Unit-III Data Collection

UNIT - III DATA COLLECTION

Types of data – Primary Vs Secondary data –

Methods of primary data collection – Survey Vs
Observation – Experiments – Construction of
questionnaire and instrument – Validation of
questionnaire – Sampling plan – Sample size –
determinants optimal sample size – sampling
techniques – Probability Vs Non–probability sampling
methods.
 TYPES OF DATA

Primary Data Secondary Data

PRIMARY DATA
Primary data are those which are

collected afresh and for the first time

and thus happen to be original in
character.
SECONDARY DATA
Secondary data are those which have

already been collected by someone

else and which have already been
passed through the statistical process.
METHODS OF PRIMARY DATA
COLLECTION
The primary data is collected during the

course of doing experiments in an

experimental research.
In case of descriptive research the
primary data can be obtained through
observation or through direct
communication with respondents.
Experiment
An experiment refers to an investigation in

which a factor or variable under test is

isolated and its effect(s) measured.
In an experiment the investigator measures

the effects of an experiment which he

conducts intentionally.
There are several methods of collecting

primary data, particularly in surveys and

descriptive researches. Important ones are:
(i) Observation method,
(ii) Survey method
(a) Interview method,
(b) Questionnaire method,
(c) Schedule
 Observation Method
Observation involves recording the
behavioral patterns of people, object,
and events in a systematic manner to
obtain information about the phenomenon
of interest.
Under the observation method, the
information is sought by way of
investigator’s own direct observation
without asking from the respondent.
For instance, in a study relating to
consumer behaviour, the investigator instead
of asking the brand of wrist watch used by
the respondent, may himself look at the
watch.
 While using this method, the researcher
should keep in mind things like:
What should be observed?

How the observations should be recorded?

Or
How the accuracy of observation can be

ensured?
 Methods of observation
1. Structured and unstructured
observation :
 structured observation is used when the

research problem has been formulated

precisely and the researcher is told to
observe the area of study.
Unstructured observation implies that

the researchers are free to observe

whatever they feel relevant and
judicious.
2. Disguised observation:

The subjects or informants do not know

that they are being observed.

This is preferred as it is feared that people

may behave differently when they know

somebody is observing them.
3. Observation under natural setting and
laboratory setting:
Observations in field studies are in their

natural setting and are studied in extremely

realistic conditions.
Observational studies in laboratory setting

enable prompt collection of data.

4. Direct and indirect observation:
In direct observation, the behavior of
person is observed
Indirect observation implies that same
record of past behavior is observed.
5. Human and mechanical observation:
Most of the research in marketing research

are based on human observations.

In some cases, mechanical devices such

as eye cameras and audiometers are used

for observation.
Surveys
Survey refers to the method of
securing information concerning a
phenomena under study from all or a
selected number of respondents of the
concerned universe.
 TYPES OF SURVEY

1. Consumer survey – to asses the

particular market and the attitude of

consumers
2. Trade survey – interviewing people in the

distribution channels and trade associations

3. Consumer panel – Pre-recruited group of

consumers who have agreed to participate in

market research studies

4. Retail audit – Gets information from the

 Interview Method
Interview is a meaningful interaction between
interviewer and interviewee.
Interview is a conversation between two or more

people where questions are asked by the interviewer

to obtain information from the interviewee.
 Interview Method
This method can be used through personal interviews

and, if possible, through telephone interviews.

(a) Personal interviews:

Personal interview method requires a person known

as the interviewer asking questions generally in a

face-to-face contact to the other person or persons.
This sort of interview may be in the form of direct

personal investigation or it may be indirect oral

investigation.
(b) Telephone interviews:

This method of collecting information consists in

contacting respondents on telephone itself.

The chief merits of such a system are:

1. It is flexible in comparison to mailing method.

2. It is faster than other methods i.e., a quick way of

obtaining information.

3. Replies can be recorded without causing

embarrassment to respondents.
Questionnaire
The term questionnaire usually refers to

a self-administered process where the

respondent himself reads the question
and records his answers without the
assistance of the interviewer.
 The questionnaire method
This is the simplest and most often used method of

primary data collection

There is a pre-determined set of questions in a

sequential format
Is designed to suit the respondent’s understanding

and language command

Can be conducted to collect useful data from a large

population in a short duration of time

 Construction of questionnaire
and instrument
Determine what information wanted

Determine the type of questionnaire to use

Personal interview

Mail interview

Telephone interview
• Determine the content of individual
questions
• Determine the type of question to use

Open – ended questions

Close – ended questions

Dichotomous

Multiple response

Scales
 Type of questions

Question Content

Open – ended Closed - ended

Dichotomous Multiple Scales

Responses
 Ty pe of ques tions

Open ended questions:

 What is your age?

 How would you evaluate the work done by the present government?

 How much orange juice does this bottle contain?

 What is your reaction to this new soft drinks?

 Which is your favorite TV serial?

 What training programme have you last attended?

