2nd Assignment

The Methods of collecting primary data for research in business

ALLAMA IQBAL OPEN UNIVERSITY

(Department of Business Administration)
Assignment # 2
BUSINESS RESEARCH METHOD (524)

Topic: THE MEHODS OF COLLECTION PRIMARY DATA

FOR RESEARCH IN
BUSSINESS.

Submitted to: SIR. QAIMDIN SAHTO

SB.
Roll # 508192645
Cell # 03028496300 Submitted by: ZAFAR IQBAL
 2nd Assignment
The Methods of collecting primary data for research in business

ACKNOWLEDGEMENT

All praises to Almighty Allah, the most Gracious, the most Beneficent and the most
Merciful, who enabled me to complete this assignment.

I feel great pleasure in expressing my since gratitude to my teacher, for his

guidance and support for providing me an opportunity to complete a productive
research study of my topic

“THE MEHODS OF COLLECTION PRIMARY DATA FOR RESEARCH

IN BUSSINESS”.

My special thanks and acknowledgments to Mr.Muhammad Suhail for providing me

all relative information, guidance and support to compile the practical study at
Procter and Gamble Pakistan.

I will keep my hopes alive for the success of given task to submit this report to my
honorable teacher Mr.QAIMDIN SAHTO SB, whose guidance; support and
encouragement enable me to complete this assignment.
 2nd Assignment
The Methods of collecting primary data for research in business

EXECUTIVE SUMMARY
This assignment is a research-oriented activity, which represents both the
theoretical and practical implication of the topic. In the first section of this
assignment, I explain the theoretical aspect of the topic and all major parts has
been explained which are involved in the method of collecting primary data for
research in business in business research. For empirical study, I select Procter and
Gamble Pakistan. and compare their ways of the method of collecting primary data
for research in business instruments.
 2nd Assignment
The Methods of collecting primary data for research in business

Introduction to Topic:
Business research is a systematic inquiry that provides information to build
business decisions. Before starting any sort of business, the businessman needs
certain information about the product, people and market. The purpose of
research is to collect primary and secondary data required for making certain
decision and analysis.
In this context we will emphasize on Primary Data Collection Methods.

Primary Data:
Data that have been originally collected and have not undergone any sort of
statistical treatment, are called Primary data. The detailed study of Primary Data
Collection methods is discussed below

Methods of Collecting Primary Data

Some important methods of primary data collection are as under:

1. Direct Personal investigation/Observation.

2. Interviews
3. Questionnaires
4. Collection through Enumerators
5. Collection through Local Sources
6. Registration

1.Direct Personal Investigation:

In this method, an investigator collects the information personally from the
individual concerned. Since he interviews the informants himself, the
information collected is generally considered quite accurate and complete. This
method being very costly and time consuming is employed only in laboratory
experiments or localized inquiries. It is not practicable for an extensive field of
inquiry as the field cannot be covered within a reasonable amount of time
and without errors due to personal shortcomings of the investigator.
 2nd Assignment
The Methods of collecting primary data for research in business

Observation is found in almost all research studies, at least at the exploratory

stage. Such as data collection is known as simple observation. Its practice is not
standardized, as one expect, because of the discovery nature of exploratory
research. The decision to use observation as the major data collection method
may be made as early as the moment the researcher moves from research
questions to investigative questions. The latter specify the outcomes of the study.
If the study is to be something other than exploratory, steamily observation
employs standardized procedures, trained observers, schedules for recording, and
other devices for the observer that mirror the scientific procedures of other
primary data methods.

Types of Observation
Direct Observation

Observing some actual event, or action and noting its details

Indirect Observation

Event has been done but just sec traces of an action or event. Traces mean the
remaining of that event.

Structured Observation
When observations is focused on one item / aspect of action or event, then it
known as structured Observation

Unstructured Observation

When Observation is focused on multi items/ aspects of the action. & Event or
when you are observing each and every thing then it is known as unstructured
observation. The strength of observation as a data collection method includes:

(1) Securing information about people or activities that cannot be

derived from experiments or surveys.
(2) Avoiding respondent filtering and forgetting.
(3) Securing environment context information
(4) Optimizing the naturalness of the setting
(5) Reducing obtrusiveness.
 2nd Assignment
The Methods of collecting primary data for research in business

Observation may be limited by:

(1) The difficulty of waiting for long periods to capture the relevant
phenomena.
(2) Expense of observer costs and equipment.
(3) The reliability of inferences from surface indicators.
(4) The problems of quantification
(5) Limitations to prevent activities and inference about
Cognitive processes.

