UDIT WADHWA CLASSES

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Collection of Data
Primary and Secondary Data—The Basic Difference
 Primary Data: Primary data is the collection of data collected by the investigator for his
own purpose for the first time.

 Secondary data: Secondary data is a second-hand data that is already collected by some

researchers for their purpose.

BASIS FOR PRIMARY DATA SECONDARY DATA

COMPARISON

Meaning Primary data refer to the Secondary data means

first-hand data gathered data collected by someone
by the researcher himself. else earlier.

Data Real time data Past data

Source Surveys, observations, Government publications,

questionnaire, personal websites, books, journal
interview, etc. articles, internal records
etc.

Cost effectiveness Expensive Economical

Collection time Long Short

Specific Always specific to the May or may not be specific

researcher’s needs. to the researcher’s need.

Accuracy and Reliability More Relatively less

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 Direct personal investigation is the method by which data are personally collected by
the investigator from the informants.

Ex- Direct contact with the workers of an industry to obtain information about their
economic conditions is an example of this method.
Suitability
This method of collecting primary data is suitable particularly when:
(i) the field of investigation is limited or not very large.
(ii) a greater degree of originality of the data is required.
(iii) information is to be kept secret.
(iv) accuracy of data is of great significance, and
(v) when direct contact with the informants is required.
Merits
(i) Originality: Data have a high degree of originality.
(ii) Accuracy: Data are fairly accurate when personally collected.
(iii) Reliability: Because the information is collected by the investigator himself,
reliability of the data is not doubted.
(vi) Flexible : This method is fairly elastic because the investigator can always make
necessary adjustments in his set of questions.
Demerits

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(i) Difficult to Cover Wide Areas: Direct personal investigation becomes very difficult
when the area of the study is very wide.
(iii) Costly: This method is very expensive in terms of the time, money and efforts
involved.
(iv) Limited Coverage: In this method, area of investigation is generally small. The
results are, therefore, less representative. This may lead to wrong conclusions.

 Indirect oral investigation: It is the method by which information is obtained not from
the persons regarding whom the information is needed. It is collected orally from other
persons who are expected to have the necessary information, these other persons are
known as witnesses. For example, by this method, the data on the economic conditions
of the workers may be collected from their employers rather than the workers
themselves.
Suitability
(i) the field of investigation is relatively large.
(ii) When it is not possible to have direct contact with the concerned informants.
(iii) the concerned informants are not capable of giving information because of their
ignorance or illiteracy.
Merits
Some of the notable merits of this method are as under:
(i) Wide Coverage: This method can be applied even when the field of investigation is
very wide.
(ii) Less Expensive: This is relatively a less expensive method as compared to Direct
Personal Investigation.
(v) Simple: This is relatively a simple approach of data collection.
Demerits:
(i) Less Accurate: The data collected by this method are relatively less accurate. This is
because the information is obtained from persons other than the concerned
informants.
(ii) Biased: There is possibility of personal bias of the witnesses giving information.
 Information through correspondents: Under this method, the investigator appoints local
persons or correspondents at different places. They collect information in their own way
and convey to the investigator.
Suitability
(i) regular and continuous information is needed.
(ii) the area of investigation is large.

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(iii) the information is to be used by journals, magazines, radio, TV, etc. and
(iv) a very high degree of accuracy of information is not required.
Merits
(i) Economical: This method is quite economical in terms of time, money or efforts
involved.
(ii) Wide Coverage: This method allows a fairly wide coverage of investigation.
(iii) Continuity: The correspondents keep on supplying almost regular information.
(iv) Suitable for Special Purpose: This method is particularly suitable for some special
purpose investigations e.g., price quotations from the different grain markets.
Demerits
(i) Loss of Originality: Originality of data is sacrificed owing to the lack of personal
contact with the respondents.
(ii) Lack of Uniformity: There is lack of uniformity of data. This is because data is
collected by a number of correspondents.
(iii) Personal Bias: This method suffers from the personal bias of the correspondents.
(iv) Less Accurate: The data collected by this method are not very accurate.
(v) Delay in Collection: Generally, there is a delay in the collection of information
through this method.

 Information through Questionnaire

A questionnaire is a research tool used to collect data by presenting a set of
questions to respondents
Characteristics of a Good Questionnaire:
 Limited Number of questions: The number of questions in the questionnaire should be
as limited as possible, and questions should be asked only related to the purpose of the
inquiry.
 2. Proper sequence of questions: Questions must be placed in the proper sequence, like
simple and direct questions must be placed at the start of the questionnaire, and hard
and indirect questions must be placed at the last.
 3. Simplicity: The language of the questions should be simple and easy to understand,
and the questions should be short. Complex questions must be avoided.
 4. Instructions: A good questionnaire must have clear and proper instructions for filling
out the forms.
 5. No undesirable questions: Undesirable questions like personal questions, which can
offend the respondents, must be avoided.

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 Calculations: Questions involving calculations must be avoided, as they can be complex

and time-consuming.
 . Objective-type questions: More focus should be given to objective-type questions,
whereas subjective-type questions should be avoided.

o Published Sources
Some of the published sources of secondary data are:
(i) Government Publications: Ministries of the Central and State Governments in India
publish a variety of Statistics as their routine activity. As these are published by the
Government, data are fairly reliable. Some of the notable Government publications on
Statistics are: Statistical Abstract of India, Annual Survey of Industries, Agricultural
Statistics of India, Report on Currency and Banking, Labour Gazette, Reserve Bank of
India Bulletin, etc.
(ii) Semi-Government Publications: Semi-Government bodies (such as Municipalities
and Metropolitan Councils) publish data relating to education, health, births and
deaths. These data are also fairly reliable and useful.
(iii) Reports of Committees and Commissions: Committees and Commissions
appointed by the Government also furnish a lot of statistical information in their
reports. Finance Commission, Monopolies Commission, Planning Commission are
some of the notable commissions in India which supply detailed statistical information
in their reports.
(iv) Publications of Trade Associations: Some of the big trade associations, through
their statistical and research divisions, collect and publish data on various aspects of
trading activity. For example, Sugar Mills Association publishes information regarding
sugar mills in India.
(v) Publications of Research Institutions: Various universities and research institutions
publish information as findings of their research activities. In India, for example, Indian
Statistical Institute, National Council of Applied Economic Research publish a variety of
statistical data as a regular feature.
(vi) Journals and Papers: Many newspapers such as ‘The Economic Times’ as well as
magazines such as Commerce, Facts for You also supply a large variety of statistical
information.
(vii) Publications of Research Scholars: Individual research scholars also sometimes
publish their research work containing some useful statistical information.
(viii) International Publications: International organisations such as UNO, IMF, World
Bank, ILO, and foreign governments etc., also publish a lot of statistical information.
These are used as secondary data.

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 Unpublished Sources
There are some unpublished secondary data as well. These data are collected by the
government organisations and others, generally for their self use or office record.
These data are not published.

Precaution for the Users of Secondary Data Users of secondary data must check:
(i) reliability of data,
(ii) suitability of data, and
(iii) adequacy of data.

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Sources of secondary data –

Published sources:

 Govt. publication.

 semi-Govt. Publication.

 Reports of committees & commissions.

 Private publications e.g., Journals and Newspapers research institute, publication of trade
association.

 International publications.

Unpublished Sources -
The statistical data needn’t always be published. There are various sources of unpublished
statistical material such as the records maintained by private firms, business enterprises,
scholars, research workers, etc. They may not like to release their data to any outside
agency.

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