes notes on the discussion and

opinions of group members.

 The right group members affect the results of your research, so

it’s vital to be picky when selecting members.
 DATA COLLECTION
PRIMARY DATA - METHODS
F) Schedules

This method of data collection is very much like the collection of data
through questionnaires, with little difference that lies in the fact that schedules
(proforma containing a set of questions) are being filled in by the enumerators
(researcher or his field staff) who are specially appointed for this purpose.

Enumerators explain the aims and objects of the investigation and also remove
the difficulties which any respondent may feel in understanding the implications
of a particular question.

This method is very useful in extensive enquiries and can lead to fairly
reliable results.

It is, however, very expensive and is usually adopted in investigations

conducted by governmental agencies or by some organizations. Population
census all over the world is conducted through this method
 DATA COLLECTION
PRIMARY DATA - METHODS

Advantages:

 This method ensures honest and objective study

of the problem

 The data collected is more valid, reliable and

complete.

 Detailed information is available and facts can

be verified on the spot. This improves the quality

of research work.

 Data collected from respondents are uniform in

character.
DATA COLLECTION
PRIMARY DATA - METHODS

Disadvantages:

 It is an expensive and time consuming method of

data collection. Here, well trained and experienced

interviewers are necessary for data collection. This
is costly. Small firms cannot use this method

 This method is totally dependent on the sincerity

and honesty of enumerators. Research work will

suffer if they are not sincere, honest and
hardworking in their data collection work.

 Respondents may biased

REFERENCES
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 DATA COLLECTION
PRIMARY DATA - ADVANTAGES

 Specific Relevance: Primary data can be designed to provide precisely the information

needed for a specific research question or objective. This allows for targeted data
collection.

 Up-to-date: Primary data is typically more up-to-date than secondary data since it can

be collected in real-time. This is especially important in fast-paced markets or industries.

 Control: During primary data collection, researchers have full control over the data

collection process, including sample selection, question types, and data collection
methods. This enables better quality control and data validity.
 DATA COLLECTION
PRIMARY DATA - ADVANTAGES

 Adaptability: Researchers can tailor data collection methods to suit their specific needs,

whether through surveys, interviews, observations, or experiments. This allows

flexibility in capturing different types of information.

 Uniqueness: Since primary data is collected exclusively for the specific research

project, it is typically unique and not available to competitors. This can provide a
competitive advantage.

 In-Depth Insights: Primary data often allows for deeper insights into the behavior,

attitudes, and preferences of the target audience. This can help make more informed
decisions.
 DATA COLLECTION
PRIMARY DATA - ADVANTAGES

 Context Understanding: Primary data collection allows researchers to better

understand the context and circumstances under which the data was gathered. This is
important for interpreting the results correctly.

 Research Continuity: In some cases, primary data collection can serve as a foundation

for future research and enable continuous data collection to track trends over time.
 DATA COLLECTION
PRIMARY DATA - LIMITATIONS

1) More Paper work

Primary data collection involves lot of paper work.

It requires to prepare questionnaire for collection of data.

Also lot of paper work is required in processing of data

which involves editing, coding, classification and tabulation
of data.

But due to internet and computer, this limitation has been

reduced.
 DATA COLLECTION
PRIMARY DATA - LIMITATIONS

2) Costly

It is expensive to collect primary data as compared to

secondary data.

It requires to provide training to field staff to collect data.

After collecting data it is required to be further processing.

It may also require computer and software for data

analysis which add to the cost.
 DATA COLLECTION
PRIMARY DATA - LIMITATIONS

3) Problem of sample design

Primary data collection requires sample selection from the

population.

The sample selected may not be true representative of the

population under study.

It is difficult to select the proper sample of respondents,

especially when the universe is large and covers a large area.

Wrong sample selection may result into collection of wrong

data and decision making may go wrong.
 DATA COLLECTION
PRIMARY DATA - LIMITATIONS
4) Time Consuming

The primary data collection involves a lot of time and

effort on the part of researcher.

