Chapter2:

Collection of Data
Business Statistics
Lecturer Tahmina Sultana
Dept. of management studies, FBS

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 Topic or questions
1. Types of data.
2. Primary data: Definition, Example,
Advantages, disadvantages
3. Secondary data: Definition, Example,
Sources, Advantages, disadvantages
4. Difference between primary and secondary
data.
5. Methods of primary data collection:
Qualitative and quantitative

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6. Observation method: Definition, Example,
Advantages, disadvantages
7. Mail questionnaire: Definition, Example,
Advantages, disadvantages
8. Interviewing: Definition, Example,
Advantages, disadvantages
9. Illustrate all types of interview methods
with definition, example, advantages,
disadvantages.
10. Qualitative data collection techniques

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Types of data:
Statistical data depending upon the sources
are of two types
 Primary data
 Secondary data

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 Primary data: The data which are originally
collected by an investigator or an agent for the
first time for the purpose of statistical enquiry
are known as primary data.
Example: An investigator wants to study the salaries
of teachers working in the campuses. Then the data
collected for this purpose by the investigator
himself or with the help of his representative, are
primary data.
Advantages of primary data:
 Degree of accuracy is quite high.
 It does not require extra caution.
 It depicts the data in great detail.
 Primary source of data collection frequently
includes definitions of various terms and units
used. 5
 Secondary data:
Data which are originally collected but
obtained from some published or unpublished
sources are “secondary data”.
Example: The reports and publications made
by Bangladesh Bureau of Statistics are primary
for that organization but secondary for those
who use it.

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Usually published data are available in
 Various publications of the central, state and local
governments;
 Various publications of foreign governments or of
international bodies and their subsidiary
organizations;
 Technical and trade journals;
 Books, magazines and newspapers;
 Reports and publications of various associations
connected with business and industry, banks, stock
exchanges, etc;
 Reports prepared by research scholars, universities,
economists etc. in different fields.
 Public records and statistics, historical documents,
and other sources of published information.
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Unpublished data
 The sources of unpublished data are
many; they may be found in diaries, letters,
unpublished biographies and
autobiographies
 The data may be available with scholars
and research workers, trade associations,
labor bureaus and other public/private
industrials and organizations.

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 Advantages of using secondary data
 Readily available: Secondary data are readily available.
 Low cost of data collection: It is cheaper to collect
secondary data than primary data.
 Saves time: It saves time of the researcher.
 Accuracy of data: In some cases, secondary data can
be more accurate than primary data. For example:
Census.
 Substantial role in exploratory phase of research: For
any kind of research, secondary data plays a
substantial role in the explanatory phases of research.
 Helping in defining population: Another benefit of
secondary data is that it helps to define the
population. 10
 Disadvantages of secondary data
 Inability to meet researcher’s need: Secondary data may
not be able to meet the needs of the researchers.
 Lack of reliability of data: Another limitation of
secondary data is that, its reliability is always questioned.
 Out dated information: As our environment is changing
rapidly, it makes the previous information out dated
which is also another major limitation of the secondary
data.
 Variation in definition of terms: A researcher has to be
careful while using secondary data regarding the
definition used in the secondary data. The definitions of
the terms used in secondary data are defined by third
parties to fulfill their needs; it may not fulfill the need of
the secondary users.
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 Measurement error: A researcher
conducting fieldwork may be able to
estimate the error that occurred in the
measurements.
 Source bias: Another limitation of secondary
data is that the sources of collecting data
may be questioned by all. Thus, it may
become unusable.
 Lack of verifiability: one major limitation of
secondary data is that the accuracy of the
data can’t be verified by the researcher.

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Difference between primary and
secondary data.