2.Interviews
The interview has proven to be an almost universal selection tool. The interviewer
asks questions to interviewee. The interviews can follow some predetermined
pattern wherein both the questions and the expected responses are identified (a
situational interview). Interviews can also be designed to create a difficult
environment in which the applicant is “put to the test” to assess his or her
confidence levels. These are frequently referred to as the stress interview.
In an interview, since the analyst (interviewer) and the person
interviewed meet face to face, there is an opportunity for flexibility in eliciting
information. The analyst is also in a position to observe the subject. In contrast,
the information obtained through a questionnaire is limited to the subject’s
written responses to predefined questions.

MODES OF DATA COLLECTION THROUGH:

INTERVIEWS
Interview can be conducted through various modes.
 Face to face interview.
 On-line interview.
 Telephonic interview.

There are four primary advantages of the interview:

Its flexibility makes the interview a superior technique for exploring areas where
not much is known about what questions to ask or how to formulate questions.
 2nd Assignment
The Methods of collecting primary data for research in business

1. It offers a better opportunity than the questionnaire to

evaluate the validity of the information gathered. The interviewer can observe not
only what subjects say but also how they say it.

2. It is an effective technique for eliciting information about

complex subjects and for probing the sentiments underling expressed opinions
3. Many people enjoy being interviewed, regardless of the
subject. They usually cooperate in a study when all they have to do is talk. In
contrast, the percentage of returns to a questionnaire is relatively low: often less
than 20 percent. Attractively designed questionnaire that are simple to return,
easy to follow and presented in a context that inspires cooperation, improves the
return rate.

The major drawback of the interview is the long preparation time. Interviews
also take a lot of time to conduct, which means expense of time and money. So
whenever a more economical alternative captures the same information, the
interview is generally not used.

The Effectiveness of Interviews:

Interviews are typical part of any business research method. Although
interviews are typical part of every business research process, but reliability and
validity of interviews is generally low. Despite its popularity, the interview is
expensive, inefficient, and often not business related. More specifically, a review
of the research has generated the following conclusions.

1. Prior knowledge about the business can help in conducting

effective interview.

2. The interviewer often holds a stereotype of what represents a

“good” about that business.

3. Negative information is given unduly high weight.

4. The interviewer may forget much of the interview’s content within

minutes after its conclusion.

5. Structured and well-organized interviews are more reliable.

6. Interview is most valid tool of studying the environment for

business.

7. It also helps in determining business that it will be fit or not in this

environment.
 2nd Assignment
The Methods of collecting primary data for research in business

The Art of Interviewing:

Interviewing is an art. Few analysts learn it in school, but most of them develop
expertise through experience. The interviewer’s art consists of creating a
permissive situation in which the answers offered are reliable. Respondent opinion
is offered with no fear of being criticized by others. Primary requirements for a
successful interview are to create a friendly

atmosphere and to put the respondent at ease. Then the interview proceeds with
asking questions properly, obtaining reliable responses, and recording them
accurately and completely.

Arranging the Interview:

The interview should be arranged so that the physical location time of the
interview, and order of interviewing assure privacy and minimal interruption.
Usually a neutral location that is non-threatening to the respondent is preferred.
Appointments should be made well in advance and a fixed time period adhered to
as closely as possible. Interview schedules generally begin at the top of the
organization structure and work down so as not to offend anyone.

Guides to a Successful Interview:

Interview should be approached as logically as programming. In an interview, the

following steps should be taken:
1. Set the stage for the interview.
2. Establish rapport; put the interviewee at ease.
3. Phrase questions clearly and succinctly.
4. Be a good listener; avoid arguments.
5. Evaluate the outcome of the interview.

Interviewer error:

Interviewer error is also a major source of response bias. From the introduction to
the conclusion of the interview, there are many points where the interviewer’s
control of the process can affect the quality for the data. There are three
different kinds of error concerning the interview techniques just
discussed.
1. The simple loses credibility and is likely to be biased if interviewers
do not do a good job of enlisting respondent cooperation.
 2nd Assignment
The Methods of collecting primary data for research in business

2. The precision of survey estimates will be reduced and there will be

more error around estimates to the extent that interviewers are inconsistent in
ways that influence the data.
3. Answer may be systematically inaccurate or biased when
interviewers fail to appropriately train and motivate respondents or fail to
establish an appropriate interpersonal setting for reporting what is called for.

3. Questionnaires
In contrast to the interview, the questionnaire is a term used for almost any tool
that has questions to which individuals respond. It is usually associated with self-
administered tools with items of the closed or fixed alternative type.

MODES OF DATA COLLECTION THROUGH

QUESTIONNAIRES.