 With whom in your work group do you interact with after office hours?
 Type of questions

Closed ended questions

1. Dichotomous questions

 Are you diabetic? Yes / No

 Have you read the new book by Dan Brown? Yes/no

 What kind of petrol do you use in your car? Normal/Premium

 What kind of cola do you drink? Normal/diet

 Your working hours in the organization are fixed/ flexible

 Ty pe of ques tions

Closed ended questions

2. Multiple choice questions

How much do you spend on grocery products

(average in one month)?

- Less than Rs. 2500/-

- Between Rs 2500-5000/-
 More than Rs 5000/-
Deciding on wording of questions

Use simple words

Avoid ambiguity in questioning

Decide on question sequence

 Basic information

 Classification information

 Identification information
Decide on length of questionnaire
Pre-test
Final draft
Validation of questionnaire
1. Content validation:

 It refers to face validity

 Comparing the questionnaire with other similar

questionnaire

2. Sampling validation:
 A large sample size can ensure low sampling

errors
3. Empirical validity:
It examines the survey results by comparison with

other studies
 SCHEDULES
Schedule is an instrument in research

It contains questions and blank tables which are to be

filled in by the investigators themselves after getting

information from the respondents.
According to Goode and Hatt, “Schedule is that name

usually applied to a set of questions which are asked

and filled in by an interviewer in a face-to-face
situation with another person”.
 Criteria for questionnaire design
The spelt out research objectives need to

be converted into specific questions

It must be designed to engage the
respondent and encourage meaningful
response
The questions should be designed in

simple language and be self-explanatory

 COLLECTION OF SECONDARY
DATA
 Secondary data means data that are already available

i.e., they refer to the data which have already been

collected and analyzed by someone else.
Secondary data may either be published data or

unpublished data. Usually published data are available

in:
(a) various publications of the central, state are local
governments

(b) various publications of foreign governments or of

international bodies and their subsidiary organizations

(c) technical and trade journals

(d) books, magazines and newspapers

(e) reports and publications of various associations

connected with business and industry, banks, stock
exchanges
(f) reports prepared by research scholars,
universities, economists, etc. in different fields and

(g) public records and statistics, historical

documents, and other sources of published
information.

(h) Libraries

(i) Advertising Agencies

SAMPLING PLAN
 Sampling Concepts

Population
Population refers to any group of people or objects

that form the subject of study in a particular survey

and are similar in one or more ways. It may be finite
or infinite

Ex:
Population of books in the National Library

Population of Nationalized Banks in India

Sample
 It is a subset of the population. It
comprises only some elements of the
population.

Sampling
It is the process of obtaining information

about an entire population by examining only

a part of it.
Element (Sampling unit): An element comprises

a single member of the population.

Sampling frame: Sampling frame comprises all

the elements of a population with proper

identification that is available to us for selection at
any stage of sampling.
Census (or complete enumeration): An
examination of each and every element of the
population is called census or complete
enumeration.
 Advantages of Sample over
Census
Sample saves time and cost.

A decision-maker may not have too much of time to wait

till all the information is available.

There are situations where a sample is the only option.

The study of a sample instead of complete enumeration

may, at times, produce more reliable results.

A census is appropriate when the population size is small.
 Sampling vs Non-Sampling Error
Sampling error: This error arises when a sample is not

representative of the population.

Non-sampling error: This error arises not because a

sample is not a representative of the population but because

of other reasons. Some of these reasons are listed below:

 Plain lying by the respondent.

 The error can arise while transferring the data from the

questionnaire to the spreadsheet on the computer.

There can be errors at the time of coding,

tabulation and computation.

Population of the study is not properly

defined

Respondent may refuse to be part of

the study.
 SAMPLING PLAN
Define the Universe
The target population must be defined precisely.

It involves translating the problem definition into a

precise statement of who should and should not

be included in the sample.
Sample frame
A list containing all sampling units of a population

is known as sampling frame.

It involves a definite location, a boundary

Specifying the sampling units

The sampling unit is the basic unit containing the

elements of the population to be sampled

Eg: city blocks, households, a business
organization
For ex: Revlon wanted to assess consumer response
to a new line of lipsticks and wanted to sample
females over 18 years of age. It may be possible to
sample females over 18 directly, in which case a
sampling unit would be same as an element.
Alternatively, the sampling unit might be households.
In later case, households would be sampled and all
females over 18 in each selected household would be
interviewed.
Selection of sample design
Probability Sampling Design - In a probability

sampling design, each and every element of the

population has a known chance of being selected in
the sample.
Non-probability Sampling - the elements of the

population do not have any known chance of

being selected in the sample.
Determination of sample size
The size of the sample size has direct

relationship with degree of accuracy desired

in investigation
Select the sample
Execute the actual sampling process.

It is the actual selection of the sample

elements.
 SAMPLE SIZE
The sample size of a statistical sample is the number

of observations that constitute it.

 Determination of Sample Size
The size of the population does not influence the size of the
sample

Methods of determining the sample size in practice:

Researchers may arbitrary decide the size of sample
without giving any explicit consideration to the accuracy of
the sample results or the cost of sampling.
The total budget for the field survey in a project proposal
is allocated.
Researchers may decide on the sample size based on
what was done by the other researchers in similar
studies.
 Determination of Sample Size
Confidence interval approach for determining the size
of the sample

The following points are taken into account for

determining the sample size in this approach.

