DEBRE BERHAN UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF ECONOMICS

CHAPTER SIX: DATA COLLECTION

SOLOMON ESTIFANOS

FEBRUARY, 2024
1 DEBRE BERHAN, ETHIOPIA
Types and Sources of Data
 The task of data collection begins after a research problem has
been defined and research design chocked out.

 Data are records of the actual state of some measurable

aspect of the universe at a particular point in time.

 Data are not abstract; they are concrete, they are

measurements or the tangible and countable features of the
world.

 In general, data could be quantitative (expressed in numerical

form) or qualitative (expressed in the form of verbal
descriptions rather than numbers).
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 When choosing whether to collect quantitative or qualitative
data, the following factors need to be considered:
The purpose for which the data is required:
o Quantitative data is necessary if one requires a high
degree of precision or to perform statistical analysis,
o Qualitative data is useful for providing a detailed or
bright impression of the issue or characteristic
concerned.
The subject matter:
o Some kinds of subject matter (e.g. Production, export
levels, prices, imports, income, etc.) are relatively
easily presented in numerical form,
o While others (e.g. Attitude to a new product, religious
beliefs, etc) tend to be more appropriately presented in
qualitative form.
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The method of data collection:
 The collection of quantitative data is based on statistically
designed survey procedures,
 While the collection of qualitative data relies primarily on
detailed observation or interview.

The method of data presentation:

 Qualitative data can often be ‘translated’ into a quantitative
form if it can be ‘scaled’ in some way;
 For example, information on attitudes can be grouped into
categories (e.g. strongly agree, agree, neutral, disagree,
strongly disagree) which can then be subjected to statistical
analysis.

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 Depending on the source, the type of data collected could be
primary or secondary in nature

❖Primary Data: are those which are collected as fresh and for the
first time, and thus happen to be original in character.
o Its advantage is its relevance to the user, but it is also likely to be
expensive in time and money terms to collect.
❖Secondary Data: are those which have already been collected by
someone else and which have already been passed through the
statistical process.
o It is information extracted from an existing source, probably
published or held on a computer database.

o For this reason it may not precisely meet the needs of the
secondary user. However, it is less expensive and time-
consuming to obtain.
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 Collection of Primary Data
 Primary data can be collected through experimentation in
experimental research or through surveys,
❖ Experiment: is a special form of research, which sets out to examine the
relationship between two factors by manipulating one whilst measuring
changes in the other.
✓ Two types of experiments: Field & laboratory experiments.
✓ Experimentation is a means of obtaining data with relatively
high precision in measurement of the variables.
❖Survey: refers to the method of securing information concerning a
phenomenon under study from all or a selected number of
respondents of the concerned universe.
✓ The investigator examines those phenomena which exist in the
universe independent of his action.
✓ Survey designs can be cross-sectional and longitudinal
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 Cross-sectional Survey: collects data at one time. The researcher
can generalize findings from such one-shot studies to the sampled
population only at the time of the survey.

 Longitudinal Survey: takes place over time with two or more data
collections and has the benefit of measuring change over time. The
following are the types of longitudinal surveys:
I. Trend Survey: is a longitudinal survey in which a general
population is studied over time. Usually the population is
sampled and random samples are measured.
II. Cohort Survey: is a longitudinal survey in which a specific
population is studied over time.
III. Panel Survey: is a longitudinal survey in which the same
sample is measured two or more times. The samples can
represent either a specific or a general population.
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 Survey includes several methods of collecting primary data such as
• observation,
• interview,
• questionnaires, and
• other methods.