 Self-Administered Questionnaires:
The data are collected by enumerator through self- administered
questionnaire. The enumerator is a qualified and well trained person
in the field of data collection who also guides the respondent how to
answer the given questions while filling the questionnaires. However,
it is a costly method of data collection and also needs trained and
qualified staff. Surveys conducted by the C.B.R. during the
“Documentation of Economy” in the year 2000 are a typical example
of use of self administered questionnaire in data collection.
 Mail Questionnaires:
Some times questionnaires are delivered by postal service or a
courier service. Mail questionnaires are typically cost effective than
personal interviews. In the mail questionnaires, respondent can take
more time to collect facts, talk with others, or consider reply. Its
drawback is non response and less return.
 E-Mail Questionnaires:
It is the time of information technology. Use of electronic media is
easy, cheaper and fastest mode of communication. In this type of
 2nd Assignment
The Methods of collecting primary data for research in business

information method a questionnaire is sent to a number of persons

through mail and response is also obtained via E-Mail.

ADVANTAGES OF QUESTIONNAIRES

1. It is economical and requires less skill.

2. A questionnaire can be administered to large numbers of individuals

simultaneously.

3. Uniformity of questions.

4. Due to anonymity the respondents feel greater confidence because they

give opinions without fear that the answer will be connected to their names.

5. The questionnaire places less pressure on respondents for immediate

responses

DISADVANTAGES OF QUESTIONNAIRES.

1. Low percentage of return.

2. Many people find it difficult to write and they prefer to speak.

3. Questionnaires involve a process which is time-consuming.

Types of Interviews and Questionnaires

Interviews and Questionnaires vary widely in form and structure. Interviews range
from the highly unstructured, where neither the questions nor the respective
responses are specified in advance to the highly structured alternative in which
the questions and responses are fixed. Some variation within this range is
possible.

The Unstructured Alternative

The unstructured interview is a relatively nondirective data gathering techniques.
It allows respondents to answer questions freely in their own words. The
responses are spontaneous rather than forced. They are self-revealing and
personal rather than general and superficial. The role of the analyst as an
interviewer is to encourage the respondent to talk freely and serve as a catalyst
 2nd Assignment
The Methods of collecting primary data for research in business

to the expression of feelings and opinions. This is best achieved in a permissive

atmosphere in which the subjects have no feeling of disapproval.

The Structured Alternative

In the structured approach, the questions are presented with exactly the same
wording and in the same order to all subjects. If the analyst asks a subject,
“Would you like to see a computerized approach to solving your accounts
receivable problem?” and asks another subject, “ how do you feel about
computers handling accounts receivable?” the response may not be the same
even though the subject both have the same opinion. Standardized questions
improve the reliability of the responses by ensuring that all subjects are
responding to the same questions.
Structured interviews and questionnaires may differ in the amount of
structuring of the questions. Questions may be either closed or open ended.

OPEN ENDED QUESTION

An open-ended question requires no response direction or specific response. In a
questionnaire, it is written with space provided for the response.

CLOSE ENDED QUESTION

Closed ended questions are those in which the responses are presented as a set
of alternatives.

MAJOR TYPES OF CLOSED QUESTIONS

1. Fill-in-the-blanks questions request specific information. These

responses can then be statistically analyzed.
2. Dichotomous (Yes/No Type) questions that offer two answers. These
have advantages similar to those of the multiple-choice type. The problem is
making certain that a reliable response can be answered by yes or no; otherwise
an additional choice (e.g. yes, no, I don’t know) should be included. The question
sequence and content are also important.
3. Ranking scales questions ask the respondents to rank a list of items in
order of importance or preference.
4. Multiple choice questions offer respondents specific answer choices. This
offers the advantages of faster tabulation and less analyst bias due to the order in
which the answers are given. Respondents have a favorable bias toward the first
alternative item. Alternating the order in which answer choices are listed may
reduce bias but at the expense of additional time to respond to the questionnaire.
 2nd Assignment
The Methods of collecting primary data for research in business

In any case, it is important to be aware of these types of bias when constructing

multiple-choice questions.
5. Rating scales questions are an extension of the multiple-choice design.
The respondent is offered a range of responses along a single dimension.

Procedure for Questionnaire Construction

The procedure for constructing a questionnaire consists of six steps.

1. Define the problem to be investigated.
2. Decide what type of questionnaire (Closed or Open-ended) should be
used.
3. Outline the topics for the questionnaire and then write the questions.
4. Edit the questionnaire for technical defects or biases that reflect
personal values.
5. Pretest (try out) the questionnaire to see how well it works.
6. Do a final editing to ensure that the questionnaire is ready for
administration. This includes a close look at the content, form, and sequence of
questions as well as the appearance and clarity of the procedure for using
questionnaire.