The variability of the population: Higher the variability as

measured by the population standard deviation, larger

will be the size of the sample.
The confidence attached to the estimate: Higher

the confidence the researcher wants for the

estimate, larger will be sample size.

The allowable error or margin of error: Greater

the precision the research seeks, larger would be

the size of the sample.
 Determination of Sample Size
Sample size for estimating population mean -
The formula for determining sample size is given
as:

Where

n = Sample size
σ = Population standard deviation
e = Margin of error
Z = The value for the given confidence interval
Determination of Sample Size
Sample size for estimating population proportion –
1. When population proportion p is known

2. When population proportion p is not known

 Sampling Design
Probability Sampling Design - Probability sampling
designs are used in conclusive research. In a probability
sampling design, each and every element of the
population has a known chance of being selected in the
sample.
Types of Probability Sampling Design
1. Simple random sampling

 Every element in the population has a known and

equal chance of being selected.

 Ex: there are 1000 elements in the population, and

we need a sample of 100.

 Suppose we were to drop pieces of paper in a hat,

each bearing the name one of the elements, and

draw 100 of those from the hat with our eyes
closed.
We know that the first piece drawn will have a 1/1000

chance of being drawn, the next one a 1/999 chance

of being drawn and so on.
This sampling has least bias and most
generalizability.
2. Systematic (methodical, orderly) sampling

It involves drawing every ‘n’th element in the

population starting with a randomly chosen element
between 1 and n.

Ex: if we want a sample of 35 households from a

total population of 260 houses in a particular

locality, then we could sample every 7th house
starting from a random numbers from 1 to 7. Let us
say that the random number is 7, then the houses
numbered 7,14, 21, 28, and so on.
3. Stratified random sampling

There may be identifiable subgroups of elements within

the population that may be expected to have different

parameters on a variable of interest to the researcher.

Ex: to the HRM Director interested in assessing the

extent of training that the employees in the system

feel they need, the entire organization will form the
population for the study.
But the extent, quality, and intensity of training

desired by middle level managers, lower-level

managers, first line supervisors, computer analysts,
clerical workers and so on will be different for each
group.
Knowledge of the kinds of differences in needs that

exist for the different groups will help the director to

develop useful and meaningful training programs for
each group in the organization.
Stratified sampling as the name implies, involves a

process of stratification or segregation, followed by

random selection of subjects from each stratum.
The population is first divided into mutually exclusive

groups that are relevant, appropriate and meaningful in

the context of the study.
Some examples: studying customers on the basis of

life stages, income levels and the like to study buying

pattern and stratifying companies according to size,
industry, and profit and so forth to study stock market
reactions.
4. Cluster sampling
Ad hoc organizational committees drawn from various

departments to offer inputs to the company president to

enable him to make decisions on product development,
budget allocations, marketing strategies and the like
are good examples of clusters.

Cluster samples offer more heterogeneity within groups

and more homogeneity among groups.
 Sampling Design
Non-probability Sampling Designs - In case
of non-probability sampling design, the
elements of the population do not have any
known chance of being selected in the
sample.
Types of Non-Probability Sampling Design

1. Convenience sampling

 It refers to the collection of information from

members of the population who are conveniently

available to provide it.
Ex: Pepsi Challenge contest was administered on a

convenience sampling basis.

Such a contest, with the purpose of determining

whether people prefer one product to another product,

might be held at a shopping mall visited by many
shoppers. Those inclined to take the test might form the
sample for the study of how many people prefer Pepsi
over Coke. Such a sample is a convenience sample.
2. Purposive sampling

 Instead of obtaining information from those who are readily

or conveniently available, it might sometimes become

necessary to obtain information from specific target
groups.

 The sampling here is confined to specific types of

people who can provide the desired information.

 This type of sampling design is called purposive

sampling.
Purposive Sampling is of two types:

 Judgmental sampling

 Judgment sampling involves the choice of

subjects who are most advantageously in the best
position to provide the required information.
For instance, if a researcher wants to find out what it

takes for women managers to make it to the top,

the only people who can give first hand information
are the women who have risen to the positions of
presidents, vice presidents and important top
level executives in work organizations.
 Quota sampling

 Quota sampling is a second type of sampling

 Generally, the quota fixed for each subgroup is based on

the total number of members in each group in the

population.

 For instance, it may be surmised that the work attitude of

blue-collar workers in an organization is quite different

from that of white-collar workers.
 If there are 60% blue-collar workers and
40% white-collar workers in this
organization, and if a total of 30 people are
to be interviewed to find answer to the
research question, then a quota of 18 blue-
collar workers and 12 white - collar workers
will form the sample, because these numbers
represent 60% and 40% of the sample size.
3. Snowball sampling
 Snowball sampling or chain sampling is a non-probability

sampling technique where existing study subjects recruit

future subjects from among their acquaintances.
END OF CHAPTER