Observation Method
 The most commonly used method of data collection especially,
in behavioral studies.
 This method could be used both for;
 Cross checking information obtained using other methods and
 Understanding processes which are difficult to grasp in an
interview context.
 This method is useful when studying subjects who are not
capable of giving verbal reports of their feelings for one reason
8or another.
Advantages of Observation Method:
 Subjective bias is eliminated, if observation is done accurately

 The information obtained relates to what is currently happening; it

is not complicated by either the past behavior or future intentions
or attitudes
 It is independent of respondents’ willingness to respond i.e. it do
not demand active cooperation on the part of respondents

Limitations of Observation Method :

 Expensive

 The information obtained is limited

 Sometimes unforeseen factors may interfere with the observational

task.
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Types of Observation:
1. Structured Observation: the observer has
o A clear definition of the units to be observed,
o The style of recording the observed information,
o The selection of the pertinent data of observation,
2. Non-Structured Observation: the opposite of what is
mentioned under structured observation
❖ Depending on the nature of the observer, we can classify
observations into three basic forms:
A. Secretive - where the subjects of the study are unaware that they
are being observed
B. Non-Participant - where the subjects of the study are aware that
they are being observed but the observer takes no part in the
behavior being observed.
C. Participant - when the subject and the observer interact.
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 Interview Method
 The interview method of collecting data involves presentation
of oral-verbal stimuli and reply in terms of oral-verbal
responses.
This method can be used through
 Personal interviews and,
 Telephone interviews

 Personal Interviews: This method requires a person

(interviewer) asking questions in a face-to-face contact to the
interviewee. It can take two forms:
 Structured interview and
 Unstructured interview
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A. Structured Interview:
 Involves the use of a set of predetermined questions and highly
standardized techniques of recording.
 The interviewer follows a rigid procedure laid down, asking
questions in a form and order prescribed.

B. Unstructured Interviews:
 Characterized by a flexibility of approach to questioning.
 Much greater freedom to ask, in case of need, supplementary
questions or at times to omit certain questions if the situation so
requires.
But this sort of flexibility results;
 Lack of comparability of one interview with another and
 The analysis of unstructured responses becomes much more
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difficult and time consuming
Advantages of Personal Interviews:
 More information and in greater depth can be obtained
 The interviewer by his own skill can overcome the
resistance, if any, of the respondents
 There is greater flexibility especially in case of unstructured
interviews
 Personal information can be obtained easily
 Samples can be controlled effectively as there arises no
difficulty of missing returns; non-response generally
remains very low
 The language of the interview can be adopted to the ability
or educational level of the person interviewed
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Weaknesses of Personal Interview:
 It is very expensive, specially when large and widely spread
geographical sample is taken
 The possibility of the bias of interviewer as well as that of
the respondent
 Certain types of respondents may not be easily
approachable (eg. Important officials or executives, people
in high income groups)
 It is relatively more time consuming

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 Telephone Interviews: consists in contacting respondents on
telephone itself. It is not a widely used method, but plays important
part in industrial surveys, particularly in developed countries.

Merits Demerits
 It is faster than other methods  Little time is given to respondents
 It is cheaper than personal for considered answers
interview method; the cost per  Surveys are restricted to
response is relatively low respondents who have telephone
 Recall is easy; callbacks are facilities
easy and economical  It is not suitable for intensive
 Replies can be recorded surveys where comprehensive
without causing answers are required
embarrassment to respondents  Questions have to be short and to
 No field staff is required the point; probes are difficult to
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 Data Collection through Questionnaire

 This method is quite popular, particularly in case of big

inquiries. Example: Service evaluations of hotels, restaurants,
transportation providers, and other service providers
 In a mail survey, a questionnaire can also be sent (usually by
post) to the persons concerned with a request to answer the
questions and return the questionnaire.
 A questionnaire consists of a number of questions printed or
typed in a definite order on a form or set of forms.
 The questionnaire is mailed to respondents who are expected to
read and understand the questions and write down the reply in
the space meant for the purpose in the questionnaire itself.
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 Merits and Demerits of Data Collection through Questionnaire

Merits Demerits
 It is free from the bias of  It can be used only when respondents
the interviewer; answers are educated and cooperating
are in respondents’ own  The control over questionnaire may
words be lost once it is sent
 Respondents have adequate  There is inbuilt inflexibility because
time to give well thought of the difficulty of amending the
out answers approach once questionnaires have
been dispatched
 Respondents who are not
 There is also possibility of
easily approachable can
ambiguous replies or omission of
also be reached replies altogether to certain questions
conveniently
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Essentials of a Good Questionnaire
 Questionnaire should be comparatively short and simple
 Questions should proceed in logical sequence moving from
easy to more difficult questions
 Personal questions should be left to the end
 Technical terms and vague expressions capable of different
interpretations should be avoided
 Questions may be dichotomous (yes or no answers), multiple
choice (alternative answers listed), or open-ended (inviting
free response)
 Open ended questions are often difficult to analyze and hence
should be avoided in a questionnaire to the extent possible.
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Case Study Method

 It is a method of in depth study rather than in breadth.