A critical aspect of questionnaire construction is the formulation of reliable and

valid questions. To do a satisfactory job, the analyst must focus on question
content, wording, and format. The following is a checklist of what to consider:

Question Content:
a. Is the question necessary? Is it a part of other questions?
b. Does the question adequately cover the area intended?
c. Does the respondent have proper information to answer the question?
d. Is the question biased in a given direction?
e. Is the question likely to generate emotional feelings that might lead to
untrue responses?

Question wording:
a. Is the question worded for the subject’s background and experience?
b. Can the question be misinterpreted? What else could it mean to a
respondent?
c. Is the frame of reference uniform for all respondents?
d. Is the wording biased toward a particular answer?
e. How clear and direct is the question?

Question Format:
 2nd Assignment
The Methods of collecting primary data for research in business

Can the question best be asked in the form of check answer (answered by a word
or two or by a number) or with a follow-up free answer?

a. In the response form easy to use or adequate for the job?

b. Is the answer to the question likely to be influenced by the preceding
question? That is, is there any contamination effect?

4 .Collection through Enumerators:

In this method, information is collected through trained enumerators. They assist
the informants in filling the schedules or answer the questionnaires. This method,
although accurate, but is costly. So private individuals, organizations and
institutions cannot adopt this method. This is useful when data are collected on
very large scale e.g. population census. If the enumerators are not properly
trained, they may not get full information required for research. People may
hesitate to tell them the whole truth. e.g. when a life insurance sales
representative approach to potential customer, sales rep. have to collect some
specific information which are the requirement for selling life insurance policy.

5 . Collection through Local Sources:

In this method, there is no formal collection of data but the agents or local
correspondents are directed to collect and send the required information, using
their own judgment as to the best way of obtaining the required information. This
method is cheap and expeditious, but gives only the estimates. In Pakistan,
Department of Agriculture, Newspapers and Radio Pakistan collect information
about daily market prices through this source.

7. Registration:
The government authorities can also manage to collect data by arranging
registration of events. For example, Municipal committees and corporations
prepare records about deaths and births in the cities through registration of births
and deaths at registrations centers in various localities. As in USA, registration of
the others country’s citizens are declared compulsory for getting the information
about the non- citizens of specific. In this method, generally public it approaches
for registration. It is cheap method for collection of data.
 2nd Assignment
The Methods of collecting primary data for research in business

PRACTICAL STUDY
Procter and Gamble is one of the leading consumer goods companies in the
world. Founded in 1837 in Cincinnati, Switzerland. P&G last year achieved $40
billio n in the sales and $4.2 billion in net earnings. 110,000 employees produce
market and sell around 300 brands in more than 140 countries. The company's
objective is to

" Im p r o vt eh el i v e so f w o r ldc’so n s u m e r s "

History

Procter & Gamble started its operations in Pakistan in 1991 with live goal of
becoming the finest global local consumer goods company operating in Pakistan. With
 2nd Assignment
The Methods of collecting primary data for research in business

commitment came growth, and in 1994 we acquired a soap-manufacturing facility, a

sprawling 7-acre land at Hub, Baluchistan. With a recent strategic investment of 5 million
dollars, the bar soap production capacity jumped three-fold. P&G Pakistan is
headquartered in Karachi.

Since (he inception of P&G Pakistan, we have always committed ourselves to

business growth, consumer satisfaction, and community development. Thanks to our
committed base of employees, customers, vendors, stakeholders, and above all,
consumers, today we are one of the most thriving operations in Pakistan. We proudly
celebrate being a part of the Pakistani way of life.

Looking back we arc proud, that we have accomplished a lot already. Ariel has
changed the quality of life. With less effort than eve Pakistani enjoy best possible cleaning
performance. Head & Shoulder, Pantene, Pert and recently Ascent help all Pakistani men
and women to enjoy beautiful, shiny hair without any dandruff. Pampers lets Pakistani
babies sleep during the night so they develop better, always allows, Pakistani's women to
carry on with their normal lifestyle, whey they need extra protection, Safeguard kills the
germs which might otherwise causes illness, pimples or body odor, Camay and oil of Olay
make Pakistani's woman look even more

beautiful and Vicks Vaporous gives Pakistani's relief when they arc bothered with a cold.

Product Information
Some of their product information is given below:
 2nd Assignment
The Methods of collecting primary data for research in business

CORPORARE SECTOR
As a company we have always believed in the potential
Pakistan has as a country and a nation to develop and excel. No
wonder P&G Pakistan, within the last ID years, has reinvested over
$100 million in Pakistan and has contributed close to seven billion
rupees to the Pakistani government's revenues over the last 5 years
in the form of sales tax. Customs and excise duties. That is also why
99% of the jobs that P&G Pakistan creates in Pakistan are held by
Pakistanis.

