CHAPTER 2

DATA COLLECTION
Data & Information :
What is Data?
Data is information presented in raw form for further usage. This may
be presented in an unorganized manner which may make no sense at
all until organized properly.
When researchers conduct surveys, they get answers to their
questions via tools like questionnaires. These questionnaires at most
times have options present as “a”, “b”, “c”, etc. When compiled
together these alphabets make no sense on their own till they start
referring to certain situations, answers or conditions.
Data on its own may be of no use till organized properly.
What is Information?
Information is processed data that becomes of use to
someone as raw data on its own does not provide the kind
of information that can be used for beneficial purposes.
Information is meaningful, relevant and helps the user to
develop an understanding of the data that did not provide
any coherence or certainty in what it represented.
When researchers input data and then form correlations
between the data and variables they have, this provides
them with certain relationships between variables that are
known as information.
What is the difference between Data and
Information?
When starting off with any research, data is the
most basic form of input that a researcher
possesses that has no meaning on its own.
Some data needs to be arranged while others
need to be put together with different variables to
show a coherence in results.
Data can be qualitative as well as quantitative which
when arranged provides the user with information that
can be used to gain knowledge or can act as a food for
thought.
In computer language, the data that is entered into the
computer is presented in binary form, which when
arranged gives an output to the user that is of
importance to the user. Such an output is, therefore,
termed as information.
Definition of Secondary Data:
Secondary data are those data which are
collected for some purpose other than the
research problem at hand. That purpose can
be similar or can be of entirely different kind.
Usually, they are collected in past & in many
cases by other people than current research
team.
 Advantages
Secondary data are economical than primary data.
Collecting primary data by either experiments,
observations or by survey methods can be extremely
expensive.
It is more so when wage & salary standards are very
high. Secondary data are sometimes available for
negligible nominal cost. Government data and internal
secondary data are really very economical.
Advantages (contd.)
Collecting secondary data is less time consuming.
Once you locate the right source, there is virtually
no time delay.
Overall mental and physical efforts are less and
hence mangers in the company can concentrate
on their main line responsibilities rather than
working late hours on research & data collection.
Advantages (contd.)
Secondary data are often available in edited and
filtered format. In some cases, those secondary data
were collected for similar purpose.
In that situation, we can get secondary data that are
not only filtered and edited but they are well tabulated
and even already analyzed.
This saves a lot of efforts in the subsequent stages of
data collection.
Advantages (contd.)
Secondary data can be effectively used to
verify authenticity and correctness of
primary data. In fact, correctness of entire
research process can be judged by parallel
analysis of secondary data.
Advantages (contd.)
Secondary data are very useful to conduct exploratory
research. As we have already discussed, initially formal
and detailed conclusive research may not be necessary.
To get the feel of research problem, to understand
exact nature of problem faced by the company, often a
small pilot exploratory research may be necessary.
Secondary data are very effective to do such
exploratory researches.
Advantages (contd.)
Certain types of data are not within the
capabilities of a business organization.
It is not possible that they are freshly
collected as primary data.
For example, census data, data on rain fall in
past 10 years, metal reserves, minerals etc.
Disadvantages
Secondary data can be obsolete. In simple
words, they will lose validity as they are
not recent data. For example, a Telephone
Directory of 2005 can not be considered as
a valid data base in 2015.
Disadvantages (contd.)
Secondary data may not be compatible for our purpose.
Some other persons and organizations for totally different
or somewhat different purposes may have collected it.
Because of that, arrangement and tabulation of data can be
different and analysis of data can be different. We may have
to filter, re-arrange & reprocess entire data. Often, lack of
compatibility is such a big problem that it is not advisable to
use that secondary data.
Disadvantages (contd.)
Often, population can be different. Sometimes,
units of measurement can be different.
For example, we may like to know total annual
family income of various families but secondary
data available is monthly personal income of
various people. Because of this reason, secondary
data should be carefully used.
 Disadvantages (contd.)
Inaccuracy & lack of reliability is another likely
problem of secondary data. Secondary data are
not exclusively collected by research team.
Because of this, it is difficult to judge the accuracy
level. Accuracy of secondary data largely depends
on the source of that data-base. For example, a
Ph.D thesis is likely to be more reliable than an
MBA student’s project report.
Disadvantages (contd.)
Another problem of using secondary data is lack of
completeness. Lack of completeness is because of the fact
that secondary data can not often completely solve a given
business problem. They can answer only “What?“ part & not
“Why? “ part or “How “ part.. For example, from secondary
data, we can say that working capital management is not
proper & it is because Sundry Debtors are not paying in time.
Why this is happening i.e. the reason part can not be
understood from secondary data.
Disadvantages (contd.)
Often, required demographic detailing of population is
absent in secondary data.
For example, in that research on Plasma TV or curved
TV , we may like to know ‘Family Income’ and number
of family members. The reason is that Plasma TV or
curved TV is not a necessity. It is a luxury product &
families with very high income shall only purchase that.
Sources of Secondary Data:
 SECONDARY DATA