It requires to prepare questionnaire, collection of data,

data processing and analyzing and then finally conclusion
is drawn.

So the decision making may be delayed.

 DATA COLLECTION
PRIMARY DATA - LIMITATIONS

5) Biasness of respondents

The respondents may not give correct responses.

They may provide information which may not be true.

It is difficult to collect certain sensitive information such as

salary, investment, property etc.

To tackle such situation and make respondents to give correct

response, questions needs to be framed in such a way which
requires high expertise on the part of researcher.
 DATA COLLECTION
PRIMARY DATA - LIMITATIONS

6) Biasness of researcher

There is a possibility of researchers bias.

The researcher may fill the questionnaire on his own, or he

may record the answers as he wants.

This is possible especially when the field staff is not much

interested or motivated in research activity.
 DATA COLLECTION
PRIMARY DATA - LIMITATIONS
7) Processing of Data

There are certain problems in processing in data.

When there are two or more editors, there are chances that different editors may edit differently, thus affecting
the quality of research findings.

Also, there can be errors in coding, classification and tabulation of data which can affect the quality of research
work.
 DATA COLLECTION
PRIMARY DATA - LIMITATIONS

8) Problem of non-response

In certain type of researchers, the researcher may face the

problem of non-responses.

Some illiterate and even literate people are not ready to

give responses.
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 DATA COLLECTION
SECONDARY DATA - SOURCES

A) Internal Sources

Data available from sources within the company are

called internal sources of secondary data.

Such data can be collected easily and quickly from

the old records and files available within the Within the
organization itself. Company
 DATA COLLECTION
SECONDARY DATA - SOURCES

A) Internal source of secondary data

- Old statistical records and correspondence - Sales invoices, sales force reports, complaint analysis

- Accounting data - Financial records

- Production statistics - Departmental budgets, and reports

- Old research and survey reports - Periodical progress reports of different departments

Internal source of secondary data collection are extremely economical and are of immense value to the researcher.

Internal sources of secondary data are easily available for quick reference.
 DATA COLLECTION
SECONDARY DATA - SOURCES

B) External Sources of Secondary Data

Internal sources provide substantial information to the researcher.

External sources are used when internal records are not adequate or do not provide the required information
readily.

Information for research purpose is provided by the following external sources:

Outside the
Company
 DATA COLLECTION
SECONDARY DATA - SOURCES
1) Trade Journals

Trade journals are published regularly for the information

and guidance of business community.

They collect and publish commercial information regularly.

Some journals even conduct surveys and publish the data

collected.

Companies can subscribe to suitable journals and use the

information published therein.

Eg. ‘Business Today’, ‘Business India’ etc. Even business

newspapers (Eg. Economic Times) publish varied information
on industrial, financial and economic matters.
 DATA COLLECTION
SECONDARY DATA - SOURCES

2) Subscription Services

Some commercial organizations collect and supply

information on particular subject regularly to its subscribers.

Interested companies should pay the subscription fees

periodically and in return they get required information in a
compact form which can be used for research purpose.

Eg. www.indiastat.com
 DATA COLLECTION
SECONDARY DATA - SOURCES

3) Publications of Trade Associations and Chambers of Commerce

These association collect and supply trade information to their members

through journals, special reports, booklets and other publications.

These associations maintain reference libraries for the benefit of their

members and researchers where Indian as well as foreign journals are made
available for reference purpose.

In India, Export Promotion Councils also publish data on export trade.

 DATA COLLECTION
SECONDARY DATA - SOURCES

4) Publications of Bank and Financial Institutions

Banks and financial institutions and stock exchanges,

publish information on financial matters through their
annual reports and other publications.

In India, RBI publishes information on all aspects of Indian

economy regularly.