All this makes P&G a more locally involved company than

man companies actually headquartered in Pakistan

Use Head & Shoulders!

The good news is that dandruff car. be fought and even prevented.
Head & Shoulders has a new line of shampoos, 2 in 1 formulas and
conditioners to help you fight dandruff and leave your hair
manageable and looking great. Proctor ct (iambic using three
methods for collecting primary data, this type of work given to
 2nd Assignment
The Methods of collecting primary data for research in business

t he di ff erent agencies by the company for research purposes.

Then company R&D department makes decisions upon them.
Market Position
• Largest company in Pakistan engaged in consumer products.
• Has captured the enough market ratios in the consumer
Products.
• Playing major role to enhancing the living standard of
human
being.

I met with Mr. Asher (Unit Manager) IBL. IBL is the sole distributor
of the Procter & (iambic, along with other companies like Gillette.
IBL is situated at Plot No 331, Indus tria l area H-9, Islamabad.
They distribute the products of the company to the whole sellers /
traders. I discussed with Mr. Suhail upon the company research &
development department, he said these task are given to the
third agencies (Aftab & Co. Karachi) to carried the research work
on t he be ha lf of the company and their results are analyzed by
the company's RD for the fu rt he r decisions. Some how the
company is using primary data collection method, which are
following:-
Observations
Surveys (Questionnaires)
Mysterious shopping

My research report contains two types of methods

(i) Observation.
(ii) Questionnaire
 2nd Assignment
The Methods of collecting primary data for research in business

OBSERVATIONS
When an observation is focused on one item / aspect of
action or event, then it known as structured
Observation. I have visited following department stores
and found the direct structured observation about the
particular item Head &. Shoulder shampoo; data are
showed in the tabular form under below.

Departmen Location No. No. No. No.

tal
Store Name Showca of
of Showcas of
showca of
showca
for for displayi displayin
g
all
articles PC;
Competit ng
r&c II&S
articles articles items
Esa Jee
Departmental Sadder
store Rawalpindi 1 5.00 2.00 2.50 1.00
Main CSD
CSD Near
Lal kurti, Rwp 2 5 .0 0 100 150 2.00
BestDay Dept Blue Area

Store Islamabad. 20.00 2.50 3.00 1 .50

 2nd Assignment
The Methods of collecting primary data for research in business

This survey regarding my research report on "Methods of primary data

collection''. Your answers would be valued and your opinions are
welcome. Please tick one of the given choices. Thanks for your co-
operation.

Name:

Age:

Occupation / qualification:

Location:

Gender:

Questionnaires
1) You prefer hair-washing using?
a Soap
b. Shampoo
2) Which brand do you use in hair washing?
a Head & Shoulder
b. Pantene
c Sunsilk
d Lifebuoy
e Any others ————————
3) Wihch brand of Head & Shoulder you prefer to use
a Red
 2nd Assignment
The Methods of collecting primary data for research in business
b Black
c Green
d Blue
e Any Other Brand
4) Why you adopt this product by convening through
a Friends
b Advertisement
c Need
d Any others —————

5) Why you use your brand for

a Hair Softness
b Hair shinning
c Look nice/ smart
d Healthiness
e All of them
6) Do you change your brand
a Yes
b No
7) Are you satisfied from your using brand's performance?
a Yes
b No
c If no please give your reasons
 2nd Assignment
The Methods of collecting primary data for research in business

I have distributed this questioner among 10 persons, the analyses of these

questions arc under below, presented though pie chart for more and quick
view of each question. Questionnaire Result & analyses.
Q1 70% sample space using shampoo.

Preference of Hair Washing

70%

Q2 60% of shampoo user capture by Procter & (iambic, among of them

50% of Head & Shoulder.

Q3 Preference of Head & Shoulder's Brand

Q4 Convinced through different sources.

Q5 Purpose of using sample space's choice.

 2nd Assignment
The Methods of collecting primary data for research in business

CONCLUSION
Surveys are more efficient and economical than observation. Information
can be gathered by new well chosen questions that would take much more
time and effort to gather by observation. In this research report 1 used
both of them primary source of collecting data (Observation & Questioner).
Observation method shows PG has captured 50% of market share but
survey (questioner) shows about 60% of market share of PG, particularly in
shampoo's consumer among them 50% are using Head & Shoulder that
Procter & Gamble claim the same ratios market share, therefore survey
method result is more near to the company's claim.