Collection of

Data

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 Data are collections of any number of related observations.

Or

Data is aggregate of facts.

“A collection of data is called a data set, and a single observation

a data point”.

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Before relying on any data one should ask the following questions:

1. Where did the data come from?

2. Do the data support or contradict other evidences we have?
3. Is data adequate?
4. Is the result logical?

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Data Collection :

Data

Internal External

Data generated from the Data obtained from the

activities within the firm Sources outside the firm

Primary Secondary

Secondary source is a
Primary source is a source
Source which makes
That itself collects the data
Available Data.
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Primary Data :
Merits :
1. It is original in nature.
2. It is more reliable.
3. It can be used with greater confidence.
4. It is generally free from bias.
5. It exactly matches the need of the project

Demerits :
1. It is expensive.
2. It is time-consuming.
3. Sometimes it is more difficult to approach the source.
4. It usually involves creating new definitions and measuring instruments

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 Secondary Data
Merits

 Readily available
 Less expensive
 Less time consuming

Demerits

 Procedure is not known

 Not relevant in present context
 May not be free from personal bias
 May not be adequate
 Proper care has to be taken

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Methods Of Primary Data Collection

 Direct Personal Interview (or Investigation)

 Indirect Personal Interview (or Indirect investigation)
 Information from correspondents
 Mailed Questionnaires
 Questionnaires filled by enumerators

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Direct Personal Interview Method

Merits

 Original data are collected.

 Uniformity in collection of data.
 Required information can be properly obtained.
 Flexible inquiry.
 More accurate and reliable information.
 Language of communication can be adjusted.
 Supplementary information can be generated.

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Demerits
 This method can be used when the field of enquiry is
small.
 High cost.
 Personal biasness can give wrong results.
 Investigators must be trained and supervised.
 Lengthy and complex.

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Indirect Personal Interview Method:

This method can be adopted in following situations:

a.When the direct source do not exist.
b.When the direct sources can’t be relied upon.
c.When the area of investigation is large.
d.When the direct sources are indifferent on their part.
e.When the expert information is needed.
Examples:
a.Number of people addicted to alcoholic drinks in the area.
b.Used by the commissions and committees appointed by the
government.

In such cases the information is collected by a third person known

as informant or witness.
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The informant is suppose to be a person:
a.Who is not biased or prejudiced.
b.Who must known to the facts of the problem.
c.Who must be capable of answering correctly and giving true
information.
d.Who is not motivated to give colors to the facts.

Merits :
a.This method covers a wide area of investigation.
b.It is more or less free from biasness.
c.It saves labour, time and money.
d.Different aspects of the problem can be studied.
e.Suggestion of the experts can be obtained.

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Limitations :

a.Single witness can not be trusted upon.

b.Can be used by experts only.

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Information from Correspondents :

This method is suitable when,

a.Very high degree of accuracy is not required.
b.Regular and continuous information is required.
c.The area of investigation is large enough.

Merits :

a. Information is received regularly.

b. This method is comparatively cheap.
c. It gives results easily and promptly.
d. It can cover a wide area under investigation.
e. It is particularly useful for special purpose inquiries like
inviting price quotations from different group markets.

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Limitations :

a. In this method original data is not obtained.

b. It gives approximately and rough results.
c. As the correspondent uses his own judgment, his personal
biasness may affect the result.
d. Different attitudes of different correspondents may increase
errors.

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Mail Questionnaire Method :

Merits :
a. It can cover a wide area.
b. The results are not affected by personal biasness.
c. The information is more accurate and reliable.
d. This method is comparatively cheap.
e. It gives results easily and promptly.
f. Sensitive questions can be asked.
Limitations :

a. Low response.
b. Incomplete information.
c. Answers can not be cross-checked.
d. Can not be applied where the informants are illiterate.
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Questionnaire Filled By Enumerators :

Merits :

a. It can cover a wide area.

b. The results are not affected by personal biasness.
c. Doubtful answers can be cross-checked.
d. Can be applied where the informants are illiterate.
e. High response.

Limitations :

a. Expensive.
b. Time consuming.
c. Trained executives are required.
d. Big team is required.
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Questionnaire Design

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Over the years, a lot of thought has been put into the science of the design of
survey questions. Key design principles:

1. Keep the questionnaire as short as possible.

2. Ask short, simple, and clearly worded questions.

3. Start with demographic questions to help respondents get started comfortably.

4. Use dichotomous (yes / no) and multiple choice questions.

5. Use open-ended questions cautiously.

6. Avoid using leading-questions.

7. Pretest a questionnaire on a small number of people.

8. Think about the way you intend to use the collected data when preparing the
questionnaire.
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Collection Of Secondary Data :

Secondary data can be collected in two various ways :

a. Published Sources.

Government publications, Publication of international

organizations, Semi-official publications, Report of
Commissions and committees, Private publications

b. Unpublished Sources.

Thesis, Project Reports, Educational Qualification of an individual,

etc.

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 Data
Measurement

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 The business researcher needs to know the level of data measurement;
represented by the number being analyzed.

The appropriateness of data analysis depends on the level of measurement of the

data gathered.

The phenomenon represented by the number determines the level of data

measurement.

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 Four levels of data measurement ;

Nominal Ordinal

Interval Ratio

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Let us take two numbers 40 and 80 are collected as some data. These numbers may
represent;

80 pounds
Weights of two objects be shipped. 40 pounds
Average = 60
pounds

Which is a better
The rating received on a consumer test. company

Player
Football jersey numbers of two players identification

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 Draft a Questionnaire
 Design a questionnaire on the effect of textile
advertisements on the consumers of textile goods.
We hope you are conscious of the fact that
millions of rupees are spent by textile companies
on the advertisement of their products. This
money forms a part of their cost of production and
is ultimately borne by you. We Wish to find out
whether it is worthwhile to spend so much money
on advertisements which the consumer has to
pay.

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Thank You

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