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 Methods of primary data collection
Methods of collecting quantitative primary data:

The primary data are collected from the original

source, e.g., if we want to collect data on the
expenditure of the employee of Square Pharmaceutical
Ltd., we have to go to the employees of Square
Pharmaceutical Ltd. The methods of obtaining the
primary data about a group of people can be classified
in many ways. The various methods with which the
primary data can be collected are as follows:

 Observation
 Mail questionnaire
 Interviewing
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(a) Observation
 Observation is such a method where we have to
use eyes rather than ears or voice. This method is
called the classic method of scientific enquiry. In
this method the observer s hares the life and
activities of the desired com munity. He/she
always cares what is going all around and
supplements his knowledge by conversions,
interviews and studying records.
 For example, if we want to collect information
about the food habit of the Ra khaing sects than
observation method would be suitable.

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Observation

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 Advantages
 If the respondent is not able to provide
information or exact information, then
observation method is suitable. For example, if
we want to study on a group of young
children, then observation is the only method
to prefer.
 In the cases where there lies greater chance of
getting wrong information, we may use this
method.
 This method is very useful in natural sciences.

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Disadvantages/limitations

 The scope of observation method is so

limited.
 This method is very time consuming and
needs lot of labor.
 The information provided by this method is
very limited.
 Sometimes unforeseen factors may interfere
with the task.
 Some people are rarely accessible to direct
observation create obstacles.

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 Mail questionnaire
 The mail questionnaire is a method where a set of questions
is sent by mail to the respondents. A covering letter is sent
also along with the questionnaire with an earnest request that
they might reply correctly, honestly and within the due time.
For better response, the investigator (or researcher) may
send self addressed stamped envelope.

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Merits/Advantages:

 There is low cost even when the universe is large and is

widely spread geographically.
 This is free from the problems associated with the use of
interviewers.
 It is free from bias of the interviewer.
 Respondent have adequate time to give well through o
 The questions which are embarrassing in nature are suitable
to asked by mail questionnaire.
 Many times, we need information concerning several
members of a household then it is better to use mail
questionnaire rather personal interview.

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 Demerits/Limitations:
 The mail questionnaire method is considerable only when the
questions are simple and easy to understand as well as
respondent are educated and cooperating.
 This is inappropriate method where spontaneous answers are
needed.
 When a mail questionnaire the surveyor cannot be sure that
the right person has completed the questionnaire.
 Before filling a certain question, the respondent can see all the
questions. Therefore, different questions cannot be treated as
independent.
 Question may be not sufficient comprehensible for respondent.
It is not possible to make him understand with mail
questionnaire.
 Low rate of return of the duly filled up questionnaire is often
indeterminate.

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3. Interviewing
Interviewing is the method of achieving
information from the respondents, in where
the information is gained by a conversation
between interviewer and respondent. The
information through interview might be
achieved by various ways. Some of them are:

 Telephone interview
 Indirect inquiry
 Personal interview

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 Telephone interview
 In telephone interview a conversion is
happened between the interviewer and
respondent. This is a quicker method. By this
method we can easily determine the
popularity of any TV channel or newspaper
or the likes. This method is although easy and
cheap, but not reliable in the countries like
Bangladesh.

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Merits/Advantages:
 It is more flexible and faster in comparison to other method.
 There is high rate of response. The non-response is generally
low.
 Representative and wider distribution of sample is possible.
Demerits/Limitations:
 It is necessary for every respondent to have telephone.
Moreover, telephone interview is expensive in developing
countries.
 The questions should be simple, and the number of questions
should be less.
 It is not suitable for intensive surveys where comprehensive
answers are required to various questions.
 Possibility of the bias of the interviewer is more.

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Indirect inquiry:

The indirect inquiry method is different

from telephone or personal interview. In
this method the interviewer does not
question the respondent, rather he asks to
the neighbors to have the answers.
For example, if we want to know the
information about the terrorists in Dhaka
city then we have to use this method.
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Merits/Advantages:
 This is a cheap method in terms of time
and money.
 For qualitative data collection this is a
suitable method.
Demerits/Limitations:
 The respondent may answer incorrectly,
or he/she be unable to response correctly
for lack of knowledge.
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Personal interview:
Personal interview is the most widely used
method for primary data collection. In this
method the interviewer ask questions from
a prior printed schedule or the interviewer
can offer the respondent a questionnaire
that should be filled the respondent. In both
the cases he/she may help to the
respondent to realize the questions
completely.