Such publications provide reliable statistical information to

researchers.
 DATA COLLECTION
SECONDARY DATA - SOURCES

5) Company Records

Public Limited Companies publishes their annual

reports and financial statements which contain
information about their activities.
 DATA COLLECTION
SECONDARY DATA - SOURCES

6) Specialised Libraries

In cities like Mumbai and Delhi, specialized libraries

are available.

They provide whatever information is required

by researchers.

Even the libraries of foreign embassies are useful for

data collection on commercial matters.
 DATA COLLECTION
SECONDARY DATA - SOURCES

7) Government and International Organization Publications

Government departments, public corporations and other government

agencies publish information of varied nature through their
publications.

Census reports are also published by the government after every

10 years.

Such reports provide details and valuable information to researchers.

Along with this, international agencies like IMF, WTO, World Bank,
UNCTAD, FAO and other agencies of United Nations publish useful
information on trade, finance and other global economic matters.
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 DATA COLLECTION
SECONDARY DATA - ADVANTAGES

1) It is economical. It saves effort and expenses.

2) It is time-saving.

3) It helps to make primary data collection more specific since with the help of
secondary data, we can make out what are the gaps and deficiencies and what
additional information needs to be collected.

4) It helps to improve the understanding of the problem.

5) It provides a basis for comparison of the data that is collected

 DATA COLLECTION
SECONDARY DATA - LIMITATIONS

1) Problem of Accuracy

The information and data may not be accurate. The source of the data must always be checked.

Different websites may provide different data and the data provided on certain websites is not accurate and is
without any reference.

The researcher should extract the data from websites like National Information Centre (NIC) which has authentic
data.

Data
 DATA COLLECTION
SECONDARY DATA - LIMITATIONS

2) Outdated Data

The secondary data maybe old and outdated.

Such data may not give desired result to the researcher.

This is true in case of many Government departments

where old data is available.

Recent data is not available which may be required by the

researchers.
 DATA COLLECTION
SECONDARY DATA - LIMITATIONS

3) Insufficient Data 2020

At times, the secondary data may be accurate and

reliable, but the data may be insufficient to solve the
current research problem.

The secondary data may not provide complete data to

solve research problem.

Therefore, the researcher needs to collect the data from

primary sources as well to solve the research problem.
 DATA COLLECTION
SECONDARY DATA - LIMITATIONS

4) Problem in Decision Making

Secondary data can be general and vague and may not

really help companies with decision making.

This is because; the data may be inaccurate, insufficient

and unreliable.

Therefore, the decisions made purely on the basis of

secondary data would bring poor outcomes.
 DATA COLLECTION
SECONDARY DATA - LIMITATIONS

5) Problem of Specific Data

The secondary data may be more general in nature rather

than specific.

The researcher needs specific data to solve specific

problems.

Eg. If researcher wants information on the disposable

income of people, and he/she gets data on the gross income
of people.
 DATA COLLECTION
SECONDARY DATA - LIMITATIONS

6) Biasness

The secondarily collected data is usually collected by

someone else than the one who uses it.

Hence, generally the secondary data is biased in the favor

of one who collected it and might not necessarily meet with
the requirements of another researcher.
 DATA COLLECTION
SECONDARY DATA - LIMITATIONS

7) Less Flexible

Secondary data collected is less flexible.

It cannot be changed as per requirement of a research.

NOT
On the other hand, primary data can obtain by modifying
questions as researcher wants.
 DATA COLLECTION
SECONDARY DATA - LIMITATIONS

8) Not suitable for certain researches

Secondary data may not be suitable to certain types of

researches where face to face meeting or conversation is
required.
REFERENCES

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 DATA COLLECTION
SECONDARY DATA - USES

 A particularly good collection of data already exists.

 You are doing a historical study – that is, your study begins
and ends at a particular point in time.

 You are covering an extended period, and analyzing

development over that period – a longitudinal study.

 The unit that you are studying may be difficult, or simply

too large, to study directly.

 You are doing a case study of a particular

organization/industry/area, and it is important to look at the
relevant documents.