INTERNAL DATA EXTERNAL DATA

Ready to use data Data requiring processing

Published data Computerized Database Data selling firms

General Sources Government International Online databases Off-line Databases

Sources Sources
INTERNAL SECONDARY DATA
Internal data are data available within the organization for
which the research is being conducted. It is very common
that many business researches in Finance Management,
Human Resource Management and Production
Management are done using internal secondary data. These
internal data sources are available almost for nothing & in
no time. They are more relevant and its accuracy is
verifiable. Two types :
Data which are ready to use
Data which require further processing
1.Ready to use Internal Secondary
Data:
These data are already processed,
organized, tabulated and verified.
For example, audited balance-sheets
and P&L accounts can furnish very
useful secondary data for Finance
Management related researches.
Similarly, all good organizations have many reports & data on
costing of various products.
All organizations have detailed employment records of all
employees and one can use these data for HR researches.
Similarly, Marketing Department has reports & databases on
sale volumes of various products, historical and current
performances of various sales-men, targets given to them and
actual performances against targets.
Even in absence of need of doing a business
research, almost all good organizations have an
efficient & informative computerized working
environment which is known as Management
Information System (MIS).
This MIS shall automatically generate various
reports at regular intervals. They are meant
mainly for control purpose or for operational
decision making.
2. Internal Secondary data requiring further
processing:
These data are in raw form. They are internally
available but they are not processed, checked and
organized.
For example, bunch of sale invoices of the last
three months contains a lot of details but you
need to process these data. Similarly, the last one
year attendance and timing records can be
processed for a research in HR area.
EXTERNAL SECONDARY DATA SOURCES:
These data are available outside the organization. They are
therefore costlier than internal secondary sources. You also
have to spend time in locating appropriate sources. They are
divided in following three categories.
Published Databases
Computerized Databases
Data Selling Firms (Syndicated services and business research
consultancy firms dealing in data collection, research and
data management) .
PUBLISHED DATABASES:
They are divided in three sub-categories:
a. General or private sources
b. Government sources
c. International publications
 a. General or private sources:
They are usually expensive than government sources.
Following are examples and sub-categories of various
general sources of secondary data. They provide
information in various classes and categories. For
example, a Telephone Directory can be useful as a
sampling frame & to study a few demographic
characteristics like community & religion. Following
are various general published sources:
Directories of various associations. For example, in
Surat there are many associations like Hotel Owner’s
Association, Processor’s Association, Weaver’s
Association, Medical Practitioner’s Association,
Association of architects, Association of Chartered
Accountants. Association of all industries & business
units which is Southern Gujarat Chamber of
Commerce & Industry.
Telephone Directories:
Yellow Pages: Which are usually industrial or commercial
directories prepared for a geographical region. They are
available either free of cost to citizens of that region or at
nominal cost.
Industrial Directories: Often they are compiled by
associations of that industry or by private publishing
houses. For example: A private publishing group in Mumbai
publishes a well compiled directory of entire chemical
industry in India.
Magazine and News Paper Archives especially related to business:
There are many news papers related of business, economy &
commerce. Economic Times, Financial Express, Business Standard etc.
are leading dailies in this category. There are many magazines which
are published by private publishers & they are applicable for a
particular industry. Following are a few examples:
‘Overdrive’ & ‘Auto India’ for automobile industry.
‘Business India‘ , ‘Business Outlook’, ‘Outlook Money’, ‘Dalal street’
for Indian Economy.
‘Fortune’, ‘Forbes’ & ‘Wall Street’ for American & world economy.
‘Chip’, ‘Digit’ & ‘E-Business’ for computer & information technology.
Booklets of various Statistical Data: Like data on
inflation, rainfall, agricultural outputs, industrial
outputs, market share of various companies, TRP
ratings of various channels and various programmes,
share prices and financial performances of various
companies. Bureau of Indian Standards, Archive of old
an important verdicts of High Courts & Supreme
Courts. These booklets can be specially published or
this data can be also available from various non-
government sources & publications.
Journals and News Letters of various
associations and organizations: For example,
there are magazines and journals published by
All India Management Association, Council of
architects, Association of Chartered
Accountants, Federation of Indian Chambers of
Commerce & Industry ( FICCI ), NSE, BSE etc
Old Research Reports put in libraries of academic
institutes:
Compilation of lectures and speeches of various
experts, industry & business leaders.
Text Books on Management also contain many
secondary data especially about outcome of past
researches.
Annual reports of companies
b. Government Sources of Published Data:
Official Publications of Central Government:
1. Office of Registrar General & Census Commissioner of
India publishes data on census which contain a lot of
demographic details. These data are collected every 10 years
& are annually updated by another organization called
National Sample Survey Organization ( NSSO ).
2. Directorate General of Commercial Intelligence
publishes data on commerce & business mainly in
manufacturing & service sector of economy.
The Directorate General of Foreign Trade (DGFT) under Ministry of
Commerce
Government data on inflation and economic indices
Annual banking report of RBI sent to all relevant organizations & to
colleges.
Government data on past & future infrastructure spending.
Data available with State Governments, Municipal Corporations.
Government data on man-power availability.
Data available with our embassies in foreign capitals on probable
buyers and suppliers of various products in those countries.
Indian Agricultural Statistical Research Institute
Bureau of Indian Standards
Indian Council of Social Science Research (ICSSR).
Secondary data available with institutes created by Governments For
example: National Productivity Council, Central Institute of Plastic
Engineering & Technology (CIPET), Indian Institute of Packaging,
Indian Institute of Fisheries & Marine Sciences
There are many Export Promotion Councils for various product
categories. like., Gems & Jewelry Export Promotion Council.
c. International Publications:
We can include budgets of governments of various countries,
UN Statistical Year book, WHO reports, IMF & World Bank
reports etc.
These reports are very useful to those organizations whose
businesses are developed in several countries. For example,
all MNCs eagerly await announcements of WHO about
various health-care projects. IF WHO announces Tuberculosis
(TB) eradication prorgramme in Brazil & India, it means huge
purchases of TB vaccines & it also means that after 20 years,
there will be hardly any demand of TB medicines.
COMPUTERIZED DATA BASES:

