Research Method in Accounting &

Finance

CHAPTER 5

SOURCE OF DATA AND DATA

COLLECTION METHODS

By: Mohammed G (MSc, Assistant professor)

Nov., 2023
Jimma, Ethiopia
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 Introduction
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 Data can be define as the quantitative or

qualitative value of a variable (e.g. Such as
numbers, images, words, figures, facts or
ideas).
 It is a lowest unit of information from
which other measurements and analysis
can be done.
 Data is one of the most important and vital
aspect of any research study.
 What is Data Collection?
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It is the process by which the

researcher collects the
information needed to answer the
research problem.

The task of data collection begins

after a research problem has
been defined.
 In collecting the data, the researcher must
decide:
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 Which data is to collect?

 How to collect the Data?

 Who will collect the Data?

 When to collect the Data?

 The Purpose of Data Collection
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 Methods of Data Collection
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Essentialy Two Types:

 PRIMARY DATA
Primary data are those which are collected
for the first time and are original in
character.

 SECONDARY DATA
Secondary data are those which have
already been collected-by someone else.
Primary Data v/s Secondary Data
 Methods of Collecting Primary Data
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Primary
• Observation
Data • Surveys
may be • Interviews
collected • Questionnaires
through: • Schedules
 1. Observation Method
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 Observation method is a method under which

data from the field is collected with the help
of observation by the observer or by
personally going to the field.
 Data collection
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 The process of gathering raw facts or evidence about

a subject of interest in a systematic way, that enables
one to answer stated research questions and evaluate
outcomes.

 It can also be defined as gathering of information

(figures, words or responses) that describes some
situation from which conclusions can be drawn.

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 Data collection methods
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 Data-collection methods allow us to systematically

collect information about our objects of study (people,
objects) and about the settings in which they occur.
 Data collection tools are instruments that are used hand
in hand with the data collection methods to
collect/retrieve data.
 To avoid confusion in the use of terms, the following
table points out the distinction between techniques and
tools applied in data collection.

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 Data Collection Techniques and Tools
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Techniques Tools
• Administering written • Questionnaire.
questionnaires.

• Interviewing • Interview guide, checklist,

tape recorder.
• Observation • Eyes and other senses,
pen/paper, microscope.
• Using available information • Check lists, data compilation
forms.
 Approaches to data collection
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 There are two major approaches to gathering information about

a situation, person, problem or phenomenon.

 Sometimes, information required is already available and need

only to be extracted.

 However, there are times when the information must be

collected fresh from field.

 Based upon these two broad approaches to information

gathering, data in scientific research are categorized as;
 Types of data
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 There are two types of data that are collected and analyzed in
research endeavors. These are:
 Secondary data

 Primary data

 Secondary data: Data that previously may have been collected for

other purposes but can be used in the immediate study.

 Examples of secondary sources include the use of population

census data to obtain information on age-sex structure of a

population, use of organizations‘ records, use of hospitals records,
and collection of data from sources such as journals, magazines,
books and other periodicals.
 Primary data
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 Primary data: Raw data that has been originally

collected by the researcher specifically for the study at hand.

 Examples of information from primary sources include;

interviewing community inhabitants to find out their attitudes
towards health services, using questionnaires to determine the
level of job satisfaction of employees in an organization,
observing students behaviors in class etc
 In conclusion, primary sources provide first hand data and
secondary sources provide second hand data.
 Secondary sources of Data
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 Secondary data means data that are already available i.e., they refer to the
data which have already been collected and analyzed by some one else.
Secondary data are collected by others and used by others.
 Any data that has been collected earlier for some other purpose are
secondary data in the hands of an individual who is using them.
Various publications of the central, state, or local government
Various publications of international bodies or their subsidiaries
or foreign governments
Technical or trade journals
Books, magazines and news papers
Reports and publications of various organizations
Reports of research scholars in different fields
Public records and statistics, historical documents and other
sources of published information.
 To do …
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 Discuss the advantages and disadvantages of;

 Primarydata
 Secondary data
 Primary Data
Merits Demerits
Targeted issued are Evaluated cost
addressed Time consuming
Data interpretation is More number of
better resources are required
High accuracy of data Inaccurate feedback
Address as specific Required lot of skill
research issues with labour.
Greater control
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 Secondary Data
Merits Demerits

Quick and cheap  No fulfill our

source of data specific research
Wider geographical needs
area  Poor accuracy
 Data are not up to
Leading to find
primary data date
 Poor accessibility in

some cases
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 Data collection methods
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 The questionnaire
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 A questionnaire is a written list of questions, the answers to

which are recorded by respondents.