 Under case study, more emphasis is given on the full

analysis of a limited number of events or conditions and
their interrelations.
 It is an intensive and comprehensive investigation of the
particular unit under consideration.
 The objective is to locate the factors that account for the
behavioral patterns of the given unit as an integrated
totality.

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 Case Study Con’t . . .
Characteristics of case study method:
 A researcher can take one single social unit or more of such units
for his study purpose
 The selected unit is studied intensively, i.e. in minute details
 A researcher has to make complete study of the social unit
covering all facets
 The approach happens to be qualitative and not quantitative
 The effort is to know the mutual interrelationship of causal
factors
 The behavioral pattern of the concerning unit is studied directly
and not by an indirect and abstract approach
 It results in fruitful hypothesis along with the data which may be
helpful in testing them, and thus it enables the generalized
20 knowledge to get richer and richer.
 Case Study Con’t . . .

Major phases involved in case study:

1. Recognition and determination of the status of the
phenomenon to be investigated or the unit of attention
2. Collection of data, examination and history of the given
phenomenon
3. Diagnosis and identification of causal factors as a basis
for remedial or development treatment
4. Application of remedial measures or treatments
5. Follow-up program to determine effectiveness of the
treatment applied.
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 Collection of Secondary Data
 The use of existing data (secondary data) in a research activity is
termed as desk research. Sources of Secondary data are:
 Different Central Statistical Authority Publications;
 Different Publications by Regional Governments;
 Various publications by the different Ministries;
 Publications of the National Bank of Ethiopia;
 On-line and Electronic Data Bases;
 Reports and publications of various associations, business
organizations, etc
 Various publications of international, multilateral and non-
governmental Organizations for instance, IMF, WB, UNDP
 Report of research scholars and consultants;
 Historical documents, archives, maps, photographs, letters,
biographies, autobiographies, diaries, textbooks, periodicals;
22  Popular media (Newspapers, magazines, Radio and television).
 Researcher must be very careful in using secondary data. The
researcher, before using secondary data, must see that they possess
the following characteristics:
1. Reliability of Data: reliability can be tested by answering
questions like who collected them. What were the sources of data?
What methods were used to collect them? At what time were they
collected? How they were analyzed etc.
2. Suitability of Data: Data must be evaluated whether they could
serve for another purpose other than the one for which they were
collected. This should be seen in terms of definitions of various
terms and units of collection used at the time of collecting the data
from primary source originally. Similarly, the object, scope and
nature of the original inquiry must also be studied.
3. Adequacy of Data: This should be done in terms of area coverage,
23 level of accuracy, number of respondents, etc.
 Selection of Appropriate Method for Data Collection
 There are various methods of data collection. As such the researcher
must judiciously select method/methods for his own study, keeping in
view the following factors:
1. Nature, Scope and Object of Inquiry: This factor is also important
in deciding whether the data already available (secondary data) are
to be used or the data not yet available (primary data) are to be
collected.
2. Availability of Funds: When funds at the disposal of the researcher
are very limited, he will have to select a comparatively cheaper
method which may not be as efficient and effective as some other
costly method.
3. Time Factor: Some methods take relatively more time, whereas
with others data can be collected in a comparatively shorter duration.
4. Precision Required: each method of data collection has its uses and
none is superior in all situations but we have to select the one
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resulting greater precision.
References in Use

 C.R. Kothari. 2004. Research Methodology: Methods and Techniques.

Second Revised Edition.

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