These data are available in digital or

computerized format. There are two versions of
this data sources they are no different sources:
a. On-line sources
b. Off-line sources
a. On-line sources:
They are available any time on Internet. For
example, population data of Surat city is on SMC
web-site. Export Import data of India are available
on web site of Ministry of Commerce,
Government of India.
Entire government data-base is managed by
one nodal web-site called www.nic.gov.in. There
is one more version of on-line data bases. In this
version, data are put on a centralized computer.
External users can access this data via
telephone line which can also be linked with
computer of users.
b. Off-line sources:
Often in our normal conversation language, we
call this data as “Soft Copy“ of data. As one can
understand, they are usually available on CD-
ROM. In some special cases, other data storage
device can also be used. We already have yellow
pages & telephone directories on CD.
The advantages are many when compared to
printed or published data. You no longer carry
bulky books. You can take multiple copies
economically. They are already in digital format
and hence further processing is very easy. There
is a supportive programme to operate this data
and hence searching relevant part of large data
is very fast & easy.
DATA SELLING FIRMS:
There are project consultants and publication
houses whose only business is to compile & sell
secondary data. In Mumbai & in Delhi, there are
many project consultants who sell very nicely
compiled project reports. There are many law
book publishers who sell compiled book-lets of
old Supreme Court & High Court verdicts.
These verdicts can be effectively used by
lawyers while fighting similar cases in lower
courts. In US, there is a reputed publication
house called Thomas Publications. They publish
Thomas Register of American Manufacturers.
This register contains properly classified &
exhaustive listing of entire manufacturing
sector of US.