 In questionnaire respondents read the question, interpret what is

expected and the write down the answers.

 Unlike an interview guide in which the researcher may explain

the meaning of some questions, in the case of questionnaire,
there is no one to explain the meaning of questions to
respondents.

 Therefore questions in a questionnaire must be clear and easy to

understand.
 Ways of administering a questionnaire
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 A questionnaire can be administered in different ways..

 A mailed questionnaire – one approach to collecting
information is to send the questionnaire to prospective
respondents by mail. Obviously, this method presupposes that u
have access to their address. One of the major problem with this
approach is the low response rate.

 Collective administration – one of the best ways of

administering questionnaires is to obtain a captive audience such
as students in a class room, people attending a function, or people
assembled in one place. This ensures a high response rate as you
will find very few people refusing to participate in your study.
 Contents of a questionnaire cover letter
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 It is essential that you write a cover letter to accompany your

questionnaire. It should very briefly:
 Introduce you and the institution you are representing.
 Describe in two or three lines the main objective of the
study.
 Convey any general instructions.

 Assure respondents of the anonymity of the information

provided by them.
 Provide a contact number incase they have questions.

 Give them a return address for the questionnaire and a

deadline for its return.
 Thank them for their participation.
 Questionnaires…
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Advantages Disadvantages
•Less expensive to administer mostly •Limited application.
if the collective method is used.
•Able to collect information from a •Lack of opportunity to clarify issues.
larger sample
• it offers greater anonymity. •Low response rate.

•It is possible to consult others.

• Spontaneous responses may not be

possible mostly if it’s a mailed
questionnaire.
 Forms of questions in a questionnaire
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 In a questionnaires, questions may be formulated as;

 Closed ended or

 Open ended

 In a closed-ended question, the possible answers are set out

in the questionnaire and the respondent ticks the category
that best describes the respondents answer. E.g.
 Please tick the type of research you would love to undertake.
Applied research Basic Research descriptive research quantitative
 In open ended questions, the possible responses are not given.
The respondent writes down the answers in his/her words. E.g.
 Please explain why you opted for a Bachelors degree in Information technology?
 Considerations in formulating questions
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 The wording and the tone of your question is important because

the information and its quality largely depend upon these factors.

 It is therefore important to be careful about the way you

formulate questions.

 Some considerations to keep in mind when formulating questions

are as follows;
Considerations in formulating questions
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 Always use simple and everyday language. Take extra care to use
words that your respondents will understand as you may no
have the opportunity to explain questions to them. Words like;
“is your family a dipsomaniac” may be hard for respondents to
interpret.

 Do not ask double barrelled questions. A double barrelled

question is a question within a question. E.g. “How often and
how much time do you spend in the computer lab”?
Considerations in formulating questions
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 Do not ask leading questions – these are questions in which, by

their nature, contents, structure or wording leads a respondent to
answer in a certain direction. E.g. “unemployment is increasing at a
very high rate isn’t it” or “smoking is bad isn’t it?”

 The order of questions also matters. Questions should follow a

logical progression based upon the objectives of the study.
 When to use a questionnaire?
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 When resources and money are limited.

 When it is necessary to protect the privacy of the participants.

 When you want to collect data from a relatively bigger

population.

 Etc..
 2 nd Course-work (Individual)
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1 a) Define observation as a primary method of collecting data.

b) Types of observation
c) Problems associated with observation as a method of data collection.
d) Under what circumstances may observation as a method of data
collection be used?
2 a) Define Interview as a primary method of collecting data.
b) Interview classification
c) What criteria should a researcher base on to choose between an
interview schedule and a questionnaire
3 Explain the ethical issues that should be considered by a researcher while
collecting data.
 END OF CHAPTER FIVE

Any Questions

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