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Merits/Advantages:
 If there be any complicated questions, it’s
hardly any matter in personal interview.
Here, the interviewer can help the
respondents to understand the questions.
 In this method, the chance of having wrong
information is less.
 The scope of enquiry can be widely spread
in personal interview.
 When the respondents are illiterate even
then this method is suitable.
 Here, is hardly any chance of non-response.
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Demerits/Limitations:
 This is an expansive method when large and widely
spread geographical sample is taken.
 If the interviewer is not well-trained we may have
wrong information.
 It is largely dependent on the quality of the interviewer.
 The presence of interviewer on the spot may over-
stimulate the respondent.
 Certain types of respondents such as high officials or
executive may not be easily approachable.

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 Qualitative data collection method

Unstructured/in- Focus group Observation Document study

depth interview discussion method

Content analysis

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 Unstructured/in-depth interview
In-depth interviews are a guided, open-ended
discussion with a single respondent. Interviewers
lead respondents through a structured topic
guide that addresses key issues of interest. In-
depth interviews are appropriate for executives,
geographically dispersed groups and people who
would not feel comfortable speaking openly in a
group (e.g., business competitors).
In the US in-depth interviews are typically
conducted by telephone. In the Middle East, Latin
America and some Asian countries in-depth
interviews are typically conducted in-person.
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 Focus group discussion (FGD):
 A focus group is a small group of six to ten
people led through an open discussion by a
skilled moderator. A focus group interview is
an unstructured interview. It encourages
dialogue among respondents. Hence a focus
group interview is flexible in nature. The
characteristics of a focus group are as follows:

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1. Recommended size of the sample group is 6 - 10
people as smaller groups may limit the potential on
the amount of information collected, and more may
make it difficult for all participants to participate and
interact and for the interviewer to be able to make
sense of the information given.
2. Several focus groups should be used in order to get a
more objective and macro view of the investigation.
i.e., focusing on one group may give you idiosyncratic
results. The use of several groups will add to the
breadth and depth of information. A minimum of three
focus groups is recommended for best practice
approaches.
3. Members of the focus group should have something in
common which is important to the investigation.
4. Groups can either be put together or existing groups -
it is always useful to be mindful of the group dynamics
of both situations.
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 Observation method:
 Observation method refers to a technique
involving systematically selecting, watching and
recording the behavior and characteristics of
people’s objects and phenomena. The
technique qualifies as a scientific method of
data collection when it is specially designed to
answer a research question and is
systematically planned and executed with
proper controls. Most often, observational
method is used for explanatory studies.
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The roles of observation are as
follows:
 Certain aspects that cannot be qualified for
example, social behavior; can directly be
interpreted by observation.
 Information what is happened is obtained, i.e., in
the case where people exaggerate or hide
information, observation is essential.
 When interventions are providing no control
then study can be conducted by observation.
 In biological study when the researchers have no
option to interview the animals or children, they
need to depend on observation.

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 Document study:
By document we mean any written materials
that contain information about the phenomenon
we are interested to study. The primary
documents are the eyewitness accounts written
by people who experienced the particular event
or behavior. Secondary documents are those
compiled by people who were not present on
the spot bur received the information. Most
documents are written primarily for some
purpose other than research. The documents
incorporated in a diary, for example, are in most
cases spontaneous and thus reflect the author’s
instant feeling and observation.
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 Content analysis:
 Content analysis is a research technique for
the objective, systematic and quantitative
description of the content of communication.
The unit of analysis may be words (different
words used in the message), characters
(individuals or objects), themes and time
measures (duration and length of the message).
The results of content analysis can generally be
presented in tables containing frequencies or
percentages. For example, the frequency of
appearance of tribal women and members of
other minority groups in mass media may be
studied using content analysis.
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Thank
you
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